Tag: automated trading

  • The Stock Market prediction Is Possible or Not?

    The Stock Market prediction Is Possible or Not?

    The Stock Market prediction Is Possible or Not?
    Everyone would like to know everything about this

    By Guy Avtalyon

    Stock market prediction is the intention since the beginning of the stock market. The reason is clear. Every single participant in the stock market aims to gain huge or decent returns and to avoid losses. Sounds logical, indeed. In early days traders and investors were just guessing, to say it simply. Well, frankly, not just guessing. There were some estimations, judgments, listening to the rumors, asking. But today, traders and investors may employ different tools, machine learnings, and AIs to help them in stock market predictions. 

    Is the stock market prediction possible or not? 

    We already learn that past performances can’t show future trends. But is this truth 100%?

    Of course not.

    Watching past performances can help you with a high level of certainty to predict how some stock will act in the future. This is very important because based on that data you will determine and decide what to do with some stocks. Would you buy or sell, would you stay on position or leave.

    The modern stock market prediction is often based on machine learnings and AI technologies varying from very simple to complex ones. Those stock market prediction tools or techniques, whatever would you like to call them may help you a lot to secure your investments. Even the simplest can give you an insight into the future stock market trends. 

    Using robust algorithms has benefits, of course. But not every trader or investor can afford them. Some are very expensive and the result is very often almost the same if you use the simple version or some simple tool.  

    The crucial thing about stock market prediction is to have quite enough historical data to be able to make a conclusion, to have a basic sense of some stock’s nature.

    How to predict the stock market movements?

    The relationship between supply and demand is what dictates the stock price. And this works very simply. If there is in the market more sellers, that means the supply is greater than demand, so the price will decrease. And vice versa. That is the easy part of the stock market. Things become more complicated when you try to understand why some investors like one stock more than the other. But that is another question. We want to know is the stock market prediction possible or not.

    The algos, tools, learning machines deliver their predictions based on historical data. This means that all of them show the prior values of some stock and based on that give the future estimation of stock price action. 

     

    And that is exactly what you need as an investor. To get some info with the highest level of possibility on how some stock will perform in the future. To have that kind of info you don’t need to spend a fortune. Some simple tools may benefit you too. Such a tool must have historical data about prior performances, for some limited time, for example during one year. Based on that info you will be able to check your trading or investing strategy. And that is crucial. The possibility to check your strategy on your own and not to put all in the “hands” of some algorithm, because we want to be honest with you, algos can make fails. Algos, as like your trading strategy, depends on inputs that some other implemented in it. To say simpler, it is based on other people’s knowledge about the stock market prediction and investor expectations.

    Le’s check one example. Let’s say you have a strategy and you want to check how it works on a particular stock.

    How efficient your strategy is?

    If it shows your strategy isn’t good you can easily change the strategy or test it on some other stock. Moreover, the possibility to test different strategies on numerous stocks is extremely important when it comes to choosing the stock to invest in or strategy to employ. What is the main point of trading? To gain a nice return. And how to provide that? You have to find the best possible to take a profit point and stop-loss point.  

    Based on the info you can obtain from such a tool you can easily decide about your future trading. 

    Very simple and very helpful, don’t you think? 

    What Traders-Paradise wants to say is just stay tuned.

  • High-frequency Trading Algorithms Characteristics

    High-frequency Trading Algorithms Characteristics

    High-frequency Trading Algorithms CharacteristicsHigh-frequency trading algorithms or algos are rigidly secured by their owners.

    By Guy Avtalyon

    High-frequency trading algorithms can be amazingly easy to use. And beneficial too. Where is the catch?

    By their nature, because they are so fast, those algos know the future price, they don’t even have an attempt to predict them. The slower shareholders need to predict prices, algos don’t.  High-frequency trading algorithms use arbitrage, traditional technical analysis, and everything that works. Their purpose is to implement and modify well-known strategies while running with their extraordinary speedy setup.

    The High-frequency trading algorithms main advantage is getting price quotes earlier and placing orders faster than the bulk of other traders.

    Of course, the profit may depend on the software’s latency. Or it can be some lag between the price quote and following order execution. Latency is the most important part of an HFT algorithm.

