Articles. StockSharp

Market analysis is the first step to profit.

2022-08-19T08:17:50Z

To date, stock trading has become an integral part of the modern world. From the moment of the first trades to the present day, trading in financial markets has come a long way and has become more accessible and understandable for most users.

The abundance of markets, tools and means of trading have transformed this business from a privileged one into a "mass" one, and today no one will be surprised by a mobile application for trading on one of the many trading platforms.

Of course the availability and ease of use new software applications, have made it possible to carry out operations without interrupting work, but the number of such operations, for most users, is small, and is entertaining. Hence the losses, associated, in most cases, with the lack of data flow analysis, the search for patterns in market changes.

I must say that**"mass" trading is manual or semi-manual**, which cannot but affect the quality of transactions and the number of profitable transactions in general, forcing the user to rely only on intuition.

The situation with professional trading is completely different. The volume of this segment is steadily growing, the ability to work remotely, creating mobile offices, relatively small investments and an abundance of professional tools, has given rise to a whole generation of people who create their capital on the stock exchange.

The reverse side of professional trading can be called a different order of potential losses arising in the process of trading. The market offers a huge variety of tools for both earning and reducing trading costs, which recently can be considered the basis of additional income. By earning $1, saving profits or cutting costs by another $1, the trader earns $2.. It is worth saying that a large selection of programs does not always have a positive effect, since the user often cannot decide on a choice, or chooses several programs, combining their functionality manually to create an overall picture of trading.

Agree, this arrangement is inconvenient, energy and time-consuming, but market analysis and reduction of time costs are the basis for increasing profitability and allows the user to devote more time to exploring new markets. StockSharp company presented a product that has no analogues a few years ago, this is S#Data(Hydra).

What is the uniqueness of the product:

- the ability to stream historical data from dozens of markets, the list of which is constantly updated.

- the ability to save market data of various types of Candlesticks, Ticks, Level1, Level2, while the user gets the opportunity to create the necessary data types from already received.

- the analytical block, thanks to the already built-in functions, allows you to visualize the results of trading, and the ability to write your own functions in the language C#, allows the user to create their own models of market behavior./

Separate articles require a detailed description of the interaction of Hydra with other products from StockSharp, as well as the ability to record the received market data in formats for working with other analysis programs.

Theimplemented function of creating your own market data storage allows you not only to collect market data for a selected period, but also to set up continuous recording of data that can be broadcast online to all selected network machines via the "Server" mode.

Thus, the user becomes not just a consumer of historical data, but also an analyzer, and eventually a translator of data for other users.

The presence of a huge functionality collected in one product, which makes it possible to work with market data on one screen without resorting to other products, allows you to raise your trading to a higher level, and grow into the sphere of "professional".

It is necessary to tell more about the functionality of the program separately, focusing on the most interesting functions.

One of the main things to say is that the S#.Data functionality is free, and all the user needs to start the path of a professional trader is to download the application via the S#.Installer platform.

That's all, see you in new articles.

Course for discounts!

2022-07-15T10:18:19Z

Good afternoon, Friends!

We choose a course for discounts!. All our products are available with a 20% discount for the next 7 days!

Do not miss the great opportunity to purchase programs with benefits!

Find out the details, write to us at lesson@stocksharp.com!

Start earning with us!

We have a new service - develop strategies for a fixed price!

2022-06-09T13:02:09Z

Guys!

We are pleased to inform you about a new service - development of trading strategies for a fixed price - $200 for all.

What does it mean? You do not need to:

discuss the cost of work
bargain for the price or terms of operation of certain parts of the algorithm.

We will take your algorithm and make it for a fixed price, no matter what you have under the hood.

Do you want to know why and how? Then read on.

Everything is simple. There are only a few simple conditions:

Development will be only for the [Designer](https://stocksharp.com/store/strategy designer/) and only (the app is free, don't worry). It will be on diagram schema, not C# code. Schema is the fastestand easiest way to create strategies. That is why that price! Be sure, your strategy will be as goodas if it was programmed in C#. But not everything can be done by schema. Let’s read the next paragraph. We will only accept money if 100% are ready to complete your task. If your task is unclear or technically impossible for us (more difficult than doing in pure C#) - sorry, we will not accept any money from you, we will apologize for the time spent (free cup of coffee). But if we are ready to do it, we will inform you about it, then you pay, we will start working, and you will have a strategy that works in the Designer. How exactly? Let’s read another one paragraph. The price includes a paid connector for 1 year. A subscription for only $7 per month after 1 year for successfully working strategy is not so much, is it? During the year, you will successfully trade your idea in real markets, and you may even want to improve it. You will have a diagram in your hands, where you can see your algorithm with your eyes. Would you like to contact us again? Same conditions! No special plans for returning customers! The strategy must be for 1 trading instrument. Do you want 2 instruments? Then it will be $400. 3 and more - $1000. Not STARTING from $1000. Fixed - $1000.

How long to wait? No more than two weeks from the date of payment for 1 instrument and no more than a month for 2 or more instruments.

Do I need to pay extra after? Nothing! We charge by fixed price. You already know the conditions. This is the final price! About paid connectors explained above.

Wanna start? Send your specification to fix@stocksharp.ru and let's start working!

S#.API syllabus

2021-02-02T18:29:33Z

Syllabus: 0) Introduction to StockSharp. The basic concepts of StockSharp architecture. 0.1) S# platform installation using Nuget (applicable for 5.0 and higher versions). 0.2) S# platform installation on Linux (applicable for 5.0 and higher versions).

The first connection creating - Connection to the Terminal

Getting prices on the instrument (not DOM, not candles)
Getting depth-of-markets (DOM)
Getting ticks, own trades, orders
The order registration

The candles - Getting candles,

Creating candles from ticks
The types of candles

Working with historical data - Getting and saving trading objects,

Getting historical data from Finam
S#.Data (Hydra) How to start, which setting, how to store data.

The Indicators - Indicators from S#

Adding indicators on a chart
Custom indicators.

The Strategies - Creating a simple robot for testing

Creating a simple strategy
Strategies optimization.

Child strategies - Rule (Use of rules, suspension of rules, mutually exclusive rules)

Take profit and stop-loss
Quoting

RealTrading (multiple connections) - Multiple connections

Strat strategies on real market

More strategies. Arbitrage, trend-following strategies, etc

All training course samples, materials S#.Shell will be available through S#.Installer after purchase.

[

Buy a course<<

How to use a purchased connector in your projects

2022-03-06T13:30:28Z

After you purchased a connector, it will start to show as available in the S#.Installer application.

If you still see that the purchased connector doesn't show as available, please check updates using special "check updates" button in S#.Installer: After the update check is complete, the connector will show as available. If this still does not happen, you may contact our technical support.

Connector purchase means that you will have access to NuGet package with the connector library which you may use in your own projects. How to use NuGet packages in your projects

After you successfully installed the connector's NuGet package into your project in Visual Studio, you may start using classes and methods from the connector's library as well as StockSharp's core library.

Как использовать приобретенный коннектор в своих проектах

2022-03-06T13:25:01Z

После оплаты коннектора, через некоторое время он начнет отображаться в приложении S#.Installer как приобретенный.

Если этого не произошло, нажмите в S#.Installer кнопку принудительной проверки обновлений После проверки обновлений коннектор должен начать отображаться как приобретенный. Если даже после этого коннектор не отображается как приобретенный, обратитесь в техническую поддержку.

То, что коннектор приобретен, означает, что для вас теперь доступен NuGet пакет с библиотекой коннектора, и вы можете использовать этот пакет в своих проектах. Инструкция, как подключить NuGet пакет к своему проекту

После того, как NuGet пакет коннектора подключен к вашему проекту, вы можете в своем коде использовать классы и методы из библиотеки коннектора а также библиотеки ядра StockSharp.

