There are many strategies for earning money and many tools that help you achieve your goals. Trading is a broad industry that allows people to make money without leaving their homes. At the same time, trading remains profitable for traders, brokers, and owners of trading exchanges and software. Therefore, if you want to create such software, we recommend focusing on robotic software for trading. Read our article to find out what it is, why you should focus on it, and examples already available on the market.
What is automated trading?
Before creating robotic trading software, we need to slow down and understand the basics. So what is automated trading? It is often also called automatic or algorithmic trading. It allows a person to launch a particular strategy or algorithm by setting parameters according to which the program will buy and sell assets on its own. In other words, a person does not need to be constantly involved in this — the bot will do everything independently.
- What are the rules for this type of earnings?
The most important thing here is to set up a proper strategy and write an algorithm. As a rule, there are already existing algorithms in the public domain that anyone can use if the chosen trading platform allows it. After launching the strategy, a trader will earn money simply on market fluctuations while the bot sells and buys assets on its own.
- Are there any risks?
As with any trading in currencies or stocks, there are, of course, risks. Some factors cause unpredictable market spikes that can lead to significant financial losses or even complete liquidation of capital on the platform. Therefore, newcomers are advised to choose proven strategies that may be less profitable but are as reliable as a Swiss watch. Using such strategies will protect a person from significant losses and, at the same time, help to increase capital, albeit slowly.
Before creating robotic trading software, we need to slow down and understand the basics. So what is automated trading? It is often also called automatic or algorithmic trading. It allows a person to launch a particular strategy or algorithm by setting parameters according to which the program will buy and sell assets on its own. In other words, a person does not need to be constantly involved in this — the bot will do everything independently.
- What are the rules for this type of earnings?
The most important thing here is to set up a proper strategy and write an algorithm. As a rule, there are already existing algorithms in the public domain that anyone can use if the chosen trading platform allows it. After launching the strategy, a trader will earn money simply on market fluctuations while the bot sells and buys assets on its own.
- Are there any risks?
As with any trading in currencies or stocks, there are, of course, risks. Some factors cause unpredictable market spikes that can lead to significant financial losses or even complete liquidation of capital on the platform. Therefore, newcomers are advised to choose proven strategies that may be less profitable but are as reliable as a Swiss watch. Using such strategies will protect a person from significant losses and, at the same time, help to increase capital, albeit slowly.
What are the popular trading robots?
It is a well-known fact that it is better to learn from ready-made examples in order not to repeat mistakes. That’s why we have prepared a small list of automated trading bots that you can look at to get an idea of this type of platform. After all, before moving on to development, you should study the advantages and disadvantages of competitors in any case.
So, who can be seen most often in the robotic stock trading market nowadays?
- Learn2Trade
This platform is predicted to become the best in this field in 2023. Its development — Learn2Trade Algorithm – is already viral. This bot is designed to lower the barrier to entry into the trading process by automating processes. Its work is based on all available indicators, which allows you to build a profitable strategy and maximize your profit for each transaction. That is why the company had to spend two years developing this product.
- Pionex
The platform offers users twelve algorithms at once, among which a person can choose and apply anyone. A significant advantage of this software is that there is no transaction commission. Considering millennials and Generation Z have an extremely negative attitude towards commissions, such platforms have a great chance of success, partly because of the rejection of such additional charges.
- Forex Fury
This platform can be used by those who prefer exclusively foreign exchange markets because this software works only with this type of asset. According to the platform, the success rate of trades here is more than 90%. In addition, the software can be combined with other trading platforms, which is also very convenient.
- Stock Hero
One of the significant advantages of this software is that it allows you to test your chosen strategy in a sandbox. The software takes data on market fluctuations over a certain period and runs your strategy on this data. In this way, you can identify weaknesses and shortcomings of the algorithm, correct them, and move on to playing on the actual market. At the same time, you do not have to write any program code: the interface allows you to customize the strategy manually. In addition, you can always choose ready-made strategies from more experienced users — these strategies are publicly available.
- Tickeron
This is a platform that uses the capabilities of Artificial Intelligence. The program scans data in real-time, which allows you to adjust the strategy immediately based on the data obtained. In addition, a whole list of functions is available to predict trends and plan orders according to these forecasts. You can also set a Stop Loss, protecting you from losses during unexpected market surges and substantial fluctuations. And for those who are not very risk-averse, you can choose a less risky, less profitable, but reliable and proven strategy that will definitely give a positive result.
How to build a platform for algorithmic trading
In developing robot trader software, you can go in different directions: from using artificial intelligence tools to more specific primitive manual settings of each strategy. Here, only you can choose based on the data about the target audience you want to create your product.
However, some rules will be common to all. We recommend paying attention to the following:
- Speed of work. No wonder they say that time is money. In the case of financial exchanges, this is the most valid expression. If you look at the charts of cryptocurrency price fluctuations — or even regular currencies or stocks — you will see that the situation can change dramatically in minutes. A chain reaction can begin as soon as one player enters the market with a significant amount of money. And the price, having broken through a certain level, will either fly rapidly up or rapidly down. And if we are talking about a trading robot, the program should be able to react very quickly to such changes in the situation to protect the trader from losing all their savings on the stock exchange.
- Cybersecurity. When we talk about money, we should never forget that many intruders would like to take possession of your client’s financial assets and personal data. In addition, some unscrupulous competitors and hackers may launch DDoS attacks to overload your system and cause it to crash. This carries significant reputational risks because people can lose colossal amounts of money while the software is down. This, in turn, will lead to a decrease in confidence in you as a service provider. In short, ensure all your systems are as secure as possible.
- Interface. The clearer your platform is, the better. Here, it will be easy to go through the experience of competitors and conduct a series of in-depth interviews with experienced traders. Only the stories of real people and information about the problems or inconveniences they face in their work will help you avoid repeating similar mistakes in your software.
Who can help you create your platform?
For development, you will need an experienced team. Fintatech offers you its services: we often work on trading software and can develop a solution for your company as quickly and efficiently as possible. In particular, our Trading Platform Designer will help us with this — ready-made components with a great possibility of customization but speed up the workflow at times.
Sign up for a consultation, and we will discuss your project’s features.
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