Category Archives: Software

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Analysis of trading statistics. How to automate this process?

Category : Software

Have any of you met the concept of Big Data? Do you know what it is? Do you agree that we live in a world of big data and corresponding identical parameters that can be divided into different databases? Personally, I agree.

Big Data is a set of methods and approaches that are used to process a huge data stream. To put it simply, this concept provides an analysis of both received data and the results for them. I believe that this approach should also be used in fix api trading. This is all about the analysis of trading itself, and not price quotes. To do this, you should have a trading strategy. In order to understand how effective it is, you have to resort to the methods of analyzing your results based on the report (statement).

Of course, all analysis of your data will depend on the strategy that you have chosen (https://www.forex4noobs.com/forex-trading-strategy/ ). However, there are universal methods that help managers to disassemble their trading results in the fix api forex market. To do this, you first need to determine which indicators should be analyzed:

  • Mathematical expectation. It indicates whether the trading strategy is profitable in a long term. It is clear that the bigger this figure is, the better. It all depends on the system. But if this value is more than 2x for the speculative algorithms and more than 10 for the long-term transactions, then this will be an excellent result.
  • Recovery factor. It demonstrates how quickly the strategy comes out of the drawdown. For example, if the recovery factor is 2, the fix api trader leaves drawdown for a long time. But if it is 15, then his strategy in the drawdowns is not delayed.
  • Profit factor. It indicates at the profitability of using the trading strategy and its ability to create a profit. I recommend that this indicator is taken into account as a ratio of SL to TP. If the value is 3, then the trader fixes an average profit of 3 times more than the fixation of the loss. If the value is 0.5, this indicator indicates at an almost identical ratio of the closing levels of the transaction.
  • A relative and absolute drawdown. It is necessary to understand in what percentage and cash equivalent the trading strategy of the manager was lowered.

This is only part of what can be identified among the indicators of trade. Most of them are rather complicated. Since the data for analysis is constantly updated, due to all new trading operations, this process can and should be automated. Of course, you can create your own database in Access or Excel, but I recommend you to use third-party resources.

If you use a trading robot, it’s best to connect its trading results https://fxsocialnet.com/ . Also, the robot can be connected to Mql or Myfxbook. This will allow you to see all the dynamics of the trading operations, even by months of work, all the indicators listed above, as well as a description of their trading. The results will be updated online.

I see no point in analyzing the profitability in the fix api trading analysis. It is much better and more effective to look at all your trading from the side to understand what caused such a low or high rate of return.

If you are trading on the stock market, for sure you take into account the company’s reporting figures, right? So your reporting is the statement of transactions in the fix api MT4. And if you interpret the indicators that we examined above, you will be able to find out your strengths as well as weaknesses.


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A Simple Scalping Trading Strategy

Category : Software

Today, effective trading consists in how fast you can react to the smallest changes in the market. This indicator is very important in formation of speculative yield, because the markets have become more liquid and volatile, and the period of “cheap money” has been going on for more than 10 years. Every fix api trader must adjust to the current market situation and have in his arsenal several tools in the form of scalping trading strategies (https://tradingsim.com/blog/scalp-trading-active-investing-strategy/ ).

Scalping is a kind of speculative trading, which consists in opening trading positions for a short time, which can be only a few seconds. This trading strategy requires high market volatility, which can be caused by a news background or by the presence of a number of trading signals (https://1sforexsignals.com/ ). Typically, this approach is implemented with the help of trading robots, which help fix api trader in his search for these moments.

So, we already understood that the scalping requires a news background, which will create an increased reaction in the fix api forex market, as well as the presence of strong trading signals. Already knowing this, you can create a simple scalping strategy. To do this, we divide them into two types:

  1. News scalping;
  2. Signal scalping;

News scalping

This type consists in opening of speculative positions at the time of publication of the fundamental indicators and other macroeconomic data. When the movement of the market is not normal in the form of increased volatility, the scalping trading robot can speculate on this by opening a series of transactions for both buying and selling. As a matter of fact, it is a news robot, but after all, it works in such a scenario. A more complicated algorithm will consist in a directly analysis of the data obtained and, based on this information, in opening transactions for purchase and sale of the financial asset.

