exchange. StockSharp

Designer Knowledge Base

2019-04-25T12:28:29Z

Frequently asked questions about Designer:
1. How to download market data to the program?
2. How and where to specify an instrument for strategy backtesting?
3. How to create a condition in the strategy?
4. Compound indicators, methods of their decomposition.

S#.Designer syllabus.

2019-05-16T23:12:23Z

All video-lessons are available via the links below.
All samples for lessons can be installed via S#.Installer.
For Basic course you need the packet: Edu Designer Basic
For Advanced course you need the packet: Edu Designer Advanced

Basic course.

1. S#.Designer basics
The lesson covers:
- Installing the program
- Configuring the interface of the program windows
- Examines the main sections of the Program menu
- Examines the sections of the strategy tree
- Shows how to download instruments and market data for the first time
- Shows how to start testing a strategy on the built-in SMA strategy.

(The new version of the designer, like all programs, is installed through the Installer program.
The fifth version of the designer lacks the ability to select the themes of the designer, which was present in the fourth version)

2. Visual editor and strategy designer blocks - 1.

The lesson covers:
- General description of strategy cubes
- Examines the sections of the strategy cubes menu
- Examines the cube chart panel
- Examines the construction of candlestick charts
- Examines the construction of charts of the SMA and Bollinger indicator in the same window and in different windows

(In the fifth version of the program, the location of some cubes in the menu has changed.
In the fifth version, the mathematics section is replaced by a formula cube.)

3. Visual editor and strategy designer blocks - 2.

The lesson covers:
- Description of the cube Variable and examines examples of the use of the cube
- Examines the Logic cube and an example of its application
- Examines the Previous value cube and an example of its application
- Examines the Mathematics section and the use of cubes that are included in it
- Examines the Converters section (cubes "Indexer" and "Converter") and an example of sharing the cubes of the section
- Considers the cube "Opening a position"
- Considers the cube "Position" and the scheme in which it is applied
- Considers the cube "Comparison" and an example of its application
- Considered building a simple strategy:
If the closing price of the previous candle is less than the closing price of the current one, then we buy, if not, we sell.
- Considers the "Comparison" cube and an example of its application

(In the fifth version, the mathematics section is replaced by one formula cube. In the fifth version of the program, the "Position opening" cube is replaced with "Position registration")

4. Work with the strategy scheme.

The lesson covers:
- Debugger tools
- Working with breakpoints is considered on the example of a circuit
- On an example, the possibility of imposing additional conditions on triggering a breakpoints is considered

5. Visual editor and strategy designer blocks - 3.

The lesson covers:
- Considers the cube "Position protection"
- A strategy is built using the "Position protection" cube:
If the difference between the closing price and the opening price of the candle is greater than 1, then we buy.
We sell position protection through the cube, provided that:
Take Profit - the price increases by 2%
Stop Loss - the price decreases by 3%
- An example of constructing the conditions for triggering transactions has been analyzed, in which Buy and Sell transactions go sequentially one after the other (the simplest flag)
- A scheme has been built for obtaining the absolute value of a position and doubling its value
- Using the example of the scheme from lesson three and the scheme for obtaining the absolute value of the position, the following scheme is obtained:
If the closing price of the previous candle is less than the closing price of the current one, then we buy, if, on the contrary, we sell.
If the position is not equal to zero, then the trade is carried out with a double volume

6. Visual editor and strategy designer blocks - 4.

The lesson covers:
- Examines the cubes of the "Mathematics" section - formulas, including examples of their use
- Considered the construction of the scheme:
If the closing price of the previous candle is greater than the value of the SMA indicator for 20 periods plus 3 standard deviations for 20 periods, then we sell by candle open price.
If the closing price of the previous candle is less than the value of the SMA indicator for 20 periods minus 3 standard deviations for 20 periods, then we make a buy at the opening price of the candle.

(In the fifth version of the program there is no section "Mathematics", all the cubes of this section used in earlier versions of the program are replaced by one cube formula.
In the fifth version of the program, the cube "Position opening" is replaced by the cube "Order registration".)

7. More strategies.

The lesson covers:
- The construction of a diagram based on the Bollinger indicator is considered:
If the candlestick crosses the upper curve of the Bollinger indicator, then we buy.
If the candlestick crosses the lower curve of the Bollinger indicator then we sell.

- Considered the construction of the scheme based on the MACD indicator:
If the MACD curve changes its sign from minus to plus, then buy.
If the MACD curve changes its sign from plus to minus, then we sell.

- Considered a visual comparison of the results of two strategies
- Considered exporting test results to a file for subsequent analysis

8. Visual editor and strategy designer blocks - 5.

The lesson covers:
- The construction of a scheme using candles of different TFs is considered:
First branch: The strategy will buy if the closing price of a five-minute candle is greater than the maximum of 20 previous days.
The strategy will sell if the closing price of the 5 minute candle is less than the previous 10 day low.

The second branch: The strategy will sell if the closing price of the five-minute candle is less than the minimum of the previous 20 days.
The strategy will buy if the closing price of the five-minute candle is greater than the high of the previous 10 days.

