More On Automated Trading Platforms

The ideal software platform for automating backtesting too executing your algorithmic trading strategies depends mainly on your degree of programming expertise too your budget. If you lot are a competent programmer in, say, Java or C#, at that spot is goose egg to preclude you lot from utilizing the API offered (usually for free) past times many brokerages to automate execution. And of course, it is too slow for you lot to write a sort backtesting programme utilizing historical data. However, fifty-fifty for programmer-traders, at that spot are a couplet of inconveniences inwards developing these programs from scratch:

A) Every fourth dimension nosotros alter brokerages, nosotros stimulate got to re-write parts of the low-level functions that utilize the brokerage's API;

B) The automated trading programme cannot endure used to backtest unless a simulator is built to feed the historical information into the programme every bit if they were live. To bring down bugs, it is amend to stimulate got the same code that both backtests too trades live.

This is where a reveal of open-source algorithmic trading evolution platforms come upward in. These platforms all assume that the user is a Java programmer. But they eliminate the hassles A) too B) higher upward every bit they serve every bit the layer that shield you lot from the details of the brokerage's API, too allow you lot larn from backtesting to alive trading fashion amongst a figurative plough of a key. I stimulate got taken a tour of ane such platforms Marketcetera, too volition highlight around features here:

1) It has a trading GUI amongst features like to that of IB's TWS. This volition endure useful if your ain brokerage's GUI is dysfunctional.

2) Complex Event Processing (CEP) is available every bit a module. CEP is essentially a agency for you lot to easily specify what sort of market/pricing events should trigger a trading action. For e.g., "BUY if inquire toll is below 20-min moving average." Of course, you lot could stimulate got written this trading dominion inwards a callback function, only to shout out upward the 20-min MA on-demand could endure quite messy. CEP solves that information retrieval occupation for you lot past times storing exclusively those information that is needed past times your registered trading rules.

3) It tin utilisation either FIX or a brokerage's API for connection. Available brokerage connectors include Interactive Brokers too Lime Brokerage.

4) It offers a intelligence feed, which tin endure used past times your trading algorithms to trigger trading actions if you lot utilisation Java's string processing utilities to parse the stories properly.

5) The monthly cost ranges from $3,500 - $4,500.

If Marketcera is beyond your budget, you lot tin banking concern lucifer out AlgoTrader. It has advantages 1)-3) only non 4) listed above, too is completely free. I invite readers who stimulate got tried these or other like automated trading platforms to comment their user sense here.

P.S. For those of us who utilisation Matlab to automate our executions, a reader pointed out at that spot is a novel production MATTICK that allows you lot to mail gild via the FIX protocol which should allow us merchandise amongst a slap-up diversity of brokerages.