In recent times, automated trading systems have gained a lot of popularity. These are used by many large firms such as investment banks, hedge funds and proprietary trading firms.
Here are some of the features that every automated trading system should have so that it is beneficial for the businesses:
- Any automated trading software must have company and market data feed since these platforms are supposed to perform on real time market data and price quotes. In fact, some of the programs can be customized so that it is suitable for the company fundamentals data. An automated trading system is considered as good if it can be integrated from alternate sources or if it is available as a build-in into the system. One such automated system is the 1G Profit System.
- The automated software must be capable of connecting to various markets for which it should know to accept feeds of different formats from multiple markets. Else, you can seek service of a third party for aggregating market data and providing it in a uniform format. The automated software will then process these data.
- The latency of your automated trading system should be as low as possible because today’s trading world is very dynamic in nature which means the price quote can change multiple times within fraction of seconds. Such delay can ruin your trading venture. Thus, with the lowest level of latency, you will be able to receive the most accurate and updated information.
- Automated trading software must offer high degree of configurability and customization. Although all these automated systems have their own built-in algorithms, the trader may still want to customize some of the settings according to his business needs, which is why it should have the feature of customization and configurability.
- It should have the feature of backtesting on the historical data which means your automated trading software must be able to test a trading strategy on some historical data. It helps to assess regarding how practical and profitable will be the strategy on past data. This is a mandatory feature which is an integral part of making business decisions. Also, it should be accompanied by historical data on which the automated system will perform backtesting.
- The trading software should be compatible with all kinds of platforms and supports all programming languages since you are not aware of how the trading will evolve in next few years.