Development of an automated stock trading platform

OData support
Supervisor:
Dr. Kővári Bence András
Department of Automation and Applied Informatics

The global forex exchange is the largest financial market of the world, with average daily volumes in the trillions of dollars. Institutions, corporations and individuals are competing with each other for bigger profits and better rates, using the most adaptive automated systems, the latest protocols and the fastest trading environments. There is a huge competition out there. Very large studies and statistics showed that even more than 90% of day traders lose money in the long run. I have been trading successfully on the forex market for more than 3 years. I experienced many of those possible reasons, which cause the profitableness of many people. From a software engineer perspective, the most outstanding cause is the disadvantageous circumstances that retail brokerages and platforms provide. My intention was to create an automated trading environment that avoids these, and supports all areas of professional forex trading and development. From my standpoint, a successful automated trading platform has three main principles: it contains a well-designed set of tools for automated strategy development, it is possible to perform reliable historical simulations, and it executes the trading logics in the most efficient way. During the last couple of years, I used many other trading platforms, moreover I could get an insight into the structure of the forex markets, which definitely helped me a lot in designing my application. In order to achieve the desired requirements, I took advantage of the leading financial communication protocols, which highly improve the performance of particular trading styles, mainly strategies with lower trading durations and lower target prices. Based on real tests, the platform not only decreased trade execution times by a factor 10, but it also reduced the losses originating from improper price fills to half, comparing to the retail circumstances. In addition to this, it also makes it possible to manage position sizes of 10-20 million dollars in an efficient and secure way. All things considered, in many cases Everex Trader could be the difference between positive and negative balance curves.

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