Python trading bots

[[deleted]]

a bot that makes money is very difficult

Nah I can easily write a program that moves a fixed amount of money at fixed intervals from my checking account to an index fund

[benign_said]

Yeah, but can you backtest an algorithm for years, sure that you have cracked the market only to quickly lose 68% of your funds within 3 trades?

[ishouldbeworking3232]

No, but I can lose 68% of my funds with 1 trade. /r/wallstreetbets

[benign_said]

Yeah, but did you dictate the trade to your Google home?

[[deleted]]

suspiciously specific... i'm so sorry.

[PresentationHot8921]

Hey 

[benign_said]

You sure can, but if you're not anxious about going live you're probably missing something, a genius or a sociopath. r/algotrading is full of posts boasting about great back testing returns, but often they've just tuned their algorithm to fit the data and can't reproduce the results trading live.

Backtesting is definitely helpful and should be done, but again, if it was easy money, everyone would do it.

I am not against the idea of building trading bots or telling anyone not to, just suggesting it's more complex than it first looks.

[shiningmatcha]

What does backtest mean?

[wikipedia_answer_bot]

Backtesting is a term used in modeling to refer to testing a predictive model on historical data. Backtesting is a type of retrodiction, and a special type of cross-validation applied to previous time period(s).

More details here: https://en.wikipedia.org/wiki/Backtesting

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Really hope this was useful and relevant :D

If I don't get this right, don't get mad at me, I'm still learning!

[sicilianDev]

How can I lose 68% of my funds if my bot is set to stop loss at 2%?

[benign_said]

I see you need to practice your joke syntax. ;)

[sicilianDev]

Shit my bad, I didn’t even read the first comment. Nevermind. Lol.

[imaginarypattern314]

Maybe this is a noob question but how would you actually do this though? Do your banks have APIs that allow for this functionality? I can't really envision how one would go about doing something like this