Creating a strategy in the Designer program. Let’s discuss an example of creating a trading strategy in a program based on the MACD indicator values. The indicator’s goal is as follows: 1. If the MACD indicator histogram crosses the zero line from top to bottom, this is a sell signal. 2. The transition of the histogram from the negative to the positive zone is a buy signal. Therefore, it is necessary to create conditions under which a trade will be made, namely, if the indicator value on the next candle changes its sign, then the signal is sent to make a trade. To create a strategy, we need: - Run the program. 1.png - Select the Variable, Candles and Chart Panel blocks, connect them. 2.png - Select an instrument with which we will test the strategy. 3.png - Plot a candle chart. 4.png - Select the Indicator and Chart Panel blocks. Connect the Indicator and Candles blocks. 5.png - Plot a chart of the MACD indicator. 6.png - Select the Variable block and assign it a numeric value of 0 for further comparison with the indicator value. 7.png - Select the Comparison block and set the test condition in the properties: execution during the test, with the MACD indicator value greater than 0. - Add two Variable blocks and Comparison block. One of the variables is set to -1 in the block properties. It will indicate the transition of the MACD curve value from negative to positive area. The second Variable value is set to 0 in the properties, that will indicate the initial indicator value. - Set the condition in the Comparison block that will be fulfilled if the initial indicator value for the time frame is greater than the current one. - Connect the Variable blocks via a trigger socket with the Comparison blocks, as shown in the figure. Select the Logical Condition and Variable cubes. 8.png - The execution condition of two comparisons will be checked in the Logical Condition cube. Set the AND condition in the properties of the Logical Condition cube and connect the cubes as shown in the figure. 9.png - Set the value equal to -1 in the Variable cube and connect it with the Logical Condition cube via a trigger socket, and through the output connect to the input of the cube with a value of 0. This will allow overwriting the checkbox value when conditions are met, indicating within what range of values the MACD indicator curve is. 10.png - Select the Open Position block, select the Buy direction in the settings and connect data and trigger with the socket, as shown in the figure. 11.png - Select two Variable blocks in which to set the volume and portfolio for trading. Connect them with the corresponding sockets of the Open Position block. 12.png - Similarly, create a routine for the Sales execution. 13.png -The strategy is ready, let’s run it. 14.png
The growth of activity in the world markets among traders, as well as the constant progress of technology, led to an increase in the speed of actions carried out by players on the trading floor. Today, many traders actively working with various financial instruments prefer trading robots rather than manual trading. This is largely due to the speed of operations and their volume. Let's see, what is a trading robot? A trading robot is a special program created by a special algorithm, according to which it conducts trading operations. Let's take a closer look at the features of such programs. The trading robot program allows you to fully or partially take over the process of working on the trading floor. The trader, as the operator of the trading robot, has the possibility of full control over it, which allows the robot to adjust the trading robot, make changes to the program code or change the algorithm. The trading robot in Autonomous operation independently makes decisions on orders and transactions, according to the established criteria of its algorithm, with intervention in the user's process, operations can be carried out in manual mode. The program code of the trading robot is based on calculated and thought-out mathematical sequences. Keeping track of different data such as indexes, indicators and other market data obtained from the exchange. The trading robot program decides whether to buy or sell certain assets. The speed of reaction to market changes, allows the trading robot to make much more transactions, respectively, potentially bring greater profits and reduce losses. algorithmic-trading-forex.jpg Let's return to the main task of the trading robot. We can say that the task of a trading robot to simplify trading for a trader is not the main one. The main task of the trading robot is to be able to implement through programming trading algorithms that are difficult or impossible to implement in manual trading. Simply put, a trading robot is a set sequence of actions for making a trade. From the total mass of trading robots, it is necessary to distinguish three main groups that differ in the algorithm of work or the type of strategy. - Trend (directional) or directional; - Countertrend; - Arbitral. trade-robot-strategy.jpg Let us consider in more detail the features of each type of trading robots. 1. Trend or directional robots. The purpose of the robot is the fastest response to the trend of the market, in other words to track in which direction the market has turned. Depending on the direction, the trading robot automatically opens a position either by selling or buying. Accordingly, if the market changes its direction, the trading robot performs the opposite action as quickly as possible, opening a position. 2. Countertrend trading robots. Their goal is to track price rollbacks. This trading robot monitors price rollbacks occurring in the flat position of the market and places orders based on the established algorithm. 3. Arbitrage trading robot. This trading robot is almost the most popular type. A trading robot such as "Edward", for example, makes a profit by determining price differences between similar or identical instruments in different markets. In fact, he buys in one market, sells in another, compensating for the difference and making a profit. trade-robot-api.png Another way is the separation of robots: - Candlestick. These are trading robots that use candlestick data to determine signals for placing orders. - Indicator. These robots use indicator data to open an order. Let's talk about building a trading robot. The very writing of program code is not a difficult task, reduced to the knowledge of programming languages. It is much more difficult to find the right way to create a trading algorithm on the basis of which a trading robot is created. Today, up to 50% of transactions on trading platforms are made by trading robots. Trading robots are rightfully considered one of the most reliable and effective trading tools. There's an explanation : - Trading robot simplifies the work of transactions with a large volume of the lot, dividing the application into smaller parts and making transactions in parts; - Trading robot reduces the labor of the trader, making trading operations automatically. This contributes to an increase in the volume of transactions, increase the profits that trade brings, and, importantly, reduces the possible loss; - While remaining automatic, the trading robot can always be switched to manual mode, that is, it remains completely under the control of its owner; - A huge list of tools and methods that can be used by a trading robot, allow us to say that the trading robot makes it possible to realize the most complex mathematical problems for trading; - The trading robot does not have the criterion of emotionality, in fact, it soberly operates its inherent mechanism. Does not panic in a stressful situation. HFT-trade-forex.jpg When analyzing trading robots, a trader must choose the right path for himself, on the basis of which he will be able to choose a robot for himself. A trader should understand that a trading robot is not decision for 100% success. In addition to the trader, it is important to know the platform for the implementation of such trading robots. There are quite a lot of them (TSlab, S#.Designer). holy-grail-forex.jpg exchange-trade-strategy.png Summing up, we can say that the trading robot is reliable and convenient functionality in the arms of the trader, the most important thing is to use it correctly when conducting exchange trading.
