Over 10 years ago I became a billion-yen FX trader, but now I’m aiming to become a billion-yen with system trading of stocks.
In FX, I was able to make a profit through arbitrage and nano trading that took advantage of structural flaws, but in stocks, there are no structural flaws due to the order book concept.
Conversely, I feel that conflicts of interest between securities companies and traders are “less likely to occur” in the stock world.
However, the recent high volume of margin trading and the way securities companies are encouraging people to trade on margin can be unpleasant, and I also feel that there are some contracts with margin trading that make me think, “They’re doing this…”
Still, with the concept of an order book and the fact that general traders can buy spot goods, isn’t it possible to at least win more than in FX in general trading?
Developed a system for trading individual stocks
Legendary people like individual investors “CIS” and “BNF”, and more recently “Tester” who broadcasts on YouTube, are people I aspire to be like.
Since people like these have actually become billionaire traders, I thought “I could do it with system trading of individual stocks too!”.
As is my usual bad habit, I started thinking “It’s easy! It’ll be a breeze!” but it was harder than I thought.
I agreed that “day trading” is the quickest way to turn a small amount of capital into a billionaire because of the order book, but I didn’t think it would be this “complicated”.
Assignment
- The appearance of the chart changes depending on the financial settlement.
- Traders move trading stocks.
- Expected values change as bid and ask prices change.
- It is not clear from the data whether a limit order will be executed.
- Stop orders (reverse sell orders) slip abnormally.
Results
- The issues became clear.
- The official statement is that thinning occurs every 0.4 seconds, but in reality it is much faster.
- The depth of market and trading volume information is quite accurate.
- If the trading program is written properly, it is reproducible.
- The Kabu Station API is easier to use than I expected.
Direction of system trading of individual stocks
It has been quite some time since I started collecting tick data for individual stocks in early November 2024.
I have not yet found a “holy grail” logic that can universally make profits for any individual stock and in any market.
In my opinion, while FX had a “holy grail” due to its structural flaws, I feel that it is difficult in the world of individual stocks due to the above-mentioned “challenges.”
Optimal Solution
- Trading rules are put into logic and trading is left to the system.
- The stocks and timing that fit the logic are decided at your discretion.
- The decision is made within the first 30 minutes of the morning session, and then monitoring is carried out thereafter.
It was difficult to achieve fully automated trading where you can win just by running the system without thinking.
It’s possible if you can earn a few percent interest per month, but that’s not much fun.
In conclusion, I came to the conclusion that you can win by using your discretion to select stocks that best suit your logic’s quirks and by using some discretion in your trading.
Because discretion is involved, I’m sure there are many people who are better than me in the end.
Challenge yourself to become a billionaire trader!
I’m aiming to make 100 million yen in 2 years from 3 million yen in investment funds!
Please refer to the information below regarding compound interest, but theoretically a monthly interest rate of 20% is possible if you go above and beyond that, but I feel that the best you can achieve is a monthly interest rate of 10%.
I will aim to make 100 million yen in 2 years by using compound interest on the 3 million yen investment capital I have prepared!
However, if the capital is reduced to 2.5 million yen, I will end this logic and use a different logic.
If I lose, it can be judged that it was a strategy (logic) that was simply adapted to past market conditions, so-called “curve fitting,” but I developed it because I thought it was not that kind of strategy (logic).
In system trading, the theoretical value and actual value are generally linked, so if it unintentionally decreased to 2.5 million yen, which is more than the drawdown, it can be judged that it is a logic that will never win. Conversely, being able to judge is also a good thing about system trading.
If I find another promising logic, I will continue the “Billion Trader Challenge” project, but if I don’t find one, I will end it! lol
With this strategy (logic), I think that compound interest will work as a daily interest rate of around 50 million to 500 million yen.
As explained in “About Compound Interest”, it is easier to turn 50 million yen into 500 million yen than to turn 3 million yen into 30 million yen, but there is a possibility that you will not be able to win according to the theoretical value due to the order book relationship for amounts over 500 million yen.
In any case, I would like to start little by little.