Everyone, Welcome to Module 13. This is the final module for this course. And we will look at the subject of automated trading. So, with the advent of the technological era and the advancement of computer technology and systems, it was only a matter of time for the retail side of financial trading to catch up with the commercial side. And, as has been long known that high powered computer systems for wall street as been deriving and manipulating markets to the benefit of the surprises. So, it wasn't long before retail brokers and market makers sought opportunity introduced these systems to their own clients as a means to generate interest.

Now, automated trading can take on many different forms from a simple expert advisor or support an EA and that provides you trading signals that you can Manually follow even to a fully automated trading system that integrates and manages straights completely autonomously. So most brokers today provide their clients access to advanced trading tools such as fancy charting and trading systems that support automated trading or EAS. And some of the popular platforms include preview, Tom, that's the platform I'm currently using Ninja Trader, also very popular as well as TradeStation. So that's just for you that I can think of right now. And these platforms provide traders with the ability to use and develop customized trading indicators, customized stock screens, backtest searches on false data, very useful and if you want to determine if your strategy has an edge, it also allows you to develop your own or use others fully automated trading algorithms or EAS.

Looking at some of the benefits have automated trading trading strategies. So the benefits trading using a well designed for decent automated system that is able to monitor and trade markets 24 hours a day, five days a week or as long as the markets are open and the variable is able to monitor those markets and enter into trades. It also stick to its rules, no matter what, in other words, if you program it so that you can follow the trading plan and it will follow that trading plan no matter what. And they will be no emotions involved as with us humans, so that is a major, probably one of the biggest benefits if not the biggest benefit of automated trading. Also it can make trading decisions instantaneously. What that means is that if it needs to interrupt right based on a price action move, it's able to do so without hesitating With salary with exits, if you need to take that loss it will take it and never settle second guessing.

Also, if you're looking at a smaller time frame trading to five minute and one minute time frames. It's much better and easier for your automated systems to be trading on that level mean for us humans. Okay, it also allows you to backdate a strategy on foresight as we've already mentioned, helping you to formulate your strategy into a set of rules and then practice that on foresight to see if you have an H in the market. It's also quite nice is that you can program it's okay sort of automatically increase or decrease your exposure based on performance. So as you are growing your equity, it can automatically through money management, increased exposure to stick with that 2% rule Well, if you are losing, you can automatically decrease the exposure to keep with that through. So for those who want to look deeper into the world of automated trading system development, and your fee with just three tips that I've learned over the last couple of years that might guide you on your own journey.

And so make sure you keep it simple in the beginning. We'll start with basic concept of only a few or as little as possible variables and then bolt onto the idea as you run it on the market and noting and testing new ways to improve on it and always contain your risk. And just to get back to the spot where I mentioned that you should try to market everything testing new ways to prove it. When you bought a strategy, the best thing the best way to test it into print On it is to actually look at its performance in a live market. I mean, not pause data, but the live market. So you start your strategy, it might be horrible might be losing all of the trades that opens.

But as you watch it, you will get new ideas, especially having completed this course, for instance, where you are now equipped with all these tools and techniques, when especially if you're taking your new found skills and technical analysis, for instance, you get all kinds of all sorts of ideas now to improve it and then you can bolt that on to the strategy and then continue this process and, and, you know, in a very nice, automated trading system. So the lessons that I've learned is Do not over fit your strategy by optimizing variables based on false data and then expect it to perform the same in the future. And that's why I mentioned to draw the monitors in a live market in any major Improvements based on that. And also make extensive use of for testing. In other words you optimize and only a part of your available data.

That's the post data. So you may be only optimizing based on top of that data and comparing the results to that out of sample data. So it's we have 10 years worth of data, for instance, and you build your strategy and optimize it based on the first five years. And then you run it on the last five years to see how there's a set of variables have formed out of sample. And you can then do the same thing by optimizing it on the last five years looking at an auto performed on the first five years and then you're trying that on various sections of the market, maybe in a bull market or a bear market or saw that in ranging market, and then you can compare the results and the variable values to get the best variables to use. Also deeper initial exposure small and frequent review strategies performance So if the strategy is not doing well review it frequently.

Rather stop it and improve and before running the risk of taking knowledge knocks to your account. Also test your strategies on multiple timeframes and markets. Because sometimes the strategy doesn't work on one market, but actually, for some reason, with exception you bound others. Or you might have got a strategy on a one hour time frame only to find it works exceptionally well on a five minute time frame. For instance, these two strategies on multiple timeframes and markets. So what I'd like to show you guys now and it's just a quick glimpse into one of the systems that I'm using called real time.

