Mastering Automated Trading: Unleash the Power of Algorithms from Home

Transition from Manual to Automated Trading: A Personal Perspective

Automated trading from home has revolutionized the way individuals can participate in financial markets, bringing them on par with big banks and hedge funds. With nearly 40 years of experience in trading futures and stocks, I have witnessed the transformation from manual trading to the seamless automation we have today. In the early 1980s, I would rely on an electronic device called a “QuoTrek” to receive market data, and executing trades meant making phone calls to brokers and waiting for price confirmations.

Fast forward to 2023, and the process seems archaic compared to the technological advancements we now enjoy. Today, automated trading can be done electronically and almost instantly, often with zero commissions. So, what exactly is automated trading or algo trading? Simply put, it involves using algorithms, which are step-by-step procedures for performing calculations, to execute trades.

Visualizing Algorithmic Trades: Real-Life Example

For instance, consider an algorithm for a stock buy entry: “If the daily bar breaks above the Keltner channel on day one and the low of the daily bar remains above the Keltner channel on the second day, buy the open of the third day.” Analyzing the chart below, we can see that in January 2023, these conditions were met, and the algorithm initiated a buy order, indicated by the first green arrow.

To complement this, we can also code an exit strategy into the algorithm, such as “If the position is long on day 3, exit the long position on day 7.” By utilizing TradeStation software and its “easy language” coding, we can implement this algorithm seamlessly. Refer to the chart below for a visual representation of how the algorithm would execute this trade:

]

The best part is that if we automate our algorithm through TradeStation, the trade can take place even while we sleep. Should you encounter difficulties while coding these trading signals, AI programs like CHAT GPT can provide assistance in TradeStation’s “easy language” coding.

Step-by-Step Algorithms: How They Drive Trading Decisions

As a trading system pro, I specialize in writing various stock trading algorithms using TradeStation Easy Language. In fact, I have developed some of the most powerful automated trading systems available. You can find more information about these systems in my article on Automated Stock Trading Software. By utilizing the TradeStation software platform, you can easily transform your trading strategy into a fully automated system, capable of executing all stock trades through a broker.

While automated trading technology has been accessible to stay-at-home stock traders for around fifteen years, institutional traders, such as investment banks, mutual funds, and pension funds, have been utilizing fully automated trading for even longer. These institutions have invested significant resources in developing custom software, which is now available to stay-at-home traders at little to no cost.

In fact, financial researchers estimate that a staggering 80% of trades in the US stock market today, in 2023, are executed by algorithmic trading programs. Thanks to recent software advancements, anyone with a computer can now engage in fully automated trading from the comfort of their own home. You have the opportunity to rival the banks, pension funds, and hedge funds, and seize control of your own financial success.

Full Automation: Letting the Computer Take the Wheel

There are numerous advantages to letting computers handle your trading decisions. Unlike humans, computers remain calm and composed in fast-paced markets, executing orders with lightning speed. Emotionless and fearless, computers ensure consistency and efficiency, enabling you to capitalize on opportunities swiftly.

Back in early 2012, when I started trading with the TradeStation computer platform, it opened my eyes to the immense possibilities of automated trading.  But one issue I used to have with TradeStation was the problem of bad data. In the past, when I posted charts on my website using older versions of TradeStation, the data was stored on the hard drive of my computer, allowing me to correct any errors immediately. However, with TradeStation, the data was hosted on their server in Miami, which meant I had to rely on them to rectify any inaccuracies. As a systems trader, this caused numerous problems for me. I preferred the older versions of TradeStation that allowed me to manage and correct my own data.

Bad Data Problem: A Thing of the Past

However, I’m thrilled to report that I no longer encounter this difficulty. In 2023, I can confidently say that bad data is no longer an issue with TradeStation Securities. I’m not sure what changes they made, but I have experienced no problems with data quality. This issue has been effectively resolved.

Maximizing TradeStation’s Features:

Now, let’s explore the remarkable features and capabilities of TradeStation when it comes to trading algorithms like JORDI FUSION. Although I have over 30 years of experience working with TradeStation, I’m writing this article with the assumption that you have no prior knowledge of the platform.

One of the standout features I love about TradeStation is the ability to run any of my systems or strategies on full automation. With just a desktop computer, I can easily engage in automated trading from the comfort of my home. Full automation means that once I load JORDI FUSION into TradeStation and set up the necessary charts, I can choose to let the computer handle all the trading for me. This has significant implications for me as a trader. I no longer have to be glued to my computer screen while trading; the computer executes all the trades. With my speakers turned on, I receive an automatic voice notification saying “order filled” each time a trade is executed. This means I can go golfing or even trade in overseas markets throughout the night while I sleep soundly. I can wake up in the morning knowing that the computer flawlessly executed all the trades according to my strategy.

You might be wondering, how reliable are automated trading fills? Do they suffer from significant slippage, where there is a notable difference between the system price and the actual execution price? Based on my real-time trading studies, I can confidently say that slippage with automated trading is minimal. In fact, the fills are almost instantaneous, with the system price being hit closely. Any minimal slippage that might occur is outweighed by the overall flawless execution of trades.

Personalized Support: Partnering with TradeStation and Me

The beauty of this approach is that even if you’re a complete novice, with my assistance in setting everything up, you can trade exactly as I do without making a single mistake. You no longer need to worry about trading discipline or the fear of missing out on opportunities. Simply fall asleep and let the computer do the work for you.

Unparalleled Insights: Evaluating System Performance

Another remarkable advantage of trading with TradeStation is the ability to test and track the performance of all systems with various stocks. TradeStation Securities boasts an unparalleled database that allows you to test 100 years of market data in less than an hour with just a few clicks of the mouse. This invaluable research tool helps you select the right strategies and markets for maximizing profits.

With TradeStation, you have the advantage of instantly evaluating system performance in any market and for virtually any time period. You no longer have to trade blindly; the software provides valuable insights.

Cost-Saving Benefits:

This is just a glimpse of the vast capabilities that TradeStation offers for your trading success. However, working with the world’s greatest software not only empowers you but also saves you money. There’s no need to purchase the software separately; it comes included when you open an account with TradeStation Securities. And in 2023, you can open an account with as little as $500. Furthermore, you receive your data free of charge, with only minimal exchange fees to pay.

If you’re trading stocks, the exciting news is that you can trade with zero commissions. This means you can engage in algorithmic trading like JORDI FUSION with as little as three to five thousand dollars and still make a profit.

Guided Every Step of the Way: Assistance for Novices

Let me reiterate that I have no affiliation with TradeStation Securities, and I receive no kickbacks for recommending them. However, if you do decide to open an account with them and utilize one of my trading packages like JORDI FUSION, there is a lot I can do to support you. You don’t have to navigate the trading world alone. I can guide you every step of the way, ensuring you trade exactly like I do. I can provide you with a list of profitable markets, preconfigured workspaces via email, and suggest settings that align with your financial situation and trading style. You can reach out to me anytime because I trade with real money, using the same systems and markets as you. Your struggles are my struggles, and your successes are mine as well.

Trade Like the Pros: Fully Automated Trading from Home

In summary, I consider TradeStation and TradeStation Securities to be a fantastic platform for trading my systems and strategies. All of my material is 100% compatible with TradeStation, and I’m here to offer you all the technical support you need as you work with my materials and TradeStation. With this software, you can trade just like the hedge funds and engage in fully automated trading from the comfort of your own home.