Trading for beginners. Where to start?

2020-04-29T00:32:51Z

We continue the series of articles dedicated to trading for beginners. In most cases, young traders come to trade against the background of beautifully told stories about how easy it is to start earning money in the market. We hasten to disappoint, trading is a difficult and painstaking process. Most of those who flout this rule face disappointment while trading. Trading is not a momentary success, it is a strictly developed, developed, conscious system, following which you can start earning and multiply your capital.

How do I get started? Of course, you need to start your trading career with training. Today, a huge number of companies offer to train you for ridiculous money, promising a fast and" win-win " trading system. Whether to believe or not is up to you, but you need to remember that most of these "coaches" do not have the necessary competence or their system is based on the principle: bought cheaper, sold more expensive. Many companies offering training do not have their own systems and software, but use third-party software, offering you to build your trading system on someone else's software. In fact, they will never be able to give a proper explanation of the behavior of a particular program, and accordingly all learning will consist in pressing the buttons shown in the training. Will such training be effective? We don't know, everyone decides for themselves. Along with such teachers, there are courses that teach not just trading on the market, but also learning how to create your own trading systems. The trader gets the opportunity to learn not just how to manage the program and trade in it, but also learn the basics and concepts of trading, with the ability to create their own trading systems and as a result, a more in-depth knowledge of the market.

For example, our training courseis designed, among other things, for a novice trader who is just learning the basics of trading. It is not just about creating trading systems. But also the concepts of trade, with explanations of why you need it this way. The advantage is that you do not learn on third-party software, but use our own, so you always have the opportunity to teach updates and tips in difficult situations.

What does a trader learn during his studies? The trader studies the market, features and nuances of trading. An important aspect is the understanding and ability to apply knowledge of technical and fundamental analysis. Knowledge of analysis allows you, in combination with knowledge of methods of building trading systems, to build trading strategies that will allow the trader to earn. **An extensive set of programs for analysis allow the raider to learn how to use a large number of important and convenient tools.**For example, Hydra not only helps you download stock quotes for analysis, but also allows you to perform a large number of operations for analysis.

trading-marketing-trade.jpg

In General, the ability to choose the right trading program for work, whether it is the TWS terminal from IB or the S#.Designer trading robot designer from S#, allows the trader to reduce the time for training. It is important to determine which program you need. For manual trading, you need to choose the most reliable, informative and fast terminal. It will allow you to quickly respond to changing market conditions on the stock exchange. It will provide a more detailed vision for operational analysis. In General, not many terminals allow you to connect to several trading sources at once, but this makes trading more flexible and secure. For example, the Terminal program implements the selection of a dozen exchanges. What does it give: *- Great opportunity,

Ease of trading,
Flexibility of trading strategies
"It's free.* Many people will find manual trading uninteresting and difficult, plus time-consuming. For such traders, the choice may fall on automated trading platforms. Here you need to understand that among them there are those on which various scenarios are pre-installed, and those on which you create these scenarios yourself (Tslab or Designer). Creating trading strategies using dice generally makes it easier for the trader to work. Now you can use the appropriate block to select the necessary operation or condition for trading your strategy.

So where do I get started? First of all, to get the necessary knowledge. Successful trading is impossible without understanding the market, without the ability to conduct technical and fundamental analysis, because it is on such knowledge that the trader's ability to build a profitable strategy depends. You need to be able to manage your capital and create your own trading system, as well as optimize it as necessary. In addition, it is important to choose the right stock broker and learn how to use the trading terminalSOFTWARE.

You can not ignore the issue of constant training, understanding the basics of trading. A trader should be able to study tirelessly. In General, the desire to learn is the key to success. New knowledge allows you to expand your trading opportunities. An important factor of successful trading is the emotional readiness of the trader. Stress is an unavoidable companion of trading. A trader must have a cool head and a reasonable mind. The trader must be able to clearly analyze the situation, have a sense of self-control and will, including when it is necessary to take risks.

So, successful trading is a combination of many factors that affect the choice of a bidder. Balanced decisions are the first step to a guaranteed profit. A trader must constantly learn and improve their knowledge, must be able to make decisions soberly and make sometimes inconvenient steps. In the following articles, we will look at what else can affect the quality at the very beginning of trading. We are waiting for your comments and questions. Thanks.

Crypto index in crypto trading!

2020-09-29T13:33:22Z

Crypto trading is a type of trading and therefore we should admit that as well as in classic trading, crypto trading has its own index.

The index reflects the condition of market of crypto currencies, based on average market indicators. As in classic trading, the index in crypto trading formed on data from the most liquid tokens. The amount of taken tokens displayed in the title. If there’s a number 10, then it includes 10 different crypto currencies. The change of every of these tokens has a high effect on the index.

The growth of the components of the index therefore the index will be rising. If the rate of crypto currencies is decreasing, then the index will be cheaper. Index is kind of basket of several components. Crypto trader can choose which components he wants and monitor all of them. You might need an index chart to analyse the market. If the index is most common, then the chart will be shown in the appropriate resource.
But what if the index of trader portfolio investment is individual**? For creating such index, the Hydra program will be indispensable. Hydra can collect the volume of each assets, calculate, and build the necessary index, moreover you can use this index in other programs just by saving it in your desirable format.❤️ The gotten index can give you detailed and comprehensive data of the market condition. Furthermore, to work with index will give traders the opportunity to analyse the market perspective and any assets. The trader gets more effective system of crypto trading and therefore to get more benefits and reduce risk. ❤️

Interactive Brokers API-what you need to know.

2019-11-07T12:22:52Z

For any trader who wants to play big, there comes a time when he needs to enter the international trading markets and, in particular, one of the largest markets – the US market. The abundance of brokers providing their services to the trader is not always beneficial, as various offers and conditions often put the trader at a standstill. Let's look at the largest by the number of transactions per trading day company Interactive Brokers. Today, we can safely say that this company is the most technologically advanced company in the States in its field providing users with various types of connection to work through Interactive Brokers API. It is very important that the broker works not only with US citizens, but also foreigners and tries to fully provide all technical support to foreign users. A little history about Interactive Brokers. This broker has been working in the US market since the late 70s. For all the time of its work, the broker has established itself as a reliable, advanced in information technology partner. An important fact is that the broker is the only one in its field in the US market has its own clearing company. From 2010 to 2017, according to experts, Barron's Interactive Brokers was awarded the title of leader among online brokers. The broker is among the top ten, according to the resource www.stockbrokers.com, among online brokers. To date, the equity of the broker amounted to more than $6 billion, the market value ranges from $16 billion.

One of the important aspects to get started is opening an account with a broker. What are the positive aspects of broker account registration at Interactive Brokers:

Registration takes place online, in which you fill out the necessary forms to open;
Copies of documents for opening a brokerage account must be provided in electronic form. After a few days, after the verification your account will be activated. Do not rush to transfer money before the end of the test, as you will not be able to use them until the documents are checked.

After it became available for the management of a brokerage account in the personal Cabinet you need to create a request for replenishment of funds. Different currencies can be used to replenish the account, which simplifies the task for users. Let's look at what types of platforms Interactive Brokers offers for trading:

Mobile version of the platform, which enables online trading through mobile gadgets with iOS and Android operating systems;
Desktop version of the platform Trader Workstation (TWS), which is a full-fledged terminal for work

WEB application - WebTrader, built on HTML, allowing online use of trading functions and tools. TheInteractive Brokers API requires special attention. With all the positive reviews about Interactive Brokers, there is a very important point. The broker provides open source code to create its own application based on its API. Many users who first open Trader Workstation, the desktop version of the terminal, are confused. The abundance of seemingly different related information on the screen leads to confusion. Quite a long time design, makes use of the terminal is very inconvenient and causing a large number of questions. In order to correct the situation, the broker provided accessto the Interactive Brokers API libraries, so that each user would have the opportunity tocreate their own terminal.

