- Able to handle multiple stocks and update its stock data (live or closing price details).
- Algorithm! Design your algorithm to generate buy and sell signals. My own system is focus on stock market, simply buy low sell high method (short selling is difficult). Derivatives such as warrants, options, futures are not considered.
- Algorithm again! Each stock has its own growth or decline cycle. So, it is possible that 1 algorithm is suitable for 1 stock only. That is, each stock requires custom algorithm and parameters on trading.
- Inactive stocks that come with low trade amount or low trade frequency, should not be included in the system.
- Able to perform backtest on the stock using historical data. It should give win rate, average profit to loss ratio (reward-risk ratio), average trading days, etc.
- Able to plot finance graph to show buy and sell signals.
- Able to export data with buy and sell signals to csv or excel file.
- Able to handle different algo strategies and parameters.
- Able to handle different cut loss values (optional handle cut profit).
- Able to handle risk and cash management.
- Able to measure trading system performance. Monthly return and also compare to stock index is a good idea.
Something more. To be updated when algotrading system is re-design.