Tips To Help Choosing The Right Automated Trading Platform

Tips To Help Choosing The Right Automated Trading Platform

There are many Automated Trading Platforms available in the marketing nowadays, making it difficult for investors to choose the right one. Many automated trading platforms offer different services and have their own advantages and limitations. Before choosing any automated trading bots or algorithms it is important to consider if they have the desired features to make trades easier. Click to see the full report on one of the various trading platforms available in market, Bitcoin Loophole.

Features to consider before choosing the automated trading platform:

Complexity: 

Trading platform usually comes in two different types as:

  • Custom-built: Where the investors can modify the algorithm based on their need.
  • Out-of-shelf: These types of platforms are often preferred by investors who are not aware of programming and prefer using these trading platforms as it is.

Based on the type of trading platform, they might differ in ease of use. Hence before choosing the trading platform, it is important to see if it holds your comfort level. Trading platforms complexity also depends on various assets that it trades, so choosing a platform that supports selected assets of your choice is recommended. Almost all of the platforms offer a demo version to help investors decide what suits them.

Backtesting:

Backtesting is a method to validate the trading algorithms procedure verifying how it would’ve worked on the historical data. Backtest is a very important step in any trading strategy to understand how certain assets behave in certain situations. It shows how the trading strategy worked in pasts in terms of profit or loss. Hence a good trading platform must have a strong backtesting strategy.

Programming Languages:

If you choose to modify the trading software to cater to your choice, it is important to choose a trading platform that uses a programming language you are comfortable with. Different programming languages may offer different pros and cons. The most commonly used programming languages are Python, C#, Java, C++, MATLAB, and R.

Strategies allowed:

Various trading platforms may support a different number of strategies to be loaded on the account. And there is a possibility that you might require extra accounts to load more strategies. These strategies can be long or short strategies, also many platforms offer their individual trading strategies as extra add-ons with an additional one-time charge. It is important to check if the selected trading platform offers enough number of strategies and also if the memory of your computer supports multiple accounts if required.