What should be considered in a BTC trading algorithm?

[jasonpitts]

I am a php developer and am thinking of building a MTGOX trading bot, but other than buy low, sell high, I am really not a day-trader and am not sure what I should be considering when it comes to actual buying signals.

My overall concept for the bot is that it should consider historic data, current trends, average cost of bitcoins currently owned, trade fees and then of course place buy and sell orders based on this information.

I also do not want to limit the bot to one single strategy. I think users should be able to create rules using the above information and adjust and tweak as they wish, such as:

items in ( ) = user defined

if the current trend is (up/down) over the last (X hours) and price (drops / increases) (X%) and transaction cost = profitable trade (buy / sell ) (X%) of available balance.


My question then becomes, If this were your dream trading bot, that you could configure to your own strategy, what options would you like to see?

Thanks in advance,
-Jason

[JoelKatz]

"I want to design a really nice suspension bridge. Now if this were your ideal suspension bridge, what would it be made out of? How many lanes would it have? Where should it be?"

"I want to make a really excellent book with high-quality binding, bright pages that are easy to write on and won't let your ink run, easy to hold. Now what should the story be about?"

You're running the design process in the wrong direction. Start with the problem you want to solve, not a list of solutions.

[downying]

The dream technical trading bot should learn to adjust these variables itself from the history of data. User only configures the amount of risk he's willing to take.

[jasonpitts]

"I want to design a really nice suspension bridge. Now if this were your ideal suspension bridge, what would it be made out of? How many lanes would it have? Where should it be?"

"I want to make a really excellent book with high-quality binding, bright pages that are easy to write on and won't let your ink run, easy to hold. Now what should the story be about?"

You're running the design process in the wrong direction. Start with the problem you want to solve, not a list of solutions.

Point well taken. This thread was mainly an attempt to find out what I need to learn, but I do have a tendency to try and run before I learn to walk.

my psudo code is on hold while I do some reading...

[phungus]

For inspiration, check out this open source Java bot people are playing with:

https://bitcointalk.org/index.php?topic=109831.0

-p

[jasonpitts]

For inspiration, check out this open source Java bot people are playing with:

https://bitcointalk.org/index.php?topic=109831.0

-p

thanks for showing me this, I have been playing with it since last night. The version by Aido actually did pretty well for me with today's rush to 50, just using the example logic in the readme.

I have been planning to learn Java, might as well start now.

[candybar]

I am a php developer and am thinking of building a MTGOX trading bot, but other than buy low, sell high, I am really not a day-trader and am not sure what I should be considering when it comes to actual buying signals.

My overall concept for the bot is that it should consider historic data, current trends, average cost of bitcoins currently owned, trade fees and then of course place buy and sell orders based on this information.

I also do not want to limit the bot to one single strategy. I think users should be able to create rules using the above information and adjust and tweak as they wish, such as:

items in ( ) = user defined

if the current trend is (up/down) over the last (X hours) and price (drops / increases) (X%) and transaction cost = profitable trade (buy / sell ) (X%) of available balance.


My question then becomes, If this were your dream trading bot, that you could configure to your own strategy, what options would you like to see?

Thanks in advance,
-Jason

Hi Jason - I've worked on automated trading systems for stock trading before

Using a virtual portfolio I did some back testing against historical data and:

http://oi53.tinypic.com/2lkdxk4.jpg

Email me: candybar_im [at] yahoo.com and lets talk more

I can help make you a lot of money by licensing the algorithmn we develop on a monthly basis (collected $5k this month)

[btceic]

You can play all you want in real time with MT4 for free (Sun @ 5PM - Friday @ 5PM) so that you can get a better idea of the right questions to ask and how everything works in the forex world.

Download the MT4 platform from FXCM, sign up for a free demo account.

MT4 is c, php or javascript like in it's syntax, so you should be quite comfortable in that regards.

From there start reading the various forex boards on day trading.

The MT4 platform will allow you to execute trades at your discretion all via code that you write.

There are also built in algo's that you can build upon like stochastics etc.

PM me if you want more info or need help, or have any questions.

Good luck.


http://www.fxcm.com/products/metatrader-4/