Pair arbitration: what is it?

The financial market attracts more and more traders to their networks with the illusion of quick money simplicity. However, those who are familiar with the market, have long understood that this is not so. Everyone who has started and continues to work on the fix api forex, brought something new to this market. Some created their own authorial approaches in the form of a trading strategy. Others have authored technical indicators, and others have trading robots. Today, this abundance of auxiliary elements of analysis makes it possible to form a huge knowledge base and useful content for the future generation. However, do not forget about the traditional tools that have long been alien to this market. And I’m talking about such an approach in the trading as the fix api arbitrage.

Arbitrage trading is based on the opening of trading positions on the same financial asset, but on different stock exchanges. At one time, when computers were just beginning to appear in this segment, this approach was widely used on different stock exchanges, when on one exchange the price of an identical asset could differ and the fix api trader had the opportunity to buy at a lower price and sell at a higher (http://forexrobotshub.com/2017/03/30/broker-find/ ).

For a long time, this approach was not available for the foreign exchange market due to the specificity of its robots, because this market is inherently a single exchange platform. Therefore, arbitration here was not applied. But everything changed drastically after the forex market began to actively use special auxiliary programs for the fix api trading (http://forexzzz.com/product/zzz-latency-robot/ ).

The brokerage companies have contributed a great support for this, as they set significant markups on the currency pairs. These mark-ups cause a gap in the exchange rates and an opportunity to open arbitrage transactions.

Pair arbitration is precisely in the classic work on this trading strategy. For example, when the value of the EURUSD currency pair in one broker is 1.1250, and the second one reaches 1.1258, the trading robot receives a signal to the beginning of the action. To do this, you need to specify the normative discrepancy between different brokers (let’s say this difference is 3 points in our example), as well as the maximum discrepancy at which it is necessary to open positions (let this parameter amount to just 8 points). Thus, the robot will open two trading positions: a purchase in the broker, where the quotes are 1.1250, and also the sale on the platform where the quotes are 1.1258. After that, when the two pairs of transactions after a prolonged breakdown return to the regulatory range, the trading robot will close both positions simultaneously. Continuing our example, let’s consider that the closing prices will be 1.1267 and 1.1270 respectively. Thus, the first transaction will close with a yield of 17 points, and the second one with a loss of 12 points. The financial result for these polices is 5 points of profit, which was formed absolutely without any risk.

Some exchange speculators have developed this direction and a few more fix api arbitration algorithms have been created, the boiler has an identical idea, but completely different logic of operation (fix api Latency Arbitrage and fix api Lock Arbitrage). I think we will discuss the other options for the work of arbitration techniques in next articles.

This approach is used with the help of special algorithms, because a trader cannot keep a track of such micro-oscillations, especially on different brokerage trading accounts. Therefore, I advise you to use this algorithm in your trading, because it is able to get perfectly combined with other trading strategies and the fix api trading can be conducted without changing the risks.

 

Arbitrage operations in the foreign exchange market

The number of trading operations over the past few years has rapidly grown. This phenomenon is caused not only by the increase in the number of new players on the market, but also by the current feature of the fix api forex market. As you know, when there is demand, you need to make an offer. The brokerage companies perfectly cope with this function, and the currency brokers prevail in number today.

High market volatility provokes the search for more and more methods of currency pair analysis. Given the fact of the technical environment we live, the automation of fix api trading processes has reached the market segment as well. So, there are HFT algorithms and trading robots in the market that are able to conduct analysis and perform trading operations without the direct involvement of the trader. Also, the methods of trade that were previously impossible to apply in this market were widely used. One such method is the fix api arbitration approach, which got a second breath by automation of this process.

Arbitrage trading is a kind of trading system that is based on a speculative algorithm, opening trading transactions at the time of the largest exchange rate discrepancies in price quotations for the same financial asset, but on various exchange platforms. Thus, this type of trading analyzes not the movement of the price or predicts its future marks, but compares it with the identical value of the price at another broker. A trading operation is carried out if this discrepancy exists. It is necessary to consider each of its forms to understand the logic of this system.