Signal scalping

This is the most popular form of algorithmic scalping approach, which is used by the absolute majority of exchange speculators. The essence is very simple – you have to open transactions for purchase or sale only at the moment when all the trading signals are triggered. I focus on the fact that the most effective will be the application of 3-4 signals. Do not create a huge amount of analysis of different patterns and technical indicators. On the contrary, this can cause belated signals. It does not matter on the basis of which tools it will be implemented. Each manager determines this parameter. The main thing is that it was a working tool. The most important is the creation of qualitative risk and money management rules so that the robot can monitor these parameters and not go beyond the established percentage of risk.

Proceeding from this, it is possible to single out the key advantages and disadvantages of the scalping strategy.

Advantages:

  • Yield is formed thanks to the number of opened deals;
  • Short retention of the positions does not cause a deep drawdown and, as a consequence, it retains the risks;
  • It allows to combine this approach with the other strategies due to the differences in the internal logic of the work, as well as the time period.

Disadvantages:

  • It can be accompanied by a large number of unprofitable positions, therefore, the intervention of the fix api trader is necessary to control the risks;
  • No long-working algorithms that need to be constantly automated and as a consequence the robot cannot fully operate in a regular automatic mode;
  • Speculative trading is accompanied by minimal trading indicators.

These two simple types of scalping trading systems are quite easy to use in the financial market, and also to implement in the form of an algorithmic approach. I would not single out this approach as the main one in the work of the manager on the financial market, because the main yield is formed on large trends and timeframes. However, as an instrument for diversifying my trading, I think that the trading robot should be based on a speculative algorithm.


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The websites for displaying trading signals

Category : Software , Strategy

Searching for the investment opportunities in the financial market is a very long process. The analysis and the prediction about the asset may occupy more time than retention of thetrading position.If we are talking about the speculation trading, then being able to make a profit in this type of trading is a hard task as well. Therefore, each fix api trader creates specific trading strategies, which speed up the investment opportunities search. The traders also look for the competent managers, who are able to control the trading risks. In order to connect these two groups, the market participant establishes special platforms, where traders demonstrate their trading results, while the investors choose the most optimal options for the investment, based on these results.

These platforms can be in a form of websites, which are developed to display trading signals. They all have a similar algorithm:

  • The trader registers the trading account in the system;
  • The trading strategy, which is used by manager is displayed on a website;
  • The investors make a decision about connection their funds to the manager’s trading based on the data;
  • There is a particular price, which should be paid monthlyfor the connection to the signal;
  • The trading operations are copied from one account to another during the month;
  • If the investor is satisfied with the results, he prolongs the subscription.

This algorithm is inherent to the most trading platforms for showing the trading signals. So, if you are looking where to place your trading strategy for the fix api market or you are searching for a competent trader then I recommend starting from this websites:

  1. MQL. This resource has a huge and useful databasefor a trader. It allows placing the accounts for further copying them. You can set your signal and make it private, which means that the results would be available only for you. You can also publish the results in future. This way the investors can analyze the statistics which contains loads of financial indicators, such as the level of drawdown, mathematical expectation, the Sharpe ratio and recovery, the ratio of profit to losses and others. The more subscribers you get and the better level of trading you provide – the higher your signal will be in the ranking.
  2. Fxsocialnet (http://fxsocialnet.com/). This platform allows to learn more about the trading as well as to track the managers’ communication with the other traders.A large list of statistical information on trade is also available here. A feature of the resource is that if you trade with a robot and publish it as a signal, then this software can be immediately sold if you wish so. It means that the investor will see the results of the algorithm work, and if he gets satisfied, there is a possibility to purchase the program.
  3.  eTorro. This website is aimed to provide an effective communication between different managers. The trade signals are given more in the form of discussions with other players, rather than as the ready-made solutions. However, there is also a possibility to connect to the fix api trader. The trader’s transactions will be duplicated directly into your trading account. The algorithm is very simple and reminds of theMQL one. However, it has its own specifications. So, this resource can perform as a broker, placing the duplicatedfunds to the managers’ accounts.

