Different types of trading software

Technologic advance and progress are increasing day by day, and every year we become witnesses of incredible changes of our world, while automation covers virtually all processes and fields. New technologies can make both our professional and daily lives much easier. And if we look at the financial market, we will notice that this field also faced dramatic changes. Many years ago FIX API trading was simply impossible without a phone and a feed, while these days we are able to use one single terminal that contains all the required information to perform trading and execute orders.

However, the technologic progress is constantly developing, and those things, which were recently made by FIX API traders in manual mode, are executed with automatic and algorithmic software these days. Today I want to tell you about such programs. You need to know products available in the market, and which software can be used to increase your trading performance.

Firstly, I want to make a list of several software solutions, which have to be used by each and every asset manager.

Main types of trading software:

– Proprietary indicators

– Process optimization scripts

– Trading panels (Signal panels)

– Trading robots

I put all items of the list by the level of their importance and priority. In other words, the higher is the item in the list, the bigger is the role of such item in trading. Now let’s look at each item of the list more closely.

Proprietary indicators

This software is based on your point of view for specific indicators. I’m not telling that you have to create your own indicators, not at all. I recommend learning basic tools ofFIX APIMT4, and only then developing or improving them. Sooner or later you will definitely make it.

There’s a lot of free software these days, and you can start your work with it. Firstly, I recommend choosing indicators, and only then trying to improve something. Your “proprietary” indicator can be based by someone’s tool installed in your terminal. This option is also considered as great one.

Process optimization scripts

The next stage is the usage of small software utilities, which allow improving the common trading operations. I am talking about scripts, which allow buying financial assets after the price closing (or closing open positions using the very same method), as well as those small tools, which can avoid FIX API Forexspreads by executing trades using bid and notask.

This category includes scripts intended to control the level of your risks. In other words, when the deposit is decreased by a predefined value, such script won’t allow executing new trades during a previously selected period in time. To tell the truth, one can use scripts to implement virtually any solutions, which will make the trading process more convenient and profitable.

Trading panels (signal panels)

In case if you already have your own indicators and scripts, you can combine them, creating a single trading panel. By doing so you will be able to use one panel that contains all the information based on your trading signals. In other words, this panel will contain recommendations about financial assets to buy and to sell. You can just execute new trades using the information from the panel. In fact, you will see your assets and trading signals. You can use the notification system in order to receive all the signals right on your mobile phone or sending alerts right to your trading terminal.

Trading robots

The final stage is to create a trading robot that includes all the items, which I described above. Development of a trading robot is the last stage of FIX API trading automation implementation (http://forexzzz.com/product/forex-zzz-lock-arbitrage/). And if we talk about the automation trading tools, you will probably think about trading robots. You are totally right. According to the statistic control unit of the USA, the majority of trading operations is executed by algorithms.

That’s why I recommend you to follow the trend and use your working algorithm to create a robot that will automate your trading. Always remember that you can start creation of such robot only when you already have a working system.

If you start using various software solutions in your trading, you will immediately improve the overall performance and profitability of your business. No doubt, in order to do so you have to use various algorithmic systems or trading robots which is well described here http://www.forexrobotshub.com/. However, I really recommend creating your own strategy and only then start the process of automation implementation. Such behavior makes it possible to understand the specific moments of the market and understand all the pitfalls of FIX API Forex market.

 

How to correctly install stop loss and take profit?

Each trader has his own trading strategy, which should regulate each action of the manager. I strongly recommend using the basic principles of creating a trading strategy to turn a chaotic approach into a system business.

The trading strategy, without fail, should consist of the following blocks:

1. Rules for determining the entry position point;

2. Rules for determining exit points from a transaction;

3. Risk and money management parameters.

In my blog, I have already written about the first and third point, so today we will analyze the second one.

It’s not a secret that there are only two exit points: with a loss or with a profit. In this issue, fix api trader experiences stop loss and take profitlevels. As I already wrote above, the trading strategy will help you understand exactly where to place these levels, which should be clearly state where to set these exit levels from the transaction. They are individual for each trader. I will help you determine the points of these zones exposure based on the key and basic rules. Thus, where they should be, in order to work correctly and safely.

