Hi all,

this is my idea, which I have written my master thesis about (which is pretty much print-ready, but not final). I am currently in the process of implementing it and plan to use it primarily on the forex market, sometime later maybe also for stocks. The thesis talks about value investing because this was agreed upon with my teachers. Let me know what you think. This was started more than three years ago when my interest in automated trading began. I could think about working on this in a team, though not open sourcing it.

See: https://invesdwin.de/public/Thesis.pdf

Feedback might help me to further improve the text. I am open for discussion.

Best regards,
Edwin

Interesting thesis.

I believe in a semi-automated system or "computer assisted" trading, were indicators are a factor in an automated decision, but the parameters and "arming" of the system are specified interactively by a Human Trader.

I have coded up "fire and forget" types of systems which are "armed" and then execute. It's a little bit like a "fly by wire" system where the human delegates an action sequence to the automated assistant and authorizes execution.

The reason for this is that human reaction time isn't very good, and I prefer a "predatory" trading style where the system waits for "momentary imbalances" which will tend to revert to equilibrium.

These "strike opportunities" are fairly limited, so the "predatory" approach works best for me. My patience, waiting for the opportunity, wears thin; so it's best for the "robot" to watch and to react to the conditions when they do occur, to execute and manage a trade action sequence.

A robot can have lots of patience, and remain monitoring a trade when the Human Trader gets "fed up" and decides to quit. This is one of the best features of an automated system, that it has "infinite patience" both to strike into a trade, and also to wait for it to play out to completion.

HyperScalper

Thanks for the comment, I have enhanced the conclusion so that it highlights that it is still possible to develop semi-automated strategies with the strategy development process suggested there.