These platforms were developed for the fix api traders. They can attract additional capital, while the investors can place itthere. It also allows getting a profit in the shortest period of time for both traders and investors. It is always up to you which website you want to choose in order to copy the trading signals. The trade specification is also based according to your wish, which allows controlling the risks (http://forexrobotshub.com/2017/09/05/minimal-risk/ ) if you already know the level of profitability.


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Mathematical models in trading

Category : Software , Strategy

Each and every trader has to make a lot of choices every single day, from taking decision on selling or buying of an asset to selecting the proper way of trading activity. And if we talk about the last option, then it can be considered as the most difficult moment (according to my opinion), because it defines all future steps and action of a FIX APItrader.

As we all now, there are many different trading methods, which can be divided into the following groups:

– Scalping trading

FIX APIarbitraryalgorithms (http://forexzzz.com/product/forex-zzz-lock-arbitrage/)

– Speculativetrading (when trades are open for not more than 1 day)

– Swing trading (when trades are kept open for 2-3 days)

– Midterm investment (when money is invested into assets for a month or a quarter)

– Positionedinvestment (when investments are made for more than a year)

Each of these methods has its own market working mechanism, as well a set of tools to define the perfect moment for investment.

Today I want to offer you one of the methods of analysis that is used by all professional FIX API traders and big companies in order to define the list of assets for investment. We are going to talk about the usage of mathematical models, which are based on the statistic information and allow understanding the future growth or falling potential of a financial asset.

Mathematical models in trading include comprehensive information and a set of specific rules, which allow making recommendations for the asset managers on the future price of the asset. In other words these models can be used to make fast and reliable forecast about the future price of the asset. No doubt, the majority of models and the method itself are widely used in the stock market. However, there are many methods, which can be adjusted to work in the conditions of FIX API Forex market.

Even if we look at the popular trading robots, they can also be considered as mathematical models due to their nature (http://forexrobotsreview.eu/2017/06/20/high-frequency-trading-2/). However, today we are talking about different model creation principles, which are based on the fundamental data, allowing the asset manager to take the right and efficient decision.

In 99% of cases such mathematical models are used as a filter, and not as a base for a decision making. It turns out that if a trader has a trading strategy that shows various buying options, the trader is able to use special models in order to analyze the fundamental data, and create recommendations and the forecast about future changes of the price. After that, if the signal corresponds with the forecast, the trader can open various trades having minimum risks.

What kind of fundamental data from FIX API Forex market can be analyzed by the trading algorithm?

In order to make your model really efficient, you have to analyzethefundamental dataon a regular basis, adding them into your database for calculations. There are specific models, which are able to forecast the future economic growth basing on the historical data. They can also predict such things as inflation or the budget. By using this method one can forecast the following indicators:

  • GDP
  • Inflation
  • Labor market
  • Budget balance
  • Volume of production
  • Level of development in specific economy sectors
  • Volume of sales

Thin information shows the highest level of volatility during the moment of news appearance. In case if you have a tool that is able to make forecasts about such information with high precisions, you will be able to improve the profitability by making speculative trades during the moment of new data publication.

No doubt, mathematical models are simply useless for scalping or arbitrary systems. But in case if you are looking for a tool to get maximal profits and invest money on the long term basis, you definitely need to use mathematical models.


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The characteristics of different types of the arbitrage trade

Category : Software , Strategy

Exchange speculators are looking for a stable and profitable trade every day. The methods are changing, the strategies – optimizing and new methods of money management are developing continuously. The fix api traders are analyzing and sorting out a lot of information, searching for the Holy Grail. Today I am going to help you to identify a stable tool for profitable trading and review it in detail. I will consider the arbitration form of trade that you had might heard of before and that I have mentioned in my recent publications.