Stop loss

This level allows you to limit losses in the context of a trade operation. Most traders have difficulties exactly with stop loss. I would not even say difficulties, but rather a refusal to place it in a trading operation. For some reason, many do not place stop loss in their system and over time simply lose their money and get disappointed from the fix api trading. Sometimes, you may not install take profit, but SL should present in each operation.

There are 3 types of correct stop loss placement:

  • Taking into account the risk in each transaction. With this type, the exit from the position will be implemented when the maximum percentage of loss is achieved. For example, if you have a transaction risk of 1% and a deposit of $10,000, then when the deal reaches $100, it will be closed. Thus, SL is set based on a round figure loss.
  • After triggering a turn signal or reaching the system indicator. If you have opened a position for sale but the quotes have entered the channel and all the signals have already changed, it is reasonable to close the position if the TS already points to the purchase (https://www.babypips.com/learn/forex/design-your-trading-system).
  • Behind the local highs or lows. When you have opened trading operations for sale, SL should chase a local maximum, the breakdown of which will be a signal for a trend reversal. The case is similar when there are purchases. This is a kind of analogue of the second point but it is more stable and is used by the fix api traders regardless of the system.

Take profit

As for this level, it acts in opposite proportion to the SL –it restricts profits in the context of one trade operation. I recommend to set TP for each trade operation. But there are exceptions, in which TP does not need to be put. Often, they are connected with the fact that the reason for closing position is a reverse signal or trailing stop of the opened positions.

There are also 3 Take Profit methods for setting the level:

  • As SL ratio. This is one of the most popular techniques. We know that the trader’s work is aimed at a positive mathematical expectation. If the SL to TP ratio in the working strategy is not less than 1/4, and better than 1/6 or 1/7, then the MO will be positive. So the trader opens deals with volume from risk, and the take is determined by simply multiplying by 5-6 from SL.
  • Installation under local support and resistance level. If a purchase transaction is opened, it makes sense to install the TP under the resistance level. If it is a sale, then above the support level.
  • At achievement of technical indicators or Fibo level. Everything is simple. The purpose is the level or values ​​of the technical element.

Placing these levels at opening of trading positions will allow you to save the capital. After all, the original purpose is safety of means, and only then their augmentation. If your system has a positive mathematical expectation, use these levels, and you are guaranteed to get a stable result.

Even algorithmic trading strategies for fix apiforex have the logic of exit from the market (http://forexzzz.com/product/zzz-latency-arbitrage-mt4-advisor/). Thus, those parameters in which the robot bury transactions “in plus” or “in minus.” This allows you to save funds and control risks. This is the main reason for the stability of robots. After all, they will not move these levels and “be greedy.” But the trader may do it. And if you learn to work by installing stop loss and take profit, this will allow you to reduce the psychological burden. You will have to take care only for the strategy and its principles of opening a deal and the parameters of capital management.

 

Trading performance monitoring websites. What’s their purpose?

What is the meaning of success in trading? Some people would say that the key success factor is the breakeven deal, other would tell about the minimum risk level, while some of traders will try to convince you that success depends on the enormous profitability ratio. Each and every FIX API trader wants to accomplish such purposes when creating and developing a trading strategy. As a result all the trading strategies and methods can be divided into aggressive, moderate and conservative ones.

But what do investors have to do in such situation? I’m talking about choosing a trading strategy investment option. How can one choose an asset manager, if some investors want to achieve the maximum return, while others want to save the capital and have the minimum risk level? Here’s another example: how can one connect to a trading signal or buy a trading robot, if they have only description and nothing more? The answer is very simple! One simply can’t.

Nobody buys a car only after reading the user’s manual. It doesn’t work like that. We need to have a test drive and check the car in real driving conditions.

