Most Powerful Software for Algorithmic Trading
No one has to be a professional macro economist or hold a degree in finance in order to engage in forex and stock trading. Despite the fact that being a finance or economics professional is definitely likely to contribute to your chance of success in the world of trading, outsiders also have a good chance of making money from forex and stock trading. Schooled or self-taught, once you turn into a trader, you are most likely to have turning points throughout your trading career and at one of these turning points, you might end up having to ask yourself whether you should automate your trading or not.
An important question for traders!
Integrating your trading strategy with computer programming is a key milestone for any trader since the decision to do so can be a game-changer for the overall success and evolution of your trading career. In the 21st century, there are no more than a handful of jobs whose performance does not require the use of information technology (IT) or computer programming. Individuals and companies integrate software programming into their business plans in order to expedite, smoothen and automate their transactions. In addition, computer programming helps minimize human errors, which can be highly costly. Therefore, as a relatively recent phenomenon, investment algorithm software has started to attract a big number of traders who are in pursuit of perfection and greater safety.
What is trading software?
In simple terms, stock trading algorithm software or forex algorithmic trading software, whatever you name it depending on whatever you trade, is basically a computer program. Computer programs are written in special coding languages such as Java, Python, C++ or C Sharp. These digital languages allow people with coding skills to “communicate” with computers. In other words, software is the language of the computer. Once you have mastered the art of communicating with computers, you can teach them what to do, show them how to do it and tell them when to do it. No different from any computer program, forex algorithmic trading software is a code written in any programming language and just like other software, it carries out certain tasks that it is programmed to do.
To give a simple example of software coding;
“””
numbers = [3, 4, 6, 9, 12]
for number in numbers;
if number > 7;
print (number)
“””
What does this example code actually do? It teaches the computer that we have a list of numbers and that the list has 5 items. In the next step, the code instructs the computer to check for every item in the list if the item is greater than 7 or not. Finally, it tells it to print the item on the screen when the item is greater than 7.
With the advent of the phenomenon of automated trading, algorithmic trading initiatives have also started to sprout. One of the first comers in the cutting-edge algorithmic trading technology, Zeus Capital saves you from the jigsaw of software designing and offers their super-effective algorithms to the service of traders who are willing to revolutionize their trading strategy. Design your software from scratch or build your algorithmic trading on the existing know-how of Zeus Capital, it is worth having a look at the technical bits of algorithmic trading.
Can I teach a computer how to make trades?
Using the same set of commands as in our example code, we can instruct the computer to act on our behalf. First of all, stock trading algorithm software can make trades at a mesmerising speed and at any hour of the day whereas humans must eat, sleep and do so many other things while trying to make trades. In this regard, algorithmic trading software promises to be a loyal and formidable servant. When coded carefully and without bugs, it can incessantly do things for you.
The example code explained above can be written in several programming languages such as Python or C++. Which coding language to use is a personal matter of choice. Although different languages have their own pros and cons, any software language can be employed to create a trading algorithm.
How Trading Software Makes decisions?
There are a number of terms and concepts that traders should be familiar with so as to better understand the way investment algorithm software works. Although there are an indefinite number of tasks for which you can write code, stock or forex trading algorithm software mainly processes inputs and return outputs.
In designing a trading algorithm, you can define as many input variables as you can think of while you can seek to produce as many output variables as possible. With the help of the surreal speed of the CPU (central processing unit), the software can conduct tens of calculations on tens of different input variables in order to create useful insights for the trader. Depending on the designer’s preferences, the output can be a Boolean value like “buy” or “sell”. In this scenario, the software suggests an action after certain comparisons and computations. On the other hand, investment algorithm software can also take care of the action itself, placing buy or sell orders right after producing results. In this case, the software design must be even more elaborate so that forex trading algorithm software can access your trading account and trade on your behalf.
