On Wed, Jan 9, 2013 at 5:02 PM, Marcus Williford <[email protected]>wrote:

> Looking at the code, and this feature request.  I think we can use IB API
> to get the historical data, since we all pay for it!
>
> My suggestion is to create a new type of object, which lazy loads a 1yr
> security historical data for any security. Let's call it SecurityHistory
> (think of this like a macro marketbook, with no book data).
> Next, we need to have a tier for HistoricalIndicators, which can get
> access to SecurityHistory.  These HIstoricalIndicators can have state, for
> EMA calculations, etc.  Then, any Strategy can create as many
> HistoricalIndicators it wants.  I don't think this would break the existing
> object oriented model too much ;).
>
>
This is certainly doable. My only objection is that it would complicate
things quite a bit. Specifically, for the purposes of backtesting and
optimization (as well as trading and forward-testing), you would now need 2
historical data files (one containing 1-sec market depth samples, and the
other one containing historical prices with some lower resolution). On top
of that, from what I hear from Judson, the market depth historical data
file would contain the future prices (as it's now), but the second one
would contain the underlying index (such as SPY, if I am trading the ES).

I think there may be a simpler solution, and I am willing to look into it,
but I'd like to see the evidence that the multi-week and multi-months
trends affect the intraday strategies. The average holding period of my
strategies is about 30-40 minutes. I really don't anticipate that these
types of strategies would be affected by taking long-term trends into
consideration. More importantly, all my strategies are actually anti-trend
(or mean-reversion, using a different terminology). However, there are of
course so many ways to trade (and to auto-trade), that it would be silly
for me to say that long term trends don't matter. If someone has such a
strategy, it's still possible to use it with JBT as it is, by simply
specifying filters (such as EMAs and SMAs) as indicators of long length. As
Judson noted, the discontinuity associated with contracts rollovers would
be a problem, but that can be hacked for the "proof of concept" purposes.
If I see such as proof of good performance, I'd be motivated to enhance JBT
so that it can support the time frames larger than a day.

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