The field of FIX API trading has the very similar situation. One can’t simply make a decision about investments or purchasing of a trading robot by reading only stiff descriptions. One needs to use such tools as the yield curve and other important trading indicators, which can be found on various trading performance monitoring websites, which we are going to discuss below.

I think that some of you have already seen such websites, and understand the main principles of their work. Let’s look at the two of the most popular resources:

    1. MQL –https://www.mql5.com. The website of FIX API MT4trading platform developers offers a section that includes various information about trading signals. This page contains a lot of trading systems shown in the form of a signal. One can subscribe to such signals, receiving information about them right to their account. No doubt that the key factor of such system choosing is the possibility to analyze trading activities, and MQL offers a wide range of such tools. One can see the profit ability divided up by month, the drawdown curve, the balance curve, the funds curve, the main trading financial data (the number of winning and losing trades, their correlation, expected values, the Sharpe ratio etc.), as well as the total number of the followers and the capital size of the asset manager. Such information makes it possible to understand the amount of money invested by the FIX API trader themselves in trading operations.
    2. My fxbook – https://www.myfxbook.com. This is another resource that is pretty similar to MQL; however, it doesn’t allow traders to subscribe on the trading of the asset manager, giving only the possibility to analyze the system itself and it results. This website offers almost similar interface for the list of differentials and indicators, but in my opinion it offers much better visualization methods. The majority of companies and professional trades is using this platform to publish their statistics.

      There are several other websites for FIX API trading results monitoring, but each of them offer strictly individual approach. Such resources include PAMM platforms and special websites for trading robot performance monitoring, e.g. http://fxsocialnet.com/

      But what’s their purpose?

      Such resources can be used to get information about real trading results in order to analyze trading activities of the trader in real time. By using such websites, each and every FIX API trader can connect their trading account in order to analyze trading performance. Such resources can also be use to find the best FIX API trader for your estimated trading results. In other words, you can connect your account to such service and monitor the inter-temporal changes of the key indicators. I really recommend doing so, and monitor your trading activity every week. Choose any day of the weekend when all the main markets are closed, and perform thorough analysis of your trading operations. You will be able to see the influence of each of them on the final result of your trading. By doing so you are able to define all the key moments, which affect your trading in positive ways, as well as the negative ones. As a result, you will be able to use it as a reference point of your personal growth.

Technical and fundamental factors: what drives the market

We all know that the dynamics of supply and demand, the number of speculative positions, the monetary policy of the Central Bank, the achievement of historical highs or lows, and the opening of positions by market makers drives the fix apiforexmarket. To simplify this all, there are two global causes that have a direct impact on the market. The question is of fundamental and technical factors. It is these two bases that explain any movement in the foreign exchange market.

Thefundamentalfactorsinclude:

  • Political news (elections in the country, G8 or G20summit, etc.);
  • Meetings and formal meetings (decision on the interest rate of the Central Bank, OPEC meeting);
  • Publication of statistical indicators (macroeconomic data in the form of GDP, inflation, labor market or publication of companies’financial statements).

The following points often related to the technical factor:

  • Achievement of important historical highs or lows;
  • Reaching the level of support or resistance;
  • Triggering of technical patterns (reversal figures or trend continuation).

As you can see, there are many reasons that affect the market. Every fix api trader should know about them, and also to have an action plan in case of triggering at least one of the above factors. In the event that the manager has a system that regulates the process of actions in each of the situations, then it is possible to declare the professionalism of the trader. But! Some managers refer themselves to the first group (fundamental traders who trade on the basis of obtaining information from market data), and some refer themselves to the second group (technical traders who trade on the basis of obtaining information from technical elements).

And the following question arises: which of these factors and their analysis dominates on the market and is better/more reliable?

My subjective answer to this question is that the foundation is moving the market, but the price itself is in the technical channels.

In order to understand this idea, I propose to consider a particular example.

