High-frequency trading


According to the US Bureau of Statistics, the development of information technology and automated systems has grown in more than 5 times during the past 10 years. Moreover, it still keeps rapidly increasing each year. The new online payment services, platforms for selling goods and services, as well as fund-raising have also developed throughout this time. The whole world has become digital and now it is possible to interact with the Internet in one click. The financial markets are also keeping pace with these trends.

Both private traders and institutional investors (banks, hedge funds) started using high technology products. The main task of the trader is to repeatedly follow a profitable algorithm using the most popular programming languages for the FIX API protocol – C #, python and java. So why not automate it?

High-frequency trading of HFT is such a trading, which allows completing deals of buying or selling forex financial instruments extremely fast. It is a type of trading, which is done by a robot, based on a specific algorithm. FIX API trader can directly trade at the interbank level avoiding the unnecessary delays from broker servers, which allows getting an advantage because there is no delay. Each trader uses a particular trading system, which consists of the certain parameters and principles. This system can be automated.

Because the entire HFT trading is done by robots, they can analyze the data very fast and make a decision whether to open a long or a short position. It creates an obvious advantage, based on the fact that the position is fixated on the FIX API protocol, which is used by most of the financial platforms worldwide. CQG fix api is, particularly, among the leaders.

What is the main principle of High-frequency trading

The increased market volatility is observed at the time of the opening of the exchange, the publication of financial statements of companies or changes in the monetary policy of the Central Bank. The maximum quantity of the high-frequency trading happens exactly at this time.

HFT robots are able to fix the micro results due to spread expansion, arbitrage correlation or the difference in volatility of quotations (usually of the currency pairs). Thus, a huge number of transactions allows reaching a positive rate of return. Of course, this requires a fix api broker, which gives an access to an open liquidity market.

What kind of HFT is the most popular and available for a simple trader?

The HFT algorithm differs within each investment company and is kept in secret. Wikipedia highlights four popular types of strategies, however, the arbitrage is more real and feasible for an ordinary trader. It is as a global principle of the HTF strategy.

An arbitrage is a trading strategy that takes into account the difference in quotations for the same asset due to a “temporary lag.” This type of trading can also be divided into 2 subtypes: FIX API Latency Arbitrage and FIX API 2-legs Arbitrage. The difference between these types is that robot, which follows FIX API Latency Arbitrage strategy finds the price difference for the same asset between the two brokers and opens the transactions with the “slower broker” (Latency Arbitrage). This strategy is often used with the help of lacquering open positions or the FIX API Lock Arbitrage principle. The second robot that works on the FIX API 2-legs Arbitrage strategy makes a purchase of the same asset from one broker and sells it from another one (2-legs Arbitrage). Since HFT completes an operation in a few microseconds, the robot makes several trading operations and record profits when the price of a share on one platform differs from the other with a minimum delay. In addition, the HFT robot can simultaneously analyze several stock exchanges and find the difference in price for the same asset. After that, it makes transactions considering the price delay on one exchange. In addition to the stock exchanges, the price can also differ for the instrument itself and the derivative asset. For example, the cost of shares is 100$, and the price of the derivative instrument is 100.01$. The price lasts for about a second and the robot would open a deal for the sale of a derivative asset during this time. This one cent would be profit for a trader. However, this is only 1 share. Can you imagine if there were 100 or 1000 of such shares per day? It would definitely turn into a significant profit for a company or a trader who has a trading robot.

Here is an example of the arbitrage deal, done by a trading robot:

HFT allows traders to get rid of a constant analysis of market fluctuations and concentrate on the optimizing and automating their trading system. Since the forex market is relatively volatile, you need a fix api forex broker in order to use HTF. This will increase the profitability due to the response speed of the robot, which is definitely beyond the capability of the ordinary person. Moreover, it is possible to build several trading algorithms based on HFT and thereby reduce risks as well as diversify an investment capital.

How to Make Money on Forex Trading Signals?


In the modern IT world, the exchange speculator has the opportunity to realize his profit potential not only in the market, but also earn additional money on his own trade. However paradoxical it may be, if a fix api trader earns from the market, he can earn more from his positive result. How? We will talk about this today.

