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:
- 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.
- 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.
- 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.
- 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.
- 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.