Applications that are created using Interactive Brokers API have full functionality, have access to the user's open accounts, access to market dataand trading charts. A wide range ofprogramming languages is limited only by the choice of operating system for some of them:

Having the ability to create their own application, the user creates a convenient environment for work. For the convenience of creating your application, we recommend using our S#.API. This program allows you to use libraries to create the necessary software product for the trader – terminal, using the C#. The library's own API, allows you to expand the capabilities of the created terminal. The integrated ability toconnect through the necessary Protocol, such as FIX Protocol, through our connectors, allows you to simplify the user's work, thereby reducing the time for the development and adaptation of the application towork on the trading floor.

Something about StockSharp's source codes.

2019-02-05T18:53:13Z

Hello all! We very often receive your messages with questions about source codes. Yes, we provide our sources and it is possible to buy it.

First of all, we offer the sources of every part of our platform: starting from charting component and single connectors and whole applications, like S#.Terminal, S#.Designer, S#.Data.

Let me repeat this again, you can buy every part of Stocksharp platform, not only listed on our page "Pricing". Also, white label licensing allow using the sources into your own projects without additional fees, which help to save the time and budget on development

At the list below you can find every part of our platform with prices:

Connectors with full source codes
FIX/FAST connector - $6490
ITCH (LSE/NASDAQ) connector - $4990
QuantFEED connector - $3990
License for all connectors - $12400. [*]Connectors to trading via MetaTrader4, MetaTrader5 with full source codes- МТ4 - $1190
МТ5 - $1190
МТ4 и МТ5 - $1990, [*]Cryptoconnectors with full source codes:- Any cryptoconnector on your selection - $2500
All cryptoconnectors - $12400 [*]StockSharp applications with full source codes- S#.Shell - $590
S#.Matlab - $1490
S#.Designer - $9900
S#.Terminal - $9900
S#.Hydra - $9900 [*]S#.API compomemts with full source codes- S#.API - charting component - $3750
S#.API - visual designer component (used in S#.Designer) - $2990
S#.API - tabels, panels - $2500
S#.API - any proprietary connector on your selection (for example InteractiveBrokers, LMAX) - $1190
S#.API - all proprietary connectors - $4900
S#.API - $12400 [*]All StockSharp source codes: connectors, applications, components - $74000

If you are interested in buying any part os Stocksharp source codes email us on: info@stocksharp.com

Trading for beginners. Stock market.

2020-04-21T21:51:00Z

Today's article will not be quite ordinary. We often write articles relying on the fact that most users have experience in trading on the exchange. However, among our readers, there are more and more people who do not have knowledge about the exchange, brokers, the market and trading in General. We would like to change this and tell you a little bit about the structure of trading, so that everyone, even a beginner, has an idea of what they might face. This will not be a manual for dummies, it will be an article that helps the user who first came to trade navigate.

First, let's tell you what the exchange is and how it works.

The exchange is a fundamental link in market trading. It, like any commercial enterprise, is a legal entity and its activities are regulated by regulations and legal acts established by the state. An exchange is a mechanism through which various market participants interact, which are consumers of various financial instruments, such as: currencies, raw materials, and securities.

As mentioned earlier, the exchange's work is strictly regulated, so we can firmly say that its work is strictly ordered, namely: *- Trading is not chaotic, but orderly, strictly at a set time, with strictly set instruments,

Trades are held strictly in a designated place or on a strictly approved virtual trading platform (electronic exchange),
The requirements and terms of trade for each exchange are unified, which makes it possible to comply with the procedure for transactions, requirements for the quality of goods or services provided, depending on the type of exchange,
The trading mechanism is carried out through counter offers of purchase and sale by interested market participants.* The purpose of the exchange is to organize and regulate the markets of the financial instruments that it represents. The exchange regulates the supply and demand process in order to equalize prices and protect the interests of all trading participants from various negative price changes.

Today, there are a huge number of exchanges, each of which trades various financial instruments. You can see the choice of a variety of trading platforms when working with trading programs. For example, S#.Terminal allows you to select the trading platform that the user needs, including a large number of electronic exchanges.

This abundance is both positive, as it leads to increased trading opportunities, and negative in terms of the complexity of the choice for the novice, although the latter is rather subjective, since later, the trader understands the trading technique, gets the opportunity for more flexible trading.

The emergence of the first exchange in the XV century, we owe the Belgian city of Bruges. It was on its Central square that the first auctions of securities – bills were held. Not far from the place of trade, the house of the Van der Beurse family was located. Later, these trades were taught the name Borsa, which over the years was transformed into the word "stock market" or "exchange".. What are the rules for trading on the stock exchange: *- Transparency and openness of operations,

Free pricing
The state does not interfere in the course of the auction, but the auction is regulated by law.
Along with manual trading, it is possible to use automated trading systems. For example, such as S#.Shell, MT and others,
The exchange receives income from Commission on transactions.*

Trading opens up great opportunities for the participant to earn money. Today, both an experienced trader and a novice can become a market participant. The abundance of trading exchanges allows you to choose what and where to trade. The largest exchanges include:Chicago, Tokyo and Sydney commodity exchanges, the new York cotton exchange, the London metal exchange, the German futures (Frankfurt) and Singapore currency exchanges, the European-American NYSE-Euronext, the St. Petersburgand Moscow stock exchanges.

Becoming a trader is not always as easy as the advertising brochures promise, the player's path is thorny and inevitably involves losses and winnings. Of course, with experience and knowledge, a trader acquires a stable income, but at the same time does not stop learning and improving. A trader studies the market, various trading terminals, and SOFTWARE. Becoming a trader is real, but it is not always as easy as it seems. Therefore, we have developed a training course for creating trading systems, which is designed for both knowledgeable traders and beginners. We have included a full range of training in algorithmic trading and the creation of trading systems, programs and examples of trading strategies. The goal of the course is to make trading more accessible and understandable, to teach anyone to trade, and success now depends only on the trader and his desire. In the following articles, we will tell you how to choose a reliable broker and what a trader may face while trading. We will be happy if you share your experience and ask questions. Thanks

Trend and countertrend! Don't choose to use it together.

2020-04-14T20:34:27Z

Previously, we have already discussed various trading methods that can be used when trading, in order to increase its profitability. For most traders, following the trend is a sign of the correct approach to trading at the moment. Like saying: "Following the trend is already 50% successful trading". There is hardly a player in the market who will deny this statement, especially if the trend is turned in the right direction for the trader, he gets a guaranteed profit. The trader's desire to extract the maximum profit is aimed at finding a point of entry into the market when the price is either minimal for buying the desired asset, or maximum for selling the existing one. To determine such points, a trader often needs not only a flair, which is generally one of the most important qualities, but also the ability to use complexes from a combination of trend and counter-trend strategies. In the market, there is always a kind of confrontation between trend traders and counter-trend traders, using pullbacks and local changes in market trends. The key to success and, as a result, getting the maximum income, is to merge these two strategies in a combination of experience and trader's flair. However, it is worth noting that even a less experienced market player can trade using a combination of these strategies, just using automated trading systems and trading robots. For example, such as "Mr. Hyde" from StockSharp, which allows even a less experienced trader to use the movement against the trend, in order to increase revenue.

What is the combined method of trading? The basic rules are the basis for this method: 1. Finding a way to determine a long-term trend or trend on the chart. 2. Determining the opposite counter-method that allows you to determine the pullback signal, as well as a short – term trend change in the opposite direction-determining the counter-trend. There are various methods for determining points of entry and identifying subjectively correct methods of determination. Often, these methods seem quite complex to novice traders, but when you look at them in detail, they are quite accessible. Let's look at one of the ways. First, we need to identify long-term trends in the market. To do this, we will build a price chart and a moving average chart with a period equal to 200. You can build such a graph using the S#.Designer program, using the tools provided in it.