(In the fifth version of the designer, the appearance of the flag cube was changed. Also, in the fifth version of the designer, the strategy was changed in terms of the appearance of 2 sell cubes and 2 buy cubes, due to a different principle of receiving a signal to the trigger.)

9. Time Cubes.

The lesson covers:
- Considered the "Working time" cube
- Considered the "Variable" cube with the "Strategy" value
- Considered the "Converter" cube with the function of getting time
- Considered the strategy of working with the "Working time" cube with the condition:
Strategy buys a minute before the end working time.
- Considered an example of working with the "Working hours" cube:
The strategy buys at 18.00.
- Considered a 7th lesson strategy with additional conditions:
The strategy closes a position 5 minutes before the end of working hours.

(In the fifth version of the designer, for correct work with the formula that calculates the time and the cube "Working time", after importing the strategies, it is recommended to recreate them)

10. Working with market data. S#.Data (Hydra)

The lesson covers:
- Considered examples of choosing a market data store
- Considered an example of working with the S#.Data (Hydra) program
- Considered a server mode of working with S#.Data (Hydra) program
- Considered an example of using a market data transmitted through a server mode

(In the fifth server-mode version does not contain WCF mode.)

11. Backtest and optimization.

The lesson covers:
- Considered the basics of strategy optimization
- Considered strategy optimization based on changing the indicator parameter used in the strategy
- Considered the principle of portfolio optimization of a strategy on various instruments

12. Live trading.

The lesson covers:
-Example of setting up a strategy for connecting to Live mode

Advanced course.

13. Composite Cubes.

The lesson covers:
- Considered the "Union" cube
- Considered the principle of working with a compound cube using the example of creating a cube for closing a position
- Considered an example of introducing a compound cube "Closing a position" into an existing strategy from lesson 9

14. Creating candles from ticks.

The lesson covers:
- Considered how to download ticks in the program
- Considered how to build candles from the "Depth of Market"
- Considered the modes "Build", "Downloads", "Load and build" candles
- Considered an example of building volume candles
- Considered an example of plotting a Range of candles
- Considered construction of candles from Ticks
- Considered the construction of candles from candles of a smaller TF
- Considered the use of candles built in the S#.Data (Hydra)
- Considered building a volume profile

15. Building the Flag component cube

16. Strategy based on finding the price of the maximum volume.

The lesson covers:
- Considered the function of the "Converter" cube. Maximum volume
- A strategy has been built in which candlestick data is built from ticks, with the following conditions:
The strategy buys if the closing price is higher than the opening price of the candle.
The strategy sells at the sixth candlestick.

(In the fifth version, the Flag cube was changed, as well as the condition for raising the flag. In the fifth version, the formula block cubes were replaced with the formula cube.)

17. Indices and multiple security strategies - 1.

The lesson covers:
- Considered working with stock indices
- Considered working with futures on the example of a strategy with conditions:
If the index calculated by the SBER @ TQBR / SRM9 @ FORTS formula is less than the average value for 10 periods, then Sberbank shares are sold.
If the index calculated by the SBER @ TQBR / SRM9 @ FORTS formula is greater than the average value for 10 periods, then we buy Sberbank shares.
- The function of constructing a continuous futures is considered
- A strategy with a continuous futures is built with the condition:
If the current value of the SBER @ TQBR / SBER_СF @ FORTS index is 0.005 units above the average, sell the instrument Sberbank Shares and buy the instrument of Sberbank shares.
If the current value of the SBER @ TQBR / SBER_СF @ FORTS index is 0.005 units lower than the average, buy the Sberbank Shares instrument and sell the Sberbank shares instrument.
- Based on the strategy, an example of building a scheme with cancellation of an order is considered

18. Indices and multiple security strategies - 2.

The lesson covers:
- Considered a pair trading strategy based on the previous strategy.
If the index calculated by the SBER @ TQBR / GAZP @ TQBR formula grows, then we buy a cheaper asset and sell a more expensive one.
If the index calculated using the SBER @ TQBR / GAZP @ TQBR formula decreases, then we buy a more expensive asset and sell a cheaper one.
- Considered the round operator - to get an integer value

19. Indices and multiple security strategies - 3.

Lesson highlights:
- Considered a pyramiding strategy based on the previous strategy from the previous lesson.

20. Working with the editor of the program code-1.

The lesson covers:
- Considered the "Source Code" cube
- Considered the principle of creating a cube with a code
- Considered the principle of creating your own unique cube with a code

(Today the StockSharp website does not have a direct link to Github, so you need to go to it not through the website)

21. Work with the program code editor - 2.

The lesson covers:
- Considered the creation of cubes on C# in Visual Studio
- Considered the DLL cube
- Considered the principle of working with S#.API libraries in Visual Studio

22. Export and import of strategies in the program.

You can buy any course right now from our site

Different candles - one program!