So I'm just going to drag this little. I'm actually just going to over to the screen over here and this is just myself. background of major stock exchange the role that I noted along with the timeframes. So just a little window you see over here, this is the base of my my system from Yeah, I can access any market. So let's have a look at one of the markets are actively trading that is Africa Africa open that up and immediately what you will see is a roar the fanciful looking short and that is one of the I'm just going to take this window and move it slightly out of view for now and what you're seeing in this chart and it's looking crazy busy, but that's the beauty of this these trading systems is that you can customize everything. Now I personally do not prefer having oscillators here at the bottom and I prefer coding every custom.

So I have the label, remember we spoke about volume and labels being on the vertical. So this is something I have you on the left hand side, I have all my labels on the left hand side. These these light purple, light blue and pink areas. That's actually a customized ad x indicator that I've created to identify when the ad x or is above ID x, and then identify when we are trained on a ranging market. I also have a customized version of a Bollinger Band overlaid on this chart along with an RSI in that bondages. So a standard standardized RSI indicator placed inside of orange and I did all this use and using code customized code.

So as you guys can see, this is the chart for this market and the daily timeframe at this stage. I go to my settings here is my email. thought I'm pulling the ultimate indicator. You can see I have some variables that I can change, you know, the number of periods, my Bollinger Band, the deviation, officials from RS ID, x values, etc. So for instance looking at there's also a mark on here if you can see, and I want the chance that he came over, for instance, I want to place it on. I want to use a weak America.

So I'm gonna, sir showing me I'm on a daily timeframe. But if I want to say see the wiki came out on this I can. So now I haven't really come over on a daily timeframe. And just look at that rejection. So you are looking at daily candles. And you can see how there is a few bouncing off the imboca.

Yeah, very, very lovely. And so this might indicate that I coded I'm just calling it the ultimate indicator because to me, it's the ultimate indicator and having everything on one screen and if you do go to that modifiers and you can see here is some of the code. And, and yeah, that's just the code and you can change everything as and how you like. And that's what I love. You can also add trading systems and years one of the trade trading systems to actually visit for our local market. It's just called a simple range strikeout.

It's not that simple, but it's actually nothing sledding this time. So I'm just gonna go to the five minute mark typically. So David's loading now on the five minute market, no indicator. So everything seems a little bit overwhelming and confusing, don't worry. It takes time to learn this. I just actually wanted to give you a quick glimpse into the world of automatic trading systems and how they can apply.

So what's currently happening is I'm loving that simple range breakout that I wrote for the South African market. And will appear on the charts shortly. And they just give it a moment to let you go. And what you are looking at is a projected equity equity curve. So you can see if, for instance, it's using a starting value of 100,000 Rand and it's just just showing you how your your money would have grown over the course of the market. So this this stretch is actually been running live on my own account a personal account for quite some time now.

And even though we did have a slight dip here across April and fourth of May, the strategies Now again, starting to pick up in making some making me some nice, some nice money. So just looking at the chart again, you can see our trades are opening and closing at various areas. of the market. So yeah, that is just a quick, quick, quick, quick glimpse into the world of automated trading systems. And it doesn't stop there. Obviously.

There's also the possibility to carry custom things like screeners. So using this system, I can go to pro screener, for instance. So I just have to drag it to the screen. So then I've actually coded some of these indicators as you can see breakaway gap and bar evening or Morningstar anything look and feel the markets for those patterns. And if I can switch settings and go to improve it, see that I actually have a whole list of string strings that after coded and posted that are found on public and the available libraries, and of indicators that you can use. And so to show you how they work.

For instance, it's look at our inboxes RG and B essentially found from it you're looking at Real Estate daily and you want to see what's happening here. You can choose which markets you actually want to search for. So if I'm looking for a South African market and I'm looking for pinball on the search and we will return any results that it might find for our try widest search area it's try our forex system that the area that's much much better sorry to see what I'm doing currencies and this is just saying which markets it should search your screener. See And maybe even shares you it's why not? shares Yes. So let's just go back to that teleconference execute and see it's searching for possible invoice on the market itself.

Here we go a, b, and c are starting to return some results. Basically you always want to look at or hire any free matches unfortunately, I haven't even really with any of these companies but if you open them up in charge you Saying that on a dairy farm from the Everton bar so you can see these kind of a pin bar forming. And that's just as the screener trying to find those for us. That's a good that's one the children strategies are trying to lead you to see reverse reversal pinbar and obesity is much simpler screeners for instance looking for evening or morning. Evening morning Morningstar just saying there's nothing selected currencies, shares of Africa. Rain it so you have a scrambled eggs, okay, that's a bit difficult to see now.

Anyway, I'm just trying to explain to you guys the concept of and the flexibility. And you're just what is possible with these systems. It's remarkably remarkably powerful. But again, thank you very much. If you'd like to find out more about automated trading or trading systems, you are always welcome to email me at info at exp automated COMM And that would conclude module 13 and the course Thank you very much. I hope you enjoyed the series.