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.

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.

Types of trade robots

A trade strategy is needed to profitably trade. To develop a trade strategy, you need experience and a comprehensive knowledge of fix api forex market behavior and actions. In order to build experience, we need to achieve the desired result with trial and error. The trader should always be in a trend, move in step with the market, and even act ahead of time.

As I have already written, the final stage of a trader’s success is the creation of his trade strategy, which is a hard path. However, with the development of information technology, the trade strategy is a transition to its automation. It is the algorithmic approach that allows for stable and regular fix api forex market earning.

An automatic trade strategy is called a merchant robot that can, based on its rules and logic, perform an asset analysis, search for entry and exit points of the transaction. And in the past few years, the number of algorithmic strategies has only grown, so that whole kinds emerge based on the principles of the trading robot.

Types of trade robots:

  • HFT algorithms. This type is an unrealistically large number of transactions in a second. Typically, this view is more popular for the stock market than for fix api forex, but there are algorithms that also work in the currency market. The main purpose of these robots is to open the ground with a large volume and a minimum profit fixation, which can be less than a cent per share. For more information about this type of algorithmic trade, read here;
  • Arbitration algorithms. Automation of fix api trading has shifted the focus of this type of trade to the foreign exchange market. The main feature of these strategies is not the historical movement of quotes, but the current exchange difference between prices for the same asset, but in different sites. For example, this trade strategy – http://www.forexzzz.com/product/forex-zzz-lock-arbitrage/compares the value of an asset between prime broker and your fix api brokerage company. In the event of a discrepancy between the normative values, the trading robot will purchase the asset on the site where the quotes are lower and the sell where the quotes are higher. Accordingly, the return to the normative value of the currency pair would signal the closing of positions and the fixation of the points that showed the difference;
  • Robots based on technical indicators. These are the simplest robots that make deals based on the principles of trade in one indicator: Moving Average, Stochastic, MACD, Price Chanel and others. For example, this trade robot – http://metatrader4expertadvisors.com/, is based on a bounce from Bollinger bands. That is, when the quotes of the financial asset reach the top of the indicator, the sale is opened and purchases are made from the lower boundary. It’s simple.
  • Robots based on an integrated approach. This species involves ready-made trade strategies that are based on several indicators or other elements of an asset analysis. These can be complex own trading systems or popular automated strategies. This allows fix api traders to completely automate their approach and strategy, and also share it with other market players.
  • Grid robots. Are based not on the various elements of technical analysis, but on the important key levels on which many traded deferred warrants are issued. Such robots can be based on a principle of Fibonacci or pivot points, which will set the transactions to be hit or not hit from the level value.

These are perhaps key types of trade strategies that can still be divided into different types. But by bringing all of us to one global principle, we will still be in those five types.