Update: Account Details

I just wanted to take some time out of my day to show everyone a new feature to the application. A new button in the "Accounts" tab, the "View account" was added recently. By clicking it, the application displays the account details as well as all open, closed and pending orders. In future updates, manual override feature will be added as well.

Below is a screenshot:

Happy Trading!

Sorry for the absence!

Hey guys,

I just wanted to apologize to everyone. I've been caught up lately with personal errands. At the same time, I've been working with a few trading brokerages, firms and businesses, with the possibility of partnerships. I will let everyone know once I know!

Happy trading!

Sneak Peek!

Here are some screenshots of the current application in progress. I will talk about them in more detail in later posts but for now I'll briefly go over them. I hope you are all equally excited as me!

Login Screen: Upon starting up the program, we are prompted with a login screen for security reasons.

Algorithm Tab: This is main interface where one is able to manage and control the algorithms. You can see the functions on the right side of the GUI. Up on top we have 2 customizable clocks for reference as well as the local time.



Accounts Tab: This is where we manage our trading accounts and check up on their status. In future updates, we will add features to see more account details. In the two pictures below you will see an account being logged in directly using the API (we are currently working with the FXCM FIX API) as well as the window to connect a new account.

Feeds Tab: You will see that after logging into the account earlier, the feeds tab shows the live feed for the FOREX instruments offered by the broker's API. This is very exciting as it is directly connected to the broker, saving an IMMENSE amount of execution time. This is extremely powerful.

Logs Tab: Finally, this is the logs tab, where all trades, orders taken will be documented, the top row also allows filtering which will enable us to see only a certain type of trades. For example, trades taken from a specific algorithm/system or on a single brokerage account. On the far right, you can see that all information can be extracted to Microsoft Excel which one could do further analysis on their portfolio.

Additional Features: Our application also allows us to run the application in the background of the PC.

More features are also being developed right now. We are extremely excited to show the FOREX industry what REAL AUTOMATION is, instead of your mediocre, profitless MT4 "Expert" Advisors.

Happy Trading All!

A Little Appreciation

Before I continue, I'd like to give my thanks to a couple individuals I work with in order for this ATS to be successful. Without them, this entire model would not be possible due to my lack of programming experience and stubborness.

First off I would like to say thanks to my programmer, Stelios Choumas, for designing and programming the ATS. Without him this could not happen whatsoever. I appreciate his work ethic and motivation, as well as his risk appetite for working with myself. Mr. Choumas has over 11 years of programming experience in all industries and is a powerful asset. He offers private consultation for small to large investment firms. From experience I can say he is a great individual in all aspects.

I would also like to introduce a long time friend, Wade Cowell. Mr. Cowell and I have been trading together for a few years now and are always talking about system design. We have worked together in various aspects of trading and I enjoy his company. He is a very intelligent trader and very creative with his dynamic methods of adjusting risk and overall portfolio diversification.

If anybody is interested in contacting them I will gladly contact them for you.

As always, happy trading!

ATS Model in a Nutshell

This diagram (made with bubbl.us) shows in short what the ATS model is mainly comprised of. Of course there are certain aspects and details that I have purposely decided to leave out for yourself to figure out. 

ATS Flowchart

What this flowchart shows is the process in which we develop algorithms as well as the basic method of how we implement them. Both "columns" of the ATS model is managed and operated by separate applications, custom-made for our needs. Both were made using C#, a powerful programming language, which will have the capability to compute anything we throw at it.

We will be implementing a dynamic risk model based off of Risk of Ruin/Drawdown as well as measuring the profitability of algorithms using various quantitative criterias such as the Sharpe Ratio and profit factor. Further more we have implemented methods of receiving data feeds as fast as possible to reduce slippage and increase execution.

I am personally extremely excited to see the ATS in it's final stages before it will be implemented. In future posts, I will reveal more of what this model is capable of, as well as its advantages and disadvantages.

Happy Trading!

Potential....

I've taken a screenshot of what one can ideally look to obtain using this ATS model. I made this Excel spreadsheet a while back and decided to show everyone just how powerful this could potentially be. As you can see, what we are doing is essentially taking a year's worth of trades (for a manual day trader) and condensing it into a weeks time. In effect, one year operating the ATS is essentially 40-50+ YEARS of day trading! As a result we can let compounding create some incredible exponential growth!

Projections in 1 year

The light pink are the fields that we have entered ourselves and the green represents the results. The figures we set are our expectations per WEEK of trading. These parameters are what we are looking for in the coming 12 months. We have two columns: low-frequency and high-frequency trading.

When talking about "low-frequency" strategies we are looking at algorithms that are quite familiar to most traders, with the use of price action, market structure and some indicators for confirmation. Trading times will be typical and on average closed by the day's end.

High-frequency means the implementation of arbitrage strategies and other algorithmic and quantitative styles used for high-speed trading. The hold times are substantially lowered, but the trade frequency dramatically increases from 240 to an expected 2000 trades a week.

The difference, we can see between the two is that LFT has less trades, and a lower win rate but also a higher R-Multiple (RR Ratio). At the same time, we are also using slightly higher risk compared to the HFT strategies. But even so, we are only risking A TENTH OF A PERCENT PER TRADE! The typical day trader usually risks 1-2%; we are risking ten or even twenty times less than that and yet gaining more! Look at how much risk we are using for our HFT strategies! Only 3 HUNDREDTHS OF A PERCENT PER TRADE! The risk is incredibly small relative to the potential upside.

Given these criterias, we are looking at a net return of 18.15% PER WEEK, which compounds to 94.88% a month while maintaining an average risk of 0.04%!

We also see that by the end of 12 months, our small investment of $20 000 is now a staggering $60 million! Now, I would like to point out that this is HIGHLY IMPROBABLE.

Why am I saying that?

Well it's simple, there are too many limitations (broker, volume, liquidity, slippage, loss of leverage) to continue with the returns. But month #9 is highly likely to be obtained after 1 year of trading. That is still an INCREDIBLE gain.

$8.1 million from $20K? Sure, I'll take that. I'm sure everybody else would as well.

I will talk about the projections and expectations in later posts as well. As well as the limitations and requirements to design, implement, operate, and run the entire ATS.

Happy Trading!

First Post - Introduction

Today marks the day that I have decided to create a blog on the development and implementation of a state-of-the-art, never before seen ATS (automated trading system) for medium to high wealth individuals. It will allow users to amass a SUBSTANTIAL gain in a relatively short period of time with very little risk. The entire model will be semi-automated and will be self-adaptive in the markets. I can promise you, nobody has ever developed an ATS of this nature ever.

The reason I decided on creating this blog now is that I am starting to see my dreams of the ATS finally starting to come true! Our custom C# applications are almost completed and I look forward to finally implementing it into my trading plan. It's been over a year of tedious planning and design. Now, it is almost complete. In future posts I will describe my ATS and its design in more detail. As well as what the potential gains are; I'm sure everyone will be surprised!