How To Setup A Computer For Automated Trading (Part 2)

After you have your computer ready, next is to clean up its installed operating system and software.

Some people think that a brand new computer is all ready for trading. That may be true for discretionary traders. For a computer to be used for mechanical trading, a brand new computer with stock Microsoft Windows installed is definitely not ready.

I am going to explain what you need to do specifically to prepare Windows for mechanical trading.

Single Purpose

The goal is to setup the computer to do one and only one job – to handle mechanical trading for you.

In principle,

1. anything that can affect the computer from running smoothly 7/24 should be taken out

2. anything that makes it difficult to backup and restore the computer should be taken out

3. anything that jeopardize the stability of the computer must be disabled or avoided

4. things that can improve managing the computer are enabled

All the specific instructions below are included based on the principles listed above.

1. OS Updates

On initial preparation of the computer, make sure you let the computer apply all the latest updates necessary. With Windows, you can force it to check for updates again and again until it says there is no more important updates. As many computer manufacturers use a stock image of Windows to put onto the computers, it is likely you have to apply the updates manually.

With a slow internet connection, just this step will take many hours.

When you have a hard disk crash happened and that you are not restoring from an image backup, you will have to go through this procedure again. Be patient and make sure you have this done before the other steps.

2. Fine Tune OS Settings

There are many default settings with Windows that are not suitable for your mechanical trading computers.

a. Disable Windows Automatic Update

This function will at times force your computer to auto reboot. And other times it will slow your computer to a halt. Sometimes it also disrupt your network connection completely. All that will mess up your automatic trading. Turning Windows Automatic Update is the only way to go.

Once it is turned off, it will be up to you to decide when to update Windows on purpose. For example, you may want to do it after you have completed your scheduled off site backup every 3 months. This step is not necessary though because as long as your trading software is not complaining and that the computer is operating fine, there is no point to update Windows at all.

This option is located in the Control Panel, Windows Update.

b. Disable System Restore

Windows has a setting called system restore. It is there to protect people from themselves when they install software or system updates that somehow destabilize their computers. When that happens, system restore gives you the chance to recover Windows back to the state right before the installation or patch.

The truth is that system restore never really works especially with applications. Over time, the default system restore setting will take up a lot of hard disk space and not serving its purpose.

If you can image your computer frequently with multiple copies, you can either disable system restore completely, or, lower the limit of system resources being allowed for system restore.

System Restore is usually located in the Control Panel under System, Advanced Settings.

c. Disable Power Saving Mode

Disabling power saving mode is necessary because the computer will be used 7/24 where most of the time it is unattended by any person. With Power Saving Mode on, the computer likely be kicked into sleep when you needed your trading applications to run.

This option can be found in Control Panel, Power Options.

d. Fixed Cache Size / Virtual Memory

Windows has an advanced setting for its System Cache. The default setting is managed by the computer.  If you want the computer to work faster, change the setting to a fixed size. Windows usually provide you with a recommended size too so that you do not need to guess what it is.

This option is located in the Control Panel, System, Advanced Settings, Advanced Tab.

e. Best Performance

In Windows advanced setting there is the option to adjust its performance. The trick that Windows use is to sacrifice how pretty Windows look for better performance. If you do not mind looking at the old classic Windows look, set your computer to best performance. It will usually squeeze 10% or more processing power from your computer.

The effect of this setting is very noticeable.

This option is located in the Control Panel, System, Advanced Settings, Advanced Tab.

f. Turn off Remote Assistance

In general this setting should be disabled. You can turn it on when you expect someone to take over your computer to help you resolve some usage issues.

This option is located in the Control Panel, System, Advanced Settings.

3. A Backup Admin Account

This step is special. If you have never setup a computer for automation, you would never think that is necessary. After all, Windows always auto start itself into desktop anyway, isn’t it? And why would you need multiple accounts as you are the only one who is going to access the computer? Will answer these questions at the end.

a. Enable Fast Switching Users

It is mainly applicable to Windows XP users. This option allows multiple accounts on the computer to stay logon simultaneously. On Windows 7, it is the default setting.

This option can be found in Control Panel, User Accounts.

b. Enable Remote Desktop Access

Do not worry for now if someone may hack into your computer remotely yet. If your router is set correctly with proper network protection, it is not likely anyone can remote access your computer yet.

Remote Desktop is a necessary tool when working with an automated trading computer. You need it because you are going to access the server from your other computers yourself.

This option can be found in Control Panel, System, Remote. If you do not have the correct version of Windows 7, you do not have Remote Desktop available. Another reason to go for the cheaper computers with Windows XP. =)

c. Set Password For Your Main Account

If you have not done so when you first activate Windows, it is time to do it now. This step is necessary preparation for the next few steps.

Do this in Control Panel, User Accounts

d. Create Another Admin Account

Create another user with password. Set the user with admin rights.

Do this in Control Panel, User Accounts

Here is the main reason why you need this done. Windows, even with the old generation XP, is capable of multiple users login and can isolate the usage of the computer among the users. If your main account running your automated apps went nuts and freeze your access, as long as Windows is not, you can backdoor into the computer with the other admin account. You can then do the necessary task to solve the problem and thank me later.

Another reason for doing this is to allow yourself to eventually remote checking your auto trading computer. Although the non-server version of Windows would allow one and only one person having access to the computer at a time, you can have as many users login as you like, each running the trading platform you need in the background.

For some trading applications that are properly built, they would be able to run simultaneously when launched under different users. That means you can use the same application to connect to different brokerages on the same computer this way.

There are many useful ways to utilize this. I will spend more time on that when I touch on the subject again.

4. Auto Login

To allow the computer to auto start your trading applications, you need to enable Windows to auto login for you.

Depending on your initial configuration done, you may or may not need to login to your computer at this point.

Following steps will setup the account that you want to auto login every time Windows start up.

In Windows 7, you type in "netplwiz" at the search box in the start menu. Then launch the app.

In Windows XP, you run the command "control userpasswords2".

Uncheck the option "Users must enter a user name and password …"

When you apply the change, Windows will prompt you for the user id and password to auto login with.

Don’t panic if you messed up right here. e.g. typed in the wrong password

You can always launch the app again, disable the option, and apply the changes. It will put Windows back in the original state. You can then repeat the steps to setup the auto login again.

5. Image the Computer

At this point your computer is prime for a complete backup.

An image of your computer with all the basic settings done will make it very easy for you to wipe out your computer any time should you choose to do so without going through the setup process all over again. So, as oppose to normal backup routine that you keep only the last few images, put this particular backup in a safe place for the unimaginable situation.

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