2022-09-09T08:05:16Z

Candlesticks in stock trading are a constant and necessary attribute.
Today there are no traders who do not turn to candlestick charts and do not track market changes based on it.
The history of the "candle" display of market behavior is rooted in the past, in Japan of the 18th century, when a sequence of "candles" began to visually depict the price maximum and minimum for a certain period, as well as prices at the beginning and end of this period.
It makes no sense to describe the composition of the candle, since any trader knows these basics.
Speaking in the context of analysis, candlesticks are the basis of all fundamentals, an experienced trader can only look at the chart to determine the changing situation.
Sometimes a trader does not just determine the situation on the market, but is also able to predict changes , since the market tends, under similar conditions, to react equally to "stimuli".
As I wrote earlier, the abundance of trading tools only provide an opportunity to make deals, turning trading into an exclusively intuitive and speculative action.
Serious, not mass trading, requires a systematic approach, that is, you can't just take a terminal and start trading, initially you need to have knowledge .
This knowledge is based not only on the practical part - trading, but also includes a deep analysis of the market, its behavior on certain events.
Such reflections are clearly demonstrated by candles.
For most users, candles are the maximum and minimum for the period, but the variety of candles can surprise.
Each type of candle has its own meaning for the trader, and is able to provide him with a full amount of information on the desired asset or group of assets.
So, various candlesticks may be needed for analysis, but it is quite problematic to get market data for them.
Most programs and resources for downloading market data do not provide such information , and those that can provide do not allow you to get data on several types of candles at once .
The second problem is the need to convert data into the desired format for graphical representation of candlesticks and "visual" analysis.
Do not forget about the cost of such programs, which are rarely even "shareware".
As mentioned earlier, S#.Data solves these problems.
It allows not just to build candlesticks of various types, but also to save them, which is not a little important for further use.
Almost all sources do not directly broadcast market data on such candles, respectively, the problem for most programs becomes unsolvable, but S#.Data solves it by constructing such unique candles through other downloaded market data. For example from Ticks.

- For example, Volume Candlesticks, which display the volume of transactions for the selected period, and provide information about the activity of the instrument.

And it is just as easy to plot their schedule

- The program allows you to get Renko candles. The ranko chart clearly defines the main trend. Such a chart is useful in order to determine the key support and resistance levels, since it averages the main trend, small price fluctuations are not reflected, this allows you to focus on really significant movements.

Also, after receiving the market data, we build a graph.

- Equally important candles - Range candles. The peculiarity of this chart is that new candles are built depending not on the timeframe, but on the range that the price has passed . Accordingly, it is more convenient for the user to track price fluctuations.

And we also build a schedule.

- In addition to the candlesticks listed above, which are quite familiar to traders and their charts, Hydra allows you to get unique, but necessary data in the analysis.

So for example PnF candles (tic-tac-toe)

Or candlesticks Heiken Ashi Candles, used to track the market trend.

So S#.Data allows you not only to get ready-made market data, but also to build such data, the receipt of which is not possible. Moreover, it allows you to immediately build charts, combining all the stages for market analysis, reducing the financial and time costs of the trader.

That's it. See you in new articles.

Changing the conditions for receiving updates

2021-11-17T10:36:36Z

From November 30, 2021 the StockSharp project changes the order in which new versions of all paid products are received.

What does this mean for you?

If you purchased our any connector until November 30, 2020, then in order for to receive its updates after this date , you will need to renew your subscription.

If you purchased connector after November 30, 2020, then you will continue to receive updates until the expiration of the year from the date of purchase. After this date, you will also need to renew your subscription.

Subscription renewal is carried out at a special price with a discount of 50% from the base cost of the paid product. Discounted renewal is available at any time prior to the expiration of subscription and within 15 days from its expiration date.

You can opt out of updates and use the version of the connector that you have, your license will continue to be valid.
However, if you again want to receive updates and at the same time miss the grace period , then after this date, then the extension is carried out without discounts at the base cost of the product.

We are discontinuing support for connectors!

2021-10-04T09:31:56Z

Good afternoon!

Friends, from 31/10/2021, we plan to stop supporting a lot of unused connectors.
Today we are asking you which connectors you use, and which connectors of them you would like to keep!
Leave your comments, share your opinion.
Now you can help us make a choice.

Platform updates. July 2021

2021-07-06T13:36:08Z

Important platform updates!

On July 05, 2021, a number of updates were released.
The changes affected the Plaza 2 Cgate and FIX/FAST connectors. They now fully comply with the changed protocol on the Moscow Stock Exchange.
The OKEX connector now supports the v5 API, which will soon become the only API supported by the exchange. Read more about this here.

Trading for beginners. Stock market.

2020-04-21T21:51:00Z

Today's article will not be quite ordinary.
We often write articles relying on the fact that most users have experience in trading on the exchange. However, among our readers, there are more and more people who do not have knowledge about the exchange, brokers, the market and trading in General.
We would like to change this and tell you a little bit about the structure of trading, so that everyone, even a beginner, has an idea of what they might face.
This will not be a manual for dummies, it will be an article that helps the user who first came to trade navigate.

First, let's tell you what the exchange is and how it works.

The exchange is a fundamental link in market trading.
It, like any commercial enterprise, is a legal entity and its activities are regulated by regulations and legal acts established by the state.
An exchange is a mechanism through which various market participants interact, which are consumers of various financial instruments, such as: currencies, raw materials, and securities.