For example, now we see the strengthening of the euro to its basket of major currencies. The main drivers of this movement are simultaneously the rearrange ofECB monetary policy and at the same time, the weakness of the dollar due to the Trump policy (http://www.investopedia.com/terms/m/monetarypolicy.asp). In the first case, the head of the ECB, Mario Draghi, announced the possible curtailment of the quantitative easing program. Thus, the Central Bank intends to reduce the number of redemption bonds and thereby reduce the money supply in the market. If there is less money on the market, the currency value should be more expensive (the elementary rules of the economy fundamentals). At the same time, we see that Trump cannot agree on any of his plans with the Senate, therefore many investors question the very implementation of the plans of the new president, after the election of which the dollar was rapidly strengthened. Thus, we get a “divergence” between the euro and the dollar and, as a consequence, the growth of the currency pair. This all refers to the fundamental data.

As for the technical factors, at the moment of EURUSD’s growth, a side channel was broken and quotes were fixed above it. This is the first technical signal to buy. After the rollback, quotes also broke through and continued to grow, thereby forming the third upward wave and a rising channel. Thus, we obtain a synergy between the fundamental and technical factors.

This is my vision of these factors’work, which are complementary to each other and are two parts of the same whole. So, of course, you need to have a trading system, but what factors are included in it, this is already a second-order issue, because every fix api trader should be guided in any analysis. Even if you have a trading robot in your arms (http://forexzzz.com/product/zzz-2-leg-arbitrage/), it still needs to be adjusted for actual market conditions).

Lock and averaging: the key principles of work

With the development of financial markets, more and more different types of trading strategies appeared. Some part of them has reached our time, and some have been forgotten long ago because of the transformation of the market itself. The principles of trade were formed under the influence of market trends, market activity, its phase, as well as the general laws that Dow formed in his theory.

Today, these techniques have changed and transformed into some types of trading systems or have become non-standard ways of conducting fix api trading on the forex market. Speaking about the non-standard methods of trade, perhaps, each comes to two conflicting ways of risk reducing:

  • PositionsAveraging
  • PositionsLocking

 

These methods cannot be called standard trading methods, but they allow you to conduct trading in a loss-making position, and also contribute to minimizing and limiting the risks. Therefore, if you are looking for risk management tools, these two non-standard approaches allow you to solve this problem.

Positions Averaging

This method consists in the fact that all trading operations that a trader performs are opened in one direction. Thus, at the time of receiving a loss in one trading position, a similar transaction with the same volume and in the same direction (sell / buy) is opened, as it is unprofitable. Thus, when the quotes unfold and go in the right direction, you can fix a break with a rollback of 50% or a profit for one transaction and a zero result for the second. If you do trade operations using averaging methods but with a large volume, this will already be applied to the Martingale’s trading strategy.

In order to understand the principle of averaging operation, I suggest you to consider a specific example:

The trader opened a deal to buy a financial tool in the fix apiforex market from the level of support for the Fibonacci grid (http://www.investopedia.com/articles/active-trading/022415/placing-fibonacci-grids-key-your-trading-strategy.asp) in 50%. However, this level was broken and quotes continued their downward movement. In order to not fix the loss, fix api trader opens another position to buy, but this time from the level of 23.6%. After quotes rebounded from this level and grew, the trader can fix the result in the no-loss zone or profit from the second operation. Personally, I recommend limiting losses to the exit in the no-loss zone.

Positions Locking is also called “Lock”

This technique also consists in limiting the loss on positions. The essence of this principle consists in fixing a certain loss percentage in order to further reduce it. If we talk about practice, the trader should open the transaction in the opposite direction from the unprofitable one. The complexity of this algorithm of actions arises at the time of exit from the lock. To do this, you need to exit at a profitable position at the most appropriate time in the turn. Locking is suitable for making transactions by algorithmic trading (http://forexzzz.com/product/forex-zzz-lock-arbitrage/), because it is the robot that can exit the lock with the most profitable for the fix api trader.

Let’s also look at an example to learn more about the principle of this technique.

