What parameters should a trading robot have?

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What parameters should a trading robot have?

Category : Robots

To facilitate the process of analyzing and forecasting the future movement of an asset, a lot of programs and auxiliary tools were created to help fix api traders. Thus, various types of technical indicators appeared and, of course, trading robots.

A trading robot is an automated algorithm that, based on the principles and rulesincorporated in it, conducts trading operations for the purchase and sale of a financial asset.

In order to try this software in fix api trading, each manager must have his own trading strategy, which he will automate, and turn into a robot. Since the strategy displays the rules for analysis and operations, all these nuances can be implemented in the form of program code. Only after your strategy demonstrates a stable positive result, it can be algorithmized.

However, most trading robots, and not importantly written by you or another market participant, must have a certain list of mandatory requirements for each algorithm. It is about this list that we will go further. I would like to draw your attention to the fact that I will give examples on the basis of the already formed strategy, on which I will form the list of mandatory parameters:

  1. Analysis of quotations. After all, based on these data, in 99% of cases the algorithm gives the result of the purchase or sale of the asset. There are two methods by which a robot can analyze the value of a price. The first approach is to analyze the movement of historical values, on which all indicators are built, and the second one is the current position of quotations. The second approach has fix api arbitration algorithms. An example of such software can be viewed at: http://www.forexzzz.com/en/product/forex-zzz-lock-arbitrage/
  2. Definitions of entry points to the transaction. Based on the perfect analysis, the robot must have clearly defined parameters of the action when certain conditions come. It is due to these conditions, the robot must understand in what direction he should open a deal and whether it should be opened at all. The entry points should be based on the trading strategy and proceed from the written algorithm. For example, this trading robot (http://metatrader4expertadvisors.com) opens the sales positions when bouncing off the top line of the Bollinger Bands indicator, as well as the navels when bouncing off the lower border.
  3. Definitions of exit points from tab. If there is an input, then there must be an output, which likewise depends on the specifications of the strategy. The robot shown above closes transactions when a return signal appears or a certain value of the take profit level is fixed.
  4. The ability to choose the volume of the transaction, as well as the establishment of risk. Despite the fact that these are two different parameters, I combine them together, as these are the key parameters of risk and money management. The robot must have parameters for determining the maximum risk for each transaction and for the deposit as a whole. Also, you need to know how much you can invest in each transaction, both taking into account the amount of the deposit, and a fixed value.
  5. Ability to configure all parameters. I already wrote above that the parameters of risk and money management can be set in the settings. But this is not the whole list. The robot should be able to configure all the data: from the interval of the indicator to the control of capital. This will make the algorithmic strategy more flexible and apply it for almost any amount of the deposit. In the settings you have to set the volume, risk, fixing the profit in points, fixing the loss in points, the time when trading, the spread level at which no deals will be opened, and so on.

If you choose or even develop algorithmic software, then apply these lists in selecting/creating a trading robot. This will allow you to further optimize the strategy and customize it for any types of accounts fix api brokerage companies.


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