As mentioned earlier, the exchange's work is strictly regulated, so we can firmly say that its work is strictly ordered, namely:
- Trading is not chaotic, but orderly, strictly at a set time, with strictly set instruments,
- Trades are held strictly in a designated place or on a strictly approved virtual trading platform (electronic exchange),
- The requirements and terms of trade for each exchange are unified, which makes it possible to comply with the procedure for transactions, requirements for the quality of goods or services provided, depending on the type of exchange,
- The trading mechanism is carried out through counter offers of purchase and sale by interested market participants.
The purpose of the exchange is to organize and regulate the markets of the financial instruments that it represents. The exchange regulates the supply and demand process in order to equalize prices and protect the interests of all trading participants from various negative price changes.

Today, there are a huge number of exchanges, each of which trades various financial instruments. You can see the choice of a variety of trading platforms when working with trading programs. For example, S#.Terminal allows you to select the trading platform that the user needs, including a large number of electronic exchanges.

This abundance is both positive, as it leads to increased trading opportunities, and negative in terms of the complexity of the choice for the novice, although the latter is rather subjective, since later, the trader understands the trading technique, gets the opportunity for more flexible trading.

The emergence of the first exchange in the XV century, we owe the Belgian city of Bruges. It was on its Central square that the first auctions of securities – bills were held.
Not far from the place of trade, the house of the Van der Beurse family was located. Later, these trades were taught the name Borsa, which over the years was transformed into the word "stock market" or "exchange". .
What are the rules for trading on the stock exchange:
- Transparency and openness of operations,
- Free pricing
- The state does not interfere in the course of the auction, but the auction is regulated by law.
- Along with manual trading, it is possible to use automated trading systems. For example, such as S#.Shell, MT and others,
- The exchange receives income from Commission on transactions.

Trading opens up great opportunities for the participant to earn money.
Today, both an experienced trader and a novice can become a market participant.
The abundance of trading exchanges allows you to choose what and where to trade. The largest exchanges include: Chicago, Tokyo and Sydney commodity exchanges, the new York cotton exchange, the London metal exchange, the German futures (Frankfurt) and Singapore currency exchanges, the European-American NYSE-Euronext, the St. Petersburg and Moscow stock exchanges.

Becoming a trader is not always as easy as the advertising brochures promise, the player's path is thorny and inevitably involves losses and winnings. Of course, with experience and knowledge, a trader acquires a stable income, but at the same time does not stop learning and improving.
A trader studies the market, various trading terminals, and SOFTWARE.
Becoming a trader is real, but it is not always as easy as it seems.
Therefore, we have developed a training course for creating trading systems, which is designed for both knowledgeable traders and beginners. We have included a full range of training in algorithmic trading and the creation of trading systems, programs and examples of trading strategies.
The goal of the course is to make trading more accessible and understandable, to teach anyone to trade, and success now depends only on the trader and his desire.
In the following articles, we will tell you how to choose a reliable broker and what a trader may face while trading. We will be happy if you share your experience and ask questions. Thanks

What are futures and options, and how to make money on them?

2020-02-18T14:05:15Z

Today, the concept of futures and options is one of the most frequently uttered in the market. Let's get acquainted with these financial instruments, give them concepts and consider the mechanism of their use.
Futures and options are derivatives, and they are also called derivatives. When buying these financial instruments, the trader does not get the asset itself (stock, bond, etc.), but a contract – an opportunity to perform a purchase and sale operation in the future, at a fixed price. Simply put, a derivative is an insurance that protects the trader from possible adverse fluctuations in the price of the main asset

Little history.
Initially, derivatives were created to reduce the possible risks of producers of certain assets in the form of goods.
Let's look at a simple example:
Company A produces flour, which is its basic asset.
Today, on the conditional market, company A can purchase a contract for the sale of 10,000 tons of flour for $100, with a sales period of 3 months.
In fact, after 3 months, company A can sell its flour for a fixed $100, despite the fact that the cost of flour may fall to $80. With this contract, the company predicts and fixes its income, which will be $1,000,000, and the contract is called - futures, a contract "for the future".
There is a possibility that the cost of flour will increase to $120 per ton, and in this case, company A will receive less than $200,000, since the market value of 10,000 tons of flour will be $1200,000.
The buyer of such a contract can be company B, which is engaged in the production of bread, and therefore the market price of flour is also important for it.
A private trader needs derivatives in order to get a fixed price of a purchase and sale transaction, such as a stock or currency, as well as an asset that cannot be purchased by a trader, such as oil.

Let's talk about which futures and options are the most popular in the world right now. Today, the most" popular " are derivatives for currency, stocks, precious metals, and oil.
It is worth saying that a little more than 10 years ago, the purchase of a futures contract meant the delivery of a real asset, that is, in our case, the delivery of flour. Today, the lion's share of derivatives are non-deliverable, and on the day of the end of the contract, counterparties are paid in money.

Let's look at the mechanism in our example.
So by the end of the contract, company A must receive a fixed $ 1,000,000 under the terms of the futures contract, which must be paid by company B.
Since their derivative is non-deliverable, at the end of the contract period, company A will not supply flour to company B.
What's going on? Company A displays the tonnage of flour on the commodity exchange, with the possibility to sell it to any company, including company B. the tonnage is received at a warehouse accredited by this exchange.
At the same time, company B has the opportunity to purchase its 10,000 tons set by futures from another company and receive them at another warehouse accredited by the exchange.