This method is very common among analysts, and allows you to determine long-term trends in the market. His idea is that if the price is located above the indicator line, the market is growing, and if it is lower, the price is decreasing. This indicator line is a General indicator of the market trend. Now, to determine the entry points to the market, we add two more averages, using periods of 10 and 30 days.

What is the point? In cases when the ten - day moving average will be above the thirty-day one and above the main two-hundred-day one, we can talk about a stable UP-trend. UP-TREND is one of three types of trend, which is a sequence of rising lows or highs of prices. it is a series of consistently rising lows and highs of prices. In other words, UP-TREND shows price growth over a period of time. It is also called a bullish trend in the FOREX market. If the situation with the moving average is the opposite, and the ten-day moving average is below the remaining two, then we can talk about a downtrend, or as it is commonly called a bearish trend. A change in the direction of the trend can occur over a long period, and there may be an error in the form of a delay. In order to avoid this, you can use a counter-trend indicator. Each user chooses such an indicator for himself, focusing on the convenience and technical capabilities. For example, to get market data, although the latter problem is solved using the same S#.Designer or Hydra, which downloads market data online. For example, we will use an oscillator that will cross the zero line. For example, consider the graph below.

So, let's determine the points where the long-term trend is changing and where you can make an entry to the market. By placing the charts together, or combining them, we can determine the points at which we could enter the market. These points are shown in the graph below.

As you can see, this method is quite simple to work with. However it has its drawbacks: *- You need to understand that the method shows repeated signals, and it may turn out that the point that the trader has identified for entry may be a trend reversal.

It is important to understand that any method can not be considered a fully automatic method and requires the intervention of the trader, and trading robots simplify the work of the trader, but also depend on its settings.* The General conclusion is simple: trading using a combined trend and counter-trend method allows the trader to increase their income by using the direction of market movement. A trader should rely not only on trading systems and trading robots, but also on their intuition and knowledge, which together make it possible to increase profits.

S#. Data-download market data in two steps.

2020-04-08T20:22:45Z

Good afternoon. We continue to talk about StockSharp's products, and in past articles we have analyzed the S#.Designer trading robot constructor, as well as the S#.Shell graphical framework, which helps you create trading robots, including in C# using the S#.API library. The work of these programs is aimed at creating trading systems using programming languages or cubes, in which the lines of code are replaced with cubes for simplicity, performing trading operations or responsible for conditions and parameters. Creating trading robots would not be complete without testing the newly created trading strategy. To test and debug trading robots, before launching on real trading, you need to conduct testing on market data to make sure that they work correctly, consider possible "thin spots" or errorsthat occur during trading. Today, market data plays an important role not only for technical analysis of trading systems, but also for analysis of market behavior in General. Agree that having data on market behavior for the period of interest, under the appropriate conditions, you can accurately predict the behavior of the market, thus you can predict the development of events. Today, market data is the most valuable information for a trader, and its search is necessary for him, both for future trading and for analyzing the actions performed. The problem with getting market data is the small number of sources that provide information on favorable terms. There are always restrictions for teaching, either the data is paid, or it is limited to the period for which it is provided. Moreover, the trader receives data from only one source, and changing sources to get other data is quite an inconvenient procedure. Based on the needs of the trader inS#, we developed the S#.Data or just Hydra. What is she setting up? The S#.Data is a program for automatically loading market data.

The user is provided with a huge Arsenal of functions: *- Select the source of market data (more than a hundred sources to download). -Selection of the necessary financial instrument that is of interest to the trader.

Select data type: candles, tick deals and glasses
An impressive selection of timeframes for downloading market data.*

A huge advantage of Hydra is the ability to choose the data storage format. Thus, after downloading market data, the user saves it in a convenient format and can use it when testing their strategy on any platform. Data can be saved in two formats: in the special S#.Data (BIN) - binary format, which provides the maximum compression rate, or in CSV text format, which is convenient when analyzing data in other programs.

All the user needs is to configure the source of market data, select the tool and the required period. In this case, you can configure the program to continuously save market data. The ability to use server mode allows you to save market data on the server and configure access from anywhere in the world, which allows you to create huge amounts of data for more detailed analysis or use in long-term auctions. At the same time, S#.Data can use both historical and real-time data sources (for example, connecting SmartCOM to get glasses). This is possible by using an extensible (plug-in) source model. Also, Hydra is a plugin that allows you to develop your own sources. The ability of the Analytics function allows you to analyze data according to various criteria without leaving the program. Plotting the data of stock quotes and indexes, make the downloaded data more visible and more convenient to use. A very important advantage that makes this program unique, in addition to a set of features that any other program can envy, is that the Hydra program is completely free. All these features are not the limit of functionality, only bright distinctive features that make Hydra an indispensable tool for any trader who is especially set up for profit.

S#.Designer is a simple way to start a successful trade.

2020-03-31T19:05:01Z

More recently, we have reviewed a program such as Shell and the API library. Of course, mastering the skills of programming trading strategies opens up huge horizons for the user not only as a trader, but also as a Creator of trading robots for sale. However, not every user is interested in programming, and not every user is willing to spend time studying libraries. Not every trader wants to learn how to write custom trading robots and often wants to create trading strategies for themselves. Agree, it would be cool to have a program that can use ready-made components to create trading strategies. S# understands this and has created a trading robot constructor that allows you tocreate trading robots using dice-Designer.

Now many people will start thinking: "What is it good for?". Actually -. First, it is more intuitive, meaning that it is easier for the user to navigate the program interface. Secondly, the program is completely free, which allows the user to start working with it without investing a penny! Third, the program integrates with all our products, such as Hydra, and moreover, it is able to download market data itself.

In General, the ability to download market data yourself is a huge advantage. The user can use not several programs, but one to test the created trading strategies. The interface is intuitive, and makes it easy to adapt to the user's environment.

What is a Designer? Designer is a completely unique program. It differentiates strategy elements into the simplest elements, as in the constructor, and allows you to assemble a trading strategy from these elements. The large functionality of dice allows you to create the simplest and most complex trading strategies. All you need from the user is to select the strategy functionality. Cubes are divided into sections that include groups of cubes for the user's convenience. This allows to improve the understanding and interface of the program. However, the program prevents errors from occurring at the strategy design stage. in other words, if a cube contains data of one type, it will not transmit data to a cube with data of another type, which helps avoid errors.

This means that the user does not waste time identifying the causes of the error at the program development stage. In General, the development stage is a separate Chapter. At this stage, the user is provided with all the tools for working out their strategy, from the functionality of dice, to the ability to integrate their elements and analyze the progress of strategy development step by step. Back test is a convenient function implemented in the program. Step-by-step review of strategy execution using the stop button allows you to detect an error at any stage. Of course - this saves time, which in turn reduces the user's expenses.

More experienced users can create their own elements inC#. All you will need to do is create your own element, where the user saves their code. These elements and strategies in General work much faster than strategies written in the visual designer, which gives the user an incentive to develop at the same time, without changing the convenient development environment. The advantage of strategies in C# is not limited when creating them.you can describe any algorithm and add standard operation cubes to it if you want. The strategy creation process takes place directly in S#.Designeror C# development environment (the most popular development environment is Microsoft Visual Studio), using the library for professional development of trading robots in C# and S#.API.

Speaking of Designer, we can say that it is a progressive product. The ability to include your own codes in software solutions allows you to expand the range of Designer applications. The possibility of testing reduces the potential risk. The ability to download and use it for free-makes the product available to anyone. It just remains to start working

Market data, timeframe, tick.