An excellent element of additional income for a trader is implementation of several areas:

  1. Providing trading recommendations.
  2. Trust management of the trading account.

Providing trading recommendations

The given kind consists in the fact that if you trade under certain conditions of your trading strategy which displays favorable moments for entering in the market, you can share these signals in the fix api forex market (https://1sforexsignals.com/ ). Of course, provision of trading signals will not occur on a free basis. You can take a monthly subscription for your recommendations, and if they are profitable, then you will be able to keep your customer base from month to month and increase it. Thus, a passive income will be generated directly for your trading. Personally, to do this I recommend using automatic platforms, which will display the result of your fix api MT4 trading account. This will immediately sign additional customers to their trade.

Trust management of the trading account

In addition to providing trading signals, you can directly implement them yourself on the customer’s account. Thus, you can quickly influence the client’s trading result, as well as independently control the risks. To do this, you must have a trust management agreement, according to which you will work. According to this principle, your income will be forced exclusively in case of a positive result on the client account, from which you will take a certain percentage of the profit (usually 2% of the management fee and 20% of the result). For example, if you took $ 100,000 under management and earned $5000 on this account, then your yield would be $ 1,000 from the yield and $200 for the fact of trust management.

If we consider these two options, as for me, the most profitable is provision of signals on special platforms for fix api trading. After all, this has a number of advantages:

  1. It allows you to control the risks for your trading account and work with comfortable amounts;
  2. It gives an opportunity to earn a guaranteed profit regardless of the outcome (but remember that without a result, there will be no subscriptions and the next extension of the signals subscription);
  3. It allows you to increase the loyalty of current customers and recognition among other traders if you publish the results on external sources;
  4. You can connect an automatic trading strategy (http://forexrobots.in/2017/05/23/commercial-robot/ ), which itself will accumulate both the profitability from the market and the yield for the subscription.

I recommend using several excellent sources to place your trading signals, which will show your profitability and trading result:

  1. 1sforexsignals – is a new platform among the trading signals, but it has the lowest input threshold for signals starting from $1.
  2. Mql is perhaps the largest community of fix api traders who place their signals on the platform. However, the minimum subscription cost is $30, which excludes the possibility of providing signals to the customers with a small deposit amount.
  3. Myfxbook is a resource that is multifunctional monitoring of trading operations and allows you to publish trading signals based on the statistics.

Summarizing a bit, one can draw a simple conclusion that each trader is unrestricted by the profitability framework of his trading strategy. However, to generate additional profitability, it is necessary to work hard and improve our trading system.

Trend Reversal Patterns


We all know the saying “the trend is your friend”. And we should adhere to this saying, because trading against the trend will cause permanent losses, thus, it will allow you to save capital. However, how do you know when the potential for directional movement is already breaking and you should optimize your trading positions in the fix api forex market? That’s why there are trend reversal patterns.

The patterns of the trend reversal make it possible to find out the end of the movement with a great accuracy with the help of turning technical figures. Reversal patterns can be divided into two subcategories: combinations of several candles (2-4 price bars); combination with a large number of candles (more than 20).

The first kind that is a combination of several candles can be divided into two most popular types:

  • Pin bar: this reversal pattern is formed with a combination of three candles, but the trading signal of the fix api trader is given by the last one, which should show a special form. According to this pattern, a combination of three candles should be on the top or bottom of the market. The first two candles should show the same direction and have a candle body more than normal. The third candle should also be traded according to the trend, but be closed back from it and thereby form a large directed shadow, and the body should be less than 4 times shorter than the shadow. According to this combination it is necessary to open deals in the direction of the pin bar (the last candle), which will allow you to trade with a short stop and enter at the beginning of a new trend.
  • Doji: are patterns that indicate equality between the purchases and sales. If the doji is also formed on the bottom or the top of the fix api forex market, you can get confirmation by back candle. If it is directed against the trend, you should expect further correction or reversal, because there was a turning point in the doji, in which the purchases equaled the sellers (and vice versa) and continue to build up their positions.

