Automated trading is relatively new and there are still several people who do not know how to choose a system that suits their strategies. Not all platforms are designed the same way; each system has its own drawbacks and benefits. For example, the 1 G Profit System claims that no prior experience is needed to use this software because the algorithms it uses are user-friendly. You can read up in detail on this system at 1 G Profit System Review review.
Here are a few common features that you must look for whichever system you choose.
- Presence of back testing
To know if a strategy is viable in a live environment the software must have back testing abilities. Only when you apply the strategy to past data and verify the performance in terms of profit and loss can you get an idea about the feasibility of the codes. This will also help in quantifying the risk.
- Programming language used
The programming language used on any platform has a major role to play in how successful the platform is since not all languages are suitable for all kinds of codes and. Usually, C++, Java, R, Python, and MATLAB are used.
- Access to data
Not all automated trading systems have access to data feeds from Reuters, Bloomberg etc. Some platforms are solely focused on Forex trading. Not just the type of data but the frequency of the data feed must also be considered – do you need end-of-day data or intraday trading data.
- Web based platform
Depending on what kind of a trader you are and what commodities you are focusing on, you can choose between a web based platform and a desktop version. The web based platform has the advantage of being accessible from anywhere anytime. But the number of features available on this platform are limited.
- Ease of use
A majority of automated trading platforms do not require any kind of expertise. You can choose your comfort level based on a demo version invariably present with all systems. There are certain platforms that are more complex based on the assets being traded. The tools and features on the platform will provide you with the idea on what assets you can trade and what you can’t.
- Cost Involved
The commissions and the monthly fees if any can have an impact on the total profits you make. Opt for a plan that suits your requisites and ensure that you are paying for only services you need.
- Technical help
All machine based systems will have outages and other issues. Find out the frequency of outages and the response of the technical team. Make sure there is ample customer service with the system.