The arbitrage trading attracts more and more traders’ attention. Let’s investigate why it is so. The first type of trading allows trading with a zero risk parameter. It is an ideal choice of strategy for those, who want to save their capital and multiply it. After all, most investors are interested in the risk of trading, and only then profitability. Arbitration, in turn, allows you to achieve this goal.

The arbitrage trading attracts more and more traders’ attention. Why is it so? The reason is that this trading type allows trading with a zero risk parameter. It is a perfect strategy option for those, who want to save their funds first and then multiply it. Most of the investors are interested in the trading risk and then the profit. Arbitrage allows you to achieve this goal.

The main idea of the fix api arbitrage lies in the committing exchange operations based on exchange rate differences for the same financial activities at the different trading platforms. It means that when the price is different at the same exchange or at the same broker the trader can make transactions based on these deviations and fixate the positions when the same values are reached.

Thus, there would be a small loss with one operation but a profit with the other. The profit would exceed the loss by 2-3 points. Due to this, the breakeven of trading algorithms which trade according to the arbitration principles is formed, http://forexzzz.com/fixa/

The information technologies development has provoked the emergence of various types of arbitrage trading, which are implemented by the automated programs – trading robots.

According to this, the two key types of trading robots can be distinguished:

  • Fix api Latency Arbitrage
  • Fix api 2-leg Arbitrage

Fix api Latency Arbitrage

This arbitrage trading type is based on the committing speculative positions via comparing the price quotes between the faster and the slower fix api forex brokerage companies. The algorithm connects to the two trading accounts, which are often the prime one, and the ordinary one. The prime one is a fast quotation provider, while the slow one delivers quotes slower. Therefore, the robot opens trading operations on the “slow” broker’s account towards faster data, when the “slow” broker’s quotes deviate from the values of the faster one. For instance, if the price for EURUSD currency pair is 1.1720 at the “fast” and 1.1750 at the “slow” broker, you need to open a sale with a range of 20-30 points of profit.

Fix api 2-leg Arbitrage

On the other hand, this arbitrage type allows committing not only one, but two trading deals. The method is similar to the first type: two exchange sites are analyzed and the deals are opened in the case of exchange rate discrepancies. IN order to understand the essence of this particular arbitrage methodology, let’s take a look at the example, mentioned above. So, the EURUSD currency pair costs 1.1720 at the first broker and 1.1750 at the second one. We don’t mind which is the “fast” and which – the “slow one. The algorithm opens the purchase for 1.1720 and a sale for 1.1750. So, there is an informal lock. However, the deals are opened only when the maximum range of discrepancies is reached (let it be 30 points) and locked when, for instance, 15 points are reached. It means that the robot would close the deal when the difference between quotations would be 15 points. If the price at the first one would be 1.1745 later and 1.1760 at the second one, then the deals would be closed. The result of the first one would be +25 points, while for the second one it would be -10 points. It equals 15 points in the net profit.

Each of these arbitrage trading types is a universal tool for the risk-free trading. As you can see, the whole result from a trading is created by the number of such operations. They are quite easy to implement with the help of trading robots.

 

 


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Pending orders in trading

Category : Software , Strategy

Recently, I found an interesting article that was telling about the proper way to define the best moment to enter the market. The main idea is to open a position in case when all trading signals are available, and I agree with it in general. However, I think that one has to open positions only at the time of the signal formation and not just because such signal is already available.

In case when you open your terminal and choose an asset, and you see the operational confirmation of the trend or the correction caused by trading signals, it doesn’t mean that you have to open a trade (http://investment_terms.enacademic.com/14080/Trade_Signal). That means the signal has already been formed and used. That’s why you won’t get any profits by trading with it.

That’s a very popular mistake among the beginners in theFIX APIForex market. You need to know the moment when you have to open a position more than clearly. It includes both breakdown and recall of the market. You can solve this situation only by using the pending orders.

Pending orders is the method of trading transaction execution based on the future values of financial assets. In case you are going to buy and sell assets using the current market price, your transactions will be executed using the current values. In case if you are waiting for the breakdown, you can use pending orders, setting specific prices, which can be higher or lower than the breakdown level. Such method makes it possible to enter the market without continuous and uninterrupted participation of the FIX API trader.

