Getting Started with AutoTrading

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Implementing automated trade execution involves:

  1. Setting Up the Order Execution Gateway, and
  2. Setting Up Auto Trading in MultiCharts


Setting Up the Order Execution Gateway

Please choose the order execution gateway and follow the instructions.


Setting Up FXCM

Please refer to FXCM's documentation.


Setting Up Interactive Brokers TWS

  1. Install a standalone version of Trader Workstation according to the instructions provided by Interactive Brokers.
  2. Start Trader Workstation and log in using a user name and password provided by Interactive Brokers.

    Important: It is strongly recommended that automated order execution process is initially extensively tested using a Simulated Account. Testing strategies and automated order execution using a real account can result in a substantial financial loss! All Interactive Brokers clients with a real trading account also receive a simulated trading account that provides real-time data and enables traders to and test the functions and features of the Trader Workstation platform.

    In addition, Interactive Brokers provides a Demo Account that is accessible by people who aren't clients. A demo account supports only some of the symbols, has limited historical data, and provides delayed quotes.
    The user name is edemo and the password is demouser.
  3. In Trader Workstation, click the Configure icon on the toolbar, or click Configure in the main menu.
  4. Click API and then select the Enable ActiveX and Socket Clients check box.


Setting Up Patsystems

Please refer to Patsystems' documentation.


Setting Up Rithmic 01

Please refer to Rithmic's documentation.


Setting Up Rithmic Test

Please refer to Rithmic's documentation.


Setting Up Trading Technologies

Please refer to Trading Technologies' documentation.


Setting Up Zen-Fire

Please refer to Zen-Fire's documentation.


Setting Up Auto Trading in MultiCharts

  1. Determine the symbol to plot on a chart. In QuoteManager, verify that that the Price Scale, Min Movement, and Big Point Value settings for the symbol are correct. MultiCharts will have the correct settings for most of the symbols, but it is not possible to cover every symbol. If these settings are not correct, then the chart will not plot properly and orders may be rejected by the execution gateway. To learn more, see [[LINK /101-01_SettingIndProp.html name=""; |Setting Properties]].
  2. Create a chart of the necessary symbol. To learn more, see [[LINK /22-0100_CreatingChart.html name=""; |Creating Charts]].
  3. Add the necessary signals to the chart. To learn more, see [[LINK /0270_Indicators/22-7000_Studies.html name=""; |Using Studies]].
  4. Set signal and strategy properties. To learn more, see [[LINK /0270_Indicators/22-7006_SignalSettings.html name=""; |Signal Settings]] and [[LINK /0280_Backtesting/22-8003_StrategyProp.html name=""; |Strategy Properties]].
  5. Open the Strategy Properties window.

    To open the Strategy Properties window:
    1. Open the Format Objects window.

      To open the Format Objects window, right-click on an empty area of the chart and then click Format Signals.

      The Format Objects window can also be opened by one of the following methods:
        - Select Format in the main menu and click Signal.
        - Double-click any one of the signal's labels on the chart.
        - Position the mouse pointer over any one of the signal's labels on the chart; once the Pointer Pointer.png changes into a Hand Hand.png, right-click the label and then click Format Signals.

    2. Select the Signals tab.
    3. Click Properties to open the Strategy Properties window.

  6. Select the Auto Trading tab.
  7. Select the Require order confirmation check box to have the opportunity to confirm or reject each order before it is sent to the execution gateway.
  8. Select Replace to Market Partially Filled Orders check box to automatically convert the remaining portion of a partially filled limit order into a market order. For example, there is a sell limit order above the market price for 10 contracts. The trading price touches the sell limit price, but pulls back. Six of the contracts are filled and the remaining four contracts are unfilled. MultiCharts will convert the sell limit order for the remaining contracts to a sell market order at the close of the bar. (e.g., If the chart is plotting 5 minute bars, then the remaining portion of the limit order will be converted to a market order at the close of the 5 minute bar.)

    Note: As long as there is a partially filled order, MultiCharts will always convert the order as described in this step regardless of any settings that are in Unfilled Strategy Order Replacement. If the order was not partially filled and Unfilled Strategy Order Replacement was turned on, then MultiCharts will convert the order according to the settings in Unfilled Strategy Order Replacement.

  9. Select the Show order execution status check box to have a status message displayed every time an order is sent, canceled, filled, or rejected, or any other informational message is received from the gateway application.
  10. Select the Audio Alert check box and choose a sound file to activate an audio alert every time a notification window appears.
    To learn more, see [[LINK Selecting an Alert Sound File]]
    Selecting an Alert Sound File:
    1. Enter the path and name of the wave (.wav) sound file to be used into the File text box, or click the ... ellipse.gif button on the right side of the text box for Open dialog box, navigate to and select a sound file, and click the Open button.
    2. Click the Test button to test the alert.
    3. Select Play Once or Repeat for the alerts to be played once or repeatedly, respectively.
  11. In the Mode Selection section, there are two options: synchronous and asynchronous [[LINK /0295_AutoTrading/02-9501_AT_Understanding.html name=""; |mode]].
    1. Select Entries/Exits are based on the execution confirmation by the broker (Sync) option for synchronous auto trading mode (SA).
    2. Select Entries/Exits are independent of the execution confirmation by the broker (Async) option in the Mode Selection section for Asynchronous auto trading mode (AA). If AA is selected, two group boxes become available.

    Unfilled Strategy Order Replacement
    This feature gives the strategy the ability to automatically convert limit orders or stop orders into market orders after a certain period of time.
    • Select Convert unexecuted limit or stop entry orders to market orders check box to convert unexecuted limit or stop entry orders to market after a specified number of seconds. Enter the number of seconds in the list box.
    • Select Convert unexecuted limit or stop exit orders to market orders check box to convert unexecuted limit or stop exit orders to market after a specified number of seconds. Enter the number of seconds in the list box.
      Note: The waiting period for converting unfilled limit or stop orders to market orders must be less than the duration of a single bar.

      Note: As long as the order is completely unfilled, MultiCharts will always convert the order as described in this step regardless of any settings under Replace to Market Partially Filled Orders. If there is a partially filled order and Replace to Market Partially Filled Orders was turned on, then MultiCharts will convert the order according to the settings in Replace to Market Partially Filled Orders.


    Assign the Initial Market Position at the Broker Settings
    To learn more, see [[LINK /0295_AutoTrading/02-9503_AT_Working.html name="10"; |Synchronization of Market Position in Auto Trading Mode]].
    • Select Show the Assign the Initial Market Position at the Broker radio button to display a dialogue box to input the initial position and average entry price. This dialogue box will appear when auto trading is turned on in the chart (see last step).
    • Select Do not show the Assign the Initial Market Position at the Broker radio button to set the initial position here instead of in the dialogue box.
      There are two choices:
    • Select Assume the initial market position at the broker FLAT to set the initial position to 0.
    • Select Assume the initial market position at the broker the SAME AS on the CHART to set the initial position to the position that's on the chart.
    Note: Synchronization of the Market Position in the Auto Trading Mode may not work correctly if pyramiding was used in the strategy. It may also not work correctly if more than one active entry was generated on a chart when auto trading is launched. The reason for this limitation is that dialog window is set up to define only one active entry.
  12. Choose the broker/gateway from the list box in the Select Broker Plug-in section.
  13. Click Settings.
  14. Input the settings for the appropriate broker/gateway.
  15. Turn on auto trading. There are two ways to do this.