Friday 25 July 2014

Automated Trading Systems: Changing The Rules Of The Game

As "Automated Trading System" or ATS becomes the norm in the stock market today, it is not surprising for human traders to realize their loss. A company that employs human traders might also be thinking of switching to automatic systems before the company would be realizing losses. With the speed by which automatic trading software execute orders, it is simply the best option for those who want to earn in the stock market today especially those companies that want to attract more investors to their company. Having an automatic system in place also attracts potential investors more as usually, they would be busy attending other affairs and those that are new to the field would want to invest without the hassle of manually checking their investment portfolio.


Platform Operators

For those who are thinking of operating an automated system, it is necessary to distinguish oneself from other automated trading platforms out there. One of the best ways to do so is to constantly back test the model or trading structure that the company is using. Back testing would allow one to identify where the platform is most successful and where improvements should be made. Ensuring that the platform is efficient is crucial as one might want to squeeze as much efficiency as possible with the system to ensure that all aspects or results are taken into consideration. Having a well-organized and capable system support is also necessary as one should understand that users of the platform are humans and tend to have concerns and having support staffs in place can help resolve any issues making it the ideal platform of choice for investors of all levels.

Investors

As automated trading becomes the norm, it is critical that one choose the best platform provider to help out with their trading activities. Human brokers are reliable; however, emotions might come into play hindering difficult decision-making in crucial times. Time is also of the essence as trading systems can analyse thousands of data in shorter timeframe and it would not be possible for a human trader to do so. This limits the investing opportunities that one has. To choose a platform provider, choose one that offers value for one's money. Many companies nowadays also make use of several trading strategies so it is likely that one should also get to be familiar with the strategy that the provider uses. One of the programs used includes the High Frequency Trading program or HFT. This program makes use of computers that use complex algorithms to analyse market trends and make transactions or orders in a high-speed manner.

For those who are interested to learn more about the trading activity, they can do so by visiting Algorates. Algorates makes use of algorithmic trading which is one of the trading activities that make use of computers to automatically place buy or sell orders once the parameters set by the trader is reached.