Trading Online Software Development

Some traders are also coders, or may simply possess the analytical skills needed to code. These people can develop their own trading online software for any market.

Developing a Trading Online Software

Developing a trading online software is about trading skills and analytical skills. If you know how to code, you can do it yourself. Else, you will have to produce the well defined algorithm and give it to a programmer to make the final software. Programmers themselves are not experts in many fields, and probably not in the markets. But if you work closely with them, the final software may be developed perfectly. The software itself is usually used as a trade-aiding tool, one which produces signals or confirms your own signals. Trading online is a manual process, but automation can deal with a variety of routine tasks, such as: indicator line crossovers, moving averages, and even leading-lagging analysis. For a good trading online software to be developed you will have to go beyond what you learned in some forex trading course and into numerical analysis, spreadsheets and manual simulation through a spreadsheet. Because great insights can be gained this way. Currency pairs can be measured through various metrics, such as volatility and LSS pivots. Your software can produce the final numbers in no time. But the rest of trading work has to be manual. And even more manual if fundamental analysis is used, which cannot be simulated at all. All your software will do is provide a period of time, or warning signal where an actual trade signal is likely to appear and the market will move. If your manual trading produces a signal and there’s no corresponding warning signal from your software, it calls for caution and more checks. Automation can remove the routine part in your analysis, and save you a great deal of time. Because total lack of automation can also lead to wrong assumptions and mistakes. Accurate measurement of metric parameters is important, and that’s what automation provides.

Trading Online Software Myths

There are trading online software myths on Expert Advisor software products. These myths are to the effect that profitable trading can be automated 100% and human emotions are removed etc. Yes, human emotions can be bad and cause large losing trades. But they are also good because that’s how the best trades are made. Things like deceptive trading action, false breakouts and more, are almost impossible for any software to deal with. Software is used by top trading firms, but only on routine tasks. Software cannot be used at the forefront of trading. Just like it cannot be used to fly jet fighters into dogfights. All it does is provide the pilot with advance warnings, and in some aircraft it may fly the plane lower, if it senses that the pilot may have passed out. But there’s no way for software to engage the enemy all on its own. It’s the same with trading. Hence the marketing on Expert Advisors is very misleading. And that’s why the forex market, which is mostly manually traded, deceives and beats all Expert Advisors. Because software cannot sense and avoid the natural traps of the foreign exchange currency markets.