Tag Archives: data market feeds

Is Interactive Brokers cheapest and most effective data market feeds?

Here is a conversation on reddit.com which pretty well inspired me tostart thinking about blending my knowledge of technology and financial investment. This was pretty inspiring where an indie software engineer launched his own business. He is now clearing millions. Source is http://www.reddit.com/r/IAmA/comments/9s9d7/iama_100_automated_independent_retail_trader_i/

whatswith_this 1 point2 points3 points 6 months ago[+] (3 children)

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bolln 1 point2 points3 points 6 months ago[+] (1 child)

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locktight 0 points1 point2 points 6 months ago[+] (5 children)

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orijing 0 points1 point2 points 6 months ago[+] (8 children)

orijing 0 points1 point2 points 6 months ago[-]

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Hi, I’m a EECS/business/econ major at a top public university. I am very interested in AI (plan to go to grad school for it). I’m taking an AI course and a machine learning mini-course focused on trading. I’ve simulated some strategies, but although they do beat the market 95% of the time without fees, with fees it’s much more questionable.

I use interactive brokers right now. Do you have any recommendations for cheaper solutions to start with, or do you just recommend scale?

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gnarsed 1 point2 points3 points 6 months ago[+] (3 children)

gnarsed 1 point2 points3 points 6 months ago[-]

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you won’t find anything cheaper than IB to start out with. What exactly do you find “expensive”?

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[deleted] 6 months ago[+] (1 child)

[deleted] 6 months ago[-]

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[deleted]

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orijing 0 points1 point2 points 6 months ago[+] (0 children)

orijing 0 points1 point2 points 6 months ago[-]

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In the US we usually don’t call it “uni”. Bob Herbert talked about us a few days back.

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mejalx [S] 0 points1 point2 points 6 months ago[+] (0 children)

mejalx [S] 0 points1 point2 points 6 months ago[-]

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If you think you have an edge, I would try to get more capital and put through more volume to get better commission structures. At IB are you using the bundled or unbundled commission structures?

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gozgozlin 0 points1 point2 points 6 months ago[+] (1 child)

gozgozlin 0 points1 point2 points 6 months ago[-]

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Glad you posted, I have a few questions I’d love to hear your response to. –Would you consider your main role to be liquidity provision? –Are most of your trades via limit order, or do you ever initiate? –Are you concerned about trading opposite “informed traders?” Is there anything you do to try to mitigate this risk? Thanks…

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mejalx [S] 0 points1 point2 points 6 months ago[+] (0 children)

mejalx [S] 0 points1 point2 points 6 months ago[-]

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I’m about 50/50. Yes, but nothing I’d like to expand upon.

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HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

More tips on data market feeds and how to start building an algo auto trading system

Here is a conversation on reddit.com which pretty well inspired me tostart thinking about blending my knowledge of technology and financial investment. This was pretty inspiring where an indie software engineer launched his own business. He is now clearing millions. Source is http://www.reddit.com/r/IAmA/comments/9s9d7/iama_100_automated_independent_retail_trader_i/

whatswith_this 1 point2 points3 points 6 months ago[+] (3 children)

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bolln 1 point2 points3 points 6 months ago[+] (1 child)

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locktight 0 points1 point2 points 6 months ago[+] (5 children)

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slaughters 0 points1 point2 points 6 months ago* [+] (1 child)

slaughters 0 points1 point2 points 6 months ago* [-]

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I’m a mathematician/statistician who has some finance experience, and thinking hard about this route. A couple cost questions for you if you feel like it:

(1) At what volume and approximate capital do the commissions get small enough that 2 cents/trade is profitable? eg. IB looks to charge a $1 commission per order minimum. I guess you mean 2 cents/share?

(2) How much does the colo run and at what point in your trajectory did you start using it? Did you start with local machines only?

(3) What do you think the minimum cost outlays on data feeds, colo, etc to not get killed on speed are?

Thanks!

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mejalx [S] 0 points1 point2 points 6 months ago[+] (0 children)

mejalx [S] 0 points1 point2 points 6 months ago[-]

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  1. Checkout the unbundled commission structures.
  2. I started colo’ing within the first few weeks of running as I needed full redundancy.
  3. You can get away with under a grand per month.

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cookiecaper 0 points1 point2 points 6 months ago* [+] (1 child)

cookiecaper 0 points1 point2 points 6 months ago* [-]

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Do you ever do normal and/or longer-term trades separate from the automatic model just because you want to own stock in something?

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mejalx [S] 0 points1 point2 points 6 months ago* [+] (0 children)

mejalx [S] 0 points1 point2 points 6 months ago* [-]

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Yes, I occasionally do trade manually, but it’s totally separate from my main business. I have a couple of speculative trades I put on every month which usually end up as swing trades or short position trades.

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cookiecaper 0 points1 point2 points 6 months ago[+] (1 child)

cookiecaper 0 points1 point2 points 6 months ago[-]

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Thanks for this AMA, it’s been interesting.

I’ve been developing software for a long time. This sounds like something I should do because I have a large portion of the skillset needed. However, I have no formal mathematics training. How necessary is that? Are your models formalized?

Thanks again. : )

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mejalx [S] 0 points1 point2 points 6 months ago[+] (0 children)

mejalx [S] 0 points1 point2 points 6 months ago[-]

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I utilize a variety of robust mathematical methods, so an understanding of statistics I would say has been a good part of my success.

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nash3q 0 points1 point2 points 6 months ago[+] (3 children)

nash3q 0 points1 point2 points 6 months ago[-]

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is there any way to play the game “for fun” or “practice” without much capital? i don’t know anything about real markets since my training is in continuous time macro (solving PDE/ODEs, dynamic programming, etc). however, i’d like to learn the real thing in my spare time. i’m ok with control theory and machine learning. i build models and algos for a living and take stem classes in my spare time. i’d like to test my ability using the “best” metric in life – money.

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mejalx [S] 0 points1 point2 points 6 months ago[+] (2 children)

mejalx [S] 0 points1 point2 points 6 months ago[-]

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You could subscribe to a real-time market feed and just simulate your trading. Alternatively a couple of brokers offer paper trading accounts.

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nash3q 0 points1 point2 points 6 months ago[+] (1 child)

nash3q 0 points1 point2 points 6 months ago[-]

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are either of these pay to play or free?

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mejalx [S] 0 points1 point2 points 6 months ago[+] (0 children)

mejalx [S] 0 points1 point2 points 6 months ago[-]

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There’s various simulators you can get for free. A real-time paper trading account requires you to only open an account with a broker, IB for example has an account minimum of $10k.

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wharmass 0 points1 point2 points 6 months ago[+] (1 child)

wharmass 0 points1 point2 points 6 months ago[-]

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I’m a high school senior applying to college, and I’m interested in doing something similar to your current situation.

What do you recommend majoring in? Computer Science, Finance?

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mejalx [S] 0 points1 point2 points 6 months ago[+] (0 children)

mejalx [S] 0 points1 point2 points 6 months ago[-]

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CS, engineering, or one of the sciences

HOW DO YOU START A PROFITABLE TRADING BUSINESS? Read more NOW >>>

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!