The price of flour may change, and may not be equal to the set price in the contract.
- Let the price drop to $80 per ton. In this case, company A sells its asset at $80 per ton, receiving $800,000, and the remaining $200,000 is paid to it by company B, so in total, company A will receive $1,000,000.
At the same time, company B will buy 10,000 tons of flour for $80 from another supplier, spending $800,000, and with the amount of future compensation paid to company A in the amount of $200,000, its total expense will be $1,000,000, as planned.
- If the cost of flour increases to $120, in this case, the difference will be paid by company A to company B.

Many novice traders have a question about the possibilities of trading options and futures in various markets, for example, stocks and bonds.
The answer is Yes. However, there are restrictions related to the duration of such contracts.
In our example – 3 months. If the contract was conditionally concluded in June, it ends in September.
The value of a derivative always depends directly on the value of the underlying asset, and the value of both instruments tends to be equal. Because of this dependence, futures and options are called derivatives.
Traders earn money using derivatives, for example, on arbitrage transactions, but at the same time derivatives do not cease to play an important role in hedging operations – insurance of transactions.

Let's take a closer look at the features of both financial instruments.
Let's start with futures. Futures a contract that involves the sale of the underlying asset at a fixed price, with a set delay in execution-payment. Futures fix the purchase or sale price of the underlying asset at the expiration of the term, and the market value of the asset may change.
If the futures contract is non-deliverable, then only monetary payments between the parties to the contract are made on it. It is worth saying that the delivery of the asset does not necessarily have to be made on time, in other things, as well as the purchase, but in this case there is a probability of price changes, and the risk of loss of profit.

Consider the mechanism for concluding a futures contract.
The contract is concluded exclusively on the exchange. The seller puts his offer on the exchange with its price, volume, and due date. After a buyer appears who agrees to these terms and conditions. The seller can also choose a ready-made request from the buyer, which has a set price, volume and deadline for execution.
This list of applications is always present on the exchange, and applications often differ little. Any of the participants in the transaction sees this list and chooses the most suitable one for them according to the condition. This list is called a glass and is displayed in the program that traders use. The greater the depth of the glass, the more flexible it is possible to enter into contracts, viewing more offers and as a result choosing the most suitable conditions in the case of the buyer, and at the same time more likely to conclude a contract in the case of the seller. Some trading programs allow you to set the depth of order book, for example, Terminal, where you can set your desired depth. The order book in the Terminal program is shown below.

Obligations to execute futures are transferred to the exchange.
When the date of execution of the futures contract and the conditions under which the seller will be obliged to pay remuneration (if the price of the asset has fallen), the exchange itself transfers the amount to the seller's account and withholds this amount from the buyer's account. If there is a situation that the buyer's account of the contract does not have the necessary amount, then this will be a problem that will be solved by the exchange, not the seller.
The situation is the same in the opposite case if the seller must pay compensation to the buyer.
The exchange carries risks, so before entering into contracts, both parties make a cash Deposit calculated according to the exchange's formula. Most often, its value can be double the size of the fluctuation of the futures price in one day. So if the price fluctuation was 3 %, then the collateral may be 6% of the price of the futures contract.
The Deposit is refundable, and is returned to the account of the parties after the execution of the futures. If the participant refuses to fulfill the contract, the Deposit will be deducted from the exchange's account as compensation.
Sometimes there is a need for early termination of the contract, in which case its value will be equal to the value calculated by the exchange on the day of termination. That is, the exchange calculates the price of the contract on a daily basis, while it uses its own rules for calculating the cost, but focuses on the prices that are offered on the market by bidders.
As mentioned earlier, the price of the futures is slightly lower than the value of the underlying asset, but the difference is small. Sometimes there is a short-term gap that is associated with market situations, which allows you to earn using an arbitration transaction.
You can also make money on futures during the day. So the exchange recalculates the price of the futures, respectively, every day, when its price increases, it charges the difference between the value of the contract and its current value, while the amount of collateral also increases.
When the contract execution time comes, the price of the futures becomes equal to the market value of the asset.
In General, we can say that a futures contract is a convenient financial instrument that allows you to reduce financial risks. At the same time, speculative operations with this tool are quite complex and, often, it is possible to make money on them using automated tools, such as trading robots. For example, the trading robot "Edward".

The next financial instrument is an option.
This is also a contract, but not for the amount of the sale or purchase, but for the opportunity to buy or sell the underlying asset at a fixed price at a specified time.
By type of transaction options are:
- Call option – an option to purchase;
- Put option – a sell option.

