Laws and Algos?

I’m in the process of developing and thinking about releasing an open source trading system that’s built using php, id like some input on any applicable laws in regards to fully automated stock trading ive seen https://en.wikipedia.org/wiki/Algorithmic_trading
but id like someone to break down the basic do’s and don’ts

i’ve thought of the effect this could have on the market and i believe it will make it more liquid opposed to the idea that ‘if everyone has it then no one has it’ for example to much data for the market to address, so id like to discuss the use rather then any ideas of negative effects on the market

The concept of the software and what parts are finished, im putting this here to help everyone understand its objective and help eliminate any unnecessary development

  1. Consecutive fully automated profitable trades :white_check_mark:
  2. Implement PHP-ML https://github.com/php-ai/php-ml - Considering
  3. BETA LIVE TEST (WITH REAL MONEY) :white_check_mark:
  4. ATMEL (arduino) multi threaded processing, cluster computing - In Progress
  5. Mobile app - In Progress
  6. Desktop Server Software :white_check_mark:
  7. Back testing plugin :white_check_mark:
  8. Shared Processing in Server Software - In Progress

Reasoning of this post
I’d like to make regulatory bodies like the SEC aware of my concepts and help aid if any changes need to be addressed

My main question is

“Is there any laws in regards to releasing a open source fully automated stock trading system and if any what are the regulations”

also if any one is interested since this is a active project im open to talking to php developers who are like minded.

1 Like

If you don’t want to monetise this, I think the legal situation is much easier. A licence should be enough as it states that you don’t take any blame for anything (e.g. https://opensource.org/licenses/MIT) and maybe an additional statement that you are not a financial advisor, it’s just for entertainment purposes, people are using this at their own risk etc. (Don’t make any promises like “Consecutive fully automated profitable trades”.)

What’s your goal with the project?

Funny you say that as i was thinking that a open source license should be all i need, I would like to do open computation. IE use a clients processing power to also answer equations in real time. There’s a lot of requirements, like plc compliance and such i’ve dealt with that before. i’d like to make it open source but i know of laws in the SEC that regulate the use of such programs like HTF & ultra-low-latency. I would need to know, to what regard the laws are applicable.

Also for any one who is at the same point im at, heres a good read

Okay, interested in what you find out about this.