Algo Trading Advice

HansOndabush

Anyone here do algo trading? Can you recommend a broker that will accept deals via an API? Do you run the algo on your own IT and use your own internet or do you run it on some platform?

NOTE: I am not interested in a debate on the merits of Algo trading; just want to hear from anyone who has actually done it with some practical advice please.

Sorcerer2018

I doubt anybody will give you any advice on this, proper algo traders guard the information like it's the holy grail. And yes I have done Algo Trading and no i won't be providing any information. I prefer to keep my brokers and tech I use to myself.

underground99

HansOndabush said:

Anyone here do algo trading? Can you recommend a broker that will accept deals via an API? Do you run the algo on your own IT and use your own internet or do you run it on some platform?

NOTE: I am not interested in a debate on the merits of Algo trading; just want to hear from anyone who has actually done it with some practical advice please.

Seems like you would be better running your algo on someone else's platform that has a low latency connection to the exchange or brokerage service, rather than through your own dial-up internet from the back of beyond. In terms of API trading for UK and European markets, probably Saxobank or Interactive Brokers could hook you up?  Don't use one myself.

moneysavinghero

IG have an API option:
https://www.ig.com/en/trading-platforms/trading-apis

They also have the ability to run algorithms directly on their platform so you can take your choice.

Don't do algo / api trading myself so cant comment whether they are any good or not but IG is one of the major UK platforms.

HansOndabush

Thanks, I have looked at IG Index but recent reviews are terrible:

https://uk.trustpilot.com/review/ig.com

In my own experience, I emailed them and they didn't bother to reply, hence I don't want to deal with them.

underground99

moneysavinghero said:

IG have an API option:
https://www.ig.com/en/trading-platforms/trading-apis

They also have the ability to run algorithms directly on their platform so you can take your choice.

Don't do algo / api trading myself so cant comment whether they are any good or not but IG is one of the major UK platforms.

Anecdotally their API used to be an imperfect solution for stocks as they didn't licence the market data to feed it out to people through API (only giving the option to place the API trade at market best or limit order without knowing what you would be likely to get if you didn't have your own separate market data feed). But perhaps they have changed that now. With CFDs or some other markets they offered they would presumably be feeding you the pricing info as they would be your counterparty for the trade. 

They are a good business with decent technology, I've been a spreadbetting customer for years, but never used them for stocks. 

maxsteam

Coincidentally, I received a message today from someone inviting me to join them with arbitrage trading on Naga with guaranteed profits and trading records to show it. It's a complete scam. The platform pays the referrer a small amount to introduce a customer who loses a large amount. Anything which offers you the chance to copy other people's trading or the chance to join an automated trading system will, at best, give someone else control over your trading decisions. At worst, it will give someone else the opportunity to steal your money and invent a list of trades to justify requesting more money.

In the real world, there are thousands of trading signals. Any half-decent charting software will include dozens, many with fancy names. However, the markets work in such a way that if a lot of people follow the same signals, the signals will stop working. For example, if two moving average lines cross, it's widely considered to be a buy (or a sell) signal. However, if lots of people try to buy (or sell) at the same time, the market will move quickly in such a direction to significantly reduce the chance of a profit. To be successful, you need a system that is unique. Perhaps that gives humans an advantage.

If you genuinely believe that you have a automatic trading system that works, you should try it with a demonstration account before using real money, and you should understand what it actually does. If you reach the stage of wanting to use real money, you need a reputable broker that will connect to your system. Saxo have been mentioned but they are not a reputable broker. I am certain that you will find brokers that will claim to offer what you want but, if they are not reputable, they will take advantage of you. FCA and FSCS logos will not protect you from dishonest brokers.

I suspect that, for a system to work, you need the know-how to design the system as well as the know-how to connect it up to a mainstream broker's system. If you leave things to someone else or scrape the broker barrel, they will simply design a system to move money out of your account and into theirs.