Monthly Archives: June 2017

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Trader vs robot: who wins the fight

Category : Robots

Every year, trading in the financial market attracts more and more new players who challenge it. Based on the already established laws and certain regularities, each of us has taken his first steps to work in the market. Agree that in order to profitably trade in the fix apiforex market, you need to spend more than one year. The learning process is not so much in understanding the methods of forecasting, but in understanding the very structure of the market. And only those who understand the depth of the market, manage to create their understanding in the form of a ready trading strategy.

Fix api trading automation has allowed to create a set of ready trading instruments for trading in the form of algorithmic trading strategies. And if earlier it was necessary to study the market and ways to trade, today it can be reduced to only one value. The number of trading robots is growing every year, but there are people who do not trust their capital or the trading process to an automatic system.

For those, who are in doubt about the effectiveness of the robots, or those, who think about automating their trading strategy, I will conduct a small analysis of traders and robots. I will highlight 6 key parameters that are comparable between a robot and a trader.

  1. Psychological factors. Let’s start with the simplest one. The robot is a machine. It is an algorithm of sequential actions, which operate according to clearly defined conditions. The robot is deprived of the possibility of emotional opening of transactions and “acting out”, which often happens with the traders. It happened to me too when I transferred stop loss to even greater loss, thereby bypassing my own rules of risk management and getting even more loss. Therefore, the robot wins in this parameter.
  2. Timeframe. If your computer is turned on or fix api MT4 terminal is open on the VPS server, the trading robot will be able to conduct trading 24 hours 5 days a week. This allows you not to miss the advantageous entry points and thereby increase the profitability of the trading strategy. The trader, in turn, cannot boast with such indicators.
  3. Ability to monitor the market map. Personally, I gave preference to several financial assets for monitoring, which I was constantly monitoring, and also studied fundamental factors. Thus, at my disposal there were no more than 10 tools. As for trading robots, the algorithm is able to analyze all the current tools that are available in the market review. Another point in the piggy bank of the robot.
  4. Trading at the time of fundamental data. When there are high events or a public speech, let’s say the FRSheads, this is always indicated by increased volatility in the fix apiforex market. The trader is able to optimize his trading process at the moment and moreover, to adjust the risks towards these events. As for the robot, it trades according to a given algorithm, and they do not take into account such moments. Trader receives a point because of his the ability to regulate his activities.
  5. The ability to make creative decisions. This parameter comes from the past. A trader can go beyond the strategy if he has information in his arsenal. Again, the robot works only according to a given strategy.
  6. The speed of decision-making. All people say that the robot is able to trade more quickly than a trader. However, this depends on the strategy (https://www.forex4noobs.com/forex-trading-strategy/). If it is a question of fix api arbitrage trading, which consists of analyzing different quotes and on different exchange platforms, then certainly the robot is able to realize this task faster like this algorithm – http://www.forexzzz.com/product/forex-zzz-lock-arbitrage/.However, if the transaction should open in the breakdown of the channel, then the robot and the trader will open it equally.

Thus, taking into account the parameters that I mentioned above, it is possible to single out an algorithmic approach that has more advantages than the “manual” trading. If you have a working trading strategy, then why not turn it into a trading algorithm?


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Trading through fix api: what it is

Category : Software

Trading automation reaches new heights every year. Trading algorithms become more and more complex, the robots carry more opportunities and become more flexible, while the new trading strategies allow to reduce possible risks to zero. This progress develops fast enough and the main task of the trader is to keep up with all the trends.

One of the innovations that can be seen in the programs that I have been looking at is the possibility of trading through a special fix api. Having understood what it is, I want to share my experience with you.

Fix api is an access to a financial protocol that brokerage companies can provide to their clients (usually those who use algorithmic trading). Fix api allows you to connect directly to liquidity providers and the market as a whole. Thus, all operations are opened on the server of the prime broker or the liquidity provider, which allows you to bypass the server of broker companies. As we know, there is a temporary delay that results in spread and slippage if we trade on the servers of an ordinary broker. But if you conduct your business through this protocol, these inexperienced moments in fix api trading disappear.

To put it simply, fix api allows you to:

  • Receive current quotes, based on which you can make deals at the current prices. This allows you to bypass the mark-ups and other margins of brokerage companies, including spreads.
  • Instantly display an order on the market. Since you will no longer use the brokerage company’s server, your orders will be delivered without slips and delays. Trading operations will be processed at the speed with which the market moves. Thatmeansinstantly.
  • Ability to use pending orders. Another feature of fix api trading is the fact that the system has special pending orders, which further increase the accuracy of entering in the market. Such orders are executed absolutely without any delays and carry the price of the market.
  • Fix api is suitable for paired trading and speculative trades. That is why the first programs that began to use this type of trade were scalping and fix api arbitrage strategies. It is in this kind of trading that the main role is played by the accuracy of pips in pip.

These key features are also the benefits of this type of trade.

