How do I choose the right software for trading according to the delay arbitration?

For sure, we’ve all been looking for the most effective tool for a comprehensive analysis of the financial asset. Whether it’s a trade strategy, a copyright indicator, or even a software program. Benefit from the development of the financial market, the additionally simplified industry and the fix api tradingand made this process automatic.

Today, I suggest that we review the trade strategy of arbitration delays (fix api Latency Arbitrage) and determine the most qualitative application of this system.

First of all, I want to determine that the strategy of Latency Arbitrage is to analyse price quotations, compare them in different sites, and if price deviation is detected, to engage in a trade transaction towards the expansion of quotes.

For example, the value of USD/CAD currency pair given by a one fix api forex broker is 1.3355, and second broker gives 1.3350. So the trade algorithm, knowing where quotations are delayed (by a slower broker), opens the transaction to the price in a faster supplier of quotes. This allows you to capture the minimum motion, but at the expense of a large number of transactions, to show a positive result.

Returning to the choice of the best software for this kind of trade, I would like to say at the outset that the software should be able to trade through the financial protocol fix, so that we can get more up-to-date information and trade without large spreads and slippage. This parameter must be mandatory in a merchant robot.

I also recommend that you pay attention to the following options in the software for Latency Arbitrage:

  1. Which sites compare the quotations. This will allow you to test the brokerage company in advance, review its terms, and get an opinion on the current customers. In most cases, you can select different sites (LMAX, SWISSQUOTE, Exante, and others), making your application more flexible.
  2.  Which trade instruments are used by the algorithm. It is necessary to understand whether there will be trade on all available tools or only on certain currency pairs. The quality criteria will be a broader list of available tools, both major and cross-currency.
  3.  Ability to be used with different trading platforms. If you still purchase similar software that will automatically trade using exchange rates, you should know if you can integrate it with your terminal. But again, trade through protocol FIX solves this problem.
  4.  Software backtesting. A very important parameter. It will generate and learn the expectations of trading according to this strategy. I recommend that you pay attention to indicators such as subsidence, profit factor and recovery factors, expected value, and sharp coefficient. And, of course, the profitability of a trading robot.
  5.  Feedback from current clients. To a trivial, simple, but current method of selecting software for fix api trading. The more feedback, the more users are there. The more users, the better the software manufacturer. I think it’s clear and we shouldn’t dwell on that.

By applying these 5 key parameters in the selection of quality software for FIX API Latency Arbitrage, you can find a reliable product.

In fact, I personally recommend that you pay attention to programs that were developed by companies rather than by a trader. This will be useful, because if necessary, you can always get an advice on application or optimize it for your trade with the fix api forex. The market is alway moving and the software must also be regularly updated.

 

How does social networking can help the trader?

Today, there are many tools for the analysis and prediction, as well as community social outreach, for successful trading. Social activism and communication in the interest groups provide valuable experience and a solution to almost any problem.

However, the the majority’s question is: “Why does a trader need this?” “For a successful market analysis, all that needs to be known is the future price situation in both the long and the short term.”

The purpose of such communities is a precise, successful work together and achieving personal goals set by the Fix API trader. Before becoming a successful trader, it is necessary to pass the thorny path to success, and it is very important that at this time there be like-minded, able to give advice and support.

In addition to the moral elements, the networking to date has been successfully applied in most niches: from financial to industrial. In a community like this, you can organize the traders around you who trade in your methodology or you can even teach your algorithm. Alternatively, you can hear a market opinion from a more professional trader, ask for information and details of personal success.

There are many different sites that accumulate a large number of traders. I’ll share with you the kinds of places which I am a part of and where I do recommend you to get an account.

  1. Forums. It’s probably one of the first kinds of social sites that drove traders together. In the thematic forums, a question can be asked and many answers can be obtained, on the basis of which effective solutions were taken. Today, the forums also function well and act as a knowledge base, where almost every element of the Fix API trading has been discussed for a few decades.
  2.  Sites for publishing investment decisions. Playgrounds like these appeared not too long ago. By using them you can recommend investing in any financial market asset, publish your future movement forecast price, or learn what your colleagues are selling.
  3.  Social networks. Of course, today no company or successful trader can live without a profile in a popular social network (LinkedIn, Facebook, Google+, and so on). This allows for a personal contact with the trader, access to the latest events from the marketplace, or even the transactions that your colleagues are committing.
  4. And of course, the blogs. For example, in my blog you can find a lot of useful content about trade robots, the most popular technical analysis and algotrading, and read my opinion on any question that applies to the modern trader. And of course this article. 

