SYNOPSIS

Stock Agent - A Java stock market trading program

INTRODUCTION
1 PURPOS! O" T#! PROJ!CT
The Project Stock-Agent is a Java stock market trading program that
supports portfolio management, charting, and technical analysis, paper
trading and experimental methods like genetic programming.
It has features like equation storing, quotes storing, Metastock, Insight
trading, ey chart etc. !ne can easily import or export the existing quotes
from or into a data"ase. #enerally, My$%& is "eing used as the "ackend
tool for storing of the quotes.
$ PRO%&!' IN !(ISTIN) SYST!'
In the old days, "ecause of the limitations of communications technology,
'all $treet (as the center for most of the $tock )xchange and *rokerage
firms. Today, at this millennial transition, investors can use revolutionary
Internet +lient , server technology to trade stocks nearly any(here, anytime,
independent of "rokers- fees and service limitations.
* SO&UTION O" T#!S! PRO%&!'S
The !nline Trading application called $tock./gent, is a ne( access
"y the trading pu"lic to lo( , cost transactions and cutting , edge, real ,
time market information that formerly "elonged only to "rokers has opened
up extraordinary ne( investment opportunities as (ell as a crucial need for
state , of , the , art information. It is exactly these ne( , market
investment services that $tock./gent specialies in satisfying.
+ SCOP! O" T#! PROJ!CT
/n Investment is a trade , you pay money no( in exchange for the
promise of something valua"le in the future. The 0$omething valua"le in
the future1 is generally money or something, (hich can "e sold for money.
In a good trade , (hat you get is more valua"le than (hat you give. This
applies to investments. 'hen the present value of (hat you (ill receive in
the future is greater than (hat you pay for it no(, then this is a good
investment. In the field of finance, the present value of (hat you (ill
receive in the future is called 0Present 2alue1. The present value minus
(hat you pay for it no( is called 03et Present 2alue1. 'hen an investment
has a positive 3et Present 2alue, (hat you get is greater than (hat you pay ,
so it is a good investment.
The Internet revolution has "een changing the fundamentals of our society.
It shapes the (ay (e communicate and the (ay (e do "usiness. It "rings us
closer and closer to vital sources of information. It provides us (ith means
to directly interact (ith service , oriented computer systems tailored to our
specific needs4 therefore, (e can serve ourselves "etter "y making our o(n
decisions. This prevailing shift of the "usiness paradigm is reshaping the
financial industry and transforming the (ay people invest.
This ne( access "y the trading pu"lic to lo( , cost transactions and cutting
, edge real , time market information that formerly "elonged only to
"rokers has opened up extraordinary ne( investment opportunities as (ell as
a crucial need for state , of , the , art information.
, #ARD-AR! . SO"T-AR! SP!CI"ICATIONS
The proposed system should have the follo(ing features5
"/nctions0 +ommonly used functions are to "e stored, such as indicators, so
that no need of retyping of them.
1/ote So/rce0 It should "e a"le to read in quotes directly from files
containing quotes in Meta$tock, )ay+hart or Insight Trader. 6eading from
files should quick and easy to setup.
T/ning0 Tuning of the application should "e allo(ed so that configuring the
$tock./gent for optimal performance can "e done very easily. It should "e
a"le to keep up to a"out 7,88, 888 quotes in memory at one time.
Import0 It should "e a"le to import quotes either directly from files or from
the data"ase.
Ta23es0 It should "e a"le to list quote prices for a single day-s trading in a
ta"le, and the a"ility to list all quote prices for a list of given stocks. *ut
(hen listing the user has to decide (hich stocks he is interested in.
App34ing !5/ations0 It should run multiple equations against every stock
listed in the ta"le and list the result of the equation.
App34ing "i3ter0 The user should "e a"le to restrict (hich stocks are listed
in the ta"le "y setting up an equation filter. This equation is run against each
stock listed in the ta"le, if the equation equates to true for a stock, then that
stock is listed. !ther(ise it is hidden.
)enera3 Ta23e "eat/res0 This application should support the follo(ing (ith
regarding the ta"les5
*y clicking on a column header, sorting "y that column and dou"le clicking
should perform the reverse sort.
*y right clicking on a ro(, the user can raise a context sensitive menu. *y
dou"le clicking on a ro(, the most common operation is to "e invoked,
typically graphing.
)rap6s0 The different types of graphs should "e displayed to the user "y
the selecting the option. The different types of graphs availa"le are
Portfolio #raph.
Market Indicator +harts.
$tock +harts.
Port7o3ios0 / portfolio is made up of several Cash Accounts and several
Share Accounts. / +ash /ccount can "e a "ank account, a term deposit, a
+ash Management /ccount or any account, (hich stores money. / $hare
/ccount is any account (here you can trade shares. To create a trading
account one needs atleast one of each. It should "e a"le to keep track of
multiple portfolios. !ne might "e an actual portfolio and other can "e used
for paper trading.
Ana34sis0 This application should "e a"le to perform analysis "y making
use of the facility that is to "e added called Paper Trade.
Paper Trade0 It should allo( performing historical paper trading4 this
allo(s us to test "uy9sell rules using historical share data.
)enetic Programming0 It should "e a"le to create ne( "uy9sell rules "ased
on historial data. It should use alge"raic simplification to reduce the sie of
the individual-s equations and also to remove any unnecessary computation.
It has to check the individual-s equations using a fe( simple rules, e.g. is the
equation "ig enough to "e meaningful: Is the equation not too large: )tc.,.
#ARD-AR! R!1UIR!'!NTS0
SYST!'0
PIII ;88M<= or a"ove
7>?M* 6/M
788M* @ree <ard disk space
$td. +olor Monitor
3et(ork interface card or Modem

