Friday, June 18, 2010

Stock application requirements

Currently, I'm in the process of creating a predictive algorithm for Stock trading.  The requirements are the following:
  • Since I am not planning on investing more than $25,000, I can only make one trade per day (buy/sell)
  • The profit must be more than 5% total income + transaction fees per week:
    • example: $500 deposit must make (500*.05) + 15 trades (buy/sell) at $3.95 a piece = 25 + 30*3.95 = $143.5 profit per week, which is actually 28.7% gain (way above any average).
    • $1,000 deposit must make (1000*.05) +15 trades (buy/sell) at $3.95 a piece = 50 + 30*3.95 = $168.5 profit per week, a 16.8% gain.
    • $5,000 deposit must make (5000*.05) +15 trades (buy/sell) at $3.95 a piece = 250 + 30*3.95 = $368.5 profit per week, a 7.3% gain.
    • $10,000 deposit must make (10000*.05) +15 trades (buy/sell) at $3.95 a piece = 500 + 30*3.95 = $618.5 profit per week, a 6.1% gain.
  • Algorithms used must be interchangeable (runtime deployment).
  • A way to specify the time period and specific stocks to use when testing algorithms.
  • A way to interchange presentation interfaces.
  • A way to compare algorithms on the fly.

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