Before you start talking about algo trading, you need to define it. So, what is algo trading? There is a different definition of this concept, only its essence and the principles on which the work is based remain unchanged. Algo trading-trading, which takes place through a fully automated algorithm, which prescribes the trader, the execution of which potentially brings profit to the trader. In fact, it is a program that carries a sequence of actions. trading_robot.jpg The trader himself makes and determines the sequence of applications for purchase or sale, indicating the order of management of his funds. The money management conditions set by the trader as program parameters determine the necessary or optimal size of investments, for example, purchased securities. Similarly, this system manages the allowable loss or risk at which the size of the loss will be acceptable. In this case, risk management is performed by setting the stop loss algorithm. The absence of feelings and emotions in the algorithmic program allows to avoid nervous breakdowns or other emotional outbursts. This is certainly a plus, since the work of a trader often occurs on the verge of nervous tension, and sometimes a person can lose his nerves, which will entail a rash step and as a consequence of loss. At the same time, the trader has the opportunity to intervene in the work of the trading strategy, making the necessary adjustments. The task of algo trading is the exact execution of the instructions of its system. Often in some sources you can see the name of mechanical trading systems (MTS), but algo trading is the most common name. In fact, the algorithm is " mechanically " executed by the program, excluding judgments about the market situation and the state of various instruments. I must say that the "mechanical" system is not always automated. The latter, unlike the first, independently makes transactions, with the participation of a person is not required or minimized. trade_systems.jpg Experts note that the algorithmic trading consists of two stages. Let's take a closer look at them. At the level of the first stage, the trader creates his "mechanical" strategy. After creation, the process of testing on the market data, and subsequently, when the strategy reaches the desired level of potential profit, testing goes into real time or real trading. Note that the last stage takes place when using minimal capital, as it is testing, and some traders prefer it to "trade on paper". At the same time, profitability is not the only criterion that gives an assessment of the efficiency of the strategy. Let's talk about the means of creating and then testing the created strategies. Such tools may include special programs designed for technical analysis of algorithmic systems created. The most famous are: carried out using specialized programs: MetaStock, S#.Designer, Wealth-Lab, Tslab and others. The strategy program is written in various programming languages such as: C#, C++, LUA and others. The recorded algorithm makes it possible to use the downloaded market data to test the strategy, and in the future allows you to place orders in the programs used for trading. It is worth noting that strategies can be created as in constructor programs for example: S#.Designer, Tslab, in which the strategy is created on the basis of cubes, and the program is a scheme, and in programs where direct programming is used MetaStock, Wealth-Lab, including using ready-made libraries, such as S#.API. The second stage of development begins after the trader's strategy has been fully tested and is ready for real trading. The second stage is implemented approach strategy or a trading robot that will trade the set algorithm or the trader selects the manual bidding process on a signal received from created strategy. The trader connects the export of stock market data obtained in real time to the program in which his trading strategy is created. The strategy processes the data and based on the result, sends a signal to submit applications. Again, what alarm action strategy can be done manually by a trader, and can be delegated to a trading robot, which places bids automatically according to the algorithm, for example in systems like S#.Designer, MT4, TSlab. Trade_Strategy.jpg It should be remembered that the creation of a trading robot does not relieve the trader of responsibility for the trade itself. The trader must constantly monitor the work of his robot, edit the terms of transactions according to the changing situation in the market. Should be said, when working on long time frames, comparable, for example, with an hour, the automation of placing orders may disappear, since the trader is able to correlate and manage the trade on long periods. Any chosen direction of algo trading can undoubtedly bring profit to the trader, but the approach should be deep, not just at the level of the chosen algorithm, it is necessary to take into account the tools on which the trade will be conducted, the software. An important rule is analysis and testing, it always minimizes your losses.
To simplify the work with indicators, you can build and save them in Hydra. Let's consider the order of construction of the chart of the indicator of exchange trade on the example of the indicator SMA (simple moving average): 1. Run the Hydra program. 2. Select the stock data source. (1.1) 1.png 3. Right-click, and in the drop-down list select View Downloaded (1.2) 2.png 4. Select the “chart” icon and plot the history of stock quotes (1.3) (1.4) 3.png 4.png 5. Right-click in the chart area and select the Indicator item. (1.5) 5.png 6. From the drop-down list, select the indicator of stock quotes we need, in our case SMA, and click OK. (1.6) 6.png 7. On the market data chart, the stock quotes indicator curve will be displayed. (1.7) 7.png 8. To plot the SMA indicator chart separately, we need to click the “+” button in the upper part of the stock quotes history chart area, and in the field that opens below click the right mouse button. Select the Indicator item, select the required indicator in the list and click OK. (1.8) (1.9) 8.png 9.png 9. The stock quotes indicator chart will be plotted in a separate window. (1.10) 10.png The considered functionality of the Hydra program allows you to apply indicators calculated from the downloaded market data on any platform, which makes it easier to work with trading algorithms. Enjoy using the program.