When you are looking for your perfect partner in an automated trading system, it is important that you know what you are looking for. Some features are going to mean much more to you than others. Different platforms will offer different options, and that will mean some strategies more than others.
So, here are some features that you should consider when it comes to your automated trading system.
There are several popular programming languages you might want to consider when you are choosing which platform to use for your automated trading. There are pros and cons to all programming languages. You will find the most commonly used are Java, Python, C++, MATLAB, R, and C#. Look into the differences so you can decide which has the most significant impact on what you want to achieve.
Some automated trading systems have a web-based platform. This makes it easy to access your trading platform from anywhere. Some web-based platforms may have fewer features compared to a desktop trading system. But you need to decide if you need to have multiple access options or not.
It would be best if you took plenty of time to consider the costs of each platform. It is a good idea to use some simulators and take advantage of any free trials to see if you like a platform before committing to anything. Choose a plan that works with your trading plans and how much you intend to spend. Make sure that you are only paying for a service that you will utilize to the fullest.
There may be restrictions on the number of short or long strategies loaded on an account. You might need other accounts for more strategies. You’ll also need to check if you have enough memory on your computer to allow for multiple accounts. There might be an option to subscribe to trading strategy add-ons or to use a duplication of strategies.
If you have been trading for a while, then a complex system isn’t likely to be a daunting experience. However, if you are new to it, then you might need to make sure the option you choose is as simple as possible. This also goes for the amount of programming expertise that you may need. Again, it is a good idea to use demos and simulations to get used to a system before you decide if it is for you.
Different platforms will give access to/backtesting/support trading of specific securities only. Some will provide certain access to data feeds like Thomson/Reuters and Bloomberg. Consider the frequency of the data that you would need. Your strategy will dictate if this should be intraday trading data or EOD data.
Backtesting results can give your insight into how a strategy would perform in terms of profit and loss in the past. Good backtesting software is often a huge plus when offered on any platform. Backtesting can typically be split into two categories. ‘Event-Driven Backtesting’ and ‘Research Back testers’.
Much of what people consider the ‘best’ in terms of automated trading systems is simply a personal preference, combined with knowledge to give the user the best experience.