I would also like to note that brokerage companies already appear on the market, which allow trading through fix api, and this is not strange. This protocol implies trading on the market, and thus all transactions are re-bought, and the broker in turn earns only on commissions. However, there is also a kind of “restriction”: for access to trading through a financial protocol: brokerage companies request large amounts of the initial deposit, which complicates the entry threshold.

In the market, this approach just starts to emerge, but there are already companies that are serious about improving the fix api trading. For example, the FXMARS Inc. company http://forexzzz.com/key-features-of-fix-api-trading/has already several products, the purpose of which is to trade with fix api. Various auxiliary programs, arbitration robots, as well as connectors are aimed at applying an innovative trading approach.

Given the fast-growing market and the increased interest of traders in this type of trading, I can confidently state that in a few years not only the trading process will be automated, but it will also be using this particular type. For the trading robot itself is ready to increase the tradingindicators, and trading through fix api will further contribute to this.

 


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Choose software in your trading

Category : Software

Investment and trading have undergone dramatic changes in the recent years. There are more and more auxiliary tools on the market that facilitate the process of analyzing and selecting financial assets. We can attributeto the list of these tools the author technical indicators, scripts, trading panels, and trading robots.

Each type occupies its definite place. However, the fix api traders’ greatest interest is precisely in trading robots. And it’s not that strange. Just imagine that the entire process of analyzing, determining the volume, entry and exit levels of the transaction, is determined automatically without your participation. Thus, everything that wasted 90% of the trader’s time is automatically executed now. This is really an excellent tool both for facilitating the trading process and for improving the result, because the robot is capable of making 24/5 asset analysis in the fix apiforexmarket (https://en.wikipedia.org/wiki/Foreign_exchange_market).

Despite this, there are pitfalls and key moments that you need to know before using third-party software in your fix api trading. Since a robot or indicator written according to your requests is not an easy thing, you will know more than anyone else about the principles of its work.

What should I look for when choosing software for my trade:

  1. A set of analysis elements. If you are talking about a trading robot, you need to know on the basis of what elements it trades. These are indicators or mathematical models that have a direct impact on the financial result formation. If you are talking about an indicator (AO, Stochastic, MACD, RSI, Bollinger Bands, etc.), then you need to make sure that the author’s development has the same tendencies as the classical view.
  2.  Ability to adapt to your trading account and trading strategy. Each trading strategy has its own rules for managing capital, a trading operation algorithm and a methodology for determining the immediate prospects. The software you choose should fully integrate with the trading strategy and pull it out with a confirmatory filter instead of a counter signal. Of course, if you do not have a trading strategy and you are looking for a robot that would be selling in an automatic mode, then you can skip this.
  3. The possibility of trading via fixapi. This technique has a number of advantages in the form of a lack of markup of fix api brokerage companies and delays in the order execution. Trading robots that trade via this financial protocol execute orders more quickly and at actual prices. This approach is most suitable for scalping and arbitration robots (http://forexzzz.com/product/forex-zzz-lock-arbitrage/ )
  4. I also recommend you to pay attention to the indicator or robot historical testing. Ask the developer of the backtest product to understand what results can be achieved with the software. Thus, in the strategy tester, you can visually see the work of the algorithm, how it opens the transactions and whether it coincides with the description.
  5. Assess the financial performance. The results of the test and fix api trading on the current accounts should be assessed, along with the points of view of the regulatory values of such indicators as profitability, profit factor, drawdown, ratio of loss-making to profitable trades, average loss/profit of the deal, Sharpe coefficient, recovery factor, and mathematical expectation. I focus on the last indicator. If the robot trades with a negative or minimal mathematical expectation – it is a signal of inefficiency of the selected software.

After analyzing these 5 parameters, you can choose for yourself the most optimal software algorithm. The main thing to remember is that the use of third-party developments in your trading can both improve and worsen the trading result, and therefore, for starters, I recommend creating their own trading strategy.


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The principles of trading panel for MetaTrader

Category : Software

To simplify the financial asset analysis, the trader creates various auxiliary tools in the form of author’s trading indicators, algorithmic strategies or signal displaying panels. You would agree that this approach allows you to reduce the entire asset analysis to review the ready-made solutions. After all, all you need from a fix api trader is to just look at the availability of the ready signals and to follow them. Or give permission to follow the robot.

However, the principle of operation of such an instrument, which is commonly called a trading panel, has its own specifics and peculiarities. Everything is built on the features of the trading strategy of the managers or on the basic principles. Personally, I recommend the first option, because if you need a panel, it is logical that it displays exactly your signals and a set of indicators used. However, let’s consider it below in more details.

