Trade Execution Technologies to Consider when Selecting a Broker for Algo Trading
Algo trading has become one of the biggest up and coming trends in the Forex world. Essentially, traders are lending their earned money to the algorithmic software that has to manage it and grow the assets for the client. Because of this, it is crucial to be on top of the game and know what you are investing in. There are numerous factors to consider when deciding which Expert Advisor suits your trading preferences.
Expert Advisors try to emulate how a professional trader would operate with their money. Given this logic, just like humans, EAs are also different from each other, with various strategies, features, indicators and preferences. Some prioritize fast execution of trades with an HFT strategy, some prefer to work a little slower and reduce the risk of each order. There is no certain way to define which one is better, it all comes down to what the trader prefers. To make a smart choice it is traders’ liability to do the research and define what are their priorities.
Where to look for Brokers for Algorithmic Trading?
Just like in any other cases, Algo trading also requires the brokers’ participation to connect you with the market. Finding the right one might be laborious, requiring diligent research and communication with each brokerage to clearly understand the terms and conditions.
To ease the searching process, Elite CurrenSea took it upon itself to scout the best brokerages and review each of them so you don’t have to. The main strategy when choosing these brokers was to make sure they meet the market standards and are legitimate with no misleading advertising or the possibility of scams. The page is separated into three categories of Forex&CFD, Crypto and Stocks.
What Defines a Good Algorithm?
Automatic trading brings a high level of risk, which is mostly the result of significant losses. No matter if you choose to buy or develop one, it’s critical to understand the essential factors that define each Expert Advisor.
Level of Customization
Usually, when renting/buying an EAs, they come with pre-installed parameters and indicators. A trader may want to try combining different strategies and customize the approach. Unless the program allows for such parameter modifications, the trader may be limited by the built-in fixed functionality. No matter the success of the trading robot, it should be highly customizable.
Extensive Market Data
In the previous paragraph, we have mentioned that most EAs come with the prebuilt settings, though they are usually templates alike, there are some specifics to look forward to. All trading Expert Advisors are programmed to respond to real-time market data and price quotations. There are also a few algorithms that are also tailored to take into consideration the company’s fundamentals like P/E ratios and earnings, which results in better performance of the EA. Real-time market data, as well as a corporate data feed, should be included in any algorithmic trading program. It should be built within the system or have the ability to be readily integrated from external sources.