Today, the market has implemented three main types of arbitrage transactions for the currency market:

  1. Fix api 2-leg Arbitrage. The logic of this principle is the most common in traditional markets (http://forexrobotsreview.us/2017/05/11/lock/ ). According to this principle, the trading robot analyzes the value of the same financial asset, but on different stock exchanges (thus, fix api forex brokers). When the exchange rate discrepancy returns to the regulatory range, the two transactions are closed and the total positive result is fixed (http://forexzzz.com/product/forex-zzz-lock-arbitrage/ ). The peculiarity of this principle is that transactions can be held for a long time, which reduces the possibility of the broker’s influence on the trading result.
  2. Fix api Latency Arbitrage. This type of trading is very similar to the previous one based on the logic of its work: analysis is carried out between the same financial asset, however, the trading is performed only at one of the brokers. To do this, the fix api trader should analyze and determine which broker is faster in terms of quotes, and which one is slower. Transactions should be made on the slow side in the direction to the faster one, based on the temporary exchange rate delays.
  3. Triangle Arbitrage. This principle of operation is based on opening several trading operations on the fix api forex market. Such an algorithm uses imports by large companies (banks and hedge funds). The logic of the algorithm is based on the exchange rate divergence of three currency pairs simultaneously. Arbitration is transformed into a form of mediation. The trading algorithm analyzes the situation on the market and opens deals to ensure two market orders. Thus, when the market has an application for the purchase of EURUSD, and the second one holds the EURJPY position and at the same time expects the necessary entry point, this arbitration algorithm provides the first transaction, then converts it into USDJPY and provides the second transaction. To implement this principle, there must be some “gap” in the cost, which will ensure the profitability of the trading operation.

Today, these trading approaches can be used with the help of special auxiliary programs (http://forexzzz.com/products/ ). Arbitrage is a trader’s tool that allows him to form a passive source of profitability in the fix api forex market. Moreover, arbitrage can be perfectly combined with other trading systems of the trader due to its unique approach, which increases the diversification of investment capital and overall profitability.

How to optimally choose the parameters of money management?

Trade in the financial market requires maximum control and a systematic approach. Without observing certain rules (fix api trader should be guided by his own trading system), the result will be negative and lead to a loss of investment capital. Namely because of the absence of a system, many traders take an inefficient approach of trading.

However, the presence of a system alone does not give a result. The trading algorithm must be honed and improved in order to achieve a stable result. But this is only 20% of the success. The remaining 40% depends directly on the trader, his emotional stability from working with money, as well as psychological factors such as greed, fear, desire to win back and so on. The last 40% depend on the trading risk control. Even if the system is unprofitable and the trader lends himself to the psychological factor, but there will be a stable capital management, the loss of investment funds will not be sudden. Moreover, sometimes introducing a competent structure of risk distributions helps to improve the performance of the system and enter a positive profitability zone.

That is why every trader must develop and implement rules for managing capital in his trading on the fix api forex market. Of course, it all depends on the trading strategy and parameters that determine the entry and exit from the position.

If you nevertheless decided to control the risks in your fix api trading, then you should implement these optimal parameters:

  1. Determine the risk for the entire deposit. The trader should be aware of the maximum risks even before the commerce. Thus, in the system’s rules he should write down the key maximum value, upon which you should stop trading.
  2. Determine the maximum risk in the context of each trading operation. Similarly, like the parameter above, the trader should understand what will be the maximum percentage of loss in one trade operation. It is optimal to choose a parameter that would help keep all positions to maximum risk. For example, if your TS has a maximum loss risk of 20%, the risk to deal should not be more than 0.25%. Thus, you can wait 80 unprofitable transactions in a row.
  3. It is necessary to determine the volume of the trading operation based on the risk, or a fixed lot in the fix api MT4. If you set the maximum risk parameter in the transaction, then it is more logical to choose the option of automatic lot determination for opening positions. Fixed lot will solve the problem of large volumes, but not the risks, because the system should determine the exit from a position under certain conditions. If you make a fixed lot, the loss in the transaction will always be different. But it will also restrain the yield in case of a correct forecast. Therefore, I recommend determining the volume based on the risk, as well as the distance to the stop loss level

(http://forexrobotsreview.us/2017/09/20/how-to-correctly-install-stop-loss-and-take-profit/ ). The formula is quite simple: the distance in points to SL is initially determined, after which the cost of the item is calculated and this value is calculated from the capital. The result will be the required volume.