The trader opens a deal for financial tool purchase in the breakdown of an important resistance level. However, the breakdown was false and quotes rushed down. Realizing this, the trader opens a deal in accordance with the trend (for sale) and thereby fixes a certain percentage of the loss (the difference between open trades). Let this difference amount to 20 points. This fixation occurs only on the chart, and not on the deposit balance. The trader holds two positions and at the moment of maximum reduction fixes his sale (profitable deal) expecting the price rollback. When prices roll back by 20 points, the trader will be able to close the loss on the first position, but the trading result will be 0. This allows you to nor permit deep drawdowns of the deposit and loss of investment capital.

Personally, I do not use these methods in my fix api trading because my strategy foresees an immediate exit from the bottle positions. But some traders successfully apply them in their trading strategies as a combination of money management.

Should I use the oscillator indicators in trading?

Perhaps the most common way of analysis and prediction the future value of a financial asset is to use technical elements, primarily indicators. What could be simpler than an automatic process, when it is enough for the fix api trader to look at the chart with the indicators and say what further movement is to be expected. The mathematical justification for forecasting quotations has been applied for several years, not even for the first ten years, because all the key technical indicators were created back in the 70-80’s.

The simplicity and efficiency of these technical elements caused an increased interest in the application of these analysis techniques in their fix api trading. In view of this, many technical indicators have been created, and the key ones can be divided into three groups:

    1. Trend Indicators
    2. Volume indicators
    3. Oscillators

We’ll consider today the last ones.

Oscillators are a group of technical indicators, which in their mathematical basis determine the rate of price movement over time. The main goal of these indicators is that they reflect zones of the so-called “overbought” and “oversold” areas.

The overbought zone signals that quotes at this point of time have drastically deviated from their values ​​and have gone to a range that they have not been for a long time. Thus, if the growth of quotations outstrips the technical indicator growth from the group of oscillators (RSI, AO, CCI, etc.), this indicates that the current value of the asset in the fix apiforex market has grown significantly, reaching its maximum in this zone, and you should expect a rollback.

The oversold zone operates exactly the opposite way. If the quotes decrease faster than the indicator’s decrease, then when the technical element’s boundary is reached, it is worth waiting for the damping of the pulse and the beginning of the corrective wave.

These zones are inherently the trade signals used by the trader. However, I would single out one more trading signal, which appears together with the oscillators movement. It’s about divergence.

Divergence is a technical element of analysis that indicates the end of the formed movement and the immediate transition to a new phase of the market. To put it simply, when the quotes decrease, and the indicator’svalue grows vice versa, one should expect the principle of quotes divergence to work and he should open a deal for purchase. But you need other analysis elements to help you find the entry point, because the divergence itself only gives a signal for a turn, and not a specific entry point. The oscillator from Bill Williams – Awesome Oscillator is the best way to determine the divergence, about which you can read more here – https://www.oanda.com/forex-trading/learn/forex-indicators/awesome-oscillator.

Waysofusingoscillators:

  • When the trend is attenuated. Oscillators indicate a possible end of the movement and thus contribute to go out before the turn. Thus, the application of this tool allows you to exit the transaction with the greatest benefit;
  • When the market is flown. If the market formed a lateral movement, then due to overbought and oversold zones, you can determine the entry points. However, one should take into account that the signal will be stronger if overbought and oversold will be at the border of the channel, and not in the middle. This will be an additional filter, which will help fix api trader to enter the position more profitably.

As you can see, the indicator data group allows both to find the entry and exit point. I do not emphasize that oscillators are a “magic wand” for a trader, but this is an excellent tool that allows you to increase your trading result. Personally, I use a technical indicator AO in my trade to determine the divergence, as well as to look for Elliott Wave Markup. Given all the simplicity and efficiency of the oscillators, these elements can be implemented in an algorithmic approach (http://forexzzz.com/product/forex-zzz-lock-arbitrage/), to automate the result.

How to optimize the trading algorithm?

Trade in financial markets requires the maximum return on the part of market players. Fix api trader should regularly monitor the market’s dynamics and knows the current market data, learn the opinion of other players and of course to form his own vision. The manager should be aware of the risks and act clearly on his working algorithm. In view of the fact that the market is not constant and has a property for regular changes, the trading algorithms should also be adjusted for these events. That is why there is a need for constant optimization of the fixapi trading process.