    These are the main sites that allow you to personalize your personal connections with other players in the marketplace and also to recommend yourself to the trading circle.

    If you are a socially active fix API trader, you will be able to resolve the following issues:

  • Lack of knowledge about the sphere of financial markets;
  • Search for investment ideas;
  • Search for trading software;
  • Feedback and opinions on trade robots or strategies;
  • Finding an effective manager or investor;
  • Polishing the trade strategy;
  • Learning the recommended parameters for capital management;
  • Getting advanced knowledge and guidance from experts.

And I’m sure that’s not the whole list. You can find an answer to any financial question in the community forex fix api. The main thing is to be active and to ask questions, and the more questions, the better the result. Forex networking will help you to organize an effective community to solve the problem of stable and high-income earnings from the financial market.

What risk parameter to set when trading with Latency Arbitrage

Effective capital management is a key parameter in any integrated trading strategy. Capital Management includes parameters of risk management and money management.

Risk and money management must be considered in a complex with capital management, as components of the same whole.

  1. Risk management is risk control in each individual transaction.
  2. Money management is about managing all available deposit, allocating funds between transactions, and limiting general losses.

Rules for risk and money management, as well as the rules for transaction entry, should be:

  • understandable and logical
  • easy to apply.

Based on this, the risk and money management rules are part of each trading strategy, and the FIX API Latency Arbitrageis no exception.

Latency Arbitrage is a type of FIX API arbitrage trading which main feature is the simultaneous analysis of the same currency pair, but at different stock sites or different brokerage companies. To understand the basic principles of this strategy, I suggest that we consider an example:

The price of the EUR/USD currency pair at the “quick” FIX API Forex broker is 1.07220;

The price of the EUR/USD currency pair at the “slow” FIX API Forex broker is 1.07225;

The example shows that the spread between the two sites (in our case, brokers) is 5 pips. These are the five pips that are the potential revenue for the trader. Based on the data collected, the algorithmic trading robot (I recommend that you use special software to automate as well as simplify trading, because arbitration in manual mode is virtually unrealistic), makes a decision to sell the EUR/USD currency pair, since the second broker price is lagging behind, and it is necessary to open transactions in the direction of a “fast” broker. Thus, the algorithm would perform a  minimal potential trade operation.

Of course, such negative moments as spreads and slippages have a negative impact on the FIX API trading process. However, in order not to exceed the set risk parameters, the capital management principles of which I have written above are necessary. And in the Latency Arbitrage strategy, they also should be present. As we have determined that the potential for profitability in arbitration transactions is minimal, the risk should also be set to low values.

Therefore, I recommend to consider the following points before you install a certain risk percentage:

  • Maximum spread level;
  • Average slippage level
  • The maximum number of open trade transactions that are set into the robot;

When you know these moments, you can set the desired risk and set it according to these parameters.

I emphasize that you should trade “based on the risk”. That is, before opening a transaction, you should understand what percentage of your funds you are ready to give the market.

With the fact that Latency Arbitrage nets only several points, or even pips of profit, setting risk to profit ratio at 1 to 3 or 1 to 4 is unrealistic. But! Since the minimum profit requirement in this strategy is provided by the quotations in one transaction being delayed at the slower broker, I recommend that you set the risk to profit as 1 to 1, or as 0.1% of the deposit amount. This will ensure that the funds are preserved and, in the case of a large slippage, help not to close the transaction with a loss, but to achieve the fix level – the exchange rate. Moreover, in the event of increased volatility or a sharp market reversal, this would allow to exit the transaction with minimal losses.

Since the profitability of the Latency Arbitrage trading strategy is created by the number of speculative positions, the risk of 1 to 1 will guarantee the profit and positive mathematical expectation of the trading system.

Proper risk management improves the financial performance of the trading strategy as well as guarantees investment security.

 

Brokers against traders: the endless game

For successful trading, a trader needs to not only have a good sense of market, an ability   to process tons of information and a huge amount of data, to master elements of technical and fundamental analysis, but also to operate in favourable market conditions. And I’m not talking about the sector or the economy as a whole, but the conditions in which the certain trading transaction is being carried out. This is about spreads, delays in the order execution, and other things which depend on the quality of the FIX API broker company.

That’s no secret that most brokerage companies play against their investors and traders. They set conditions that are far from market,   as well as unprecedented fees for opening and sometimes even closing the transaction.

