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These problems are common in software and automated trading.
In summary
1) You may get crappy data sometimes, or your trading system may
lose connection with the markets.
2) Your trading system may not know that you did not get a fill on your
recent trades.
And there are other inherent problems too. There are many reasons why
the majority of trading systems and traders fail in the real markets.
If you have not fully researched these problems, do not risk your trading
capital.
If you want to trade, you have to deal with these problems. Program
around them, or monitor your "automated" system like a hawk.
In the future we may have software and data feeds for fully automated trading.
And maybe it will be as cheap as TradeStation. I submit that quality is
more important than price.
Until then, be very careful.
-Neal.
At 09:20 PM 4/1/2002 -0600, Ernie Bonugli wrote:
>Hello list,
>
>I have some experiences with TS6 autotrading that I want to share with
>the list. There are problems with automation that make it
>very difficult to use. I have reported them to TS and I assume that they are
>working on them . All I have gotten back is "we're
>looking at it" or "wow, I wouldn't use it like that".
>
>1) Whenever the strategy is automatically refreshed because of TS
>Server, internet or other disruptions, the strategy looses its state
>and may go out of sync with your brokerage account. The strategy must
>be coded in a manner to absorb this condition. The only solution
>which I have implemented, requires that you stay very close to the
>computer as it requires manual input. I also make use of Bob Scotts
>alarm program.
>
>They do not consider a bug at this time. Their answer
>to this is to must find why the strategy is resetting. So currently
>they find it easy to blame the internet for this condition and put off the
>problem as something beyond their control. Funny part is my other data feeds
>don't a hicup, just TS6.
>
>I also have enabled a Bob Scott's program that listens and alerts me with a
>siren sound whenever the strategy gets into a condition where data stops
>coming in.
>
>Problem 2, deals with the simple fact that a limit/stop order may or
>may not be be executed while the strategy thinks otherwise!!!!! A major
>problem since they have little or no logic in place to relate the state of the
>brokerage account to the EasyLanguage strategy code.
>
>This problem can be avoided if I go to a market order, but then I have
>to absorb an immediate large slippage!! It is very difficult to make
>any money this way. When you deal with >1000 share
>trades, the orders are sent to a human, and greed sets in.
>
>I have seen them make up a new bid/ask price depending on my direction.
>They will fill me and only me on that price. These trades sticks out
>like a sore thumb on a tick chart!!!! Many of these trade deviations
>we see on tick charts are the specialists making up new prices for these
>market orders! No one can convince me otherwise, I have seen it happen
>to many times.
>
>--
>Best regards,
> Ernie mailto:ebonugli@xxxxxxxx
>
>
>PS-I need workarounds if someone has them. Thanks.
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