    High-frequency traders can optimize latency in two ways: if you minimize the time to reach the exchange or if you maximize the speed of your trading system.

    Traders use algorithms for trading to reach higher performance to markets.

    Algorithmic trading is like traditional trading.

    You want to buy or sell the security. The whole process is based on the predefined collection of rules examined on past data.

    That means every HFT algorithm use indicators, charts, technical analysis, etc.

    HFT firms decrease latency by fastening direct market access.

    As an HFT trader, you can get data from the market nonstop, and without third-party. The direct market access gives you the capability to enter market orders straight into the market’s order book. This is an important feature of a low latency trading platform.

    That guarantees that you will receive data before then other traders that are not using direct market access. So, you will be able to participate in the marketplace before the competitors.

    HFT methods gain an advantage via ultra-low latency

    It is possible through the establishment of two important inputs:

    Automated trading algorithms

    It is known as “black box” trading systems. Actually, it employs multiple algorithms based on various market variables. It provides a trader to get trading signals and identify a possible trading chance. That signal is traded automatically by installed trading software.

    Collocated servers

    These servers are given to the trader and connected to the market or exchange. They are actually placed at the exchange or market. The advantage of collocated servers is that they give you direct market access with hugely decreased latency. That’s why they are better than remote servers.

    The main task of a good HFT algorithm is to reduce the time of traders’ access to the market.

    The use of the HF trading algorithm altogether with collocated servers guarantees an exact and up-to-date synergy with the market.  Complex algorithms identify and execute trades build on strategies. These strategies are known as order anticipation, arbitrage opportunities, momentum.

    So, is it possible to compete with algorithmic trading?

    Well, we have to say it isn’t. Don’t try to beat a High-Frequency trader! You will lose that match. The HFT has plentiful supplies and is be able to keep the algo running 24/7. Can you keep alert all that time? Can you be functional and reliably?

    HFT includes multiple sub-disciplines.

    They are quantitative techniques with short time holdings.

    It is established on technical and fundamental analysis. Yes, they use traditional patterns to make trades. They are a very fast variant of what traders have done for a long time before. Also, HFT includes algorithms to prognosticate hudge buying or selling patterns. They use high-speed connections and co-located servers or in-house exchanges. And in a millisecond places trades based on those forecasts. They know what the next will happen!

    The simplest algorithm is based on technological and geographic recognition.

    Remember, the length of the optical connections is very important. The HFT algorithms can evaluate the order attributes, and discover if it is an indicator that related orders will go to other markets.

    And what will happen? The High-frequency trading algorithms will place the order to buy at the offer price at the other exchanges. 

    High-frequency trading algorithms will always take advantage of the speed of execution.

    HFT knows how to force the price to a higher level. It will buy all the stocks first and push the price to grow. And?

    So, if some trader places the order with the limit order on that or higher price the algo will be the winner. It will use the spread.
    Because of its dominance in the rapidity of execution.on technical and fundamental analysis. Yes, they use traditional patterns to make trades. They are a very fast variant of what traders have done for a long time before. Also, HFT includes algorithms to prognosticate hudge buying or selling patterns. They use high-speed connections and co-located servers or in-house exchanges. And in a millisecond places trades based on those forecasts. They know what the next will happen!

    The simplest algorithm is based on technological and geographic recognition.

    Remember, the length of the optical connections is very important. The HFT algorithms can evaluate the order attributes, and discover if it is an indicator that related orders will go to other markets.

    And what will happen? The High-frequency trading algorithms will place the order to buy at the offer price at the other exchanges.

    HFT algorithm will always take advantage of the speed of execution.

    HFT knows how to force the price to a higher level. It will buy all the stocks first and push the price to grow. And?

    So, if some trader places the order with the limit order on that or higher price the algo will be the winner. It will use the spread.
    Because of its dominance in the rapidity of execution.

  • Automated Trading – Improve Your Trade

    Automated Trading – Improve Your Trade

    Automated Trading - Improve Your TradeHere are Traders-Paradise’s suggestions for the automated trading software we examined.

    By Treaders-Paradise Team

    Do you know how automated or algorithmic, also algo, trading can make the profit to individual investors?

    OK, let’s start. We don’t want you to waste your time.

    But, honestly, we are doing this to not let you waste your money.

