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Developing an Automated Trade System?

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According to research that are available, the proportion of automated trading has surpassed the level of 80% of the market. It’s a clear sign of automated trading systems’ (ATS) effectiveness in risk management , and a rise in the profitability of any market. What is the process to build an impervious precise, and fault-free ATS? Learn more about how to create an ATS trading platform, and also get answers to other queries you may have regarding the development of trading systems.

What is an Automated Trader System?

Before we begin to build an automated trading platform, we need to define the word. ATS can also be described as algorithmic trading or algo, mechanical or even automated trading. These terms refer to an automated trading platform that checks markets for certain circumstances using computer algorithms. Traders set specific rules for purchasing and selling orders which are executed by ATS.

These systems were developed as an outcome of the increasing popularity of trading as well as the growing amount of investors from the private sector. This led to the development of trading instruments that facilitate trading and buying of orders on stock exchanges and the application of these methods will continue to increase.

Benefits from Automated Trading Systems

As technology advances, capabilities, and the development of new software automated trading is becoming more efficient in managing dangers and increasing profitability. Below, you’ll discover the top benefits of automated trading.

Also Read: Forex trading Overview

Strong discipline

One of the most difficult tasks is to create an investment plan and stick to it. A strategy that could be profitable is not successful if traders violate their rules. Automated trading systems enable traders to maintain consistency by trading within an established plan. Neither fear of losing as well as the desire to make more profits from trading would result in a violation of the rules.

Lower risk of errors made by hand

Automated trading software decreases the chance of human error by reducing the human element. When a person has the chance of making a mistake due to tension, disorientation or fatigue, computers perform in a manner that is unmistakable. It’s a huge advantage when one error could cost you a lot.

Diversified trading

ATS lets users trade across multiple accounts, or replicating the strategy for various stocks or using various strategies at the same time. It examines various markets for certain conditions, makes orders, monitors trades and lets traders trade at any time, making it possible to diversify their portfolios effectively. This allows you to spread the risk among different instruments, and still protect yourself against losing your positions.

Backtesting

Backtesting can help traders determine the most effective strategy through the testing of rules using previous data prior to putting their money on trading. This is because of the basic principle behind automated trading. In order to design a system that is automated, it’s important that computers must be given precise instructions on what it is supposed to do, and that all rules must be absolute. Traders establish these exact rules based on historical data and thus verifying or debunking the concept. This lets users adjust strategies and stop losses before attempting real-time trading.

Instant orders placement

In the event of getting into or out of trades even milliseconds of delay can impact the trade. So, when making the system, it’s important to ensure the lowest latency. This is crucial in volatile markets where prices are subject to rapid change. High-frequency trading systems instantly create orders when the criteria for trading are met, thereby increasing the chance of getting the best bargain.

The emotional component is less

A rational and well-informed decision is the key to success for traders although it is sometimes difficult to remain objective and neutral and calm. Automated trading systems counteract the human factor’s impact since it isn’t able to feel the excitement and follows the rules that are established, reducing the risk of reckless and reckless trades. The system is fully automated that means there are less chances that a trader will be unable to recover the whole capital.

Cost of Automated Trading System Development

Let’s discuss the cost to determine the cost to create an exchange platform to create a trading platform and the specific features you need to incorporate. The final cost could vary dependent on the rate of the vendor and so we’ll calculate costs in person-hours to make the most of simplicity. Be aware that these estimates are rough. Sum of all different activities is around 1000 hours. We will deeply discuss cost of every activity in other posts. I also posted some tips for beginner traders. I confidently encourage you to check out our blog.

Trading strategy

The process of creating an ATS begins with the development and implementation of trade strategies. There isn’t a universal approach to trading which is why users have to discover their own preferred strategies that can be traded automatically. In order to do this, they need the ability to choose among different indicators in order to utilize them as a set rules to trade.

Broker connection

In order to place orders and execute them customers must link their accounts with brokerage firms with ATS. This can be done by connecting brokers to an automated trading platform.

Trade log

Trade log allows users to gain a comprehensive look at their trading history, allowing them to identify their successes as well as identify any mistakes and tweak their preferred strategies. The trade log generally includes information about rules that are set for instruments, orders kinds of orders, the prices, number of contracts and time, among others.

Modifiable settings and parameters

The ability to adapt is crucial to have a top-quality ATS. To be able to meet the needs of a rapidly evolving market, the ATS must be able to be adjusted and customized. The users may need to alter the parameters to protect orders, or adjust the maximum size of an order as well as the maximum intraday positioning and price tolerance, among others as well as be able adjust their strategies at any time they require to do so.

Management of trade

While the name ATS refers to the use of automation, it doesn’t restrict manual control since sometimes users have to tweak certain parameters. The ability to manage trades allows users to manage trades in the exact moment they’re completed – make the order limit, define the value for take profit/stop loss or cancel an order closing positions, and alter several other parameters to increase the results.

Dashboard and charts

A reliable access to user information is crucial for making informed decisions. Dashboards and charts enable users have access to specific information like the balance of their account as well as day-trade results, commissions, various indicators, price movements and anything else they require to enhance their performance.