Option contracts are also traded only on the stock exchange.
The participant who bought the option has the right to refuse the transaction at any time if it is not profitable for him, while the seller of the option has no right to refuse it.
Thus, if the buyer uses the right of the transaction, the seller is obliged to fulfill it.
This condition makes this financial instrument very difficult for an inexperienced user, and allows him to trade confidently using various trading robots or trading systems, coupled with the ability to predict possible market situations.
An option can be said to be insurance against possible losses. In case of refusal, the buyer loses an amount equal to the value of the option, which is insignificant in comparison with possible losses. This amount is the seller's premium.
Considered example:
Trader A purchased 100 shares of Trend LLC at $10 per share. He plans to sell these shares in 2 months.
Trader B offers him an option contract for the sale of 100 shares of the Trehd LLC, with a period of 2 months for the price of $15 per share. The option price is $100.
Let's assume that the transaction took place, let's consider two possible scenarios:
- Let's assume that the price of the Trend company's shares fell to $7 per share by the time the option was exercised. In this case, trader A will not only not lose, but also earn.

$1500 (optional sale) - $1000 (initial costs) - $100 (seller's premium) = $400 -profit

.
- Let's assume the share price has increased to $17 per share. Thus, the trader had to waste $100 on the purchase of the option.

$1700 (optional sale) - $1000 (initial costs) - $100 (seller's premium) = $600 -profit

.

And without the option, the profit would have been $700.
An option, like a futures contract, is a non-deliverable contract. If the buyer uses the option, the seller will simply pay the difference between the current price of the asset on the market and the option price.

As mentioned earlier, trading on the stock exchange using options is quite complex, and a market participant needs to be able to predict situations. For call options, you must set a price that will be lower than the expected price after a set period, for a put option, on the contrary, higher than the expected price.
Option prices are calculated using statistical data on fluctuations in the asset value. Many users are helped in this by various programs, trading strategies, and trading robots that calculate situations using market data. which for example can be obtained in Hydra.
The one who sells the option is exposed to greater risk, its profit is the value of the option, and the loss is unlimited, as it depends on the price fluctuation.
Any transactions with derivatives are associated with various risks. The task of the trader is to choose the optimal solution, including the choice of an asset, a trading platform, a strategy, and a trading robot. Manual trading does not bring the necessary income on speculative transactions, so working with trading robots makes the trader's work profitable if the conditions are chosen correctly.

Arbitrage trading. Principles, types.

2020-02-04T18:52:36Z

What is Arbitration, general concepts.

Recently, the concept of Arbitration has been found quite often in trade. What is Arbitration?
Arbitration is a method of profit that minimizes the risk of loss by using the price difference for the same asset in different markets.
Today, this mode of trade is a commonly used trade tactic.
Let us consider what this mode of trade consists of.
The point is to sell the same asset at a higher price in one market and purchase the same asset at a lower price in another market.
Such trade is one of the most important components of the market, and most traders seek to conduct such trade, effectively reducing the possibility of loss to a minimum.
Although the nature of arbitration consists of price differences of one asset in different markets, this strategy can be applied to two assets with similar prices and portfolio volume.
Consider what the arbitration portfolio is and its properties:
- Arbitration portfolio - portfolio of assets, which does not require additional resources of the investor.
- The arbitration portfolio is not influenced by any factor, that is, has zero risk.
In fact, for an investor, an arbitration portfolio is a tool that allows it to receive a large return, while remaining unaffected by various risks.
A simple example of arbitration trade:
Suppose the value of asset A on one of the exchanges is $100, while the value of the same asset on the other exchange is $105.
A trader acquires an asset on one exchange, where its value is lower, and sells it on an exchange, where the value of it is higher. Thanks to this strategy, the trader gains profit, in the form of price differences of asset A on various exchanges.
This example is quite simplified, and is given only for the sake of clarity, in real trade the implementation of such transactions has its own difficulties.

Choice of pair in arbitration.

Let us once again define Arbitration Trade based on practical knowledge of it.
Arbitration trading is a method in which trading is carried out by means of differently directed transactions with an asset or assets having similar prices and portfolios, based on the difference in their value. In fact, the trader buys a cheaper asset and sells a more expensive asset similar to the first asset.
Often, the arbitration pair selects a base and derivative asset (for example, shares and stock futures). Both assets should have similar price dynamics - correlation.
However, correlation has the property of being broken for various reasons.
Such reasons can be related to various serious market changes and to the consequence of market inefficiency. Emerging correlation violations contribute to profit in arbitration transactions. In fact, the trader profits when the correlation of the underlying and derived asset is restored, after its violation.
Simply put, an arbitration transaction occurs when buying a cheap asset and selling an expensive asset when there is a difference between their prices in view of various factors. However, for the rest of the time, the prices of both assets tend to be equivalent.

Types of arbitration trade.

Let 's look at what types of arbitration are distinguished in trading:
- Time arbitration;
- Spatial arbitration.
Temporary arbitration implies that transactions occur with a time difference. This type of arbitration is characterized by a mechanism: buy cheap, and sell expensive, or vice versa, sell expensive, and buy cheap. To put it simply, such a mechanism is actually - a common speculative transaction made on the stock exchange market.
Temporary arbitration contains a risk, as during the period of time the trend may not change the direction of movement, that is, if the trader initially bought the asset for cheap, it is not a fact that after time the asset will not cease to be cheap, thus bringing a loss on sale.
The next type of arbitration is spatial. With this type of arbitration, a couple of transactions are bought and sold at the same time but at different sites. In such transactions risk is minimal, and sometimes at all reduced to zero, as a couple of transactions take place simultaneously, at the same time the trader should take into account not only the difference in the price of the asset, but also possible commissions, which should be included in the expenses and covered by the amount of profit.
In addition to the types of transaction time, arbitration is divided into trading methods. Let 's look at the main ones and explain them.
Spatial arbitration is divided into the following types:
- Equivalent arbitration;
- Regulatory arbitration;
- Calendar arbitration;
- Percentage arbitration.