With this in mind, you need to know which options you want to consider when choosing a quality broker. You start with an analysis of adverse trade conditions:

  1. Spread. This option determines the difference between the buy and sell prices of the financial asset. The greater the difference in this indicator, the greater your loss is when you open a buy or sell transaction. That’s because when the asset asset is sold, it is then bought for a different price. This difference is what constitutes the spread. Some brokers specifically impose an extra charge on an asset which price is going to be different from market. Thus, even 1-2 spread points will reduce your revenue (or increase the loss), and the broker will profit from it. Spreads are also often referred to as markup. To test this option, you must register with the broker, open a real account, and watch the spread of different currency pairs, because the promotional slogan “narrow spreads” or “spreads starting at 0 points” does not guarantee the result.
  2.  The next parameter, which defines a bad broker, is order slippage. A slippage (or delay in executing orders) is the moment when the transaction is opened and there’s a lag of not opening the trade operation. For example: A FIX API trader decides to sell the GBP/USD currency pair in the FIX API Forex market for the price of 1.2200. But due to the slippage, the transaction was actually opened at the price of 1.2205. That is, at the time of the request from the trader, before the order was executed on the broker’s server, the price went 5 points up, which would eventually become the lack of revenue for the trader (or + 5 points of loss). If the spread can be analyzed visually, you have to open a deal to track this parameter. I recommend that you top up a price account and perform several trade transactions to analyze this option.
  3.  Type of order execution. It’s also an important element for both manual and algorithmic trading. As you know, there are several types: Dealing desk and Non dealing desk (ECN and STP). I recommend that the first option be bypassed, because this type of performance indicates that all of your trading transactions happen on the broker’s server, not in the market. In this case, this option will be present in the broker’s Dealing Desk.

Of course, I could also write about those brokerage companies that do not allow to withdraw funds, do not comply with the terms of the contract, or simply “discharge” a deposit. The main idea was to show that on the market, there are some renowned brokers who still use these negative parameters. These parameters are the key negative points on the part of brokers.

Yet you can circumvent all these moments (or reduce the probability of spreads and slippages) if you trade via the FIX API. Trading through this protocol allows to connect the algorithmic strategy directly to the liquidity supplier’s server. This makes it possible to circumvent the broker’s server-side latencies and trade on market conditions.

 

What do you need to know if you use the Latency Arbitrage strategy

Latency arbitrage is an arbitration strategy, which consists of simultaneous analysis of a financial asset at different stock sites, with the aim of opening a trade position towards the sites with latencies. Simply put, Latency Arbitrage is supposed to analyze the quotations of two brokerage companies and to carry out a transaction where the value of the asset lags behind.

Let’s take an example:

A FIX API trader is analyzing the EUR/USD currency pair at two different brokers. It costs 1.0755 at the first one and 1.0750 at the second. Let’s assume that the trader has already determined that the first FIX API Forex broker displays a more real market picture and provides the relevant quotes, while at the same time, the second broker does this with delays. Thus, the trader decides to purchase the currency pair at the second broker aiming at  +5 pips of difference. These 5 pips will constitute the profit for the trader. Since arbitration trading consists of instantaneous analysis and transaction making, the yield of the strategy is generated by large number of operations with a minimum profit level. But the level of risk and drawdown is also minimal.

As we have already determined, the essence of this strategy is in opening positions at a slower broker. Therefore, there are risks that you must know about:

  • The slower broker is the sign of poor quality company. This may incur additional investment risks. I recommend that you look for a price difference not between a stable and a weak broker, but between two top brokers. The exchange rate will be smaller, and it will be less likely at popular brokers (which reduces profitability), but it guarantees the security of funds;
  • Since the essence of Latency Arbitrage is in the opening of speculative positions with low income, large spreads and slips can bring the trade result to zero. To avoid this, I recommend that you automate your algorithm for trading via the FIX API protocol. This will help circumvent the unfavorable moments of trading such as spreads and slips. The main thing is that the chosen brokerage companies should not use the same liquidity suppliers. Then the exchange rate difference requirement will be met.

Use these key nuances in your favor. This will allow you to get the financial result of your Latency Arbitrage trading strategy to a whole new level.

 

MT4 versus cTrader: which is better?

In the world of information technology, the trader is provided with a wide range of different support software which helps in trading. Thus a variety of graphical analysis tools (indicators), trade panels and robots, as well as platforms for performing operations are generated. Already there are several dozens of trading terminals that are designed for trading in financial markets and in particular in FIX API Forex. Today, we’ll talk about such prominent trading software as MetaTrader4 and cTrader.