To sum it up, I want to note the fact that each trader must develop his own rules for capital management. If you have not realized this yet, you will come to this soon. Running the parameters of money management allows each trader to create an algorithmic approach in the future, because the robot is a program that needs to set the circumstances and parameters when it is worth to close the position (

http://forexzzz.com/product/forex-zzz-lock-arbitrage/ ). And the robot should initially know and calculate the risks. Therefore, creation of quality parameters for money management will allow to improve the trading result in the moment and automatize the fix api trading in the future.

Latency Arbitrage vs 2 leg arbitrage

There are many techniques and algorithms for trading financial assets in HFT trading. Strategies, which required a lot of time and efforts, are now completed in a matter of milliseconds. This has become possible by the automated trading robots. Trading robots were repeatedly improved, updated and optimized, as any other software. Therefore, the number of their specifications has grown. The impulse development of this area has also provoked additional improvements for the trading and the FIX API protocol was created. The idea of this protocol is that the financial information including quotes now comes much faster. Moreover, nowadays any trader can access this protocol through the FIX API broker.

Since this protocol allows getting the quotations faster, this is an advantage for trading. This feature influenced the emergence of the arbitration type of transactions.

The arbitrage is divided into two types:

  1. FIX API Latency Arbitrage
  2. FIX API 2-legs Arbitrage

Today I will provide you with a short FIX API tutorial, where we would analyze each type of the algorithmic arbitrage strategy.

FIX API Latency Arbitrage is a strategy which allows performing trading operations based on brokerage “delays.”

FIX API 2-legs Arbitrage strategy simultaneously opens different orders (of selling or purchasing) for the same financial asset at different platforms. It happens when the price for this asset differs on these platforms.

Here are the main principles of these strategies:

FIX API Latency Arbitrage conducts an analysis and monitors the price on the currency pairs. Then it finds the deviation in price and purchases the cheaper pair. The main idea is that it identifies the “fast” broker, who ensures the timely data update and follows a real situation on the market. Moreover, it is crucial to identify the “slow” broker on the market, who gets the quotations slower than the others. The account would be opened in the second broker and the trading would be done through it.

For example, the price for the EURGBP currency pair is 1.22343 from the “fast” broker and 1.22333 from the slow one. The difference of 5 pips is the profit for the algorithm. The robot buys a currency pair from the second broker and fixes the result according to the “quick” broker price at the moment of opening. It is done within the FIX API Latency Arbitrage API strategy.

2-legs Arbitrage analyzes the same asset on two platforms and compares if there are any price deviations. The Latency Arbitrage does the same thing. However, it is not necessary to identify which broker is “slower” as the trading is done on the both platforms. The robot is analyzing the asset, compares the prices on it and if there is an exchange difference it opens a deal with the broker, who has the lower price. Accordingly, it sells the asset where the quotes are higher.

For example the price for EURGBR currency pair is 1.23455 form one broker and 1.23450 from another. The trading robot, which works on the FIX API 2-legs Arbitrage strategy would open the deal for purchasing from the first and the second broker. These 5 pips would be a potential profit for the trader.

So what are the advantages and disadvantages of the fix api arbitrage strategies?

You need to investigate the weak sides of the both strategies in order to identify which one is better.

It is very easy for the broker companies to identify the Latency Arbitrage, as they also work with robots that conduct a search for this type of trade. After all, the deals are concluded in less than a second and are completed in large numbers. Thus, the broker can affect the trade due to an additional spread or delay. 2-legs Arbitrage trade is hard to track. It is because the trader will have a minimum profitability (5 pips in our example), which allows keeping the position from a few seconds to several minutes. This kind of operations cannot be tracked. In addition, the second part of the transaction is traded from an absolutely another broker, which makes the detection process even more difficult. Also, the key disadvantage of the Latency Arbitrage strategy, which is the advantage of 2-legs Arbitrage at the same time is the search for a more “slow” broker, which leads to the constant tracking of trading specifications of brokerage companies. Worth mentioning, that it does not make a difference for the FIX API 2-legs Arbitrage.