    How does it work?

    What computer program is going to do?

    A computer program will follow the share price. That tracking will also, add moving average indicators.  Automated trade means that software will place buy and sell orders.

    Don’t you think it is a great help?

    The automated trade program will help you to block emotional trading. And as you already know, it is very important. Not to trade under emotions and make errors.

    We, here at Traders Paradise, think it is a great opportunity to have algo that will trade in your side. Moreover, it will make a true profit for you.

    Finding such an automated trading system is a life dream goal for many traders. The one that places orders and guarantees profit.

    And one that demands almost no or little input from the trader.

    Automated trading means the trader has to set precise requirements for entries and exits. They will be automatically launched by your computer.

    The main thing is that you can set requirements in the range from very simple to extremely complex strategies. That complex strategy will require complete knowledge of programming language special for the platform you would like to use for your trades.

    What is an automated trading system?

    It is the method of employing computers to support a set of established directions to execute a trade.

    Producing a profit is in demand and expected. Moreover, with automated trading, it is guaranteed.

    Can you expect from humans the same? Of course not.

    The main benefit of using automated trade is that you have to do almost nothing. Your automated system will recognize the potential for profiting even before traders who are humans, of course.

    Automated trading is very popular among institutional investors, but past several years it is accepted by retail investors especially for investing in the stock.

    Although, automated trading platforms are the most popular for the Forex market.

    But as you are reading this, you are ready to use some automated program. Your only concern is to find the best automated trading software.

    Traders Paradise has some suggestions for you.

    We will try to give you a hunch about some automated trading platforms. And we think these are the best in our opinion.

    • ZuluTrade

    Is Zulutrade scam? 4Image source: ZuluTrade website

    ZuluTrade is an honored brand in the field of online trading software providers. It runs an online and mobile social and copy trading platform. ZuluTrade is one of the most popular automated trading platforms that you can find today.

    ZuluTrade turns the suggestions of experienced traders and automatically executes the trade in your account. You can test it by clicking the button in our navigation bar TEST YOUR SKILLS FOR FREE!

    You can choose the program or traders that are best for you.

    ZuluTrade automated trading platforms allow traders to copy the trades of successful traders. Also, you can copy signals or full strategies.

    This autotrading platform recommended by Traders Paradise grants you the trust to involve in trading. Especially if you are a beginner with deficient knowledge or skills.

    • E*Trade

    E-Trade 1Image source: E*trade website

    Power E*TRADE is an innovative platform.

    Thanks to it you can improve trading and invest by uniting trading applications directly into E*TRADE.

    Its automated platform is reasonably positive. They give access to streaming market data, free real-time quotes, also the market analysis. The user interface is smooth and simple to operate. For instance, using their dashboard, you can follow accounts, build a watchlist, and execute your trades.

    More about E*Trade you can read HERE>>>

    • Wallstreet-forex robot

    Automated Trading - Improve Your Trade 2Image source: WallStreet Forex Robot website

    If you want a fully automated trading experience, try WallStreet Forex Robot 2.0 Evolution.

    You should check the robot’s latest performance on real money accounts.

    If you follow all their instructions your success is guaranteed.

    The entire system is smooth-running.

    You’ll enjoy the latest version of the program.

    This high-grade program has a lot to offer advanced and new traders.

    The program involves a Broker Spy Module.

    This module is created to protect the trader from scams and unethical brokers.

    The main advantage is the program works by automatically scanning for new updates and settings.

    Moreover, you don’t have to worry about restarting the robot. This is a great feature.

    This new program doesn’t allow the scam broker to fool the software using methods such as delayed order executions and spreads.

    The software will monitor for broker movements and investments all time and can easily recognize a scammer, 24/7.

    The main features of automated trading software

    The risk associated with automated trading is high. It can cause large losses.

    Automated trading software is created to perform real-time all market data.

    It must have a connection to multiple markets.

    The software should have feeds of different formats or to go with third-party data vendors and give it in the same format.

    Latency must be decreased to the minimum.

    In today’s vibrant trading realm, the initial price quote can be modified various times in only one second.

    Automated trading offers quick and timely access and full adaptability to your needs.

    But before you enter algo trading you must understand and have the full experience of trading software. The best way to do so is to test it on a free demo account.

