Who develops trading software?

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Who develops trading software?

Category : Robots

In the twenty-first century, any trader has a number of support programs and utilities in their toolset that facilitate decision-making. These can be trade panels, robots, indicators, all that gets combined into a single asset analysis complex. And if previously a trader or a stock speculator could do with one phone, today HFT rules the market.

The software for it is varied and depends on the trader’s preferences: whether the signal will be displayed in the window or in notification form, whether the trade panel will be shown, or the trade process will be automated. As I said, there are many varieties and all of them can be adapted to the trader.

However, the same algorithm can be interpreted differently or, for example, have different conditions for entering the position. This depends directly on the software developers we’re going to talk about today. Let’s look at the key question, “How do I choose a software developer for FIX API trading?”.

There can be different software developers:

  1. A trader. It is quite logical that a trader can automate their own trading algorithm. Many FIX API traders are themselves software developers. Typically, these are private traders who trade their own funds. Often these developers share their work in the traders’ communities, where they accept orders to write trading algorithms. This is a great option if you have your own trading strategy that you want to automate. The services of an individual HFT are cheaper than those of the specialized companies, which we are going to talk about now.
  2.  Companies that specialize in support software development. Yes, they’ll request more money for development, but the depth and flexibility of the algorithm will be much higher. The speed of delivery will also be quite high. Another advantage of such companies is that they often provide support and optimize their products to market conditions. This allows you to use integrated software. I want to note the fact that companies also sell ready-made programs (robots mostly) that are already tested in the market: there is a historical record of trades, the profitability and trading performance of the algorithmic strategy. This is a great solution for someone who is looking for a trade expert to diversify trade risks or acquire a source of passive income.
  3.  Professional market players (hedge funds, banks, investment organizations, FIX API Forex brokers). This category can’t be called full-fledged   developers. They have their own divisions that specialize in algorithmic trade. This allows them to create their own software for internal use (not for sale). Moreover, comprehensive systems for transaction monitoring, risk management and internal communication are being developed.

This is a characteristic of support trading products. I would also note the market participants who develop trading terminals and special financial data routers. However, they do not affect the trading process (analysis and automation), but more accurately, create the process.

These are probably the key players in the development of support equipment for FIX API trading. Personally, my preference for a comprehensive request falls to companies that specialize in this process. These companies have experience in building software specific to the trader’s requirements, and also include traders that can help optimize the strategy, so that you can test these systems by acquiring a trial version. There is no such option with individual developers. If you need to modify one indicator or develop your own, then it makes sense to contact the individual developer. Again, I trust the software companies to develop a comprehensive solution.

Thus, the developer’s choice must be based on the requirements they have. If you have decided on the developer type, answer the following questions to choose whom to entrust the development of your algorithm:

  1. Do they have a product line of software?
  2. Is there a possibility to first test out the program?
  3. Is customer feedback available?
  4. What is the period of project execution?
  5. Does the developer support your product (provides updates and optimization)?

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