The second kind that is a combination of a large number of candles can be divided into two most popular types:

  • Head-shoulders: this combination of candles appears with the help of a large number of price bars and its formation may take some time. The essence of this combination consists in 5 consecutive extremes, which form three peaks or valleys. In this case, the central peak must be the largest among the two standing side by side. If such a combination works, then the trader receives a trading signal (https://1sforexsignals.com/ ) and must place a sell order under the base of this figure for the purpose of a subsequent reversal with the same length as the top/bottom of the head. Another element should be chosen by the level of loss fixing, because according to the classical interpretation, SL should be put behind the last shoulder, and this can be a long distance in points.
  • Double bottom/top: formed behind a similar model, like the head of the shoulders, but it has only two peaks/hollows that are the same in length. Similarly, this combination should be formed on the local maxima or minima of the graph. Trade in accordance with this reversal pattern implies the opening of positions on the breakdown of the middle formation with the aim of the figure length itself. Often, this formation already appears when the fix api trader already has signals for buying or selling, which can act as an additional filter in predicting the future value of the financial asset.

The price patterns that I have described above will allow you to both optimize the current transactions and enter at the very beginning of the new trend formation. Use these candle combinations with your trading system, because their versatility can be used in combination with other elements of both technical and fundamental analysis.

New types of trading robots: what can be found on the market


The trader constantly updates his trading strategy and optimizes it to facilitate his trading activities. This regular process caused an intensive emergence of algorithmic strategies, which were called trading robots.

A trading robot is an automatic approach to analysis and completion of trading operations on the fix apiforex market. At its core, the robot is a program written according to the trader’s strategy. All methods of asset analysis, entry and exit points, as well as risk and volume regulation, which are used by the manager in his trade, can be displayed in the form of a program code.

If we consider standard trading robots, the main share of which is designed for trading on the fix api MT4 platform, then this is just a file written in MQL4 language, which is synchronized with the terminal. After connecting the file to the terminal and enabling the auto trading mode, the robot settings are loaded, which can be optimized under the deposit condition. However, this cannot be always done, since various such software have limited capabilities in this matter. For example, this trading robot works on a principle, based on the use of the Bollinger Bands indicator –http://metatrader4expertadvisors.com/.

I think that the time for using this kind of trading robots is coming to an end. After all, if you consider the amount of capital, the inadequate settings, and the lack of analysis of the robot’s internal specifics, you have to look for alternative ways of investing.

Moreover, in order to withstand the competition and improve the process of algorithmic fix apitrading, innovative developments are created that are fundamentally different from the robots described above by me.

The key characteristic is that these new robots are complex software. It is not just a file that is loaded into the terminal, but full-fledged software with its own interface and architecture.

In addition, such software has a number of key differences:

  • Ability to fully integrate into the servers of the trading platform;
  • The possibility of trading through the FiXfinancial protocol via access from a brokerage company – fix api;
  • Optimization of all key parameters of the algorithm under the terms of the investor’s trading account;
  • Synchronization directly with prime fix api brokerage companies.

This arbitration trading robot hasgathered all these characteristics –http://forexzzz.com/product/forex-zzz-lock-arbitrage/.This software allows you to conduct arbitrage trading between two different brokerage companies that can be simultaneously connected to the program. Thus, the program analyzes the quotations on two trading accounts.

To understand the specifics of the trading program, let’s look at a particular example:

Theory

The trading robot connects to the trading account of the trader and to the account of one of the prime brokers. It establishes a backlash, in which the currency pair is traded. But when the value of quotes expands and reaches a certain indicator outside the given gap, the robot simultaneously opens two transactions: for purchase and sale. At the moment when quotes are returned to the regulatory area, the robot closes the transaction and thereby fixes the exchange rate difference.

Practice

Quotation expansion, under which the deal will be opened, is 10 points.

The normative zone of the difference is 3 points.

Let the value of the EURUSD currency pair at the prime broker is 1.1250, and your broker has 1.1260. Thus, the robot receives a signal that the value of the expansion is reached and decides to sell from the second one, whileto buy a currency pair from the first broker.

After a while, when the quotes return to the regulatory range, the robot will close the positions. Let the cost at this point is 1.1275 for the first and 1.1278 for the second. Thus, the financial result for the first transaction is +25 points, and for the second -18 points, which in the final result gives +7 points of net profit. It’s that simple.

