Archivos Mensuales: mayo 2011

Algodeal (1) Introduction

I have been busy with getting to know Algodeal on these days. Algodeal is an automated trading strategy online platform. This project is relatively new, and it doesn’t seem to be well-known, yet. Googling ‘algodeal’ actually returns less than 7000 internet pages.

What is Algodeal ?

As the Algodeal website reads it offers an infrastructure for designing, backtesting and analysing quant strategies.

Algodeal provides a development environment called Market Runner, the prevailing programming language being Java. Among other things, the Algodeal team gives some help on how to install and use Eclipse and NetBeans together with their envronment. A series of tutorials, sample code examples, and various code snippets are provided as well.

How does Algodeal work ?

Actually, one can work on his home machine or send out its code to the Algodeal servers. And, one can develop strategies without  even using Market Runner.

Nonetheless, a typical use of the Algodeal platform – at least, in our case  – is as follows :

–      Coding an automated-trading strategy in Java using an IDE.

–      Sending out our strategy to the Algodeal online platform (that is “Run Strategy Remote”)

–      Receiving back  a series of performance indicators (P&L, number of trades, graphs … ) from the grid of Algodeal.

–      Based on those results, improving the automated trading strategy, and going through a new cycle …

Hopefully, we will develop a high-performance algorithm that Algodeal would use for real trading.  It will make real money, and we would receive part of the returns.

Some disagree with the fact that the returns from the real investments made based on the strategies submitted by the users are shared together with Algodeal. I am not going to spend much time at debating. The Algodeal project seems fair to me as it provides with a free online grid, time series, a development environment, Java classes … Moreover – and, not the least – I do not put my own money at stake.