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Automated trading platforms can enable traders to mirror or copy the other traders while traders can copy signals or mirror comprehensive strategies thus having a good experience and knowledge of successful traders. Different auto trading platforms available build the confidence to involve in trading and also provide an option to trade when there is insufficient time, knowledge, and experience.
Backtesting is a process of algorithmic trading system strategy to check how testing data would be tested on prior time periods. Algorithmic trading is a set of rules used on a stock exchange to repeat the execution of orders without any human interference. Algorithmic strategies which are being used today are classified as momentum-based, statistical arbitrage, and market making. The result of backtesting will enhance the overall performance. Sharpe Ratio can measure the risk assessments and the problems related to the comparison of strategies for the better returns. Choosing a programming language is also important to automate trading strategy. Commonly used programming languages used for algorithmic trading strategy include CPP, C#, R, Python, and Matlab. Automated trading platforms differ in proving access to trading or support backtesting of individual securities. Some provide access to data feeds like Bloomberg and Thomson/Reuters which are the global providers of the financial news and information. Companies involved in trading should know what automated trading platform offers and decide based on the needs accordingly. Some strategies require the EOD data, and some require intraday trading data where the buying and selling of stocks occur on the same day.
Check out this : Top 10 Trading Solution Providers - 2018 ( AlgorithmicTrading.net, PanXchange, Pragma Securities )
Automated trading platforms provide a web-based platform for online trading and testing by making it convenient to access trading platform anywhere. The web-based platform has fewer features compared to the desktop trading platform. Automated stock trading platforms are used in different ways. Some platforms require programming knowledge while some don’t. Some platforms will provide a demo version to check whether it would match with the trading requirements. The complexity is different for many products traded and the companies that choose the platforms should check the tools and features available to analyze the assets. The strategies can be overloaded on a particular account that involves automated trading which results in maintaining multiple accounts. As trading commissions show the impact on the profits, it makes the traders choose a specific platform that meets the trading requirements. Traders should ensure that they only pay for the services used and really need. Companies involved in automated trading should check the history whether any issues were faced and how they were resolved with the help of a support team.
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