Optimization of trading algorithms should consist in the direct analysis of trading strategies with the purpose of revealing more favorable parameters of work. It should not be confused that optimization should not completely change the principle of trading systems, but only improve weaknesses. To put it simply, polish all the errors of the algorithm.

The key steps in the trading algorithm optimization are:

  1. Analysis of current activities. Before you begin to optimize, you should know what it is worth to optimize. This stage consists in a certain “disassembly” of the system into separate blocks. Imagine car repair: in order to fix it, you should first disassemble and find out the reason. The analysis of current activities will help the results of trading in the past period and those trading signals that form the strategy.
  2. Analysis of individual filters of the trading strategy. By strategy filters, I mean those elements that are used to analyze: technical indicators, fundamental data, candle combinations, and so on. For example, if you trade using the combination of MA and MACD indicators (http://www.investopedia.com/terms/m/macd.asp), you can test the performance of separate indicators with different parameters and choose the most optimal condition that makes forecast and signal more accurate.
  3. Combination of all filters in one system. Once the separate elements have been disassembled, you should combine them back into the system and analyze the result of the group action. Returning to our example of a car, to check whether it rides, it should be reassembled.
  4. Tracking the adherence to a given work logic. At the same time, after the assembly, it should be analyzed how much the new parameters adhere to the main idea of ​​the trading strategy. The new parameters can disrupt the combination of different filters in the strategy, which means that trade signals can be skipped or operations can be opened, where they should not be. If the logic of the work is not correct, then it is necessary to repeat all the steps from the beginning. Certainly, there are algorithms whose logic of work is difficult to trace, for example, fix api arbitration strategies (http://www.forexzzz.com/product/forex-zzz-lock-arbitrage/), but it is necessary to do this.
  5. Optimization of money management parameters. If everything works as it should be, you should set those parameters that will directly affect the curve of the funds and balance, namely risk and money management. It is necessary to combine various conditions for fix api trading with different parameters. Reducing the risk will not guarantee a stable return. For each strategy, these parameters must be unique. Personally, I recommend to determine the volume of investment in transactions and risk, based on those situations and filters that are now on the market. For example, triggering 5 filters out of 5, we increase the volume, and when 5 filters are given a signal of only 3, we reduce the risk.
  6. Testing on historical data. Once all the parameters have been formed and tested, a global test should be done on accurate quotes over a long period of time (I recommend selecting at least 5 years), as well as on different timeframes to understand how accurate and working the trading strategy has become.

As we have already understood, optimization should be based entirely on repeated testing. It is the test results that allow us to find weaknesses and those that can be improved.

I encourage everyone to optimize their trading approximately once a quarter. It is possible that the optimization may not give the results of those factors that need improvement, but you will be sure of your method action relevance in the foreign exchange fix apiforex market.

 

Which Programming Language is Suitable for Trading Robots Development

The sphere of financial markets is improving and developing every year. This is evidenced by the increase in trading volume, which indicates the presence of new players, as well as the very specifics of trade transactions opening. Today, the whole process of closing exchange transactions is automated and to open a position you do not need to contact the broker or write an official letter. It is enough to include the trading terminal, to look yourselfat the quotes and to take an investment decision.

Each trader has at his disposal that set of assets analyzing methods, which determines his trading style. Thus, it is some kind of chain of sequential actions that the fix api trader performs over and over again. In the world of information technology where everything can be turned into a software algorithm, many managers create automatic trading strategies. At its core, these aretrading robots. If earlier it was new and exciting, today it is an ordinary process.

To create a trading robot, you should have only three things:

  • Algorithm of actions on the market;
  • Formed risk and money management system;
  • Understand the process of automating strategies.

If professional traders do not have any questions on the first two points, in most cases the third item discourages all the desire to get engaged in the process of trading strategy automation.

