Hey everyone! So, since in the previous video I mentioned I chose systematic trading, I just want to give you a quick idea of what the infrastructure looks like, which is often seen as the real hurdle.
The Computer
First off, you need a computer. That’s obvious. Even better if it’s a cloud-based system or a VPS, something that’s always online, so you’re protected from things like power outages or internet dropouts you might experience at home.
Since this infrastructure runs 24 hours a day once it’s up and running, it needs to be stable.
Trading Platforms
Then, as I was saying, you need platforms. Besides the broker’s platform, which obviously needs to be compatible with the others, though there are several options out there so it’s not a huge issue, you’ll also need a platform that allows you to run tests and backtests. Backtesting is one of those scary-sounding terms, but really, it just means testing an idea on historical data.
Say your idea is: what if I buy on Tuesday morning and close the trade on Thursday evening? What would’ve happened? Great, you gather the data, feed it into your system, write the conditions, and run the test.
It tells you: You would’ve made X per year… or, you’d always have lost. In that case, I’d say: okay, this might work, or no, let’s skip it. Or maybe I should flip the logic and do the opposite.
Market Data
Now, data. You need historical data, and many providers have it. Some even specialize in data and can sell you historical minute-by-minute data, every minute showing you what happened: open, close, high, low, and so on.
You gather that, and then you use software, like the one I use, which is MultiCharts. I can mention it. It does all of this: it manages the data and has everything you need already built-in. It’s made for this purpose.
Programming
So, you don’t need to write that part of the software. What you need to write is the code to test your own ideas.
And that’s another hurdle, you might think. You might say, “But I’ve never programmed. I don’t know how to program.” Well, let me tell you, it’s really not a big deal. You don’t need to be a programmer, although of course it does help if you’re not scared of seeing a line of code.
MultiCharts uses something called PowerLanguage, which is based on EasyLanguage, and it really is a pretty simple language to use. Sometimes just a few basic concepts are enough to write code that does exactly what you need for testing.
You can even find pre-written code, on our platform or elsewhere. Like a basic framework where you just add a couple of conditions to shape your own trading idea.
So it’s not a real obstacle. But be careful, if you’re truly allergic to computers, code, and anything technical… then unfortunately, this might not be for you. But if you’re just a little skeptical, and willing to dig in just enough to get the hang of it, then you’re fine. You don’t have to become a NASA engineer to do this. Absolutely not.
I mean, I managed it, and I’m absolutely terrible with computers, so if I could do it, literally anyone can.
So, to recap: you’ve got the data, the software to backtest and test your idea, and that same software will use the finished strategy to send orders to the market. All this runs on a computer, ideally on a server.
And the data provider who gave you the historical data should also provide real-time data to fuel your live systems. Because when your system is up and running, it needs to be constantly fed with live market info to make decisions on the spot.
The Unger Trading Method
Now, about ideas. This is the part that might sound scary. You’re probably thinking, “You said ‘an idea’, but I don’t have any ideas!” I was the same at first. I would mix indicators and try random things… but it’s actually much simpler than it seems.
This simplicity is what I eventually started calling the “Unger Method.” Unger is a bit of a dummy, so he needs a dummy-proof method! But seriously, it’s a simple process. Of course, within that process you can add plenty of complexity if you want, but the process itself is straightforward.
Once you understand the path you need to follow, it’s easy to stick to it step by step. And that’s the whole point.
The Unger Method is a step-by-step process that takes you from a raw idea, or even a pre-made one we give you, to a fully developed trading strategy.
If you want to learn more, you can request our Complete Beginner’s Guide to Trading, a 50-page PDF packed with valuable content for anyone new to trading. Just type TRADING in the comments and we’ll send it straight to you.
That’s it for today. See you next week for the final episode of this mini-course on beginner trading!
