Automated Trader Programme Welcome Pack

Automated Trader Programme

WELCOME TO ALPHACHAIN ROUTE TO BECOMING A PROPRIETARY TRADER

UNDERSTAND THE TERMINOLOGY “The key to determining the performance of successful strategies, is its robustness.”

This welcome pack will include the steps required before beginning your programme with Alphachain Capital and an overview of what to expect. Having a firm grasp of the most commonly-used market terms will make your entry into the programme much simpler. Some words and phrases you’ll hear over and over again include: Algorithm: An algorithm is a set of instructions that are followed to solve a problem. It's a computer's thought process.

Arrays: Arrays are containers that hold variables; they're used to group together similar variables.

You can think of arrays like shelves at a supermarket. The array would be the shelf, and the items would be variables inside.

Variable: A variable is a container that holds a single number, word or other information that you can use throughout a program.

Scripts: A series of scripts, or sets of steps are written for a computer to follow. Computers process the steps line-by-line from top to bottom.

Each step is created by writing a statement.

Statement: They way you tell a computer to perform an action is by giving it instructions or writing statements to explain a desired action.

Function: A function is a block of code that can be referenced by name to run the code it contains.

Syntax: The arrangement of words and phrases to create well-formed sentences in a programming language.

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ANALYSE THE WORLD ECONOMY “Every battle is won or lost before it’s ever fought.”

Making money trading currencies is about accurately predicting the movement of the global economy. To be a profitable trader, you must convert your base currency into a quote currency set to rise in value, then convert your quote currency back to your base currency when the value peaks.

Research the trading positions and macroeconomics of countries you are interested in purchasing currency from, and you’ll get a great “lead” on which quote currency is worth your investment and which countries have economies projected for growth.

It is recommended to begin reading news from publications such as Bloomberg and Reuters to begin understanding the current climate.

Fundamental analysis: This type of analysis involves looking at a country's economic fundamentals and using this information to influence your trading decisions.

Quantitative analysis: This technique seeks to understand behaviour by using mathematical and statistical modelling, measurement and research.

Technical analysis: Technical analysis involves reviewing charts or historical data to predict how the currency will move based on past events. You can usually obtain charts from your broker or use a popular platform like Metatrader 4.

Algorithmic trading: This process for executing orders utilising automated and pre-programmed trading instructions to account for variables such as price, time and volume.

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PROGRAMME OUTLINE INTRODUCTION TO AUTOMATED TRADING In this module you'll cover the foundations of financial markets, how to develop a strategy and trading system and the understanding of some of the key technical indicators that will be required.

COMPONENTS TO BUILDING AN AUTOMATED TRADING STRATEGY Here you'll cover core parts that are needed to develop your trading strategy including defining you strategy, performing a back-test, execution systems, risk management and the steps required for the live funded account.

LEARN TO CODE Here you'll be walked throgh the tradingview plaform, build your first algorithm, begin to code a basic strategy and build your first custom indicator.

TRADINGVIEW PINE EDITOR Understanding the basics of the PineEditor section within TradingView. Understanding further details of how the code operates within the editor.

Applying and testing your strategies.

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CODING YOUR TECHNICAL INDICATORS Here you'll learn how to programme numerous technical indicators including moving averages, ATR, Bollinger Bands, RSI, along with building basic strategies based on some of these strategies.

BACKTESTING AND FORWARD-TESTING Here you'll refine the process of performing a back-test. The effects of adjusting various parameters within the code, and forward testing of your strategies. Here you'll also learn some of the pitfalls of automated trading in TradingView such as indicator repainting and how to overcome these.

AUTOMATED TRADING STRATEGIES Here you'll be provided with over 15 basic and advanced ready-made trading strategies for you to learn from and adapt to assist with the develop of your own bespoke trading strategy.

LIVE TRADING Apply your semi-automated or fully automated trading strategy on the Alphachain Capital funded accounts whilst adhering to our risk-management guidelines.

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RECOMMENDED READING LIST “A well-known Wall Street Trader had gone on a fishing trip for a week, he hired a flyfishing guide and off they set. By the end of the week not only did the trader catch a 24 pound sea-run brown trout on a fly but returned the favour to his guide by offering him a trading job. He provided a list of books to read and when he finished reading them, to give him a call.”

Please aim to read the following books before and during your course at Alphachain Capital to supplement your programme development. We believe self-study is as important as completing the programme. In trading you never stop learning. Naturally to become an expert in coding it will take thousands of hours of application and it is important to start as soon as possible to maximise your potential in this programme.

Books: Quantitative Trading by Ernest Chan In addition to this, you can also begin your journey by reading the most popular books in this field.

Algorithmic Trading & DMA by Barry Johnson Algorithmic Trading by Ernest Chan Trading and Exchanges by Larry Harris Inside the Black Box by Rishi K. Narang

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PROGRAMME TIMELINE Sign Up Welcome Pack DAY 1 Programme Prep: Induction to trading programme MONTH 1 Understand Financial Markets Development in Automated Trading Learn to code through Pine Script Psychology of Automated Trading MONTH 2 Application and test Coding Scripts Learn to develop custom indicators / strategies Access to Alphachain Automated Strategies MONTH 3 Develop and finalise trading model Analyse back test statistical evidence and optimise Live trading preparation and risk management Trader Presentations / Evaluation End of Programme Overall performance review and feedback / CPD certificate (120 credits) WWW.ALPHACHAIN.ACADEMY/

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