Software & Application

Top 6 Key Features of Algorithmic Trading Software


We currently live in a world that thrives on automation and Artificial Intelligence. Not just in our day-to-day lives, automation is taking over trading practices too. The introduction of algorithmic trading and forex robots is a testament to that.

However, despite the kind of popularity they are gaining, there’s still a disconnect in the middle. Most people aren’t even aware of how to pick the best algorithmic trading software on the internet because they aren’t aware of the best features to look for. You can check this website for more information about market opening times while preparing to venture into algorithmic trading.

In this guide, we’ll discuss some of the top features of algorithmic trading software that you potentially didn’t know.


Availability of Company Data

For those who are new to algorithmic trading and don’t have a lot of knowledge, be prepared to have your mind blown. Automatic trading solely relies on real-time market data and available price quotes.

So, when looking for comprehensive trading software, you must rely on one offering the company fundamental details like the P/E ratio and earnings. Not having a real-time market data feed is the biggest red flag in any algorithmic trading software.

If these factors aren’t integrated into the system already, you need to find software that does include these features.

Connection to Various Markets

Next up on the list is to find connectivity to diverse markets. If you are into active trading, you’d probably realize that diversity is key in trading. No trader in the market puts all their eggs into one basket.

Hence, the algorithmic software you choose must accept the feeds in different formats. If that isn’t available, you’d have to rely on third-party vendors for the market data, which completely falsifies the purpose of automatic trading.

Find reliable algorithmic software that can process the available aggregated feeds seamlessly.

Latency

Regarding algorithmic trading, latency is undoubtedly the most important factor to consider. For those confused, latency is the time delay involving shifting the data points from one app to another.

Since the trading world is dynamic and anything can happen within microseconds, a delayed or prolonged latency reduces your chances of making big profits. You’d be surprised that latency has the potential to make or break your automatic trading experience.

Hence, when looking for good algorithmic trading software, paying attention to the latency isn’t just a choice but a need. You need to find the ones that have latency in microseconds.

Customization Options

This might not be a very important feature for some traders, but we recommend checking it out. If you want to make the most out of your algorithmic trading software, having optimal configurability and customization is key. 

Having to rely on the built-in functionality is highly restrictive for traders. And that’s the last thing you want to experience as a trader. What we’d recommend you do is find software that offers flexible configurability and customization features.

It doesn’t matter if you are buying or selling in your trading game; customization is key in every aspect of your trading journey.

Accessibility to Custom Programs

For those who aren’t tech-savvy or don’t have a lot of knowledge about computing languages, most trading software uses MatLab, Python, C++, JAVA, and Perl for programming.

If you want to enhance the efficiency of your algorithmic trading software, find ones that offer access to custom program writing. Not only does it enhance usability, but it also streamlines experimentation and outcomes.

Always look for software that specifically offers coding opportunities in their programming language to streamline the user experience further.

Plug and Play Integration

Last but not least is looking for algorithmic trading software with plug-and-play integration. For those confused about what it means, plug-and-play integration means the software is ready to be used right after the download.

This type of automatic trading software is perfect for beginners or non-tech people who don’t want to entwine themselves in complexities related to the programming language, etc. Not only does it streamline the user experience, but it also boosts scalability.

Besides these primary features, look for algorithmic trading software that offers platform-independent programming, back-testing features on the historic data, etc. Since algorithmic trading is still in its primitive stages and growing, more and more features are bound to make an inclusion down the road. 

Conclusion

That’s all you need to know about Algorithmic Trading Software and its usability. Knowing about these features isn’t just convenient but is a great way to sort out how you can scale the features of the software you are using. As a beginner trader, getting used to these apps can be confusing but don’t worry, though, because we have sorted you out with all the information you likely need to know about the software and its features.





William Adley

William is an expert and net-savvy and loves to share different skills related to the Internet and technology. He also writes reviews about games, gadgets, equipment, software, apps, utilities, and hardware. Previously, he was working as a news editor but his love for the internet and technology turned him into a writer. He has expertise in working with iOS and Apple devices.

Education

  • California University

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