In previous time we’ve reviewed and analysed trading software for algorithmic trading. Let’s continue our analysis of trading systems. tradingsystems.png - The next system will make volume analysiss of orders by tool and will determine the largest one. This system we call - Front running. A robot makes a decision where the largest order holds the price and force traders to trade in opposite direction. - Another popular trading system is arbitrage algo robot. By trading with this robot the trade continues by the tools where correlation of is almost equal to 1. By tool we meant stocks and futures. Shares of the same issuer in different markets are also used. The robot monitoring price flow of financial instruments and make mirror trades, sells one out and buys another to balance the price. One of such robots is \"Edward - scissor hands\" which is a product of StockSharp company and able to do arbitrage trading and make a profit for traders. - One of the most complex in terms of knowledge and technical base is volatility trading. The original principle based on buying options of different types, taking that a potential growth of volatility of a securities with expectation that the volatility of a certain securities will growth. trading.png All represented types of algo trading have a myriad of trading systems. Our company developed such programs as S#.Designer which allows traders to trade in any direction. The trader have an opportunity to build a robot with help of constructor and sets any parameters for strategy. More about S#.Designer you can find on our website.
The growth of activity in the world markets among traders, as well as the constant progress of technology, led to an increase in the speed of actions carried out by players on the trading floor. Today, many traders actively working with various financial instruments prefer trading robots rather than manual trading. This is largely due to the speed of operations and their volume. Let\u0027s see, what is a trading robot? A trading robot is a special program created by a special algorithm, according to which it conducts trading operations. Let\u0027s take a closer look at the features of such programs. The trading robot program allows you to fully or partially take over the process of working on the trading floor. The trader, as the operator of the trading robot, has the possibility of full control over it, which allows the robot to adjust the trading robot, make changes to the program code or change the algorithm. The trading robot in Autonomous operation independently makes decisions on orders and transactions, according to the established criteria of its algorithm, with intervention in the user\u0027s process, operations can be carried out in manual mode. The program code of the trading robot is based on calculated and thought-out mathematical sequences. Keeping track of different data such as indexes, indicators and other market data obtained from the exchange. The trading robot program decides whether to buy or sell certain assets. The speed of reaction to market changes, allows the trading robot to make much more transactions, respectively, potentially bring greater profits and reduce losses. algorithmic-trading-forex.jpg Let\u0027s return to the main task of the trading robot. We can say that the task of a trading robot to simplify trading for a trader is not the main one. The main task of the trading robot is to be able to implement through programming trading algorithms that are difficult or impossible to implement in manual trading. Simply put, a trading robot is a set sequence of actions for making a trade. From the total mass of trading robots, it is necessary to distinguish three main groups that differ in the algorithm of work or the type of strategy. - Trend (directional) or directional; - Countertrend; - Arbitral. trade-robot-strategy.jpg Let us consider in more detail the features of each type of trading robots. 1. Trend or directional robots. The purpose of the robot is the fastest response to the trend of the market, in other words to track in which direction the market has turned. Depending on the direction, the trading robot automatically opens a position either by selling or buying. Accordingly, if the market changes its direction, the trading robot performs the opposite action as quickly as possible, opening a position. 2. Countertrend trading robots. Their goal is to track price rollbacks. This trading robot monitors price rollbacks occurring in the flat position of the market and places orders based on the established algorithm. 3. Arbitrage trading robot. This trading robot is almost the most popular type. A trading robot such as \"Edward\", for example, makes a profit by determining price differences between similar or identical instruments in different markets. In fact, he buys in one market, sells in another, compensating for the difference and making a profit. trade-robot-api.png Another way is the separation of robots: - Candlestick. These are trading robots that use candlestick data to determine signals for placing orders. - Indicator. These robots use indicator data to open an order. Let\u0027s talk about building a trading robot. The very writing of program code is not a difficult task, reduced to the knowledge of programming languages. It is much more difficult to find the right way to create a trading algorithm on the basis of which a trading robot is created. Today, up to 50% of transactions on trading platforms are made by trading robots. Trading robots are rightfully considered one of the most reliable and effective trading tools. There\u0027s an explanation : - Trading robot simplifies the work of transactions with a large volume of the lot, dividing the application into smaller parts and making transactions in parts; - Trading robot reduces the labor of the trader, making trading operations automatically. This contributes to an increase in the volume of transactions, increase the profits that trade brings, and, importantly, reduces the possible loss; - While remaining automatic, the trading robot can always be switched to manual mode, that is, it remains completely under the control of its owner; - A huge list of tools and methods that can be used by a trading robot, allow us to say that the trading robot makes it possible to realize the most complex mathematical problems for trading; - The trading robot does not have the criterion of emotionality, in fact, it soberly operates its inherent mechanism. Does not panic in a stressful situation. HFT-trade-forex.jpg When analyzing trading robots, a trader must choose the right path for himself, on the basis of which he will be able to choose a robot for himself. A trader should understand that a trading robot is not decision for 100% success. In addition to the trader, it is important to know the platform for the implementation of such trading robots. There are quite a lot of them (TSlab, S#.Designer). holy-grail-forex.jpg exchange-trade-strategy.png Summing up, we can say that the trading robot is reliable and convenient functionality in the arms of the trader, the most important thing is to use it correctly when conducting exchange trading.