Equivalent arbitration refers to such transactions in which the underlying asset and derivative asset (derivative) are considered. Since the price of a derivative always strives for the price of a basic asset, price schedules go alongside each other, sometimes intersecting and diverging.
If we simultaneously open equidistant positions on the selected asset and its derivative, when they have the maximum divergence, then closing the position when they converge will make a profit.
Regulatory arbitration is based on the difference in price caused by different rules in different jurisdictions (areas, countries, unions).
For example: due to certain legislation, an asset in one region is sold with a markdown, and its price is correlated with prices in other regions, differing by a stable markdown difference. In this way, by purchasing an asset in one region and selling it in another, you can earn a profit in the amount of a markdown.
Calendar arbitration is based on the difference in price arising between futures on the same asset but having different delivery times. This difference is called a calendar spread. The subsequent trading mechanism is similar to the equivalent arbitration method.
The last type is interest arbitration. This arbitration takes place on the foreign exchange market (Forex), and there are two types:
- No forward coverage;
- With forward cover.
The essence of arbitration is that the currency is bought and placed on a deposit with a set percentage. The currency is then sold at the current market rate. If the currency purchase occurs with the sale of a forward contract for the same amount, arbitration with forward coverage. With this type of risk is minimal, and for frequent absence.
If the purchase is made without forward support, arbitration without forward coverage. Such arbitration may be accompanied by a large risk based on a change in exchange value, which may result in a loss that is greater than the percentage of income on the deposit.
Triangular arbitration is also common in the Forex market. Let 's look at it with an example:
The trader buys EUR/USD, sells EUR/GBP at the same time, and buys USD/GBP. An equilibrium triangular contour is created. It turns out that the trader bought Euro for dollars, sold Euro for Pounds, Bought Dollars for Pounds. Thus, a closed chain is obtained, on the imbalance of which profit is made.The scheme of such arbitration is shown below:

Conclusions

Arbitration trade has gained a lot of recognition among traders. A large number of approaches to solving the problems of arbitration trade, a large number of methods used to implement the tasks make this kind very flexible, and the absence of risk or its minimum value further popularizes it.
However, it is worth saying that the strategies of arbitration to direct, are related to the rate of reaction of the trader to changes in the asset. This leads to various requirements that promote successful trade:
- Fractions of a second play a major role in arbitration strategies. Therefore, such trading systems require good software. It can be represented by ready-made trading robots. For example, StockSharp offers the robot "Edward", which allows you to work using the trader's arbitrage strategy and is capable of quick and flexible configuration.
High-quality software is especially important when working for Forex, as the number of traders is high. Therefore, many prefer an individual approach and create trade robots on their own through various programs. Trading robots are mostly written in powerful C# or C++ languages, using libraries such as S#.API and Interactive Brokers API.
Recent years have also received designers of trade strategies TSlab and S#.Designer, which allow to create trade robots without programming.Below is an example of a trading robot created using S#.Designer, the graph shows the moment of divergence of assets and their convergence with the subsequent transaction by the robot.

Application of the latest software leads to reduction of risks and improvement of the mechanism of work and as a result to increase of profit.
- It is important to remember that the strategy, even if there is perfect software, is profitable, if the income will exceed the possible risk and all broker commissions.
- It is worth remembering even using a trading robot, the risk can not always be reduced, so the trader must constantly manage his strategy, improve his tools and his knowledge. Learning new principles that can be applied in trading can make a trader a pioneer in making profits.
It is necessary to know that arbitration strategies can and should be combined with other types of exchange trade, which will give additional opportunities in income generation.

Designer - create a strategy based on MACD. Start with simple.

2019-05-06T18:15:06Z

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.

- Select the Variable, Candles and Chart Panel blocks, connect them.

- Select an instrument with which we will test the strategy.

- Plot a candle chart.

- Select the Indicator and Chart Panel blocks. Connect the Indicator and Candles blocks.

- Plot a chart of the MACD indicator.

- Select the Variable block and assign it a numeric value of 0 for further comparison with the indicator value.

- 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.

- 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.

- 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.

- 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.

- 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.

- Similarly, create a routine for the Sales execution.

-The strategy is ready, let’s run it.

News on course API

2019-09-10T11:22:05Z

Friends!

Our company has updated the materials of the training course on API and S#.Shell [happy].

This is due to the imminent release of S#.API 4.4.17, in particular with changes to work with Quik 8.

The course allows you to learn how to create profitable trading robots using API libraries [nerd]!

Updates are already available and can be downloaded from the link available to course owners.
To find out more information about the training course and its cost, click on the link.

We are moving forward and every day trying to make our products better [lol].

