Alexander Muzychenko

Automated Trading with Adaptive Reversal Parametric Breakout Strategy: Stock Market Trading with Automated Trading Systems Alexander Muzychenko

The traditional stock market trading methods have been developing during centures. Manual trading on the stock exchange is gradually disappearing. To replace it there is a progress of information technology coming in play today. The trading decisions are influenced by many psychological factors they can not discard. An alternative to human emotions on the stock exchange can only be trading machines or trading robots. The trading robot is a software package, which has an algorithm on how the transactions with stocks should be made and under which conditions they should be triggered. Trading robots can be so sophisticated that they can almost exclude any kind of risks to a certain degree. There was analysed and classified a varitey of existing strategies. This work proposes an implementation of a trading robot based on Breakout Volatility Filter trading algorithm. The algorithm developed in work is Adaptive Reversal Parametric Breakout (ARPB) Strategy. The most important basis principle of the proposed ARPB strategy is that the strategy adoptes itself to a daily volatility rate and basicly ?learns? a new market conjuncture to minimize the number of poor quality trades.