trade. StockSharp

Assign, install and work with StockSharp Installer.

2020-09-01T08:41:16Z

The Installer allows you to:
- download and install Designer, Terminal, Hydra
- buy or install connectors MT 4, MT 5, MatLab
- buy and install additional software
- install the program together with bought connectors
- track the process of purchasing new programs
- download the API library and automatically tracks its updates.
- download the purchased training lessons, the Shell.

How to install the program:

1. Download stocksharp_setup.exe (.NET 6 will be installed automatically).

2. Start the installation file stocksharp_setup.exe and follow the instructions.
Sometimes Windows prevent the installation and pop up the warning like below:

In this case click More info in the warning window. You'll get the next one:

After clicking "Run anyway" button the installation begins.

3. After installation, open the program window.

How to work with Installer:

Installer allows you to:
- select programs available for download
- manage updates of downloaded programs
- purchase available paid programs

For the convenience of finding the necessary product in the program, you can choose the type of application.

To install the desired application, you need to:

1. Select the app, click install, agree to the license agreement, and click Continue.

2. After this you need to choose the installation path.
IMPORTANT! It is necessary that the folder where the program will be installed is empty.

3. After selecting the directory, click Continue.

4. Select Execute and the installation process begins.

5. After installation, you can use the program.

To delete the program, select delete and click Continue.

To repair, select repair and click Continue.

Installer independently tracks all software updates and updates itself automatically. Therefore, there is no need to delete it after installation.
Installer is not closed by clicking on the "X" in the program window, but is closed via the toolbar, select the menu (using the right mouse button) Close.

You can also check for updates by clicking the check for updates button in the right corner of the program window.

If updates are available, a notification will appear.

To purchase paid apps, select the software you need and click the Buy button.

How to Trade Based on Quantitative Analysis?

2023-04-03T16:29:33Z

💥Quantitative analysis or quant analysis is the process of using mathematical and statistical models to evaluate financial instruments, investments, and markets. It is a data-driven approach that relies on mathematical models and algorithms to identify patterns and trends in financial data. Quant analysis is used extensively in finance, particularly in investment banking, hedge funds, and asset management.

💥Quantitative analysts use a variety of techniques to analyze financial data, including statistical analysis, econometric modeling, machine learning algorithms, and other quantitative methods. They use these techniques to develop models that can be used to predict future market trends and identify potential investment opportunities.

💥One of the key benefits of quant analysis is its ability to provide objective and data-driven insights into financial markets. Unlike traditional fundamental analysis, which relies on subjective judgments about a company's financial health, quant analysis uses mathematical models to evaluate market trends and investment opportunities. This approach can help investors make more informed decisions about where to invest their money.

⚡️Some of the most common applications of quant analysis include:

👉Risk management: Quantitative analysts use statistical models to assess the risk of different investments and portfolios. This helps investors identify potential risks and develop strategies to mitigate them.

👉Portfolio optimization: Quantitative analysts use mathematical models to optimize investment portfolios by balancing risk and return. This can help investors maximize their returns while minimizing their exposure to risk.

👉Algorithmic trading: Quantitative analysts develop algorithms that can automatically buy and sell financial instruments based on market conditions. This approach can help investors take advantage of market trends and make trades faster than human traders.

💥Quant analysis is an essential tool for investors looking to make informed decisions about financial markets. By using mathematical models and algorithms, quantitative analysts can provide objective insights into market trends and investment opportunities.

⚡️Trading based on quantitative analysis involves using mathematical models and computer algorithms to make trading decisions. Here are some steps to get started:

1. Gather data: Collect data from various sources, including financial markets, economic indicators, and company financial statements.

2. Develop a model: Use statistical analysis to develop a model that can predict future market trends and identify potential trading opportunities.

3. Test the model: Test the model by backtesting it on historical data to see how well it performs.

4. Implement the model: Once the model has been tested and refined, implement it in a trading strategy.

5. Monitor and adjust: Continuously monitor the performance of the model and adjust it as necessary to adapt to changing market conditions.

It is important to note that trading based on quantitative analysis is not foolproof and can still involve risks. Therefore, it is important to also have a solid understanding of fundamental analysis and market psychology in addition to quantitative analysis.

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!

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 course is 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 terminal SOFTWARE.

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.

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.
The Interactive 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 access to the Interactive Brokers API libraries, so that each user would have the opportunity to create 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 data and trading charts.
A wide range of programming 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 to connect 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 to work on the trading floor.

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. Petersburg and 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.

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.

Forward contract. The essence and its types.

2020-02-25T14:36:23Z

Previously, we considered such instruments as futures and 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 between banking 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.

Arbitrage trading. Principles, types.

2020-02-04T18:52:36Z

What is Arbitration, general concepts.