SO"T-AR! R!1UIR!'!NTS0
SYST!'0
!perating $ystem5 /ny
$oft(are 5 Jdk7.A.
PROJ!CT ANA&YSIS
1 STUDY O" T#! SYST!'
These days, most expert traders and investors dra( stock charts, read stock
quotes, and follo( financial ne(s on their computer screens.
Market professionals also use various soft(are for trading and investment
analyses. Internet sites also provide essential online tools for stock quotes,
ne(s, research, and simple technical analyses. /verage stock traders,
professional or independent, sit at their screens during trading hours,
monitoring financial ne(s, examining stock charts, considering all possi"le
trade opportunities. Investors may decide of a stock sho(ing a typical "uy
or sell technical pattern. !ften they (ill sit "efore their screens for many
hours (ithout executing any trades, "ecause good picks are hard to find,
especially (ithout a systematic search method.
+onventional trading soft(are may let users search for stocks that meet a
certain num"er of criteria, such as specifications of price, volume, and other
indicators. <o(ever, those tools usually ask the users to input their o(n
search criteria.
$ S4stem Design0
The purpose of the design phase is to plan a solution of the pro"lem
specified "y the requirements document. This phase is the first step in
moving from the pro"lem domain to the solution domain. $tarting (ith
what is needed4 design takes us to(ard how to satisfy the needs. The output
of this phase is the design document. The system design, (hich is
sometimes also called top.level design, aims to identify the modules that
should "e in the system. /t the end of the system design all the major data
structures, file formats, output formats and the major modules in the system
and their specifications are decided. / design methodology is a systematic
approach to creating a design "y application of a set of techniques and
guidelines. Most methodologies focus on system design.
This application supports portfolio management, charting, and technical
analysis, paper trading and experimental methods like genetic programming.
It has also a #BI C#raphical Bser InterfaceD along (ith an online help.
@unctions5 +ommonly used functions should "e stored marking them (ith
indicators, so that no need of retyping of them.
%uote $ource5 $toring and loading quotes in or from the files, data"ases
etc., searching of the quotes should "e possi"le.
Tuning5 To increase the optimal performance, tuning is required.
#raphs5 @or creating of Portfolio graphs, market indicator charts,
advance9decline in the market, stock charts.
Transaction5 The user can perform the different types of transaction like
/ccumulate Transaction, Eeposit Transaction, Eividend Transaction,
Eividend E6P Transaction, @ee Transaction, Interest Transaction, 6educe
Transaction, Transfer Transaction and 'ithdra(al Transaction.
The /ccumulate Transaction is the 0*uy $hares1 transaction. The "roker
(ill provide the result.
Eeposit transaction is the transaction (here the user deposits money into a
cash account such as a "ank account.
Eividend Transaction is the transaction (hen a share dividend is received.
Eividend E6P CEividend 6e.Investment ProgrammeD Transaction is the
transaction (hen a share dividend that is automatically re.invested "ack into
the company "y "uying more shares.
@ee Transaction is the transaction (hen any kind of fee such as account
keeping fees, Tax etc., is received.
Interest Transaction is the transaction (hen any interest in one of the cash
accounts is received. If the account is in the negative then this interest (ill
"e de"ited in the account and a minus sign is kept in front of the value.
6educe Transaction is the 0$ell $hares1 transaction.
Transfer Transaction is the transaction (here transfer of money from one
cash account to another is made. If there (as a fee for the transfer, then a
separate transaction has to "e entered.
'ithdra(al Transaction is the transaction (here money is (ithdra(n from a
cash account such as "ank account.