What is Algorithmic Trading Software? And what should you know about it?

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    What is Algorithmic Trading Software? And what should you know about it?

    Algorithmic Trading Software, also known as a type of Automated Trading System is a form of trading software that allows one to automate a number of the functions of the futures and commodities buying and selling process. Automated Trading Systems such as Algorithmic Trading Software allow one to set the price that they wish to buy futures at and also at which they wish to sell those futures at as well. These futures buying and selling limits are indications that the software uses, alongside its own software and algorithms to decide when futures should be sold and when they should be bought. This process is undertaken autonomously once the relevant buy and sale price indicators are set. One of the major benefits of sales and purchase of futures being done via this Algorithm Trading Software is that trades are executed in far less time and with much more efficiency than if undertaken manually.

    Why is Algorithmic Trading Software used?

    Day by day commodities and futures trading is becoming more and more competitive. Taking this scenario into account, many trading firms are now working together with developers and programmers to develop and make use of smart algorithms that analyze fluctuations in price, and a variety of other factors, to determine what the best times to execute trades are. This type of Algorithmic Trading Software is designed to follow a specific set of instructions and rules set up by the programmers and developers that determine the optimal time to buy/sell a commodities future. In this way, the trades are only executed when the price actions and all the requirements are met to get the perfect results possible way.

    According to Investopedia (A Financial Media Company), approximately 70-80 % of daily executed trades are done so through Algorithmic Trading Software. This statistic clearly demonstrates the case for Algorithmic Trading Software. Such software is commonly used by daily traders as it allows them to easily and efficiently execute trades at speed that they might otherwise miss out on if they were handling them in person physically. In many cases large traders make use of these types of software to turn low margin high volume trades that allow them to earn large sums of money on trades that might not turn heads otherwise.

    How does Algorithmic Trading Software work?

    Algorithmic Trading Software can only be accessed via software interface and credentials provided by a broker. The software is in turn linked to a Direct Access Broker. The broker sets up specific entry and exit points by usage of different Indicators and Chart Patterns. Through further technical analysis, and experience, the broker develops a Risk Management plan to mitigate the associated commodity trade risks as much as possible. The software then executes the set instructions and performs the task if all the requirements are met.

    In this way, the loss is minimized, the number of good trades is maximized, and the chances of facing losses are as diminished as possible. This whole thing is done automatically by Algorithmic Trading Software, devoid of human instruction save that initially provided.

    One only requires access to Algorithmic Trading Software, provision of the relevant permissions, and the rest is handled by the Algorithmic Trading Software so that one may then rest easy.

    Should you use Algorithmic Trading Software for yourself?

    Our suggestion is that every trader make at least some use of Algorithmic Trading Software. The reason for suggesting use of an automated trading system is simple; firstly, the speed of execution of commodity trades via Algorithmic Trading Software and secondly, in general, the aforementioned commodity futures trades are more profitable because the software identifies, evaluates and executes all the most profitable trading opportunities that are, quite simply, impossible for a human to identify on a manual basis.

    The other reason is that this trading setup is similar to the Automated Trading Systems used by Hedge Funds, Investment Banks, and even Property Trading Firms. There this type of software is used by many employees and customers, and they provide profitable results. In closing we suggest you use Algorithmic Trading Software designed by our developers to set up your own automated trading system and we guarantee you won’t be disappointed!


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