Undoubtedly, if you are not going to start learning programming for the sake of creating a trading robot, you can contact private traders or specializing companies that will do it for you. But if you still decide to create the algorithm yourself, you should first determine which tool to use to create a trading robot for the fix apiforex market.

I would like to note that the choice of the programming language depends on your trading terminal. Some of them may not support the use of third-party programs at all. If so, then you should use the fix api protocol – http://www.forexzzz.com/product/fixapi-zzz/. This software allows you to make trading transactions at the liquidity provider, and the most popular programming languages, for example fix api C #, Java, Python will work with fix api.

I will consider three key languages for algorithmic trading strategy development for working in the fix api MT4trading terminal.

1. MQL.This language is derived from the C# language, but has somewhat limited functionality. However, the peculiarity of this programming language is that it is the “mother tongue” of MT4. Moreover, the environment development is embedded in the platform itself with detailed instructions on the MQL capabilities. All the libraries and functional language can be viewed in the terminal, which allows you to optimize the code and then to test it

2. C#.Since MQL is a derivative of this language, C# will perform essentially the same functions, and will have the same capabilities as MQL. You can write a robot both on the external and internal environment development. But again, Meta Editor will allow you to immediately see the problematic places in the code that MT4 will not read

3. Ñ++.This language is ideal for automatic programs development, but it is difficult to compile on it. After all, the standard libraries will not be suitable and the final version will need to be adapted for the fix api MT4.

As you can see from the description above, if you are just starting out as a developer, then I advise you to study MQL. This will allow you to gain some experience in developing exactly the software for trading and in case of errors or difficulties, to look in the built-in guide and to find the reason. Moreover, at the MQL forum (https://www.mql5.com/en/code), you can find a solution to almost any problem.

 

Trading robots in trading: how to choose the optimal algorithm

Each trader certainly wants to optimize his set of rules and the principle of trading (or simply speaking the trading system) to improve the efficiency of work on it and, of course, to improve the financial result. In turn, this desire becomes the reason for the appearance of trading scripts, trading panels and algorithmic trading strategies.

Speaking of the latter kind, more and more fix api traders create trading robots based on their strategy. Of course, if the strategy in manual mode demonstrates stable profitability indicators, and have a positive mathematical expectation, the robot will be able to increase the capital faster than the manager. The 24-hour work schedule, as well as the depth and analysis completeness will contribute to the maximum possible increase of the deposit.

What to do in the event that the personal trading strategy shows weak dynamics of profitability or a negative result and the trader does not have anything to automate? Of course, one of the options is to use a third-party algorithm to work on the fix apiforex market. Thus, to buy a trading robot.

However, the following difficulty arises: how to choose a trading robot, if it is based on a third-party strategy that you do not know?

To find the answer to this question, I propose the following parameters, which should be considered when buying a trader software:

1.The logic of the trading robot. Even if you do not know the strategy by which the algorithm works, then search for a similar strategy on the Internet. Perhaps, you will find some reviews or descriptions. Moreover, you can find fix api traders who apply it in their work. Ask them about its efficiency and profitability of use. Most robots are written on the principles that are available even on the Internet.

2. Trading robot type. Also, after determining the work logic, I recommend identifying the robot’s type. In the settings of the software, this can be indicated, but if you understand the logic of its work, you can certainly already know about it. I will highlight the key types of the trading robots:

• Trend robots;

• Gridrobots;

• Scalpingsrobots;

Fix api arbitration;

• Martingale.

I strongly recommend to bypass the last view. All the rest have already confirmed their profitability and ability to increase the capital (Blog link 0128_ENG_blog).

3. Parameters that can be configured. Like any other program, the trading robot must be configured as a contract manager. So, in its settings there should be an opportunity to specify the deposit amount, the maximum risk indicators, the volume of the trade operation, if necessary, the currency pairs for trading. I recommend you to contact the developer and, if necessary, to add external parameters to the robot to adjust its algorithm to your investment tools.