2020-03-24T21:14:24Z

Today we are looking at a very important element of exchange trading, without which the trade itself would not make sense, since without information about the positions of trading instruments, trading would turn into chaos. So quotes of exchange elements are data that allows market players to know in real time any changes that occur with trading instruments. Changes in price, volume, and other information contained in the exchange quotation. The exchange quotation plays a major role in the analysis and testing of trading strategies. Getting market data of stock quotes is the key to correct testing of the trading robot. Sometimes getting market data is burdened with conventions: paid content of resources, limited data period. However, the Hydra program allows you to download market data from a huge number of sources for free, as well as the Designer program, which is clearly shown in our tutorial video.

In addition to the information that market data carries, the important value is the selected data timeframe. What is a timeframe? Timeframe — the time interval used for plotting stock price charts. Its main task is to allow you to visualize graphically the trend of changes in the parameter of the exchange quotation. For example, you can see how the price changed over equal periods of time.

Let's consider the main element of the timeframe – candles. Candles are formed within the time period set by the trader, so we can see how the price changed during the week or during the day. A candlestick chart can give information about the maximum and minimum for the period set by the timeframe, and show changes in the volume of quotes. they can tell us about the maximum and minimum prices for the corresponding period, and we can use them to see the opening and closing prices.

At the same time, to get a more detailed movement of parameters within the timeframe interval itself, you need to use tick data, from which the chart is also built. The tick chart is the most accurate, since it gives a detailed change in data, not the final one for the period.

Let's look at how timeframes are designated: M-means a minute (for example, M4 is a five-minute time frame). H-indicates the hour (for example, H1 is an hour timeframe). D-means day, sometimes the value "Daily" is used (for example, D10 is a ten-day timeframe W-means week, and the term Weekly is also used (for example, W2 is a two-week timeframe) MN-means monthly, it can also mean Monthly (for example, MN3 – a three-month timeframe). Y-indicates a year (for example, Y5 is a five-year timeframe). Older timeframes consist of younger ones, so for example, you can create a ten-minute timeframe from two five-minute ones.

Different timeframes can be used for different purposes:

*Minute and hour time frames: Often used for trading method of scalping, derating, scalping. Short timelines are used for faster trading, often limited to one trading day.

From hourly to daily timeframes They are often used for medium-term trading. The most moderate trading speed, it is often chosen by novice traders.

From daily to annual timeframes. For the most part, these timeframes are used by investors who place their capital for a longer period, with the prospect of generating income in the long term.*

So, we have considered the main types of time frames. Of course, successful trading consists of using different timeframes. The combination of them gives the most optimal solution for increasing the trader's income. This is why all our products from Designer to Shell can work with different timeframes, and Hydra allows you to choose several timelines for downloading at once.

S#.API and S#.Shell is your step in trading.

2020-03-17T20:31:25Z

Good afternoon! It was no accident that we decided to tell you about two products of our company that are part of the basic software from S#. Our choice was made based on the opinions of our users, who are interested in learning a little more about the purpose of programs, how they work and how they are used in trading. It should be noted that S#.Shell and S#.API is a comprehensive solution for creating trading robots in C#. However, the use of these programs is not limited to creating trading robots.

So, first let's look at what S#.API.

The term API, according to Wikipedia, means: The Application programming interface (API) is a description of the ways (a set of classes, procedures, functions, structures, or constants) that one computer program can interact with another program. It is usually included in the description of an Internet Protocol, software framework, or standard for calling operating system functions. It is often implemented by a separate software library or operating system service. It is used by programmers when writing various applications.

S#.API is a completely free library that allows novice and experienced traders with even basic programming knowledge to use it to create their own trading systems in the field of algotrading. The library is based on the C# language, with the ability to use it in the Visual Studio programming environment. The library is designed for the user to create their own unique trading systems: from positional strategies with a long timeframe to high-frequency strategies (HFT) that use direct access (DMA) to stock trading. The uniqueness of this product is that it is based on the work of all the basic products of StockSharp, such as: S#.Designer, S#.Data, as well as the S#MatLab.

For example, the use of library elements is widely used to create unique cubes in the Designer program. in fact, the user takes a ready-made component represented by the program code, combines it with other components, or modifies it and applies it in the designer trading robot constructor, placing it in their own cubes.

The Mechanism Of S#.API is based on the use of messages. This mechanism consists of three elements: *- message Message, -message adapter MessageAdapter

IMessageChannel transport channel.* The message acts as an agent that transmits information. Messages can be outgoing and incoming. *- Outgoing messages - messages that are sent to an external system. These are usually commands that the program generates, such as the ConnectMessage message, a command requesting a connection to the server.
Incoming messages - messages coming from an external system. These are messages that transmit information about market data, transactions, portfolios, connection events, and so on.*

This mechanism allows you to unify the work on developing adapters, while at the same time allowing the user to create their own connections to various trading systems. Let's look at the main advantages of using S#.API: *- Independence of the trading robot created by the user from the API of the broker or exchange used. in fact, the created trading robot can work with any connection. This way the user can easily connect their trading robot to Quik, Transaq, or FOREX without changing the program code.

S # library today.The API supports more than 70 connections(Connectors (Russia), Connectors (America), Forex Connectors, and Cryptocurrency Connectors).
The library's versatility allows it to be used by private traders, small development teams, as well as large investment companies and banks.
An important indicator is high performance, which allows you to simultaneously execute hundreds of strategies for any instrument.
High speed of processing applications in S#.API allows you to reduce the processing time to a few microseconds.
The library can use direct access to trade, such as: Plaza II, Micex Bridge, and also supports the FIX Protocol,* which allows you to reduce the processing time of orders.
The definition of real slippage is achieved through realistic testing, which is carried out using ticks and glasses. This allows the user to minimize the risk of possible losses and more flexibly and accurately configure their trading strategy.
The widespread use of the C# language used in creating the library andVisual Studio environment simplifies the user's work, due to excessive information about their capabilities.

For the convenience of working with S#.API is divided into blocks, which allows the user to easily find the section that interests them. The ease of installation on a computer, the prevalence of the programming language and the use environment make the library S#.API is a universal way to develop trading robots. Once a user has created a trading robot, they can connect it to any chosen trading platform or broker. Also, knowledge of working with the library allows you to develop the user's programming skills.

We have considered the main element-the S#.API that all the basic StockSharp software products are built on. Great, now it is clear that with the use of the S#.API users can create their own trading robots and use them in trading. However, using the Visual Studio development environment is not very convenient for working with created trading systems, let alone testing trading systems. For convenience and ease of operation, StockSharp has developed a ready-made graphical framework with the ability to quickly change to the needs of the user - trader, while open source, created in C# - S#.Shell. Let's look at the main advantages of this graphical framework: - The main advantage of the product is open source code. What does this give the user?

The open source code of the program allows the user to use all the features of the product, complementing it with their own add-ons. The user can set up their own control panels, use ready-made elements, or create their own. Easy configuration increases the speed of preparing the program for launch. Availability of S#modulations.Shell, allows you to create a user-friendly environment that is understandable to them.

Thus, the use of open source code does not just allow the user to create a convenient individual interface, but it is ideal for creating custom trading robots, and this expands the scope of the user's knowledge, opening up a resource for additional earnings. - The next undisputed advantage of S#.Shell supports more than 70 different connections to global exchanges (Connectors (Russia), Connectors (America), Forex Connectors, Cryptocurrency connectors, General).

- S#.Shell allows the user to fully test their trading systems before entering real trading. Convenient statistics, Equity curves, and a detailed report on the testing process allow the user to take into account possible risks at the development and testing stage and make changes to the trading robot code.

*- The user can also save backup copies of their trading robots, restore settings and compare changes with the original code of the trading robot.