Main types of pending orders:

Buy stop –allows opening a trade using the future price growth. For example, when rates are showing significant growth, and the trader is waiting for an additional jump after the formation of the technical level or the breakdown, they are able to create buy stop above the upper level of the rates, thus the trade will be executed when the price of the asset starts to grow, reaching the indicated level. Inotherwords, theFIX API traderexpects the subsequent growth.

Sell stop –allows opening trade using the future price reduction. For example, when current rates are decreasing, and the traders note signs confirming further reduction, they are able to create pending orders with the lower price that is usually located beyond the local minimum. Thus, when the rate will reach the selected level during the process of price reduction, a selling trade will be automatically executed for the trader.

The first two types of pending orders are the perfect solution for those asset managers trading using the level breakdown. In such situation both buy stop and sell stop are the main elements for such breakdown trading.

Buy limit – is a pending order that allows buying an asset after the reduction or correction of the price. For example, when rates have reached the level of resistance and bounced from it, but the trader is waiting for the further growth after a small correction. Insuchsituationthetraderisabletocreatethebuy limit order at the lower price (usually at the Fibo level), while the price has to continue its growth after reaching the mentioned level.

Sell limit –is a pending order that allows selling an asset after the growth or correction. We can use a similar example for this case. Let’s say that rates are growing and approaching the resistance level. The trader can use the current level to create an order to open a short position when it’s reached. In other words FIX API trader is waiting for the bouncing from the current level, followed with the reduction of the price.

Such pending orders have to be used at the moment of the trading signal formation. The moment when rates will cross the indicator or break through the level, will be the wake-up call. The trader will be aware of that breakdown and will know how to act. After creating a pending order and setting the limiting levels for losses and profits, one can continue with the analysis of different assets.

The pending order is an efficient tool even for the algorithmic trading (http://forexzzz.com/product/forex-zzz-lock-arbitrage/). EvenFIX APIsupports pending (delayed) transactions, which are used by trading robots in order to execute trading order even more precisely.

 

 


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How to implement arbitrage trading in the forex market?

Category : Robots , Software

A few years ago, arbitrage trading was discussed only in the stock and commodity markets, because it originated from there. However, the development of information technology has made it possible to create ways to apply these algorithms in the foreign exchange market. This automatic approach turned arbitrage into a reality for fix apiforexmarket speculators.

Arbitrage fix api trading consists in analyzing two identical tools or derivative assets on different stock exchanges and at a time when the cost is significantly different, you can make two transactions and earn on it. It is not a secret that, for example, the value of gold can have one value in Shanghai, and another in London. If this cost is significantly different, arbitrage traders immediately enter the position, as the asset is the same. Therefore, it is worth expecting a price smoothing. The forex market operates based on a similar operation principle.

The difficulty was that the currency market is a single exchange platform. But this issue is solved by fix apiforex brokerage companies. Probably, everyone has faced a spread, which brokers establish and noticed that the cost of one currency pair differs in different companies. This is what allows us to apply the arbitration approach in the foreign exchange market.

Conclusion #1: The implementation of arbitrage means to analyze the same asset, but at different brokerage companies.

However, the second difficulty appeared here. The forex market is the most liquid and volatile market, and the usual fix api trader simply cannot analyze the whole map of the market and other two platforms. What for the trader is impossible, for the robot is easy. Thanks to the algorithmic approach, this issue is also solved.

Conclusion # 2: Thus, the implementation of arbitrage is to analyze the same asset, but at different brokerage companies using automated trading systems.

What you need to implement this idea:

  1. A trading account in two brokerage companies;
  2. Brokerage companies themselves should be reliable, but at the same time should have different liquidity providers or one of the companies should be the liquidity provider itself – the prime broker;
  3. Configure the exchange rate difference of the normative range for the currency pairs;
  4. Find the maximum discrepancy between the quotes from which trading transactions will be opened, using statistical data;
  5. Find the parameter at which the trades will be closed (the minimum exchange rate difference).

