How much software is sufficient for a trader to be successful?
Category : Software
Today, a computer with Internet access is sufficient to carry out trading operations. Would it seem simpler? In fact, the times of the Telegraph tape or telephone system have been replaced by high frequency fix api trading, where a number of process automation techniques have been created to assist the trader.
Modern trading is simply an analysis of the movement of price quotes, based on certain algorithms. These instructions, according to which the trader reads the market, is called a strategy. Each trader has a strategy that helps you understand where the market will go, where you want to enter the transaction, how to get out, how much to invest in the deal, and what risks to install. Simply put, the technique of a trade operation has been decoded into sequential actions that are simply amenable to automation by the software.
In this way, you create trade applications and programs that make the trader’s actions more easy on the financial market. A huge number of trading systems have caused the same number of automated algorithms. Moreover, each has experimented and combined different techniques of trading, and has developed special scripts and utilities that only saturated the trader software market.
With this in mind, everyone who was deciding to use these programs in their fix api trading had a question: “How much software should be used?” And today I will try to answer it.
I should like to point out at the outset that in order to apply a trade-related approach, the first step is to develop a trade strategy, which will be the foundation, and around it, to build additional elements for trade.
So, returning to our question, I recommend the following:
- A commercial robot. This is the main point that should be applied to successful traders. For example, the market for the fix api forex working 24 hours a day, 5 days a week. And it’s just unrealistic for a man to constantly analyze and trade, but this robot is in power. If you have a trade algorithm, then I recommend that you trust it with automation by developers who can build a robot on your strategy.
- Trade panels. These panels should display the picture on the market through the prism of your algorithm. That is, to demonstrate the current situation: In what phase the market is located, or in what wave, what are the trade signals now, and which are being generated. In essence, these panels are the same robots but do not engage in trade transactions themselves, but they report to the fix API trader by means of push notifications or alerts. Similar panels can also be transferred to auto-trading mode.
- Early prediction Systems. Such software can build models and analyze trade in a long perspective based on fundamental data. Typically, such uses investment funds, as well as investment banks that engage in long-term trade transactions. Using or not depends primarily on the amount of your capital.
- Risk management programs. It allows for the limitation of psychological damages. That way, if you get a certain percentage of the loss, it will prevent you from opening transactions for some time. In fact, it can include both the robot and the panel. But! I believe that the prescribed and automated rules for the risk and manis of management should be the first thing!
As you can see, all software depends on the trade strategy and should be based on your algorithm, which can be easily automated to work on the fix api forex.
A large quantity does not guarantee a high result. Third-party programs can simply distort the result. For example, where your strategy displays a trade signal, the new one can cancel it, which would be negative for the final result.
For this reason, use only software that can increase the result of trade and, of course, it will be based on your financial market activity algorithm.