A very important and convenient S#function.Shell is a simultaneous launch of strategies. What does this mean? The user is no longer limited to a single platform for work and can also apply a set of several strategies that can operate separately from each other, or can be applied as a set of strategies.* Such complexes allow you to compensate or insure each other, conduct a policy of hedging and arbitration. At the same time, the user receives detailed information about the course of trading, receiving information about orders, transactions, positions, profits, logs, and other information, the output of which can be configured in the program. The user can also set up a scheduled strategy launch by setting a clear schedule for each of the launched trading strategies. S#.Shell is a convenient and multifunctional software solution that can be customized for the user.

To sum up, we can say the following, that the use of the complex from theS#.APIand S#.Shell, allows the user to get a fully customizable shopping complex for their needs. The user gets not just a shell for trading, but a solution for testing, trading, and complex interaction of their created strategies with different markets simultaneously or separately. Ease of use is obvious, it not only reduces the time to prepare and trade, but also allows the user to develop solutions for sale, which increases revenue. A convenient training course from StockSharp allows you to quickly master both programs, learn how to program and earn money. S# source code already included in the price S#.Shell and additional trading systems reduce the user's costs and allow you to start trading immediately.

Pyramiding in trading

2020-03-10T22:39:46Z

Earlier in the articles, we considered such mechanisms used in trading as Stop-Loss and Take Profit.Of course, these two tools help reduce the risk and increase the profitability of the strategy. But what if, because of them, we limit ourselves to getting more profit? To understand how this can be done, you need to consider Pyramiding. What is pyramiding - оne of the types of strategy aimed at increasing capital by step-by-step opening of several transactions with a favorable trend. Using this strategy allows the trader to get a stable income. Let's consider the principle of pyramiding. The essence of pyramiding is that after the profitable result of the last transaction, the trader opens a new position, while doubling the bid, compared to the previous one. As for the risk arising from the next bid, it is equal to the sum of the profit of the previous stage and the initial bid. At the same time, the amount of profit depends on the so-called "steps" of pyramiding, and it grows exponentially.

Pyramiding is applicable in any market – stock, currency, and others. The trader adds a new position to the previous effective one, if the trend direction is profitable for him. If the trader's actions are calculated correctly, he will always be in profit. The use of various trading robots also contributes to a more convenient use of pyramiding. For example, "Mr. Hyde" from StockSharp, which in automatic mode and flexible configuration can trade in pyramiding mode. An important point is that the trader must be sure that the trend is stable, otherwise it can lead to losses. However, the use of automated programs, such as Designer, which use condition cubes and position protection, makes trading with pyramiding minimally risky. An example of this strategy is shown below.

Let's consider the basic rules of pyramiding. *-Constantly monitor the ratio of return and risk within 1 to 2, so that the previous yield can cover the current risk.

All parameters used during trading must be calculated in advance before entering the market.
Use pyramiding only on a stable trend.*

Let's look at an example of using pyramiding. Let the trader have a capital of $10,000. At each main level, it can buy 10,000 units of the selected currency. In the Forex market, this is 1 mini lot. The amount of profit at each stage will differ, however, the size of the set Stop-Loss for each opened transaction will be equal to 50 points. So, the trader buys 10,000 units of the base currency. Let's assume that the market situation is shown in the figure.

The price rises and breaks through the resistance level, now this level becomes the support level. Let a bullish pin bar be formed at the support level (a graphical analysis figure based on the non-indicator method of trading, as well as the analysis of Price Action charts), in consequence of which the trader decides to buy 10,000 units of currency. When a trade is opened, the trader sets the Stop-Loss at 50 points or 1% of the risk of capital.

This way the trend keeps its direction, and the trader trades further. The trend breaks the next level, and the price is set above the support level, and the trader buys another 10,000 units, and the previous Stop-Loss is transferred to the new level. The same situation is when the price breaks the third level

Thus, the trader accumulates a long position of 30,000 units of the main currency by the third stage. There is almost no risk, since at the third stage, when a deal is concluded for 10,000 units, the profit will be 4% if the trend reverses.

The potential profit, with a successful outcome, can be 12%. Let's look at this example in numbers.

It is important to see how the possible profit increases from each stage to the next, while reducing the risk The trader's first trade will bring him a profit of 6% of the initial capital. Consider all the situations in the market: -First transaction: 10,000 units Negative: there was a -1% loss Positive result: +6% in profit

Second transaction: 10,000 units Negative result: no loss (+2%in profit from the first stage and -1% in loss from the second) Positive result: +10% in profit (+6% in profit from the first stage and +4% in profit from the second)
Third transaction: 10,000 units Negative result: +4% in profit (+3%in profit from the first stage, +2% in profit from the second stage and -1% in loss from the third) Positive result: +12% in profit (+6% in profit from the first stage, +4% in profit from the second stage and +2% in profit from the third)

As you can see, the risk is about 1%, while with positive trading of all three stages, the profit will be 12%

Main advantages and disadvantages of building: Plus:

Pyramiding strategy allows you to increase your income with minimal risk; Minus:
The strategy is quite complex and requires experience. It is possible to use the strategy for medium or long periods of time, preferably using automated trading systems. The correct calculation of the exit point from pyramiding, analysis and testing of the trend behavior is of great importance, which necessarily leads to the use of trading robots. Pyramiding is not suitable for scalping strategies, and is also aimed at long-term trading.

Pyramiding is a profitable and relatively safe method of trading. Its reliability has a downside in the duration of the process, the accumulation of sufficient experience and knowledge in trading that would correctly calculate the levels of trade. Also, this type of trading is not suitable for all traders, so choosing it as the main one should be conscious.

What is Stop-Loss and Take Profit?

2020-03-03T11:53:25Z

Stop-Loss-a type of order whose task is to set limits on possible trading losses. This order is used automatically using automated trading systems, which we will discuss later. The essence is very simple: with the help of the Stop-Loss mechanism, when the set price level of the purchased asset (instrument) is reached, the position is closed. In fact, Stop-Loss insures the trader from an unplanned price drop. This restriction mechanism is widely used for traders. It is used by experienced participants in the financial market, but novice traders often neglect this mechanism, although for them Stop-loss is almost the main method of saving their funds in a positive balance.

Stop-Loss, from a technical point of view, is a regular pending order that has an activation mechanism when the set price level of the asset is reached. The difference between the two types of pending orders is that when using a regular pending order, a new deal is opened, and when using a Stop loss, an existing one is closed.

As mentioned earlier, an important advantage of Stop-Loss Is the automation of the process, which eliminates the need to track price changes and make a decision manually. Of course, this reduces trading losses and time, which is fundamental for high-frequency algorithmic trading (HFT). For example, in the program for creating trading robots Designer, it is possible to use the Stop-Loss mechanism by using the position protection cube, which can be configured and used as a reliable tool for reducing losses.

The use of the Stop-Loss pending order mechanism is widely used to reduce trading costs caused by losses. As a result, this leads to an increase in profits, not only by increasing the volume of successful operations, but also by reducing the volume of unprofitable ones. The use of this tool in trading strategies is now increasingly used, as it reduces losses, increasing the amount of profit at a constant (regulated) amount of transaction costs. Example of a trading strategy executed in the Designer program.

So, the main advantages that are inherent in a pending Stop-Loss order: *- Using a pendingStop-Loss order in trading strategies allows you to limit losses on a single trade by setting the loss level that is set by the trader himself, which makes the trading strategy more flexible and less risky.

The use of this pending order insures the trader from an unpredictable situation in the market, in which the asset value may collapse, thereby protecting the user of the trading strategy from losing capital.
Regulation of possible losses also has a positive effect on the trader's emotional state, preserving his nerves and psychological health.*

There are a lot of reasons in the market that can cause a loss, and the frequency of their occurrence is unpredictable. However, the use of Stop-Loss allows you to protect yourself, make trading more convenient, limit risk, maximize profit, reduce the time to work with a trading strategy, and reduce the risk to emotional health. An important point for working with a pending Stop-Loss order is to calculate the correct order level.