Recently, the concept of Arbitration has been found quite often in trade. What is Arbitration?
Arbitration is a method of profit that minimizes the risk of loss by using the price difference for the same asset in different markets.
Today, this mode of trade is a commonly used trade tactic.
Let us consider what this mode of trade consists of.
The point is to sell the same asset at a higher price in one market and purchase the same asset at a lower price in another market.
Such trade is one of the most important components of the market, and most traders seek to conduct such trade, effectively reducing the possibility of loss to a minimum.
Although the nature of arbitration consists of price differences of one asset in different markets, this strategy can be applied to two assets with similar prices and portfolio volume.
Consider what the arbitration portfolio is and its properties:
- Arbitration portfolio - portfolio of assets, which does not require additional resources of the investor.
- The arbitration portfolio is not influenced by any factor, that is, has zero risk.
In fact, for an investor, an arbitration portfolio is a tool that allows it to receive a large return, while remaining unaffected by various risks.
A simple example of arbitration trade:
Suppose the value of asset A on one of the exchanges is $100, while the value of the same asset on the other exchange is $105.
A trader acquires an asset on one exchange, where its value is lower, and sells it on an exchange, where the value of it is higher. Thanks to this strategy, the trader gains profit, in the form of price differences of asset A on various exchanges.
This example is quite simplified, and is given only for the sake of clarity, in real trade the implementation of such transactions has its own difficulties.

Choice of pair in arbitration.

Let us once again define Arbitration Trade based on practical knowledge of it.
Arbitration trading is a method in which trading is carried out by means of differently directed transactions with an asset or assets having similar prices and portfolios, based on the difference in their value. In fact, the trader buys a cheaper asset and sells a more expensive asset similar to the first asset.
Often, the arbitration pair selects a base and derivative asset (for example, shares and stock futures). Both assets should have similar price dynamics - correlation.
However, correlation has the property of being broken for various reasons.
Such reasons can be related to various serious market changes and to the consequence of market inefficiency. Emerging correlation violations contribute to profit in arbitration transactions. In fact, the trader profits when the correlation of the underlying and derived asset is restored, after its violation.
Simply put, an arbitration transaction occurs when buying a cheap asset and selling an expensive asset when there is a difference between their prices in view of various factors. However, for the rest of the time, the prices of both assets tend to be equivalent.

Types of arbitration trade.

Let 's look at what types of arbitration are distinguished in trading:
- Time arbitration;
- Spatial arbitration.
Temporary arbitration implies that transactions occur with a time difference. This type of arbitration is characterized by a mechanism: buy cheap, and sell expensive, or vice versa, sell expensive, and buy cheap. To put it simply, such a mechanism is actually - a common speculative transaction made on the stock exchange market.
Temporary arbitration contains a risk, as during the period of time the trend may not change the direction of movement, that is, if the trader initially bought the asset for cheap, it is not a fact that after time the asset will not cease to be cheap, thus bringing a loss on sale.
The next type of arbitration is spatial. With this type of arbitration, a couple of transactions are bought and sold at the same time but at different sites. In such transactions risk is minimal, and sometimes at all reduced to zero, as a couple of transactions take place simultaneously, at the same time the trader should take into account not only the difference in the price of the asset, but also possible commissions, which should be included in the expenses and covered by the amount of profit.
In addition to the types of transaction time, arbitration is divided into trading methods. Let 's look at the main ones and explain them.
Spatial arbitration is divided into the following types:
- Equivalent arbitration;
- Regulatory arbitration;
- Calendar arbitration;
- Percentage arbitration.

Equivalent arbitration refers to such transactions in which the underlying asset and derivative asset (derivative) are considered. Since the price of a derivative always strives for the price of a basic asset, price schedules go alongside each other, sometimes intersecting and diverging.
If we simultaneously open equidistant positions on the selected asset and its derivative, when they have the maximum divergence, then closing the position when they converge will make a profit.
Regulatory arbitration is based on the difference in price caused by different rules in different jurisdictions (areas, countries, unions).
For example: due to certain legislation, an asset in one region is sold with a markdown, and its price is correlated with prices in other regions, differing by a stable markdown difference. In this way, by purchasing an asset in one region and selling it in another, you can earn a profit in the amount of a markdown.
Calendar arbitration is based on the difference in price arising between futures on the same asset but having different delivery times. This difference is called a calendar spread. The subsequent trading mechanism is similar to the equivalent arbitration method.
The last type is interest arbitration. This arbitration takes place on the foreign exchange market (Forex), and there are two types:
- No forward coverage;
- With forward cover.
The essence of arbitration is that the currency is bought and placed on a deposit with a set percentage. The currency is then sold at the current market rate. If the currency purchase occurs with the sale of a forward contract for the same amount, arbitration with forward coverage. With this type of risk is minimal, and for frequent absence.
If the purchase is made without forward support, arbitration without forward coverage. Such arbitration may be accompanied by a large risk based on a change in exchange value, which may result in a loss that is greater than the percentage of income on the deposit.
Triangular arbitration is also common in the Forex market. Let 's look at it with an example:
The trader buys EUR/USD, sells EUR/GBP at the same time, and buys USD/GBP. An equilibrium triangular contour is created. It turns out that the trader bought Euro for dollars, sold Euro for Pounds, Bought Dollars for Pounds. Thus, a closed chain is obtained, on the imbalance of which profit is made.The scheme of such arbitration is shown below:

