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:
- 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.
- 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.
- 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/ )
- 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.
- 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.