Summarizing, I want to emphasize that you need a FIX API forex broker, for a successful robot, which will enable you to trade at market quotes. It is also worth mentioning that each of the considered strategies is profitable, and this is, in fact, the main criterion. Still, the 2-legs Arbitrage strategy is simpler in use and lacks disadvantages.

Latency Arbitrage: what is this?

An automated trading is gaining more and more interest from traders each year. The reason for that is that nowadays digital industry requires all processes to be automated. The trading on the foreign exchange market is not an exception.

There were many resources and helping instruments developed in order to allow traders and significant market players to do the algorithmic trading. The FIX API is one of them. It allows to bypass the brokerage platform (terminal and server) and to trade directly with the market liquidity. However, it may be challenging for an ordinary broker to do it, so one still should use a FIX API broker.

Exactly direct access to the prices and quotes allows using such a popular trading type as an arbitrage for the high-frequency trading.

An arbitrage is a type of a trading system. It is based on the trading on the minimum price difference on the particular currency pair or brokerage time latencies.

Based on this method there are 2 types of the trading operations:

  1. FIX API Latency Arbitrage
  2. FIX API 2-legs Arbitrage

Today we are going to discuss the first one, which is a Latency Arbitrage. We would investigate the crucial advantages, disadvantages and key features of this strategy.

The advantages of the Latency Arbitrage

The Latency Arbitrage is also called 1-Leg fix api arbitrage, which means, that you get an access to the quotes and prices way ahead of other bidders. The direct connection to liquidity through the FIX API or to servers close to the exchange platforms gives an early access to the market prices. For instance, the most of the broker companies in the US work on the NBBО system. It allows HFT traders, who use the Latency Arbitrage to get the data on prices much earlier than the others. It means they can commit several trading operations within milliseconds.

The disadvantages of the Latency Arbitrage

The brokerage houses often block or “interfere” with normal trading because of the tremendous FIX API trading popularity. They set additional spreads, slip or delay execution of orders and it simply kills the trading mode, according to this algorithm. The robot can be easily detectable as it commits about 100-200 transactions per day for a short period of time and fixates approximately 5-10 points. This is the reason why brokers with the non-market liquidity are not welcoming such trade.

The key Latency Arbitrage features

The one only needs one account with a broker, which will be directly used for trading in order to successfully trade according to this strategy. It is worth mentioning, that the account should belong to the “slow” broker”, which gives an access to the FIX protocol. However, there could be some manipulations on the companies’ part, as sometimes the weak brokers are used. To avoid this you need to test the broker with a small amount of money and make sure it works properly on the open trading.

Here is an example of the arbitrage trade, on the arbitration latency principle

The robot provides an analysis of the “lagging” broker and compares its quotes to the market ones. For instance, EUR/USD currency pair costs 1.07122 on the market and 1.07115 from the broker. This 7 pips difference is a profit for a robot, which decides to open a short-term speculative position to buy the asset. Following this algorithm, a robot can compare a couple of algorithms simultaneously and make transactions at the same time. The great amount of the instruments and trading operations guarantee success for 90% of the transactions and the high rate of return.

Finally, I want to emphasize that the robot, working according to this algorithm should use a fix api trading principle. It is an important feature in a robot’s success. This is because any delays or problems from the brokerage company can have a negative impact on the result.

Classical Tools for Analysis: Levels and Channels

A modern fix api trader is in a constant search of an ideal combination of trading techniques that would bring him a high and regular income. However, whatever the trading approach or system is, there are technical elements that have been used on the market for more than hundred years and the first postulates on them were written back in the late 19th century. This is a classic approach. It is this method that employs approximately 90% of all players on the market. Entire trading strategies and even algorithms are built on the classical elements.

Today, I propose you to consider two of the simplest and at the same time the most sought after elements of classical analysis: levels and channels. In addition to the simple theory, I’ll tell you a few tips on how you can easily find them.