MT4

This trading platform is present on the market and helps traders make deals for 20 years already. The platform allows to analyze and make transactions in virtually any market. However, the majority of FIX API Forex brokers use it precisely in this market (Forex) as well as to trade CFD contracts. For MetaTrader4 numerous support utilities were developed, because this platform has its own programming language and a wide range of ready-made libraries to facilitate coding. Moreover, the platform supports and is able to integrate with applications in these languages: FIX API C#, FIX API python, FIX API Java. This is a great solution for traders, because it is free and is offered by virtually all brokerage firms.

MT4 Features:

  • The platform has flexible settings for work tools and provides the possibility of combining it with other elements of analysis;
  • The platform can be connected with several different accounts;
  • MT4 uses an integrated development environment, the MetaEditor, which allows to create custom indicators and copyright trading robots;
  • The platform allows to connect to the MQL service and use the market signals and forums directly from the terminal;
  • There is an opportunity to integrate the platform with external programs (for example, download quotes as excel spreadsheets in real time);
  • The ability to set all types of pending orders;
  • There are many support utilities and plug-ins that extend the functionality of the platform.

cTrader

This is a new trading platform, which is designed for trading CFD contracts. This terminal is just beginning to conquer the market. The main function of cTrader is its ability to perform integrated in-depth analysis of the market by reading current market bids. This allows to analyze assets by transaction volume, prices offered by other market players, as well as get aggregated quotations.

Features of the cTrader:

  • Full market depth;
  • Flexible settings of the trading terminal and support tools;
  • Ability to connect multiple types of accounts;
  • Free software;
  • Additional platform for algorithmic trading (cAlgo);
  • The program is limited in support instruments and additional asset analysis tools;

Lack of embedded editor (for cTrader, all software is developed in C# programming language).

Based on these descriptions of the two platforms and their features, one can draw a clear parallel:

MT4 cTrader
Low level of market depth High level of market depth

 

User-friendly interface with a large number of analysis tools

 

User-friendly interface with a large number of analysis tools

 

The ability to integrate with external programs

 

No integration capabilities

 

Integrated development environment

 

No integrated development environment

 

A large number of support software (trading robots, indicators, expert advisors)

 

Minimum of support software

 

Trading robots can trade directly through the terminal Trading robots work via an additional sAlgo terminal

 

As you can see, one of the main advantages of MT4 is the fact that it provides many extra features, as well as is fully integrated to run on any site. This makes it more flexible. A lot of software developed for this trading terminal is the main reason for traders to work with this platform.

On the basis of comparative analysis, we can say with confidence that FIX API MT4 holds the leading position among all available trading terminals.

 

 

 

Simple Forex strategies review

You may find many trading systems on the Internet that are ready to work on FIX API Forex. However, it should be understood that there is no such thing as a free lunch. Most of these “working systems” are nothing more than a set of trading rules and principles that do not guarantee results.

Today I will make a small FIX API tutorial, in which I will tell you what you should look for when searching for simple trading systems.

First, you need to understand what elements should a simple trading strategy include:

  1. Working timeframe. A trading system must necessarily have a work interval in its description. For example, scalping systems generally conduct the analysis on the M1-M5 timeframe. Fix api arbitration systems perform operations in a fraction of a second. And trend-based systems have a broad open position hold period and analyse within the H1-D1. At first glance this is a trivial method, but it’s still valid. The result of a system designed for FIX API trading on D1 period, will be significantly different from trading on the M5.
  2.  List of trading instruments. Also a simple but valid option. Some trading strategies are developed specifically for a particular asset or a small group of assets. As with the first parameter, if the system was made for the EUR/USD currency pair, trading on USD/CAD (or any other assets) does not guarantee the result.
  3.  Analysis tool set. Of course, the description of the system should include the full set of analysis methods, namely the technical indicators, turning figures or support/resistance levels. This depends directly on the trading strategy. Each system on the Internet has this parameter (while 90% of systems consist only of it). But here it is important to understand that the indicators in the set must be mutually reinforcing. That is, the system should include both trend movement indicators, and the oscillator. If you already have some trading experience, you can easily determine if this condition is satisfied in the strategy.
  4. The parameters of risk and money management. Each system must have both entry and exit points. That is, the algorithm that shows when to open a transaction according to a signal (as in parameter 3), when to close it, and what volume to choose for a trade operation. Effective capital management helps to avoid major drawdowns and preserve the invested capital.
  5.  Availability of process automation. It is not required, but if the system is capable to work in an algorithmic mode, then it will testify the reliability of the selected algorithm.