When placing an order, you need to know the following: *- First of all, a Stop-Loss order is a conditional order that is executed when the set price level is reached.

The application consists of two parts: the application and the condition for its execution (conditions that are edited by the trader, and when a new condition is set, the old conditions are canceled).
The request is located on the broker's server, through which the trade is carried out, and is sent only when the necessary condition is reached.*

Let's look at the most well-known methods of working with Stop Loss: - Fixed Stop-Loss: The trader sets the value in the tool settings equal to the number of points from the initial price of the asset to open the order. - Flexible Stop-Loss: A more flexible method that takes the result of market analysis (minimum and maximum prices for an asset for a period, price change charts, and other analysis tools) as the basis for setting the opening price value. This is a more complex, but more reliable method than the previous one. - Break-even trading: A rather complex method aimed at dynamically changing the set Stop-Loss level by moving the set value from the drawdown area to the guaranteed profit area at a time when the price has already changed significantly in the set direction. - Trailing stop: A more advanced method of the previous method, which involves automatic means of transferring the Stop-Loss level. - Trend: We will devote a separate article to this method and analyze it later. Let's add a few more words and talk about Take Profit. Just like Stop-Loss, Take Profit is a pending order aimed at fixing profits. When the asset price reaches the price set by the trader, the order is executed, and the trader makes a profit by closing the position. The level of execution of Take Profit is set by the trader himself, and as in the case of Stop-Loss, it is often used with the use of automated trading systems, trading robots and trading systems. This type of order - limit, is executed only when the asset price reaches a predetermined level. There are two types of "entry into a position" - the beginning of trading operations: *- Long position (long, long, buy) - purchase request;

Short position (short, short, sell) - request for sale.*

If we start trading with a purchase, we set the take Profit order execution level above the asset purchase price. If we start trading with a sale, we set the take Profit order execution level below the asset's sale price.

In conclusion, it is worth mentioning the ratio of the orders considered. Using both orders reduces the risk of loss and increases profit. The use of both of these orders in each of the trading situations is purely individual, it is impossible to say unequivocally what is most applicable, what is least. The level of use of pending orders is determined by the trader, in relation to each situation and trading strategy separately. However, the combination of techniques with the use of pending orders and trading robots makes it possible to facilitate the work of the trader, makes it possible to concentrate on analysis, reducing the time to track the situation on the stock market.

Forward contract. The essence and its types.

2020-02-25T14:36:23Z

Previously, we considered such instruments asfuturesand options, which are exchange-traded instruments. However, there are also non-exchange instruments.

Forward or forward contract – a contract (agreement) under which the seller must transfer the underlying asset specified in the contract to the buyer within the period specified in the contract or perform an equivalent monetary compensation.

The buyer undertakes to accept and pay for the asset, on the basis of which the seller and the buyer determine the financial obligations determined by the size of the indicators of the underlying asset, at the time of their execution, in accordance with the procedure specified in the forward contract. In essence, a forward contract is a bilateral agreement on the acquisition of a basic asset, drawn up in accordance with the established form. The forward establishes obligations of one party to the other party to sell or buy an asset at a certain time and on accepted terms, the price of which is fixed and set by the terms of the contract.

We can say that a forward is a binding contract that has its own term of execution set by the parties (buyer - seller), an established asset and its volume, as well as a fixed price for this asset at the time of execution.

Let's look at what conditions should be set in the forward contract: *- The subject of the forward contract or the asset being sold in the forward contract. Such an asset can be: a commodity, various financial instruments;

The volume of the asset, the volume to be delivered, and the volume is specified in the corresponding units of the asset;
The date on which the asset should be placed. The date is fixed and cannot be changed;
Execution price of the forward contract. Amount to be paid;
Forward price. Differs from the fixed price specified in the forward in that it is variable and is determined at the current time as the current price of forward contracts for the corresponding asset.*

Let's consider what features a forward has: - Forward contracts are concluded outside the exchange, for example, in contrast to the option or futures;

*- The forward period can be set by anyone determined only by the parties to the contract;

Forward contracts do not have strictly defined forms;
There is no need to submit reports on forward contracts;
The forward contract cannot be terminated or changed;
Can be compiled in a convenient form for customers; -A forward contract is not retroactive;
There is no Commission for drawing up a forward contract.* Pros and cons of forwards. Speaking about the positive aspects of forward contracts, it is worth highlighting the following points: *- Fixed price on the execution date;
No commissions for concluding contracts.* The negative point is that when the forward price changes relative to the settlement day price for it, the contract participants do not have the opportunity to terminate the contract. In fact, the participants there is no possibility of maneuver, not the flexibility of the terms of the contract, does not allow to change the terms of the forward contract. Low liquidity caused by the lack of a secondary market for forwards and as a result the ability to resell the contract.

What is the difference between forward contracts: *- The forward is mandatory; -The contract is drawn up taking into account the requirements of the transaction participant;

Before the final conclusion of the contract, the following parameters are determined: forward volume, quality characteristics of the asset, delivery time and place of delivery.*

Let's look at the main types of forwards: *- Delivery forward. It ends with the delivery of the underlying asset and payment in accordance with the terms of the contract;

Non-delivery or settlement forward. The forward does not end with the delivery of the underlying asset;
Foreign currency forward contracts. In this type of forward, the parties exchange currency with a fixed rate under the contract.* Forwards are divided by the underlying asset: - Commodity forward, which implies tangible assets for purchase and sale (oil, gas, metal, agricultural products); -Financial forward, which means financial instruments (currency, interest rates, shares, and other securities) as an asset. There are forward contracts on the sides of a forward transaction: *- Forward contracts betweenbanking organizations or the Bank and the client;
Forward contracts concluded by the manufacturer and seller of any product.*

Hedging mechanism for forward contracts. We told you earlier that hedging is an operation to reduce the possible risk that occurs when entering into contracts caused by fluctuations in market prices. We also talked about tools that help you perform hedging operations, talking about the trading robot "Hourglass" and using the set of functions of the Designer program.

Most often, forwards hedge these types of risks: *- Currency exchange rate caused by fluctuations in the exchange rate of various currencies;

Interest rate due to changes in securities quotations;* - Product, due to the movement of the prices associated with inflation, political and different factors that affect the economy. The use of a forward in operations is primarily an insurance against the changing market situation. Well-chosen forward conditions can give its participants the opportunity to protect themselves from adverse situations in the market. However, not very flexible forward conditions make it a little liquid, although it remains a fairly popular tool.

What are futures and options, and how to make money on them?

2020-02-18T14:05:15Z

Today, the concept offuturesandoptions is one of the most frequently uttered in the market. Let's get acquainted with these financial instruments, give them concepts and consider the mechanism of their use. Futures and options are derivatives, and they are also called derivatives. When buying these financial instruments, the trader does not get the asset itself (stock, bond, etc.), but a contract – an opportunity to perform a purchase and sale operation in the future, at a fixed price. Simply put, a derivative is an insurance that protects the trader from possible adverse fluctuations in the price of the main asset

Little history. Initially,derivatives were created to reduce the possible risks of producers of certain assets in the form of goods. Let's look at a simple example: Company A produces flour, which is its basic asset. Today, on the conditional market, company A can purchase a contract for the sale of 10,000 tons of flour for $100, with a sales period of 3 months. In fact, after 3 months, company A can sell its flour for a fixed $100, despite the fact that the cost of flour may fall to $80. With this contract, the company predicts and fixes its income, which will be $1,000,000, and the contract is called - futures, a contract "for the future". There is apossibility that the cost of flour will increase to $120 per ton, and in this case, company A will receive less than $200,000, since the market value of 10,000 tons of flour will be $1200,000. The buyer of such a contract can be company B, which is engaged in the production of bread, and therefore the market price of flour is also important for it. A private trader needs derivatives in order to get a fixed price of a purchase and sale transaction, such as a stock or currency, as well as an asset that cannot be purchased by a trader, such as oil.