Levels

The classical level approach can also be divided into two types: support and resistance levels. The difference between this and that approach is that each of them displays zones that will become reversal after growth/decrease or after correction. This is, in fact, the essence. The level of resistance is the future zones that were achieved in the past. The level of support is the past zones, which formed in the course of the current price movement. In order to understand the levels in more detail, I propose to consider the following schedule.

As you can see, the price is clearly moving from one level to another level and after testing one zone it goes to the opposite side.

Advice on detecting levels: mark the maximum and minimum on the graphic and then set the level in the range where the price lasted the longest time. After that, this range is also limited by lines from the top and bottom of the corridor. Thus, you will get at least 4 goals, to which the price will move.

Level trading has a small risk. Typically, when opening a trade, stop loss is set behind the line. And if there is a rebound, the risk in such fix api trading will be minimal in points. If you take into account the trading signals (https://1sforexsignals.com/ ) at the level of breakdown, the risks are certainly higher.

Channels

This technical element is also based on two lines, but unlike support and resistance, the channels tend to have a more oblique structure. The channel displays the price direction and allows you with a great accuracy to predict the maximum volatility of the trading asset. For this, I also propose you to consider a specific example.

As you can see, this channel displays the directed asset movement. The price of the financial instrument has been repeatedly tested on the border of the channel and is now on the average of its range. Thus, we can say with a high probability that the price will continue its movement in this range, and in case of breakdown, the fix api trader will get a call to action.

The channel allows you to understand the price range between which the price will move in future, and this is very important, because in this case, you can analyze the time factor.

Signals to action on the trade channel is directly its breakdown and fixation – this tells us that the price is accelerating and we should expect an impulse. Also, the signal to action is a breakdown from the channel’s borders, which tells the fix api trader about the continuation of the trend movement.

The use of a particular classical method on the fix api forex market can ideally be combined with different trading strategies. So, if you work on a breakdown after crossing the sliding (https://www.metatrader5.com/en/terminal/help/indicators/trend_indicators/ma ) or the price channel, then you can use the channel to understand the phase of the trend and if the breakdown is in the direction of the channel, you can make a deal. If the breakdown of your strategy happened inside the channel and at the same time against its global movement, then such trading signal can be missed.

The classical elements of analysis from several years have proved their efficiency. I’m more than sure that if you learn these principles in your trading, this will improve your trading result.

 

Algorithmic trading in the foreign exchange market

The automatic approach to trading operations has been popular among the fix api traders for more than a year. New methods and approaches to implementation appear on the market, and every day, they become more and more. It is clear that out of all this variety of algorithms, working strategies may be only 5-10% of the total mass. Thus, even the trading robots confirm the statistics that 90% of all market players lose their funds.

Anyway, I still believe that trading on the fix api forex market should be conducted speculatively. It is best to use trading robots in order to do this.

I suggest that we consider today the types of trading robots for automatic fix api trading. Especially those that should be bypassed and those that are worthy of your attention.

Let’s start with those algorithmic techniques that I would not entrust my capital.

  1. Grid robots. This kind of robots has a feature, which consists in the fact that this group of algorithms is based on mathematical approaches. Grid robots very rarely trade on technical indicators. The logic of their work is “sutured” by a program code that looks at the price dynamics and in the event of a correction, it puts order in the opposite direction from the previous direction of the financial asset and through each step (a few points of profit) opens additional transaction into the same direction. Thus, the robot does not only trade against the trend, it also averages all the positions.
  2. The robots are based on the Martingale principle. They look very similar to the grid algorithms. Often, these two approaches are even combined into one program so that the robot can average transactions with a double volume. However, the logic of the system is a bit different. This principle should be added to the unprofitable deal with a double volume. This approach does not correspond to any classical (and correct!) methods of capital management.
  3. Scalping robots. In fact, there are automatic systems that are able to demonstrate a good profit among this group. However, the percentage of such robots in the market is very low, and if you create your robot with a working approach, this will be your author’s operating time (which I will write about below). These robots are very difficult to control. At the expense of the minimum position hold, which can be less than 5-10 seconds and also 2-3 points of profit, it is very difficult to understand the fact of draining. Fix api trader may not even guess initially that the deposit has begun to drain and regard the decline in the yield as a working drawdown.