This is just an example of the software, which gradually begins to conquer the market. I also recommend you to gradually switch to such a format and ask your current developers to rewrite the algorithms of the robots to a new form that will allow you to approach the issue of algorithm trading more adaptively for each trading strategy and trading account.

How webinars can improve the result of trading


On the market, there are more and more training materials on forex trading. The development of the Internet makes it possible to conduct effective training without leaving home. All that is needed, has long been found on its vast spaces and implemented in its trade.

This caused the emergence of various courses, online seminars and master classes and of course webinars. This is truly a universal method of teaching and learning new tools for analyzing the financial assets of the market for fix api forex.

The webinar is online learning, which is aimed at increasing knowledge in a particular issue. This type of training is an event that takes place in a remote form. Affecting the topic of forex webinars, then as a rule, such master classes are covering:

– Current fundamental events on the market;

– The impact of data on the movement of the market and the sector as a whole;

– Trading activity of a fix api trader or a group of traders;

– Author’s methods for analyzing and forecasting the future price movement, as well as detailed analysis and testing of ready-made systems on the market;

– Analysis of trade strategies;

– Analysis of auxiliary software for trading;

– Examples of the algorithm of program code, which is suitable for software developers.

And this is not a complete list. After all, again, all the specifics of the webinar will depend on its topic.

Webinars will also allow you to become more familiar with the brokerage company (http://www.investopedia.com/terms/b/broker.asp), because most webinars are conducted by these organizations, or with a specific manager. The advantage of the webinar is that you can ask any question that interests you and immediately get an answer to it. After all, if you just watch a video lesson, then the answer in the comments can’t be received soon or not at all. In the webinar, there is no such problem. I would like to note the fact that the webinar will be based on the latest market data. That is, if there is an analysis of any algorithm or trading strategy, then all analysis will be performed on real quotes. This will confirm the reality of the data and the operation of the system.

Personally, I strongly recommend that you attend these events, because they allow you to better understand the specifics of the market fix api forex, and also to choose for yourself the optimal algorithm of action on it. Proceeding from this, the webinar allows:

  • Solve the problem of effective lack of effective analysis. Most webinars are devoted just to analyzing the methods of forecasting. That is, the tool used by the speaker (fix api trader). Here you can choose useful techniques to use in your trading, as well as learn them to start trading. For example, the nearest forex webinar https://admin7914b9.clickfunnels.com/auto-webinar-registration13309000, consecrates the necessary conditions, as well as key parameters for the efficiency of earnings. So everyone can find for themselves a useful parameter that can be introduced into their trade or which will become its basis. This is inherently a universal webinar, which will be of interest to everyone who has encountered fix api trading on the financial market. Moreover, I myself plan to attend this event.
  • Will allow selecting key parameters of money management in your trading;
  • Learn the latest market trends in the long term, which will allow you to adjust your forecasts and adapt them to market conditions;
  • Get acquainted with new products in the software market. With new algorithmic strategies and trading robots designed for the fix api forex market.

Webinars are a powerful tool for professional development in the market. That’s why, I recommend starting to actively participate in such master classes and is constantly in the process of training.

 

New and recent software for the Forex market: The arbitration lock


Modern trading calls for modern solutions. More and more software is being created in the marketplace, which simplifies the process of trade and financial analysis itself. This software allows the trader to automate its business process. In turn software like this also bears increased risks if the product is of low quality.

There are trade strategies that cannot work without software like this. I’m talking about the arbitration fix api trading, which is a combination of analyzing a financial asset and trading transactions when there is a deviation in the price value of currency pairs. Despite the simplicity of the algorithm, it is agreed that the individual is simply not physically able to keep track of the entire market and all currency pairs on the fix api forex, and also to perform commercial operations. However, turning this into code and separate software allows this process to be applied in automated mode.

Today, I offer you to look at the several options and types of software that are appropriate for this type of trading.

To begin with, I want to point out that the market for trading has grown and developed each year. And today you need to use only the latest versions or a entirely new application that takes current market trends into account.

One of the most popular types for the farbitratrary trading fix api is the individual applications that are not integrated into the trade terminal. With the trade protocol FIX, you can get data directly from the market. This allows multiple liquidity providers to be used, which makes it more flexible.

