Today, the financial market is comfortable for both private individuals and investment companies. The age of the Internet, as well as the information technology, have done their job, and now everyone can trade not only with a computer, but with a phone. With the changing functionality of brokerage companies and market conditions, the managers have also been adapted to them, which allowed creation of automatic approaches.
Every year, algorithmic trading attracts more and more speculative fix api traders. In view of this, new algorithms, trading advisors and whole software for comfortable trading are emerging. This simplicity induces increasing interest. But it should be understood that the automatic approach is a complex process and you, as a trader, should control your risks even before you turn on the automatic program on your account. The thing is that about 90% of programs on the market are not profitable at all. Those that make a huge profit are hidden under seven locks.
Therefore, if you are thinking about using a robot for your trading, you definitely need to know some key points. Today’s review will be devoted to this topic. I will analyze those pitfalls that you should know about before buying a robot and what you should pay attention to.
Key factors for analysis of algorithmic strategy effectiveness:
- Indicators of profitability on a real trading account: if a developer or fix api trader has made a program for the sake of the program, then you will agree that such software will hardly work qualitatively. Availability of testing not only on history, but also on investment capital increases at times the openness of data and they can already be analyzed. If it does not work on a real trading account, it means that the author does not trust his capital to the program. So why you should do that?
- Maximum set risk percentage: a lower threshold must automatically in each trading robot, at which point the robot stops trading. If this parameter is not specified, then consider that you are making a venture investment, which high probability is to not give the desired result.
- Working drawdown: this parameter is similar to the risk I wrote about above (https://www.investopedia.com/terms/d/drawdown.asp ). The difference is that the drawdown should take into account the profit and if there is a decline, profits for a certain percentage, then the robot should stop the process of trading in the fix api forex market. Thus, the risk is set for the initial capital, and the drawdown for the current (capital + profit).
- The ability to test the software: if there is a beta version of the product, which you can test on the history, then be sure to ask about it. So you will see whether the logic of opening positions coincides with the description of the robot and how much it adheres to all parameters.
- Results on external sources (analysis of indicators): there are services for tracing the robot’s trade and if it is registered on one of these, it will allow you to already analyze trading indicators such as mathematical expectation, profit factor, recovery factor and so on. For example, on this resource you can both analyze the robot trading, and immediately purchase it – https://fxsocialnet.com/ .
- Support for the developed robot: well, if you have already decided to purchase a robot, then the availability of support after purchase will be the last decisive link in favor of a particular trading robot.
If you consider all these key factors when choosing automatic software for fix api trading, it will allow you to choose exactly the quality software. Moreover, it will avoid the most basic mistakes and hidden moments that may occur when you work on a real account and risk your investment capital.