What are the different types of automated software for stock trading?
In principle, there are two types of automated stock trading software: the software that the business funds use and the software used by individuals. The use of software funds is developed internally and often focuses on finding small advantages that can be used at speed. The software sold to individuals usually has an attractive user interface and includes a market depth page that shows an offer and requires prices for a given share. It is optimized for the speed of implementation because the software must monitor thousands of shares, decide which should be purchased or sold, decide how much to buy and sell, communicate directly with Exchange computer and follow the time and price to close positions as needed. The means that rely on such a speed are very careful about locating a business computer near the stock exchange to which they are traded. The small difference at the time of implementation of the intermediate is for trading in financing 0.25 miles (400 meters) and 2.5 miles (4000 meters).
Many automated software creators have made it possible to write and test their own algorithms. Usually pre -written routines for standard technical analysis indicators are included. Most of them have a good mapping ability and allow the user to draw trend lines, use the up and down arrows to indicate the leisure rods, and allow him to make notes on the chart itself. Graphs can often be stored for future links in standard formats such as .jpg or .BMP.
Some automated software creators offer only a little more than the ability to place a basket of orders with a touch of a button on the screen. While ordering of an order basket can be a useful tool, this feature should not be confused with the size or speed of basket of orders use business funds. Individuals cannot concrewto determine the funds in the business arena if the speed is the only criterion of success or failure.
Black box trading systems are sold to individual traders looking for automated stock trading software. The black cabinet system means that algorithms are not published. These systems can come up with a lot of test results that show how successful they have been in the past, but careful buyers will want to know if there are a significant amount of real -time trading results, the best -verified independent tester. The reason to insist on verified real -time results is that most systems can easily be optimized by historical data, creating very good results, but losing money in real -time trading.