Let’s take a look at this example:

Such programs have their own interface and internal settings, where, again, you can select a quote provider, set parameters for trading, and so on. We know that for trade according to lock arbitrage, we need to consider the spread and expansion by which a robot or program opens trade transactions. Or even set the fix level of the position. All of these options are already included in the software and can be adapted to your expectations and conditions.

So all you need from the fix api trader is to set up the program, set the key figures on which the algorithm will analyze and bid. That’s it. Next time the trader only needs to optimize the selected parameters and define the result.

These days such programmes, in my opinion, are leaders in this area. However, there are several other options available today:

  1. A program (commercial robot) that performs operations through a commercial terminal. These are typically applications written for the popular trading platform fix api MT4. This is connected to the terminal and performs arbitrary trading automatically.
  2. Programmes intended for FIX. All trades bypass the terminal, but still through a broker or liquidity provider that gives access to the server. The drawback is that in order to connect to a particular prime fix API broker, you have to change the program’s internal settings.
  3. Supporting utilities and scripts. This type of software does not automatically make the transaction, but only displays the exchange rate differences and reports this to the trader.

As you can see, the new software outpaces both its competitors and its predecessors, not only to simplify the process, but also to make it better and help it to achieve better results.

And a little hint from me: during the software selection, consider the developer’s support so that when you update the algorithm, you can also get it.

What is FIX API


The world’s financial system grows every year in its volume. New software, means of communication and information transfer are created. Progress in the industry has led to the need for fast data transfer to obtain the actual prices. To help with this problem, a specialized FIX protocol was created.

This FIX (Financial Information exchange) protocol allows to instantly, in real time, share data between exchange sites. This protocol ensures the timely receipt of financial information, namely: actual quotations, market bids, news events, etc.

The FIX Protocol was created as an idea of implementing streaming messaging between the brokerage and institutional customers. The first companies that not only introduced this technology but also started to use it, were Fidelity Investments and Salomon Brothers. Thanks to these companies, FIX protocol has gained such popularity and completely replaced the boring phone conversations. All messages, as well as information about the buy/sell of a financial asset came into a computer, by which it was possible to take a decision about opening the deal.

Today, these two companies were followed by all major marketplaces and brokerage companies in the world. FIX Protocol has become an international standard for information exchange. At the moment, FIX works in two phases, that is, in the mode of financial data delivery, as well as the mode of data description. And if in the first mode, the players receive market information (for example quotation values), then in the second mode this information is fully decrypted. Thus, both algorithmic software and professional traders can use this data in their analysis and trading.

In addition to large companies, simple market traders can get access to this protocol with FIX API. This allows them to trade directly at the liquidity providers, bypassing the servers of FIX API broker companies.

Key advantages of FIX API protocol:

  • Help receive market quotations;
  • Up-to-date information directly from the market;
  • High speed of the trading order execution;
  • No delays and slippage.

As this protocol allows to receive the price information faster, a lot of trading robots was created, which trade on the principle of FIX API. A robot can instantly respond to any market movement, which allows to perform more precise market quotes analysis, and make trade deals.

FIX API is also successfully used in “manual” trading, because it gives a trader the same advantages. This allows them to trade according to their own strategies, make more precise and timely deals.

Timely receipt of prices allows the use of FIX API arbitrage trade, the methodology ofFIX API latency, or FIX API 2-leg arbitrage, which is about looking for price differences. After all, the main point for successful trading, according to these strategies, is in receiving quotes at one broker a bit ahead in time, and comparing them with a second broker’s. The broker which provides the ability to trade via FIX API is an ideal solution for these arbitrage techniques. Same as with arbitration, scalping operations are carried out with the help of FIX API due to the lack of large spreads and slippages. Direct access to quotations expands the list of tools that you can use in scalping and which are not available for the effective implementation of this strategy in “manual” trading.

FIX API allows to improve and optimize trading on the Forex market, as the quotations received on this principle are more accurate. In turn, the indicators provide quality signals based on this information. Using this protocol has a direct influence on the financial result of trading, improving its upward dynamics.