    Don’t waste your money!

  • Automated Trading Systems Can Increase Your Trading Profits

    Automated Trading Systems Can Increase Your Trading Profits

    Automated Trading Systems Can Increase Your Trading Profits 1This is not something you can do over the weekend and let run happily ever after.

    By Guy Avtalyon

    People maybe get automated trading wrong. I’ll explain this. But first comes first.

    Wouldn’t it be great to have a robot trade on your behalf and earn guaranteed profits? It’s everyone’s dream is to find the perfect computerized trading system for automated trading. The one which guarantees profits and requires little input from the trader themselves.

    There are many automated trading systems available. But there are still a few burning questions that need to be answered.

    First of all, what is the automated trading?

    They are computer programs designed by expert developers to follow a given market algorithm, every minute of the day.

    You should consider automation if you want to participate in the futures market but lack the time to monitor, formulate, and implement your own trading plan.

    Automated Systems are programmed to look for trends, analyze market data, and apply specific mathematical/technical formulas which in turn generates signals: buy and sell orders – to go long or short.

    The performance – whether hypothetical or live- is tracked in real-time and you can subscribe, activate, and deactivate any system at any time.

    Automated Trading is comfortable

    They are programs that place orders on behalf of the trader. A trader sets the essential condition for order placement based on technical analysis principles.

    The system will place orders automatically based on the necessary conditions.

    The automated trading system facilitates backtesting on a demo account which gives a fair idea of the efficiency of the strategy.
    Nice!!!

    But you need more about how an automated system can increase your trading profit.

    In other words, can trading strategies that are automatically executed in financial markets be profitable?

    The investment is a process, so automation is a logical conclusion. To be honest, auto-trade is like a driverless car. It can go fast or slow.

    It all depends on the robustness of your design. People maybe get automated trading wrong. This is not something you can do over the weekend and let run happily ever after.

    If you believe that manual trading is highly competitive and intense, then imagine sitting in a fast car without a steering wheel, accelerator or brake pedals.

    So, why people fail?

    The way to design a profitable trading system is counter-intuitive. It must be built to withstand erosion. People think of the best possible outcome when they design a strategy.

    Wrong.

    You can’t design and test drive snow tires in Sahara. There are some reasons for that, don’t you think?

    You need to design automated strategies with failure in your mind. Always.

    Take care of the bad scenarios and the good ones will take care of themselves.

    That is not sexy,  but you wouldn’t take some luxury car for a spin if you knew that brakes are porous?

    When people think about failures, they think about stop losses or blow-ups. This is not the main issue, really.

    The problem is transforming near misses into near losses.

    Like you know, the market flip-flops all the time and does not care about your feelings.

    The whole game is about:

    1. a) moving the peak of profitable trades from small losses into small profits. In order to achieve a compounding system. That can only be achieved by having a solid exit policy
    2. b) elongating the right tail: ride your winners and cut your losers short. Profits look big as long as losses look small

    But as always, simple is not easy.

    The privilege of simplicity is that it imposes itself, even to those who do not understand its sophistication.
    Automated trading is a great tool to have in your trading toolkit.

    We would say the hardest thing about it is codifying your strategy. Converting your strategy into code that a computer can interpret can be very difficult, but totally doable if you put your mind to it.

    So if market conditions cause it to enter losing positions, it’s gonna enter losing positions, and quickly!

    These losses can mount up so have proper risk management systems in place:

    – Set a max drawdown limit that’ll kill the bot if it’s triggered
    – Use stop losses on every trade

    The strange thing is that it works and frankly speaking, no one would never be able to achieve the same results manually. You do not want to sit in front of a monitor and contemplate all the time.

    Computer trades are like a psychopath.

    It has no emotion and can do many more markets.

    The algo makes better decisions quantified as a higher gain expectancy/trading edge than you would.

    There is no question about it. It takes trades to makes money.

    The mindset of an autotrader is different than a manual trader. You have to trust the system.

    Once you auto trade, you have to let the machine take the trade even if your guts scream NO.

    The good news is you can monitor multiple markets on your own time.

    The machine keeps trading away and that is an incomparable feeling of freedom.

    You can spend that time with your friends.

    Isn’t it amazing?

     

Traders-Paradise