FAQ on FIX Protocol. History of creation

2019-09-19T20:41:41Z

The creation of the FIX Protocol, in 1992 , revolutionized the world of stock trading. The purpose of its creation was to make a convenient high-speed method of transmitting and receiving exchange information of large volume, between trading participants, as a replacement for trading via the phone, prevailing at the time.
To date, the FIX Protocol is supported by most of the largest exchanges in the world.

Since the creation of the FIX Protocol, a lot of time has passed, and during this period the information trading network is constantly improved, along with it and improved the Protocol itself.[nerd]

Throughout this time, new functionality was added to the FIX Protocol, support for new tool classes appeared.

Now the most widely used Protocol is FIX 4.4, but the latest version of the Protocol is FIX 5.0. the Protocol itself exists in two syntaxes, XML (second name FIXML) and key - value. It should be said that the Protocol is divided into 3 levels - transport, session, application.

The company StockSharp for a long time provides the opportunity to purchase access via the FIX Protocol to famous trading platforms, providing a complete list of connectors for trading. Buying connectors through our company, you can be sure of full reliability and stability of access , as well as the possibility of technical support.

You can learn more about connection methods on our page.

News course Designer!

2019-09-09T16:23:46Z

Creating a video course on the program Designer is inexorably coming to an end. We planned to release the video course in October.

Yes! We had to move the deadline[smile]. We did this for the following reasons:

- we have increased the number of lessons, and therefore you will get more information;
- fixed errors that could occur in the process;
- added new features to our cubes and program;

We are sure that you will get more perfect and convenient product [laugh], and additional lessons will make your knowledge more voluminous.[nerd]

Soon, you will be able to start their full-scale training and will earn right while studying!!!

How to plot the indicator in the program Hydra.

2019-08-08T13:13:48Z

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)

3. Right-click, and in the drop-down list select View Downloaded (1.2)

4. Select the “chart” icon and plot the history of stock quotes (1.3) (1.4)

5. Right-click in the chart area and select the Indicator item. (1.5)

6. From the drop-down list, select the indicator of stock quotes we need, in our case SMA, and click OK. (1.6)

7. On the market data chart, the stock quotes indicator curve will be displayed. (1.7)

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)

9. The stock quotes indicator chart will be plotted in a separate window. (1.10)

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.

How to download market data to the Designer?

2019-04-25T12:35:50Z

In order to download market data to the Designer program for testing a trading strategy, you need to do the following:

1.Run the program.

2. Select the Market Data section in the top menu and click on it.

3. In the window that appears, select the Download Securities button in the Securities panel, in the menu that appears, tick the All option and select the storage. Then click the OK button .

4. In the list of downloaded securities, select the one we need.

5. Choose a period for which we need market data, and candles that we need.

6. Select the path to storage where our market data will be stored, for this, we click the “+” button.

7. In the menu that appears, select the full path to store the downloaded market data.

8. Click the Start button
9. In the window that appears, select the market data source.

10. In the window that appears, click the “+” button and select the source we need from the drop-down list.

11. Click the OK button.

Market data downloaded to your storage. Enjoy using.

We create Knowledge Base for Designer! Join us!

2019-04-25T12:58:15Z

Dear friends!
To make it convenient for you to use StockSharp programs, we started to create a knowledge base for the Designer program.

What do we want? We want you to always find answers to your questions! And if you do not find it, you could tell us, well, we would add your question to the list and find the answer to it!
The main objective of our project is to create a comfortable environment for all users so that your and our knowledge will help our large community.

The first topic was the issue of downloading market data to the program.
Looking forward to your feedback! Let's make the program more convenient together.
Thanks in advance.

BTC vs BTC. Arbitrage!

2017-11-08T02:39:55Z

Recently, interest in crypto currencies has grown in leaps and bounds. New exchanges have opened, hard forks, ICO, new crypto-currencies are being created and this whole movement generates a huge sea of opportunities.

One of these opportunities will be discussed in this short article.

Not so long ago, we launched the crowdfunding project to create new connectors to 10 crypto-exchanges (Bitfinex, Coinbase, Kraken, Poloniex, GDAX, Bittrex, Bithumb, HitBTC, OKCoin, Coincheck), while the two connectors to Wex.nz and Bitstamp are already implemented in our platform. This project would not be needed if the currencies were traded more centrally, but the number of exchanges already exceeded a few dozen. More connectors, more stable trading, and more entry points for arbitrage bitcoins and other popular crypto currency.

The target function of any exchange is to match buyers with sellers, but the price of an asset at which bidders are trying to make a deal can be different! Since the digital assets economy is just beginning, this difference can be very significant.

This fact gives rise to the possibility of so-called arbitrage - to buy assets when they are cheaper and sell when they are more expensive.

Let's see an example. The screenshots below of exchanges are further made at the same time.

GDAX BTC order book:

BTC quoting by $7 313,88 price.

For the same BTC on Wex.nz

Same BTC but price already $7 373
Another exchange - Poloniex:

BTC has a price of $7 323

No comments ;-)

Join our shared campaign of creating new connectors and we will provide you with technical tools for arbitrage between exchanges (and, consequently, earnings on this strategy). Particularly important, we will provide an automated trading robot, which has already been performing arbitrage trading with Bitcoin for almost a year.