Day Trade Automation
This project reviews development of an application that will automatically day trade. Orders will be triggered, based on a stock's performance.
Step 1: Obtain stock data
I choose to use a combination of Yahoo's and Kibot's finance API to obtain stock history.
Step 2: Analyze/calculate stock's performance
With AWS Lambda, a serverless cloud computing service, a daily function is triggered that analyzes all Nasdaq and NYSE stocks and determine which to buy based on the following criteria:
Stocks with an average volume greater than 10,000
Stocks greater than $8, but less than $40 (increasing as the portfolio increases)
Stocks that pay dividends
Stocks with a low positive P/E ratio
Stocks that have been consistently closing higher the past 4 days
Based off these results, the application further analyzes sectors and buys stocks with a best effort to diversify the portfolio. The application is currently configured to post the "best" stock from the above criteria. I define the best as a high potential on returns, based on price and P/E ratio. The following is a link to those daily reports:
Step 3: Choose brokerage
Take your pick of a brokerage that offers an API.
Step 4: Set buy/sell trigger
Based on the results from my stock analysis, a buy function is triggered to purchase the stock. I have my brokerage mail forwarded to an S3 bucket, and on a successful buy order, a function is triggered to place a limit sell order of 1.02% of the purchase price.
Step 5: Get paid
Please direct any questions or comments to email@example.com
Disclaimer: This is not investment advice. Use at your own risk.