Erfan
You need to consider the following criteria to select the best platform for your intention:
Availability of market and company data: Every trading algorithm responds to real-time price quotations and market data. Specific algorithms may also be tailored to consider fundamental company statistics, such as P/E ratios and earnings. A firm data stream and a real-time market data feed are essential for any algorithmic trading platform. It should be readily integrated from other sources or provided as a built-in system feature.
Connectivity to various markets: When working across several markets, traders should know that different exchanges may send their data feeds in other formats, such as TCP/IP, Multicast, or FIX. Your software should support different format feeds.
An additional choice is to use third-party data providers like Bloomberg and Reuters, which compile market data from several exchanges and offer it to end users in a standard format. The algorithmic trading program ought to process these aggregated feeds as necessary.
Latency: This is the most crucial element in algorithmic trading. The temporal lag that results from moving data points from one application to another is called latency. Think about the following series of actions. A price quote from the exchange takes 0.2 seconds to travel to the data center (DC) of your software vendor; from there, it takes 0.3 seconds to your trading screen; your trading software takes 0.1 seconds to process the quote it received; it then takes 0.3 seconds to analyze and execute a trade; finally, it takes 0.2 seconds for your trade order to travel to your broker and 0.3 seconds for your broker to route it to the exchange.
Configurability and customization: The majority of algorithmic trading software offers standard built-in trade algorithms. A trader might want to experiment with the 100-day MA before switching to the 20-day MA.
If the program doesn’t allow for this kind of parameter change, the trader can be limited by the fixed functionality that is already there. The crypto auto trading software must be very configurable and customizable, regardless of whether it is being built or bought.
Functionality to write custom programs: Writing trading software is often done in one of the following programming languages: MatLab, Python, C++, Java, or Perl. Most trading software from independent sellers allows you to create bespoke programs inside it. This enables a trader to test out any trading idea and explore. The best software allows you to code in whatever programming language you choose.
Backtesting feature on historical data: A trading strategy is tested using past data in a backtesting simulation. Based on historical data, it evaluates the strategy’s viability and profitability and certifies its success (or failure or any necessary adjustments). The availability of historical data that may be used for backtesting must go hand in hand with this essential feature.
Integration with trading interface: When the appropriate parameters are met, transactions are automatically placed using algorithmic trading software. The software must be able to connect to the broker’s network or directly to the exchange to issue trade orders.
Plug-n-Play integration: A trader may use Matlab software for trend analysis, a broker’s terminal for trade placement, and a Bloomberg terminal for price analysis simultaneously. The algorithmic trading program should have simple plug-and-play integration and accessible APIs across such widely used trading tools, depending on each user’s specific demands. This guarantees integration and scalability.
Platform-independent programming:Â Certain programming languages require specific platforms. For instance, some C++ versions might only function on a limited number of operating systems, yet Perl might be compatible with all of them. Platform-independent trading software and trading software that supports platform-independent languages should be prioritized when developing or purchasing trading software. You never know how things will change in your trade after a few months.
