As an investor, can you make money from buying stocks? Well, the answer to that is yes. In today’s market, with increase in volatility and decrease in prices, stock market trading has emerged as one of the wonderful opportunities now available to investors. Online stock trading has significantly increased its popularity with time. Robotic trading platforms and automated trading programs are some of the terms that are used to describe stock trading systems. You can make and grow your money via these stock investments. Luckily enough, this article gives the criteria that you should follow in order to make an informed decision when choosing the best robots for your trading stock. Equipping yourself with the relevant and essential information is the first step to success.
Relevant additional features
The best robotic trading platforms entail additional features that in most cases are invaluable to most active traders on commencement of automated trading. Order entry, as well as, additional strategy features exhibits the ability to increase a position with either the increase of stock or stock decrease. It also caters for the minimum stock purchase intervals before an additional share is purchased.
In the case of a robotic trader, there might be numerous indicators and it’s advisable to check if the indicators definitions are readily available. Each robotic trading platform has a different indicator formula or definition, so it is recommended that you understand each feature.
The stealth mode orders
Most robotic trading programs have some standard features that enable them to stop limit orders. Having an existing strategy mostly from your positions is of paramount importance. A good robotic trading program has the advantage of triggering market orders particularly if the conditions have been met. That is because the newer programs enable you as the user of an auto trader system to reach the price points.
It’s advisable to update the indicators often with the latest data. According to a report given by most long time traders, following even the simplest strategies consistently and for long periods promotes efficiency in performance. The robotic trading program should also have a provision for manual override that enables manual placement of a trade. Specifically ensure that you seek for this capability in your robotic stock program.
Simulating strategies ability
A good robotic program system should be able to simulate strategies prior to running live. That can also be explained as a system ‘test drive’ before putting the system to use. Some programs are more advanced to the extent that they can execute trades using past data and showcase their possible outcome. However, this sometimes may not be accurate since a lot of data is required for a thorough and successful back-test. A historical data alone might make the replicating somehow impossible.
In addition, the past performance of a system in a specific or general market does not indicate the system performance in the current period. There are some systems that enable simulation of strategies by a stock trader; however, paper tickets have to be used, as opposed to the platform. During market hours, a good robotic program or platform allows the application of live data feed in the stock trading practice. This method is preferred by most traders as it gives them a realistic view of the performance of their trading strategy and shows the highs and lows of stock trading without necessarily having to make the actual investment. A brokerage account isn’t necessary if you’re able to simulate trades unless you decide to engage in real money.
Shows the creation of a robotic trading strategy
There should be a gradual process that educates novice traders on the creation of robotic trading strategies. The best firms have both short and long term trading strategies readily available at no cost at all. Also, they enable a novice stock trader to come up with their own strategies. Other firms also allow the sharing of strategies between ‘friends’. It is advisable to avoid choosing strategies that a firm doesn’t apply.
Customer service and tech support
The best robotic trading program firms seldom become obsolete and exhibit an “up-time” that is extremely high. The software should also be able to operate efficiently with different operating systems such as Windows Vista and Windows XP and installed easily. It is not necessarily mandatory for the staff to respond promptly when contacted, but there should be minimal delays. The staff should also be helpful and knowledgeable.
Unless you are extremely careful, trading commissions can dig deep into your investment returns/profits. Always choose and incorporate a proper plan that best fits your needs. Trading commissions vary from different brokers and the number or type of shares traded, the traded share price or your monthly trade numbers.
NB: the above mentioned criteria’s enable a potential trader or user of robotic trading software to come up with an informed decision in regards to the choice of the best robotic stock trading programs.Read More