These are the key parameters that need to be included in a simple strategy for working on FIX API Forex market. With these parameters, you can filter out the selected strategies.

For example, trading systems, which are based on the intersection of moving averages, provide market entry parameters, however, is not always clear when to close the deal and what risk level to set. Strategies based on the candle (price action) analysis, describe the position entry and exit more accurately, however, only some of them include risk management options. Leveled strategies are much easier from this point of view. The levels already include the timeframe on which you’ll work, the instrument set, and of course market entry and exit points. Scalping strategies also are easy to understand and include an extended list of necessary parameters.

Here I’ve tried to outline the key points that should be addressed in the search for simple trading systems. FIX API MT4 trading terminal includes many tools to conduct effective analysis, to which you should also pay attention when choosing strategies. The main thing to remember: the trading system should be simple and understandable for you!

 

How to use divergence signal in a trading strategy

Choosing a trading system is quite a long process, through which every trader has to go at some point. The difficulty is in finding signals, as well as following them. If you create your own system, trading process will become much is easier as no one knows their product better than the author.

Trading strategies may be based on several signal from different indicators or patterns on the FIX API Forex market. The combination and complementarity of these signals shape the trading system. Most traders use different methods to forecast the entry points, one of which is the divergence signal, which we’ll look at in more detail here.

Divergence is the difference between currency pair quotations and the value of a technical indicator. There are two types of divergence: bearish and bullish, which indicate a downward correction wave and an upward wave, respectively. In fact, divergence indicates a reversal of the price relative to the established movement. This signal will be of use for everyone who uses the trend and counter-trend based trading strategies.

As we have already determined, divergence appears when the price shows an inverse correlation with the indicator. But which indicator exactly? In fact, a set of several simple indicators in FIX API MT4 is perfect to determine divergence: the Awesome Oscillator, MACD, Stochastic, and RSI.

So, let’s take a look at an example of how to combine this signal with a simple trading strategy. For example, consider Bill Williams’ system, as his trading algorithm includes Awesome Oscillator indicator, on the basis of which we will define divergence.

Quotations of the EUR/GBP currency pair are in an uptrend. Williams trading system confirms this movement with ascending lines of the Alligator technical indicator and fractal zone. We see that each new “high” on the chart is above the previous one, which is also a sign of uptrend. Now you want to compare, if there is a difference at these points with the Awesome Oscillator technical indicator. As you can see, every “high” in the quote window coincides with the AO descending value. That is, there is a situation where price increases, while AO falls. This is the situation of discrepancy, or divergence. Also, according to Williams’ system, the quotes strayed from the Alligator lines to form the “first wiseman” signal for sale by this strategy. Thus a FIX API trader gets two signals for sale.

As you can see, this movement is against the trend. Loss limitation will be set above the second “high”, and the take profit can be set in a range between 61.8% and 76.4% of Fibo grid. Thus, the ratio of SL and TP will be 1 to 4, which is an excellent result and increases the mathematical expectation of the trading strategy.

The benefits of introducing divergence signal in the trading system:

  1. An additional signal to search for correction zones that can be supported by other technical signals;
  2. Increase of the number of filters to open a deal at a FIX API Forex broker;
  3. Better risk management (divergence-based trading will always have a short Stop Loss level and a long Take Profit);
  4. A wide range of indicators to find divergence signal;
  5. Ability to work both in the trend direction and against it.

Let’s take a look at a practical example of how to apply signal divergence to a trading system. I am quite sure that this signal is easy to fit in any trading strategy and will be an additional tool for effective analysis and forecasting the future price movement. Moreover, this signal is easy to use and can be automated using a trading algorithm.

 

 

FOREX ROBOTS FOR FIX API TRADING

I have previously covered the topic of forex robots and their nature. Let me remind you a few key points of forex robots. First, the appearance of robots allowed for faster trading and thus for the forex market growth. They also let traders have more time and resources to analyze the market and make decisions. Robots created new types of trading that were not possible before – like scalping or arbitrage trading. In a word, forex robots are extremely important tools for any trader.

However, most of the forex robots, free or paid have been designed and built on standard algorithms and so are limited in their functionality. What makes a robot successful? Mostly, it is the speed of the operations performed. In this case, we understand, that a robot should in fact monitor the current market situation and analyze it live.It means it must have an actual live access to the market.