Having dealt with those robots that need to be excluded from your field of interest, let’s look at those that you should pay attention to.

    1. Arbitrage robots. This group of trading robots is very similar to the scalping approach. However, the key difference is that the logic of these strategies is simple and understandable. You can more flexibly track transactions and manage the future result. To implement this approach, you need to have an account in two brokerage companies or a robot with access to fix api. Thus, the robot will compare the quotes between the two platforms and automatically open speculative transactions, while not having a risk as in case of scalping. Of course, it is very difficult to implement this approach to fix api forex. But there is ready-made software that can be already used today – http://forexzzz.com/product/forex-zzz-lock-arbitrage/
  1. Robots are based on the author’s approach. This group is interesting because the development of unique approaches, as a rule, brings better results than the use of the existing strategies. It is important to understand that not the new trading rules of the market are included into this category, but the unique combination of the already existing approaches.
  2. News robots. The same situation here is the same as with scalping strategies. Given the risks and returns that the news robots can show, I’m more inclined to their effectiveness for a simple reason – you can control the risks and understand whether the robot enters a drawdown or is it a deposit sink (http://forexrobotshub.com/2017/11/22/trade-time-increased-volatility-worth/ ). Since you will activate it at the time of the news background, the risk control remains with you.

The main tools for working in the MT4trading terminal

The first steps in the financial market, after repeated reading of the professional literature and obtaining fundamental knowledge, are due to an acquaintance with the trading terminal. It is on this software that a beginner fix api trader makes his first transactions and conducts an analysis of financial assets. For most traders, this acquaintance begins with the fix api MT4 terminal.

MT4 is quite intuitive for beginners, but you need to learn how to work in it. That is why, in today’s review, I will analyze this platform. We will learn all the necessary functionality for the trader, as well as hidden moments in the work of this software.

MT4trading platform is an integrated tool for financial markets analysis, through which you can conduct both manual and algorithmic trading. The platform has its own development environment, as well as the ability to connect third-party programs for optimization of each trader, which makes it customizable for everyone.

So, let’s now analyze the key features and parameters of the MT4trading platform:

    • To start with, you should understand that MT4 is intended primarily for working in the fix apiforex market, as well as with the CFD contracts. Therefore, if your trading strategy is based on trading currency pairs, you can safely choose this software.
    • MT4 has several ways of opening trading operations, namely sell stop, buy stop, sell limit, buy limit. This allows you to flexibly approach the asset analysis and the opening of transactions.
    • Speaking about analysis, the program has a number of built-in indicators for this purpose that can be divided into trend, oscillators, volumetric, and user. But the most important thing is that you can connect your indicators, and with the help of the development environment, you can create addition to the already existing indicator. That’s why MT4 became so popular. The ability to more flexibly impose their mathematical interpretations on the chart attracted the attention of million fix api traders.
    • Interaction with the external environment. If you need quotes in current time in excel, then you can download them directly from MT4. The reverse process is also possible, when you add the history of quotes in the software.
    • Ability to test strategies directly in the trading platform (https://www.metatrader4.com/en/automated-trading/strategy-tester). There are many individual programs that a trader purchases in order to analyze the performance of a forecasting tool. But with MT4, you can analyze the historical data in the terminal itself.
    • Ability to trade using fixapi. This approach suits you if you use an algorithmic approach in your trading. Fix api will provide you more relevant and accurate data in the form of quotations, which is an important indicator for some trade robots.
    • The most important and unique in my opinion disadvantage in MetaTrader 4 is the lack of a glass of prices. This does not allow us to analyze the depth of the market, as well as the actual volumes. However, there are additional developments in the form of auxiliary scripts that solve this problem.
    • Well, one of the main advantages of this platform is a direct connection to MQL, because this resource is a MT4developer. Therefore, you can easily subscribe to the trading signals or download and install a trading robot.

MT4 trading platform allows you to conduct a quick and qualitative analysis of financial assets thanks to the individual approach to each trader. A wide list of features and analysis tools raise this platform among the rest of the software. If you are just starting to get acquainted with the financial market, then this platform is just for you.

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.

 

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.