We live in a world where a human doesn’t have to be involved in many processes — automated systems do the job. The main purpose of an automated system is enhancing productivity and quality; stability is not the issue as automated processes are a priori more stable than manual. Also, automated systems allow increasing operating speed and accuracy, while shrinking operation time and costs. In finance, automation has found use in exchange trading after it appeared as a technology.
In the past, traders placed buy orders via telephone, tracking rates in newspapers. With computers came first trading programs, and then online trading. As the input data came at very high speed and in giant volumes, people found it difficult to track the exchange market fluctuations. This is why automation of decisions and actions was an imperative caused by enormous volumes of data that cannot be processed manually but still had to be processed in order to make an informed and timely decision.
Today’s exchange traders enjoy various algorithms and programs. Trading with special tools is the starting point for beginner traders as well. All they need is to follow the given rules, thereby avoiding losing money due to poor experience. Such algorithms are vital for hedge funds where managers do not have a right to make a mistake. Being a highly-experienced trading software developer, Polygant is ready to support businesses across various markets:
Greed and fear are emotions that impede successful trading: human errors make lots of exchange players lose their deposits. Outselling, stop-loss ignoring, early order termination — when stressed, traders are vulnerable to such errors. In this regard, trading bots — or automated trading systems — are called to solve all these issues.
Trading bots are programs that interact with exchanges by following the strategy preset by the user. They — at their own digital discretion — decide whether to buy or sell an asset, guided by algorithms analysing and interpreting market data (trading volume, number of orders, price, and time, etc.). Bots are an essential trading tool: they can crawl through market data and use the insights.
Weaning traders off of routine operations, automated trading systems stick to given strategies and instantly respond to any market manoeuvre, which is greatly beneficial for scalpers. Another privilege of trading with bots is that the system can process a plethora of parameters at a time. Not a single human could do this as fast and efficiently as the system does.
Working 24/7, bots perform a lot more transactions on exchanges than people. For instance, bots cover almost half of all orders processed on the London Stock Exchange. The world already counts numerous algorithmic funds trading viably thanks to bots. A trading bot helps increase the managing trader’s efficiency, while self-sustainability and settings that flexibly tailored to any market precondition the success of a trading system. The bot can be configured in various ways:
Trading bots are fitted with parameters necessary for making the most appropriate decision. By identifying signals, they determine when to trade and when to sit out and monitor the situation. Bots find profitable orders even at low volatility — when the trend direction is unclear. Algorithms can gain with every order, even if there are only few of them. When a range breach happens, they can enter among the first and get the most out of it. Therefore, such careful assistants can easily detect trends to follow.
Design of automated trading systems requires knowledge and skills in two fields: exchange trading and programming. Our specialists already have heavy experience in developing trading bots in close cooperation with our trader team. We can craft a bot for various exchanges or terminals:
Trading software has been in use in conventional financial markets for 30 years. Initially, they were exploited by hedge funds in stock, commodity, and currency markets. Then global computerisation made this instrument accessible to traders and brokers. Today, any professional can buy a ready-made solution or order a trading terminal for various exchanges with the required functionality.
A trading terminal is software that displays market data and makes transactions easier. With that, a terminal is not an exchange — it just provides extended functionality for connecting to an exchange. Terminals process input data, generate reports and charts based on them, puts required parameters into indicators, etc.
Terminals need to be compatible with certain exchanges. Usually, recommended and supported software can be found on the exchange website. To trade using it, one needs to create an account, connect to the exchange via API. After such integration, the program will be able to process the exchange data.
Quite often, trading terminals are called electronic trading platforms. Before the emergence of the broadband Internet connection, they had been widespread in the form of desktop software. Today, online platforms are gaining traction, as well as mobile trading apps offering basic functions of traditional platforms. Sophisticated traders prioritise the following features when choosing a platform:
Traders use currency/security/cryptocurrency trading terminals for comprehensive technical analysis, as a terminal and an exchange drastically differ in functions. High-grade terminals usually offer numerous technical analysis tools. A trader can pick the essential instruments, adjust them, disable unnecessary functions, and connect additional plugins.
Trading terminals are also used to monitor the market situation: they can analyse data across all conventional currencies or cryptocurrencies. Any user can configure a properly-designed trading app as they like, thereby simplifying their further operation.
Polygant has been studying and designing trading software (adviser, indicators, utilities) for years. We are ready to share our advancements and discuss creating something really need for you: just send your questions via the form. Supported by us, you will get the appropriate profit-gaining tool.