Summary

The development of a reliable, stable and effective ATS is a lengthy procedure that is comprised of numerous elements: customer’s needs and resources, experience of the vendor and communication between the two. Quality of ATS is crucial as faulty or unfeatured software can cause massive losses, therefore developing an automated trading system requires an extensive knowledge base from the vendor’s perspective.

Virtual Server Hosting For Forex Trading – Things That You Need to Know

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There are many benefits that you can get from virtual server hosting for forex trading. But before understanding the advantages of VPS hosting for forex trading, you have to know first what virtual server hosting is all about. VPS is short for virtual private server. In this kind of virtual hosting environment, a single physical server is partitioned and then isolated into different virtual servers. Each virtual server has the capability of being rebooted independently and as well as having its own operating system.

This is the reason why you can experience almost 100% performance improvement when compared to the dedicated hosting plan. With virtual server hosting for forex trading, you can enjoy so many advantages over the traditional dedicated hosting. Here are some of these benefits. There are lots of articles on VPS and Shared Hosting differences, VPS vs dedicated server, Cloud vs VPS and more, I encourage you to read a bunch and get more information on that field.

Advantages of Virtual Private Server for Forex Trading

It is highly useful for a trader or investor who wants to maximize his profits. With VPS hosting for forex trading , you can get the best advantage in forex trading by having multiple virtual servers that will work independently of each other. As a result, it gives the trader or investor the ability to optimize his trading by giving him more freedom and making it easier for him to make decisions with regards to his trading activities. In addition, it will also give the trader or investor more control over his money, since he gets the power to decide when he will shut it down and when he will continue to use it.

What-is-Forex-VPS cloudzy

This kind of virtual server hosting for forex trading is useful in providing you with enough bandwidth and disk space so that your website will load faster. With this feature, you can maximize the performance of your website which will help you in increasing your sales. This is the reason why many website owners who use this kind of service have higher number of visitors than the usual. And this is what forex trading is all about, increasing your profit. With this, the need for you to have enough money to pay for the hosting of your website will be eliminated.

The best thing about virtual server hosting for forex traders is that it helps you get the benefit of multiple domain names. You can name each one of them so that you get to have more opportunities in advertising. This is very helpful especially to people who are new in this kind of trading. With this, it will be easy for them to build their reputation as an expert in the business.

And aside from the convenience of setting up the virtual server hosting for forex, it can also help you in controlling the traffic on your site. Through this, you can monitor how effective the advertising is in driving traffic to your site. This is one advantage of this kind of service that is why a lot of people choose it. They can set up multiple domains and do their trading while they are at it.

So if you want to try out something new but you do not have much budget to spend on it, consider going with virtual server hosting for forex. You will not only be able to save a lot of money but you will also be assured that the security and reliability are well-equipped. Aside from these two important things, it can also be used for small businesses that do not have much capital to spend on their site. It is affordable even for small online ventures .

As a matter of fact, there are several benefits that a virtual server hosting for forex trading can offer. But then again, you should always bear in mind that it is still best to practice safe forex trading before venturing into it. Do not forget to familiarize yourself with how the whole system works. There are virtual servers that can give you the ability to do some modifications but it is best to stick to the ones that you are comfortable with. Remember that virtual servers that are used for forex trading may be shared or not. You may need to rent it for your own use but remember to ask the provider if you are allowed to do so.

Why to choose Forex VPS over trading on your pc?

These are five reasons why you might consider trading on a virtual private server (VPS) instead of directly on your computer.

Trade wherever you are. You can only trade from your home or office if you own a desktop computer. There are many options, but maybe you do not want to purchase a mobile device, a laptop or your broker does not support mobile trading. Maybe you do not like how the interface looks. Maybe your broker does not offer an online trading platform, and you need to download it. If this is the case, you can still connect to your platform anywhere you have an internet connection.

You can trade even if the power goes out. Automated trading allows you to continue trading even when your power goes out. You can trust that your automated system will continue to make money even if it is not working properly.

Trade any hour of the day. Trades can be made from anywhere.

Solid security. The best VPS servers come with the highest level of security. VPS servers managed by companies are regularly checked to ensure they work properly. Most companies offer 99.9%

uptime, Antivirus and other tools are included in managed VPS servers to protect your system from potential vulnerabilities.

Slippage can be reduced. Even if you do not use automated trades, this is one of the ways a VPS server could benefit you. VPS servers can execute trades faster than computers because they transmit orders much quicker. This means that there is less delay and less slippage. Slippage is costly, and can sometimes cost a lot. This is an excellent way to minimize your losses and predictability.

VPS services can be expensive. However, you may only require a small amount of disk space. Therefore, make sure to choose a VPS that has good RAM and a generous transfer allowance. VPS reviews can help you find the best hosts. You can also call customer service to ask about the system resources that you really need before you buy a plan. You do not have to spend more than you need, as this will be a monthly expense for FX trades.

Is VPS right for everyone?

Some people will see a lot of benefits from VPS and you can find successful traders using a VPS for Forex trading , while others may only experience a small amount of slippage. If you depend on automated trading, or have limited resources to place trades (no mobile devices, download-only software etc.) VPS is likely to make more sense for your needs.