4. Results of the historical testing (or testing on real accounts). Undoubtedly, no one will buy a trading robot that does not have a history of trading. Otherwise, this purchase will become like a cat in a sack. And of course, most developers attach the result in the form of a curve from the strategy tester. But even more qualitative selection would be to see the results of the current customers.

5. Trade indicators. Together with the analysis of historical profitability, attention should be paid to trade indicators, namely the following parameters:

• Mathematical expectation (this indicator should show a positive result. A negative MO indicates a loss-making trading strategy);

• Recovery factor (how “fast” the robot gets out of the drawdown);

• The loss-making and profitable trades ratio;

• Average loss-making and average profitable transaction.

Optimization of the trading strategy allows you to increase the trading result of the trader, but at the same time it should be clear to which algorithm you can trust your capital. I hope, the parameters given above will contribute to the selection of the most qualitatively software in your fix api trading.

What if the broker prohibits arbitrage trading?

Throughout the history of financial markets development, exchange speculators were looking for an ideal approach and ways of analyzing financial assets, as well as methods for completing trading operations. Some trading strategies have been replaced by others, and some have improved and work up to this day. But some fix api tradingtechniques have gained such popularity and reliability that forced regulators to limit their trading. Such a technique was arbitrage trading.

Arbitrage consists in analyzing the cost of the same currency pair of the fix apiforex market, but on different stock exchanges. Yes, we know that the forex market is open and everyone can join it. In fact, this is a big exchange. But under the term of “stock market” I mean brokerage companies. With the help of the algorithmic approach, this allows you to conduct an asset analysis by tuning in to find meaningful discrepancies and perform arbitrage trading operations.

You would agree that we often have seen a small exchange rate difference in the quotes of various fix apiforex brokerage companies. And it is on this exchange rate difference that you can earn. Arbitration concludes in determining the maximum exchange rate difference and the opening of transaction on the side of a slower broker (if you conduct arbitrage trading using the fix api Latency Arbitrage technique) or simultaneously on two platforms in the direction of the formed “spread” (if arbitrage trading is conducted using the 2-leg Latency Arbitrage). You can read about the arbitration strategies on the following link:

http://www.investopedia.com/terms/a/arbitrage.asp

However, the most brokerage companies oppose such an approach. And this is understandable. In our market, most companies earn from the losses of their customers. By trading in reliable brokerage houses, which give access to fix api, thereby they encourage algorithmic trading and arbitrage trading, in particular.

Two key reasons why companies prohibit arbitrage trading:

  • Arbitration conducts a lot of trading operations with a short profit taking. Some companies do not give the opportunity to enter their funds until a certain volume is traded;
  • Arbitration conducts risk-free trading. The absence of risks means regular earnings for clients, which in turn means a loss of a substandard company.

Given these bans, the traders began to look for an opportunity to make arbitrage transactions even where it is prohibited. Today, I will talk about the techniques that will allow you to conduct fix api arbitrage trading, taking into account brokerage bans.

  1. Change your trading principle to fix api 2-leg arbitrage. In case of Latency Arbitrage, such an algorithm is very simple to define and there are even special programs that allow to “catch” traders with this approach. As for the 2-leg arbitrage, such an algorithm is difficult to determine. Transactions open with a long period of withholding and may resemble speculative, not arbitrage trading;
  2. Trade through fix api.The very use of this protocol will indicate trouble-free trading, because all transactions will be delivered directly to the market, and thus, the broker will not lose money, but on the contrary, will earn from your commission.
  3. Use secondary software. There are already programs on the market that mask all transactions made by the robot. These programs will circumvent the bans of the brokerage companies and arbitrage trading. The program will mask the operations and will present them to the broker under the guise of transactions opened in a “manual mode.” An example of such a program can be viewed on this link: http://forexzzz.com/product/manual-trading-add-on/

These tools allow you to circumvent the bans of the brokerage company. Each of them will facilitate fix api arbitrage trading and will adjust the process in the right direction. If none of them doesn’t fit to you, you can always use the simplest way – change the broker company.