So, FIX protocol came to rescue. FIX is a financial protocol that lets your software access actual market data.

The core of FIX protocol is the instantaneous data exchange. For us, traders, it is crucial to know the cost/price of an asset and the faster we know it the faster our forex robot analyzes and reacts.

The problem here is that most of the software (forex robots) are built to perform trades on brokers’ serversand not via FIX protocol. Such robots can be under pressure from the broker’s side – increased slippage, delayed order time, etc.

The advantages of a FIX protocol are clear:

  1. Trades with no spreads and slippage
  2. Orders are not delayed
  3. Complex asset analysis is available
  4. Opportunity for effective Arbitrage trading (FIX API Latency Arbitrage, FIX API 2-LEG Latency Arbitrage)

The major thing about a forex robot working through FIX API protocol is that it takes its data directly from the quote or liquidity provider avoiding broker server delays. Software wise the difference between FIX API forex robot and a normal one is minimal but the results of trading are astonishing. Surely your forex robot must have FIX API through your broker server to be able to work properly.

One of the most important things is to find a good FIX API forex robot. How do you do that? There are a few forex robot review sites and that would be your starting point. Analyze the reviews, pay attention to a software developer – who it is, what products have been created before, if there is any trading experience behind the algorithms, what kind of support is provided after the purchase. All these things are important.

It goes without saying that a product you are considering to buy or get free should have positive reviews and its performance data available. Some of the useful information can be found at different forex social network sites where you can register and follow successful traders. Some of the developers offer free webinars to get you acquainted with the product or/and peculiarities of FIX API trading, Latency Arbitrage trading, etc. It will not do any harm to watch those webinars and get as much information as you can.

Divergence-based Forex robots

New trading tools appear all the time: new auxiliary indicators, modified old ones, cutting-edge algorithmic systems. These systems are essentially trading robots that are able to analyze assets and open buy/sell transactions. Simply put, a piece of code is written which, based on software iterations, reads the values from the chart.

As known, each indicator or technical figure can be detected and recognized by a robot. Indeed, in their essence, all the indicators that appear in the MT4 fix api terminal are also software code that displays the value based on the quotations. Take, for example, the simple moving average. This indicator represents the average price value during the last n bars. That is, if a trader sets n=50, the program calculates the average over 50 candles and will give the result in a line form. Trading robot is able to perform this calculation, compare prices with the MA level and based on that decide on a long or short position.

This example of MA is the easiest working principle for a robot. Today I’d suggest to consider, how does a divergence signal based robot work.

So, divergence is the difference between the currency pair quotations on the FIX API Forex market with the values of the indicator. In order to understand what it is and how it works, let’s look at an example of divergence on the basis of a MACD indicator.

The MACD technical indicator is represented with two lines (the MACD line and the signal line), as well as histograms (which show the difference between the two lines). To detect the technical divergence signal, a histogram is required. Since we already know that divergence is the difference between the price and the indicator, we need to spot this difference.

The graph clearly shows that the moment when the currency pair quotations showed growth, MACD histograms declined. We see that peaks of quotations grow, and histograms peaks are falling. This is the signal for the correction movement, which did actually happen afterwards. This kind of divergence suggests opening short positions after the second discrepancy.

In turn, the trading robot analyzes both the MACD value and the value of quotations, and, based on its program code, opens a deal after it “sees”, that is, detects, a divergence.

The main advantages of a divergence-based trading robot:

  1. Speed: the robot is able to detect the presence of divergence in a fraction of a second and then perform a trading operation;
  2. Monitoring of the whole market: A FIX API trader is just not able to simultaneously review all assets, and often the signal simply goes unnoticed;
  3. Continuous trading: the key advantage of any robot, not only of one based on divergence, is the 24/5 operation. Trading via FIX API broker, the robot will constantly analyze the market in search of divergence while it is open;
  4. Short stop loss level relative to the take profit level Loss limitation will always be set behind the peak, and the level of profit has to be 4-5 times longer, which is a good indicator and increases the mathematical expectation of the trading robot.

It is worth mentioning that a divergence-based trading robot can determine it not only by MACD indicator, but also by some others: Awesome Oscillator, RSI, MA etc. Also within the parameters of the robot, you can set it for trading after two as well as three divergencies (3 maximum quote peaks and 3 consecutive indicator drops), which makes the signal more robust.

Divergence-based trading robot is a full-functional tool for FIX API trading. It is an irreplaceable assistant for a trader, as well as a means for performing automatic transactions.