According to Wall Street, upwards of 60% of U.S. equity trading comes from algorithmic trading accounts. The reason why is simple.
One of the biggest challenges to successful trading is the emotional element. Very few people can master themselves enough to control their impulses, avoid panic, or make decisions purely based on numbers. This is why the most successful traders keep automated trading software as a major tool in their work.
But it only works if you choose a quality product. Read on to learn what you should look for.
Know What Trading Software You Need
Before you can make the choice of which automated trading software you want to buy, you should start with figuring out what you need. Automated forex trading software operates a little differently from automated stock trading software.
Your best options long-term will be trading systems and platforms that work across many markets. Your initial choice should be the right software for trading in the specific area you want to get started in. That alone will narrow the field down and help make your final choice easier to zero in on.
Make Sure Your Automated Trading Software is Secure
Automated software for trading has to handle a lot of sensitive data, so you want a program that will keep your information locked down and safe. The best automated trading software uses features like complex encryption to keep your sensitive information out of the wrong hands.
Whoever you buy your automated day trading software from should be ready and willing to explain the security features built into their product, without a lot of hedging or hemming and hawing.
Check For Backtesting and Optimization
Automated trading systems don’t just allow you to set a strategy and forget it. The best software lets you do backtesting, to give you an idea of how your programmed strategy might play out.
Backtesting is a method of checking your strategy against the historical performance of what you’re trading. While backtesting isn’t foolproof, using a large volume of data can give you reasonable predictions of how your trading program will perform.
The automated software for trading that you pick should also leave room for optimization and development. This way you can customize the strategy and tweak it for better performance with no lag time.
Make Sure You Can Use The Software
The best software in the world won’t help you gain an edge in trading if you can’t figure out how to use it. Once you’ve narrowed down the field to a few different options, take them on a test drive.
You want to check how easy it is to update your strategy, how intuitive the software is, and whether there are any major lagging or delay issues. The best automated trading software is the software you can use without worries or frustration.
Automated Trading Can Help Step Up Your Game
If you’ve ever dreamed of a robot that you could set to focus on making you money all day and night, automated trading software is the tool you want.
However, to get the most out of this tool, you should know what you’re looking for. Test it for ease of use, and make sure your information is secure and your strategy testing will help guide you to the right programs.
Once you’ve decided on the right software for your needs, you can get right to making money.