These are the simplest methods for creating an automated algorithm for conducting fix api arbitrage trading in the forex market.

How does this work with an example:

Let the trader opens a trading account in different companies and he has an arbitration algorithm that trades on the EURUSD currency pair. If there is a discrepancy between the brokers for more than 10 points, the robot makes transactions in the spread direction. So, if the value of the currency pair at one is 1.1410, and at the second one is 1.1420, the robot will open a deal to buy from the first and to sell from the second one, and when the exchange difference reaches 3 points, the deals will be closed. If the quotes are 1.1455 and 1.1458, then the result is the net profit points, taking into account the fact that arbitrage transactions have a short period of holding positions.

This approach is already used by some developers of trading software. There is software on the market (http://forexzzz.com/arb/), which works on the same principle that I wrote above. But the data for comparison and analysis is obtained with fix api, which allows you to connect to the servers of the liquidity provider and trade directly in the market while at the same time making arbitration transactions between the brokerage companies.


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Inclined Channels in Trading: How to Use Them

Category : Software

For more than 100 years, the tradershave been analyzing the financial assets movement and every year their tools are being expanded and improved. Some elements leave the fix api traders interest because of the changes in the market functioning as a whole, and some are used throughout this time interval. So, classical tools for predicting the future price movement have become a constant in the technical analysis. Sloped channels can be attributed to the list of such tools.

An inclined channel is a graphical tool for assets analyzing to find a “corridor” for the movement of financial asset quotes. There is a phrase that “the market is walking in the corridor.” The inclined channel allows to define the given zone. In simple terms, the inclined channel is the same supportand resistance levels, from which the asset value is repulsed and continues its movement in the opposite direction.

How to build an inclined channel?

To build an inclined channel it is necessary to draw two parallel lines to each other. Classically, it is necessary to stretch the first line through two points, the boiler ones will be support or resistance, and the second line only through one point of the local maximum or minimum, depending on the directed channel. And that’s all. The channel is ready. But the market does not stand still and is constantly developing, which means that the analysis approach is developing. Some fix api tradersare looking for at least three points on the first line and two on the second. This approach is widely used by our Asian colleagues. Personally, I use the classical technique.

How to apply it in trading?

By itself, the inclined channel will not display obvious signals to purchases or sales. But it will allow you to form an understanding of the trend and the current market phase. Thus, if your trading strategy displays signals for sale, and an inclined channel displays upward values, I would think twice before opening a deal. Conversely, if the TS displays sales and quotes are moving in the downlink, then we can boldly open a deal.

In addition, the channel can be used with the help of two methods:

  • When clearing: when the quotes reach one of the channel’s borders, the trader sets a buy/sell order with a stop loss level outside the channel boundary. After all, the breakdown will testify for the beginning of a new cycle. This approach is the most popular type of work with the channel on the fix apiforex market.
  • In case of breakdown. If the quotes have broken through the upper or lower border of the channel and are fixed above it, then a pending order should be installed at the local maximum or minimum breakdown. Thus, triggering the transaction will be a signal for the beginning of a new cycle and the trend as a whole. The stop loss level here will be much more than the first method, but there is a high probability of opening a trade at the beginning of a new trend.

The principle of the price channel was also adopted by some technical indicators. So the Price Chanel indicator is built on the basis of the minima and maxima of price quotes, thereby forming a channel. The Bollinger Bands indicator (http://metatrader4expertadvisors.com/) is also a certain specification of the channel, the calculation basis ofwhich is the standard price deviation. The principles of the inclined channel are also used in the Ichimoku Cloud indicator.

Undoubtedly, the principle of the inclined channel will not be profitable for those who trade based on the fix api arbitration technique (http://www.forexzzz.com/product/forex-zzz-lock-arbitrage/) or the scalping algorithm. But for other strategies, this will be an excellent auxiliary tool for determining the driving force of the market. I apply this tool when there is no clear wave structure on the chart, and the inclined channel helps me understand which way the quotes are moving.

 

 


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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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