Key features and types of trading panels:

  1. Trading panel type. There are different types of panels that differ in their specification and method of operation. So, there are simply graphical ones, which show the trend direction based on each technical signal embedded into the panel. There are also some that show the presence of a signal, and not just a direction. Theyshouldbedevelopedforautomaticfixapitrading.
  2. Tradingpanelfunctionality. I want to note that the function and type are fundamentally different concepts in this issue. The function allows not only to track the signals or trends, but also to open transactions in the market directly through the panel. This will allow you to open the transaction based on the generated signal with a few clicks. For example, you received a trading signal about the price channel breakdown, about what the panel informed you in a SMS mode. Then you can click on the signal itself and the algorithm will open transactions based on the selected signal and determining the transaction input/exit.
  3. Trading panels can be connected directly to the fix api MT4 trading terminal or to have a separate architecture. That is like a hotel program, which displays the presence of signals, the status of the trading account, as well as the history of the open trading operations. It is an original trading platform that links and trades on MT4. This arbitration strategy works on this principle – http://forexzzz.com/product/forex-zzz-lock-arbitrage/. However, the trend is that most of the panels are written under the trading platform itself and practically they do not differ from the trading robots in their settings.

Bu understanding all the intricacies and features of the trading panels, we can formulate the key principles of their work:

  • The trading panel allows you to automatically track the presence of trading signals. Thus, fix api trader does not need to manually review each chart and determine the nearest enter points. This task will be performed directly by the algorithm, incorporated into the panel.
  • Facilitate the timely receipt of signals for opening positions. Any indicator can be incorporated in the algorithm (Stochastic, Alligator, Bollinger Band, etc.), a technical figure (flag, double bottom, smart model, etc.) or even fundamental data. There are trading panels that can send you trading signals to your phone or e-mail address. This is a kind of allegory that makes you aware that the market has already changed and you can enter into a deal or vice versa. The market has changed the trend and it is necessary to optimize positions that are already open.
  • The panel connects to the terminal and reads the values of currency pairs. The main principle of the trading panel is the relevance and correctness of the financial asset quotations. The signals will be displayed on the basis of quotations. If you use a slow or poor-quality broker, the panel will display false signals to you. Therefore, consider a reliable fix api broker to start with.

The trading panel is a great way to automate your trading process with the subsequent transition to the trading algorithmic strategies (robots).


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Trading via Fix Financial Protocol: Advantages and Disadvantages

Category : Strategy

For more than 20 years, FiX financial protocol is used on the market to access data, which ensures the information actualization and access to up-to-date quotes. This protocol was the reason for brokers to transit from the telephone mode to the digital world.

Fix protocols a streaming data that all financial institutions use in their calculations, including fixapi brokerage companies.

However, even today an ordinary trader has the opportunity to trade using this protocol! After all, there is a number of brokerage companies that connect their customers to these data.

Who uses the financial protocol?

  • Banks;
  • Hedge funds;
  • Brokerage companies;
  • High frequency traders.

I focus my attention on the latter kind. Since the protocol displays the relevance of the information that is changedin every split of second, it is difficult for a normal trader to do this. Neither, I think it is sensible to do so. The relevance of quotes will be an advantage only in one case – if a trading robot is used.

Let’s look at some specific examples.

  1. Let the trading strategy of the trader consists of trading on the basis of Bollinger Bands – http://metatrader4expertadvisors.com/.Its entire system is based on sales when the quotes have reached the top line of the technical indicator, and on purchases, when the quotes have reached the bottom line of the indicator. Even if a robot is used, the advantages of fix api will not be noticeable, asthe analysis doesn’t require the streaming data with FiX, but instead the position of quotes compared to the indicator.
  2. The second trading strategy will be based on fixing arbitrage trading. Let’s take for example software that already completes trading operations via fixapihttp://forexzzz.com/product/forex-zzz-lock-arbitrage-10per/.Arbitration algorithm is already laid in the basis of this software. We all know the principle of this strategy – to make transactions based on the exchange rate difference of the same asset, but on different stock exchanges. After all, the difficulty was that fix apiforex is the only market and it is impossible to make arbitrage transactions here. And what about the brokers? It is thanks to them that this process can be implemented. Returning to the program, the robot takes quotes as a basis via fix api from the prime brokers, thereby obtaining more timely information for a fraction of second, which gives it an advantage over the prices in the brokerage company. Thus, when there is a significant exchange rate difference, the robot opens deals in this backlash simultaneously in two brokers. Purchase is made at low prices and sells at high prices. When the quotes return to their regulatory area, the deals are closed.

Like any trading principle, trading via the FiX protocol has its advantages and disadvantages:

Advantages:

  1. Fast flow of up-to-date information to any spot in the world;
  2. Fast flow of up-to-date quotes;
  3. Possibility to integrate the external systems of data analysis and forecasting;
  4. Synergy with algorithmic fix api trading;
  5. The possibility of trading without spreads and mark-ups of brokerage companies;
  6. Trading without slipping.

Disadvantages:

  1. No need to use manual trading;
  2. Only financial institutions have an access to information (then they can give an access to the trader);
  3. Brokerage companies may require an additional fee or a portion of the deposit to open access tothe fix api.

Taking into account this fact, I would like to mention the principle of trade, which is based on an algorithmic approach. It is a kind with combination of trading via FiX protocol that allows you to earn steadily.

I highly recommend you to conduct an analysis of your trading strategy. If it can be automated and to create a robot that would trade via FiX with a large positive difference from the up-to-date results, then you can safely implement fix api in your trade.


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