Conclusions

Arbitration trade has gained a lot of recognition among traders. A large number of approaches to solving the problems of arbitration trade, a large number of methods used to implement the tasks make this kind very flexible, and the absence of risk or its minimum value further popularizes it.
However, it is worth saying that the strategies of arbitration to direct, are related to the rate of reaction of the trader to changes in the asset. This leads to various requirements that promote successful trade:
- Fractions of a second play a major role in arbitration strategies. Therefore, such trading systems require good software. It can be represented by ready-made trading robots. For example, StockSharp offers the robot "Edward", which allows you to work using the trader's arbitrage strategy and is capable of quick and flexible configuration.
High-quality software is especially important when working for Forex, as the number of traders is high. Therefore, many prefer an individual approach and create trade robots on their own through various programs. Trading robots are mostly written in powerful C# or C++ languages, using libraries such as S#.API and Interactive Brokers API.
Recent years have also received designers of trade strategies TSlab and S#.Designer, which allow to create trade robots without programming.Below is an example of a trading robot created using S#.Designer, the graph shows the moment of divergence of assets and their convergence with the subsequent transaction by the robot.

Application of the latest software leads to reduction of risks and improvement of the mechanism of work and as a result to increase of profit.
- It is important to remember that the strategy, even if there is perfect software, is profitable, if the income will exceed the possible risk and all broker commissions.
- It is worth remembering even using a trading robot, the risk can not always be reduced, so the trader must constantly manage his strategy, improve his tools and his knowledge. Learning new principles that can be applied in trading can make a trader a pioneer in making profits.
It is necessary to know that arbitration strategies can and should be combined with other types of exchange trade, which will give additional opportunities in income generation.

FAQ on Aalgorithmic trading. The history of algorithmic trading.

2020-01-27T15:09:19Z

The start and emergence of algorithmic trading can be considered the 98th year of the last century, when the us securities Commission (abbreviated SEC), decided on the possibility of using electronic trading platforms, and as a result, the use of trading robots for algorithmic trading.

All this gave rise to a leap in technology in the field of trade.
There are several periods that are particularly important:
- the beginning of the 2000s, this period of technology allowed you to make automatic transactions in a few seconds, despite the low speed it was a breakthrough, according to the SEC calculation, robots account for less than 8% of transactions.
- the end of the 2000s was characterized by an increase in the speed of transactions up to milliseconds, during this period the number of transactions made by trading robots exceeded 55-60%.
- late period since 2010, the number of use of trading robots has decreased, and amounted to about 45-50%. Experts attribute the decline in usage to an increased number of errors and failures of trading robots.
Today, algorithmic trading (HFT trading) is one of the most important components of exchange trading. Not only private traders, but also large companies-invest. banks and funds use trading robots in their work.

The annual investment of companies in the development of tools for algorithmic trading is growing, and the result of such developments brings its own income.
StockSharp has been providing traders with all the necessary tools for algorithmic trading for many years, starting with connectors for exchange trading and ending with software that allows them to work on all trading platforms around the world.
You can find more information about the list on our website.

FAQ on Algorithmic trading. What is Algorithmic trading?

2019-12-24T15:37:52Z

The concept of algorithmic trading there are two values:
- Algotrading -an automatic system that allows you to open trades within the created algorithm, without the participation of a trader;
- Algorithmic trading – a method of execution of a large order, in which the order is automatically divided into parts, and is submitted consistently according to the established rules.

In the first case, algorithms are needed to make a profit, using automatic market analysis and opening positions. Such algorithms have other names such as "trading robot" or "Advisor".
In the second case, the algorithm is used in order to simplify the work of the trader in manual trading when making transactions in large volumes.
StockSharp company pursuing its goal to facilitate the work of the trader and bring it to a higher and more profitable level, has developed several programs to help the trader in this.
Among these programs is S#.Designer.

It allows you to create trading robots for algorithmic trading.
Our company has created a program that will help the novice trader to create his strategy with the help of dice. In fact, it is a constructor that requires a trader only to understand the market and the developed strategy, which is quite simple to implement and implement in trading processes. More information about the program can be found on our website.

Interactive Brokers FAQ. INTERACTIVE BROKERS-who are they?

2019-12-11T15:35:11Z

Interactive Brokers is the largest broker in the United States, based on the volume of average daily transactions with profit. Interactive Brokers is a leading electronic Forex broker.

Electronic brokers are focused on trading strategies or trading robots that work in the sector of trading with commodities [nerd], this allows us to say that this broker is among the five Prime brokers.
Interactive Brokers is fully regulated by the financial industry Regulatory authority, the securities and exchange Commission, the new York stock exchange, the financial conduct Authority, and other self-regulatory organizations.
To get the data, use the API connection via the IB TWS terminal.

To work with this program, StockSharp has created its own API library, which allows you to create your own connection.
What can this give the trader? There are several advantages:
-The fastest quotes
-The average receiving speed is 4 MS
- Work with real and demo accounts
Accordingly, the use of Interactive Brokers with the help of API libraries opens up new opportunities for the trader, allowing him to expand the expansion of his trading operations.