software allow market participants to automate day or swing trading
or investing strategies.
one is delegating trading executions to a trading algorithm.
there are pitfalls one ought to surmount.
Building flawless trading software
first pitfall is the validity of the software. It is the foundation.
One should always consider the following when building a trading
valid trading software do not violate
three market patterns,
robust trading software always trade the price action instead of the
all entries should be on the edge,
users should have the competence or at least a self explanatory user
also ought to have a minimum support or be able to contact the
Trading Software Dependency
often traders purchase trading software, and expect trading
to trade for them. In most cases, traders usually purchase trading
software with a high winning rate, and expect them to do the
hard-work. Nevertheless, many trading software have
the validity test. Therefore, traders who place their faith in them
may lose substantial amount of money If they have no ideas about how
to day or swing trade with
the trading software.
many cases, those who purchase a trading software for the sole
purpose of making buck, will spend a lot of money just to get their
hands on that miracle working trading software. Truly,
there are no miracle working trading software.
a competent trader
can buy a trading software to assist him or her in trading, but he or
wholeheartedly rely upon the software. A competent technical
quickly differentiate a useless trading software from a top one. He
or she can also figure out what is hidden in the black box in some
trading software is an essential trading tool for big financial
institutions. In this instance, most financial
would develop their own trading strategies. Subsequently, they will
trade them for a long time before converting them into a trading
software. They would also test and refine those strategies to the
point where they would be able to identify the following:
are the most suitable financial securities,
is the most favourable time to use the software,
are the best trading signals,
most importantly how to manage the risk.
trading software should be specific.
example, one can build a day trading software, Forex day trading
software, blue chips
stocks day trading software or Apple stock day trading software. Each
automated trading tool is unique. One should not utilize a stock day
trading software for Forex day trading or an Apple stock day trading
software for day trading commodities.
User trading software trial time
purchasing a trading software, it critical to learn how
apply it. It can take up to two weeks before one grasps
how it works. During the trial, one can contact the provider if
possible to clarify any confusions that may arise. One should also
demo trading account instead of a real one to avoid wiping out the
before one masters the software. One should not be shy to ask
questions or request assistance.
end of the trial, one is satisfy with the performance, the only thing
one may have lost would be the cost of purchase instead of the
per cent winning rate trading software would not always deliver that
It may deliver between 60% and 100% winning rate or in the worst case
50% and 80%winning streak.
each case the risk management will reflect on the size of the profit
or loss. Therefore, one should not expect
trading software to perform at its highest level at all times.
Moreover, a novice trader must not expect the same results as a more
the most important trading tool is the trader not the trading
input, knowledge and trading skills count when one is using an
automated trading system.
The Trading Software
should always be ready to monitor the trading software. It does not
matter whether it is the most powerful trading software. On
occasions, one may have to shut it down or override trading signals
due to the market environment or price action distortions.
a high performing trading software can become obsolete due to
dramatic market changes. For example, market leaders may completely
change their trading activities or new major market players may
change the trading
For example, in 2008 the financial markets
profoundly changed due the influence of the new market players: high
frequency trading firms.
surge in automated trading has created a new playing trading field.
the financial markets are constantly changing, it becomes essential
for trading software users and builders to take
consideration the new parameters or to stick to the fundamental
market principles or market stable data.
is always naive to assume that all one needs is a powerful trading
software. Powerful trading software are more beneficial to those who
build them, and market participants who understand how the financial
trading software like any other tool will not do the hard lifting
work, but empower those who already know how to use it.
a useless trading software will not provide any meaningful help to
the user because it is fundamentally flawed.
does not matter whether it is insanely expensive or produced by a
reputable person. If the software is flawed, dump it or build a
better one that does not ignore the basic market principles.
is also a mistake for a beginner market player to spend thousands of
dollars on a trading software, and hope that it is all well. Yes,
a powerful trading software will help to a certain degree, but help
even more, if one has more experience in the financial markets. One
should invest more in the ability to invest or trade more profitably,
unless one has gotten the experience, and looking for an automated
assistance that one can control. Never use a trading software that
you can not control or understand. Always be in charge because it is
your money or reputation that is in question.