Tuesday, June 05, 2007

Algo-trading

Comsec, along with ETrade are Australia's leading consumer-based ASX-trading portals. From what I can see both of these web sites provide homogenous services: up-to-date prices, market depth, market aggregatges, company information, trading (at lower cost to the institutional banks like Goldman Sachs JBWere where I work), and research.

Throughout the investment banks, increasingly, the trades that are conducted on the market are driven automatically through algorithms (e.g. algo-trading). Algo-trading is extremely efficient and methodical - business / trading rules (algorithms) are defined and executed whenever satisfied - all emotion / psychology is removed. So, I was thinking today - why can't the ASX day-trader define and execute algorithmic trading?

What would this entail? well, market events need to be accessed at real time, and based on these events (and the rules that have been defined), orders executed accordingly. The aim - speed of decision, and limited risk. With such a service, day trading could indeed be automated (i.e. through the execution of algorithmic trading rules). Unfortunately, both Comsec and ETrade both don't seem to offer access to market events real time (base versions). I will conduct a mini-investigation over the weekend at the advanced versions and review.

Maybe a good business idea?

Sunday, June 03, 2007

North Melbourne

As promised, here are photos of the townhouse, I (with the bank) are now a home owner of.

North Melbourne Townhouse


No surprise, I am a HUGE fan of North Melbourne and my townhouse. Some little facts:

  • 187 Abbotsford Street, is in fact the storage shed of one of Melbourne's last tramhouses (the fa├žade at the entrance is the only remaining part of the structure). Tramhouses provided the power for Melbourne's cable tram system at the turn of the 20th century.
  • The median price of a house in North Melbourne is 545000; the population is just over 9000 people, 42% are aged between 18-35
  • Only 10% of people living in North Melbourne are owner-occupiers (so a very transient population), 40% are professionals, and the top 10% of income earners are above the national average
  • And as an aside, it also has an above average crime rate - 337 incidents per 1000 people, so I guess I have a 1-in-3 chance of being robbed!
It is an interesting little suburb, somewhere between the grunge popularity of Richmond and the industrial inner-city, but expensive South Melbourne. And Errol Street, North Melbourne is fantastic - it appears every week a new cafe is opening - to cater for the inner city urbanite. Anyway, I have only lived here now for 5 months, so I will report back once I have been here for a little longer.

Friday, June 01, 2007

Kate moved in!

Yes, a BIG day - but my better half? today moved into my little townhouse - hopefully a whole new adventure awaits!