SYNOPSIS

Stock Agent - A Java stock market trading program

INTRODUCTION 1) PURPOSE OF THE PROJECT

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, ezy chart etc. One can easily import or export the existing quotes from or into a database. Generally, MySQL is being used as the backend tool for storing of the quotes. 2) PROBLEM IN EXISTING SYSTEM In the old days, because of the limitations of communications technology, Wall Street was the center for most of the Stock Exchange and Brokerage firms. Today, at this millennial transition, investors can use revolutionary Internet Client server technology to trade stocks nearly anywhere, anytime, independent of brokers fees and service limitations. 3) SOLUTION OF THESE PROBLEMS The Online Trading application called Stock-Agent, is a new access by the trading public to low cost transactions and cutting edge, real time market information that formerly belonged only to brokers has opened up extraordinary new investment opportunities as well as a crucial need for

state of the art information.

It is exactly these new market

investment services that Stock-Agent specializes in satisfying. 4) SCOPE OF THE PROJECT An Investment is a trade you pay money now in exchange for the promise of something valuable in the future. The Something valuable in the future is generally money or something, which can be sold for money. In a good trade what you get is more valuable than what you give. This applies to investments. When the present value of what you will receive in the future is greater than what you pay for it now, then this is a good investment. In the field of finance, the present value of what you will receive in the future is called Present Value. The present value minus what you pay for it now is called Net Present Value. When an investment has a positive Net Present Value, what you get is greater than what you pay so it is a good investment. The Internet revolution has been changing the fundamentals of our society. It shapes the way we communicate and the way we do business. It brings us closer and closer to vital sources of information. It provides us with means to directly interact with service oriented computer systems tailored to our specific needs; therefore, we can serve ourselves better by making our own decisions. This prevailing shift of the business paradigm is reshaping the financial industry and transforming the way people invest. This new access by the trading public to low cost transactions and cutting edge real time market information that formerly belonged only to brokers has opened up extraordinary new investment opportunities as well as a crucial need for state of the art information.

5) HARDWARE & SOFTWARE SPECIFICATIONS The proposed system should have the following features: Functions: Commonly used functions are to be stored, such as indicators, so that no need of retyping of them. Quote Source: It should be able to read in quotes directly from files containing quotes in MetaStock, EazyChart or Insight Trader. Reading from files should quick and easy to setup. Tuning: Tuning of the application should be allowed so that configuring the Stock-Agent for optimal performance can be done very easily. It should be able to keep up to about 1,00, 000 quotes in memory at one time. Import: It should be able to import quotes either directly from files or from the database. Tables: It should be able to list quote prices for a single days trading in a table, and the ability to list all quote prices for a list of given stocks. But when listing the user has to decide which stocks he is interested in. Applying Equations: It should run multiple equations against every stock listed in the table and list the result of the equation.

Applying Filter: The user should be able to restrict which stocks are listed in the table by setting up an equation filter. This equation is run against each stock listed in the table, if the equation equates to true for a stock, then that stock is listed. Otherwise it is hidden. General Table Features: This application should support the following with regarding the tables: By clicking on a column header, sorting by that column and double clicking should perform the reverse sort. By right clicking on a row, the user can raise a context sensitive menu. By double clicking on a row, the most common operation is to be invoked, typically graphing. Graphs: The different types of graphs should be displayed to the user by the selecting the option. The different types of graphs available are Portfolio Graph. Market Indicator Charts. Stock Charts. Portfolios: A portfolio is made up of several Cash Accounts and several Share Accounts. A Cash Account can be a bank account, a term deposit, a Cash Management Account or any account, which stores money. A Share Account is any account where you can trade shares. To create a trading account one needs atleast one of each. It should be able to keep track of

multiple portfolios. One might be an actual portfolio and other can be used for paper trading. Analysis: This application should be able to perform analysis by making use of the facility that is to be added called Paper Trade. Paper Trade: It should allow performing historical paper trading; this allows us to test buy/sell rules using historical share data. Genetic Programming: It should be able to create new buy/sell rules based on historial data. It should use algebraic simplification to reduce the size of the individuals equations and also to remove any unnecessary computation. It has to check the individuals equations using a few simple rules, e.g. is the equation big enough to be meaningful? Is the equation not too large? Etc.,. HARDWARE REQUIREMENTS: SYSTEM: PIII 500MHZ or above 128MB RAM 100MB Free Hard disk space Std. Color Monitor Network interface card or Modem

 SOFTWARE REQUIREMENTS: SYSTEM: Operating System: Any Software : Jdk1.4.

PROJECT ANALYSIS 1) STUDY OF THE SYSTEM These days, most expert traders and investors draw stock charts, read stock quotes, and follow financial news on their computer screens. Market professionals also use various software for trading and investment analyses. Internet sites also provide essential online tools for stock quotes, news, research, and simple technical analyses. Average stock traders, professional or independent, sit at their screens during trading hours, monitoring financial news, examining stock charts, considering all possible trade opportunities. Investors may decide of a stock showing a typical buy or sell technical pattern. Often they will sit before their screens for many hours without executing any trades, because good picks are hard to find, especially without a systematic search method. Conventional trading software may let users search for stocks that meet a certain number of criteria, such as specifications of price, volume, and other indicators. However, those tools usually ask the users to input their own search criteria.

2) System Design: The purpose of the design phase is to plan a solution of the problem specified by the requirements document. This phase is the first step in moving from the problem domain to the solution domain. Starting with what is needed; design takes us toward how to satisfy the needs. The output of this phase is the design document. The system design, which is sometimes also called top-level design, aims to identify the modules that should be in the system. At 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. A design methodology is a systematic approach to creating a design by 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 GUI (Graphical User Interface) along with an online help. Functions: Commonly used functions should be stored marking them with indicators, so that no need of retyping of them. Quote Source: Storing and loading quotes in or from the files, databases etc., searching of the quotes should be possible. Tuning: To increase the optimal performance, tuning is required. Graphs: For creating of Portfolio graphs, market indicator charts, advance/decline in the market, stock charts.

Transaction: The user can perform the different types of transaction like Accumulate Transaction, Deposit Transaction, Dividend Transaction, Dividend DRP Transaction, Fee Transaction, Interest Transaction, Reduce Transaction, Transfer Transaction and Withdrawal Transaction. The Accumulate Transaction is the Buy Shares transaction. The broker will provide the result. Deposit transaction is the transaction where the user deposits money into a cash account such as a bank account. Dividend Transaction is the transaction when a share dividend is received. Dividend DRP (Dividend Re-Investment Programme) Transaction is the transaction when a share dividend that is automatically re-invested back into the company by buying more shares. Fee Transaction is the transaction when any kind of fee such as account keeping fees, Tax etc., is received. Interest Transaction is the transaction when any interest in one of the cash accounts is received. If the account is in the negative then this interest will be debited in the account and a minus sign is kept in front of the value. Reduce Transaction is the Sell Shares transaction. Transfer Transaction is the transaction where transfer of money from one cash account to another is made. If there was a fee for the transfer, then a separate transaction has to be entered.

Withdrawal Transaction is the transaction where money is withdrawn from a cash account such as bank account.