In my quest to program and build my own trading system, I have discovered a lot of conflicting information on the “Internets” about trading APIs and stock and option price quotes. In the past, I posted on HN news about some of my findings, only to get some great new insights. One thing I can’t find is a simple location for all trading APIs and I have stumble along some rabbit holes when dealing with the APIs, trying to see what works and what is no longer supported. With that said, I will will be launching a General information Git Repository, to hopefully provide links to SDK for trading API and price quote APIs, Etc. I will obviously do pull requests, but my opinions and finding on certain trading systems will be detailed below and on this site.
Finally, having built successful trading systems and algorithms, some of my work can be found here. I’m available for hire at Upwork or via email.
Etrade has and an API, it doesn’t seem to be very well supported. Meaning it came out in I think 2012 and it hasnt been updated recentley (like the last few years).
Sand box environment: I only made it to the sand box. Which really isn’t a test/development environment. It’s an environment that no matter what stock price you query it will return quotes for Apple, Google or Microsoft. This really isn’t a true testing environment.
Can take weeks to set up and become operational
Very little support from eTrade
documentation is clearly outdated
Very little documentation on Stackoverflow or google searchs
I am headed to North Carolina for the weekend with the Marines. (My other job) So as easy as it is to recycle last weeks headlines I won’t, but think about it for a second. Greece not solved, companies blow out earnings on lowered expectations, Republicans have little idea who will be the nominee, market continues to climb higher on lower volume, defying any traditional logic… Same as last week.
#Let’s play a game: Which portfolios of mine do you think are algorithmically controlled and which are discretionary? (Hint: I might rename the Hardline portfolio, to the Honey Badger portfolio)
#Busy Robots: I was doing some research for someone the other day in regards to High Frequency Trading and it appears that 70% is the number of trades handled by robots. For a video explanation see 60 minutes.
“If you tell a lie that’s big enough, and you tell it often enough, people will believe you are telling the truth, even when what you are saying is total crap.” ~ concept accredited to Joseph Goebbels
Anyway you look at the jobs number, you have to realize it is easily the most manipulated number in all of government financial reporting. If you think the current party in political power is the first one to do so then I think you should cast your vote for the following candidate. The real question should be why are so many people contesting people and defending the number?
Cramer is the CNBC cheerleader, Santelli is the antagonist, and Business Insider is usually lots of pictures & graphs and generally leans left. The Business Insider provides a good argument as well. However TrimTabs uses real time data based on tax income receipts. Simple numbers. The trimtabs piece is the one I believe is the most analytical. (aside from the brief mention of politics) You either have a job or you don’t. I can understand the concept of a birth death model in the jobs report, but as he says in the video no one understands the seasonally adjusted model. You have a job in one season and not in the next?
So if someone can explain the seasonally adjusted component of the BLS, please tell me or Trimtabs. Or you can keep it to yourself and make millions. The other key issue as stated in the video, most financial reporters don’t actually read the report, they just report the number. And for someone who has written millions of lines of code, I can tell you it’s not hard anymore to write a program that evaluates the number and starts buying or selling based on the number long before you have a chance to refresh your web browser. Code doesn’t need details it just looks for the number and then the market are off to the races…
So how do I know the number is manipulated? Well the Federal Reserve has dual mandate. The first is max employment and the second is price stability. (The unspoken third mandate, is to maintain confidence in the stock market.) So if the employment number continus to decrease and yet the Federal Reserves interest rate policy remains at zero, then the Fed is clearly indicating it doesn’t believe the jobs number and continues to hold interest rates low to stimulate the economy. Only when we start to see an increase in the interest rate will we know that the Federal Reserve actually believes the economy is getting better and there is actual sustainable job growth. But seeing as how the Federal Reserve has projected a zero interest rate policy until 2014, I think we know the answer. If the jobs number continues to decrease, look for interest rates to increase soon rather than later and say goodbye to Quantitative easing part 3 or 4 or 5. If the jobs number continues to decrease and the interest rate stays at zero, then start buying guns and gold because inflation or a revolution is pending.