Let's talk about which futures and options are the most popular in the world right now. Today, the most" popular " are derivatives for currency, stocks, precious metals, and oil. It is worth saying that a little more than 10 years ago, the purchase of a futures contract meant the delivery of a real asset, that is, in our case, the delivery of flour. Today, the lion's share of derivatives are non-deliverable, and on the day of the end of the contract, counterparties are paid in money.

Let's look at the mechanism in our example. So by the end of the contract, company A must receive a fixed $ 1,000,000 under the terms of the futures contract, which must be paid by company B. Since their derivative is non-deliverable, at the end of the contract period, company Awill not supply flour to company B. What's going on? Company A displays the tonnage of flour on the commodity exchange, with the possibility to sell it to any company, including company B. the tonnage is received at a warehouse accredited by this exchange. At the same time, company B has the opportunity to purchase its 10,000 tons set by futures from another company and receive them at another warehouse accredited by the exchange.

The price of flour may change, and may not be equal to the set price in the contract.

Let theprice drop to $80per ton. In this case, company A sells its asset at $80 per ton, receiving $800,000, and the remaining $200,000 is paid to it by company B, so in total, company A will receive $1,000,000. At the same time, company B will buy 10,000 tons of flour for $80 from another supplier, spending $800,000, and with the amount of future compensation paid to company A in the amount of $200,000, its total expense will be $1,000,000, as planned.
If the cost of flour increases to $120, in this case, the difference will be paid by company A to company B.

Many novice traders have a question about the possibilities of trading options and futures in various markets, for example, stocks and bonds. The answer is Yes. However, there are restrictions related to the duration of such contracts. In our example – 3 months. If the contract was conditionally concluded in June, it ends in September. The value of a derivative always depends directly on the value of the underlying asset, and the value of both instruments tends to be equal. Because of this dependence, futures and options are called derivatives. Traders earn money using derivatives, for example,on arbitrage transactions, but at the same time derivatives do not cease to play an important role in hedging operations – insurance of transactions.

Let's take a closer look at the features of both financial instruments. Let's start with futures. Futures a contract that involves the sale of the underlying asset at a fixed price, with a set delay in execution-payment. Futures fix the purchase or sale price of the underlying asset at the expiration of the term, and the market value of the asset may change. If the futures contract is non-deliverable, then only monetary payments between the parties to the contract are made on it. It is worth saying that the delivery of the asset does not necessarily have to be made on time, in other things, as well as the purchase, but in this case there is a probability of price changes, and the risk of loss of profit.

Consider the mechanism for concluding a futures contract. The contract is concluded exclusively on the exchange. The seller puts his offer on the exchange with its price, volume, and due date. After a buyer appears who agrees to these terms and conditions. The seller can also choose a ready-made request from the buyer, which has a set price, volume and deadline for execution. This list of applications is always present on the exchange, and applications often differ little. Any of the participants in the transaction sees this list and chooses the most suitable one for them according to the condition. This list is called a glass and is displayed in the program that traders use. The greater the depth of the glass, the more flexible it is possible to enter into contracts, viewing more offers and as a result choosing the most suitable conditions in the case of the buyer, and at the same time more likely to conclude a contract in the case of the seller. Some trading programs allow you to set the depth of order book, for example, Terminal, where you can set your desired depth. The order book in the Terminal program is shown below.

Obligations to execute futures are transferred to the exchange. When the date of execution of the futures contract and the conditions under which the seller will be obliged to pay remuneration (if the price of the asset has fallen), the exchange itself transfers the amount to the seller's account and withholds this amount from the buyer's account. If there is a situation that the buyer's account of the contract does not have the necessary amount, then this will be a problem that will be solved by the exchange, not the seller. The situation is the same in the opposite case if the seller must pay compensation to the buyer. The exchange carries risks, so before entering into contracts, both parties make a cash Deposit calculated according to the exchange's formula. Most often, its value can be double the size of the fluctuation of the futures price in one day. So if the price fluctuation was 3 %, then the collateral may be6% of the price of the futures contract. The Deposit is refundable, and is returned to the account of the parties after the execution of the futures. If the participant refuses to fulfill the contract, the Deposit will be deducted from the exchange's account as compensation. Sometimes there is a need for early termination of the contract, in which case its value will be equal to the value calculated by the exchange on the day of termination. That is, the exchange calculates the price of the contract on a daily basis, while it uses its own rules for calculating the cost, but focuses on the prices that are offered on the market by bidders. As mentioned earlier, the price of the futures is slightly lower than the value of the underlying asset, but the difference is small. Sometimes there is a short-term gap that is associated with market situations, which allows you to earn using an arbitration transaction. You can also make money on futures during the day. So the exchange recalculates the price of the futures, respectively, every day, when its price increases, it charges the difference between the value of the contract and its current value, while the amount of collateral also increases. When the contract execution time comes, the price of the futures becomes equal to the market value of the asset. In General, we can say that a futures contract is a convenient financial instrument that allows you to reduce financial risks. At the same time, speculative operations with this tool are quite complex and, often, it is possible to make money on them using automated tools, such as trading robots. For example, the trading robot "Edward".

The next financial instrument is an option. This is also a contract, but not for the amount of the sale or purchase, but for the opportunity to buy or sell the underlying asset at a fixed price at a specified time. By type of transaction options are: *- Call option – an option to purchase;

Put option – a sell option.*

Option contracts are also traded only on the stock exchange. The participant who bought the option has the right to refuse the transaction at any time if it is not profitable for him, while the seller of the option has no right to refuse it. Thus, if the buyer uses the right of the transaction, the seller is obliged to fulfill it. This condition makes this financial instrument very difficult for an inexperienced user, and allows him to trade confidently using various trading robots or trading systems, coupled with the ability to predict possible market situations. An option can be said to be insurance against possible losses. In case of refusal, the buyer loses an amount equal to the value of the option, which is insignificant in comparison with possible losses. This amount is the seller's premium. Considered example: Trader Apurchased 100 shares of Trend LLC at $10per share. He plans to sell these shares in 2 months. Trader B offers him an option contract for the sale of 100 shares of the Trehd LLC, with a period of 2 months for the price of $15 per share. The option price is $100. Let's assume that the transaction took place, let's consider two possible scenarios:

Let's assume that the price of the Trend company's shares fell to $7 per share by the time the option was exercised. In this case, trader A will not only not lose, but also earn.

$1500 (optional sale) - $1000 (initial costs) - $100 (seller's premium) = $400 -profit

Let's assume the share price has increased to $17 per share. Thus, the trader had to waste $100 on the purchase of the option.

$1700 (optional sale) - $1000 (initial costs) - $100 (seller's premium) = $600 -profit.

And without the option, the profit would have been $700. An option, like a futures contract, is a non-deliverable contract. If the buyer uses the option, the seller will simply pay the difference between the current price of the asset on the market and the option price.

As mentioned earlier, trading on the stock exchange using options is quite complex, and a market participant needs to be able to predict situations. For call options, you must set a price that will be lower than the expected price after a set period, for a put option, on the contrary, higher than the expected price. Option prices are calculated using statistical data on fluctuations in the asset value. Many users are helped in this by various programs, trading strategies, and trading robots that calculate situations using market data. which for example can be obtained in Hydra. The one who sells the option is exposed to greater risk, its profit is the value of the option, and the loss is unlimited, as it depends on the price fluctuation. **Any transactions with derivatives are associated with various risks.**The task of the trader is to choose the optimal solution, including the choice of an asset, a trading platform, a strategy, and a trading robot. Manual trading does not bring the necessary income on speculative transactions, so working with trading robots makes the trader's work profitable if the conditions are chosen correctly.