Well… Newt Gingrich wanted a moon colony, I just didn’t think that the stock market would get there first. Down 100 points in the morning, rally to end the day flat. Makes sense?
#(facebook + twitter + myspace) = my-twit-face: The movie was great. (David Fincher is a great director: Seven, Fight Club) Unfortunately I don’t see this a great investment, Jim Rogers doesn’t either. On the contrary, Jim Cramer doesn’t want to “BUY, BUY, BUY” so that might be a contrary indicator. All I can say is that unless you have a co-located connection to the exchange and a super fast computer, I wouldn’t bother. Yes, I know everybody uses facebook and you saw the movie. But consider 2 key issues to take into account. 1. Don’t forget private shareholders and secondary share holders will be dumping this stock to take profits. (off the top of my head they have been holding shares for two years now…) 2. The twitter search frequency sentiment engines are already salivating at this IPO. I know my twitter search algorithm has already been tracking the symbol $FB. So if you want to short or go long, don’t worry the high frequency algorithms will be happy to front-run your trades.
#financial advisor: Email me if you are interested in recreating the Hardline & Quatro Kinectic porfolios for your clients.
#House in Davos: Henry Blodget of business insider fame, was lucky enough to get an interview with Robert Schiller in Davos, the creator of the Case-Shiller 20-city Index of home prices. (Released tomorrow at 9:00 am)
#Greece: We are currently between stages 3 and 4 in the five part Greece flowchart.
#Developing: Will be submitting an application to the marketplace on stocktwits.
#back by popular demand & laughs: Okay, I guess you could call this the honey badger market. (This might be the most profound statement on the blog today.)
#641: I track over 641 stocks, you can see where I stand on any position here.
There is nothing like waking up in the morning and pulling out the good old blackberry, (sorry, I’m old school) and reading via my twitter feed that Jamie Dimon sees little impact from Greece default. After that I turned off the alarm, because there is no longer need to worry and slept for another hour or so! Thank goodness we have bankers to tell us how to think!
Well I won’t go into a tirade, there are plenty of other people I can link to that deserve the credit. Of course, Zero Hedge, had an immediate response. (Weather you like the site or not, thank goodness we have a free press.) Even the “highly analytical” Business Insider produced a simple slide show, two months ago. If Jamie is so unconcerned, maybe we should stop with the whole Bernanke ZIRP (Zero Interest Rate Policy) and he can start marking to market JP Morgan’s balance sheet.
A whole lotta nothing… The markets seem to be in a holding pattern. So I could yammer on about the unsolved European debt saga/tragedy but I won’t. The Fed, which is generally speaking is considered a banker’s best friend, is starting to see moderate growth in the economy according to the Beige Book. This could mean one of two things.
1. The American Economy is growing and it will be time to stop the printing presses soon. (Good for the dollar & savers, bad for the multi-nation companies & the stock market)
Although I refuse to watch the low attention span financial channel masquerading under the name CNBC, I do browse the website. (Mostly on my phone walking the dog, so I guess that makes me a hypocrite.) Someday I would like to create a CNBC indicator. I could browse and analyze headlines on CNBC and see if there is a correlation between the tone of headlines and market performance. Today, would be a great day to start. I saw the following two articles on the front page right next to each other on the website. Breakout: S&P 500’s Highest Close Since July Could Fuel More Buying and right next to it Dow Rally to Fizzle Out by End January: Charts. What’s a trader to do? Hence the market was generally flat for the day. But I don’t need to analyze CNBC, I can do that on Twitter.
On another note: With the abundance of internet connections, screen casts and charts drawing tools anybody can become a chart master and produce “set ups”. No one ever tracks the performance of these “set ups”, maybe it’s an indication that nobody cares? No one wants to “verify” those trades? Well technical analysis is great, but I can create about 600 setups in about 6 minutes. So below are 10 stocks that came across my algorithmic scans. I am only providing the entry point or the trade idea. You do the rest. If the stock goes in the wrong direction my algorithm will get out and if it goes positive then it will stay in, but I won’t be tracking it here. The only trades that I track are the trades in the Just the Numbers portfolio and you can see those by subscribing to the newsletter.