~~~ The Best Software for Automated Trading ~~~
Trading algorithms do not necessarily require software. Some can theoretically be executed with pen and paper, and orders can be manually placed. But in most cases, some automated trading software is used to run the algorithm and send the trade orders to brokers or exchanges. There are several categories of software and tools for automated trading, as described below. Pick your choice.
They have imaginative names like "Forex Autopilot" or "Market Fury". Some are autonomous programs, but most are MetaTrader "Expert Advisors" with a hardwired secret algorithm. Usually for Forex, rarely for CFDs, binary options, or cryptocurrencies. Often shortlived and soon replaced with a similar robot with a new fancy name. Typical advertising text: Sit back, relax, and let our Forex Autopilot place your trades. At only $99, get the most effective robot on the market. We have a record of 95% winning trades on verified Myfxbook accounts, and boast 500% annual return. This software is the life's work of our highly skilled team of scientists.
Pro: Requires no trading or programming
knowledge. Relatively cheap. Impressive historical 'profit
curves' with up to 1000% annual profit. Often enthusiastic
reviews on trader forums or robot comparison pages.
Trade copy services
Their systems automatically place your trades by copying other traders. Top traders compete for followers, since they earn their main money not with trading, but with follower's fees. Some use algorithmic trading, some trade manually, but all accept high risk to be at least for a few weeks on the service's top traders list. Just as with robots, that list is shortlived. Top traders often blow their (and their follower's) accounts and disappear mysteriously, only to re-appear soon under a different name. Typical advertising text: Invest in the best! Use the wisdom of the top traders. Replicate their strategies and receive their trading profits. This is the number one trade copy platform with the world's best traders.
Pro: Requires no trading or programming
knowledge. Top traders have impressive profit curves (not faked)
with more than 100% annual profit. Or rather, it would
be annual profit if they lasted more than a year.
Visual strategy builders
They allow to 'click together' algo trading systems from building blocks of indicators and operators. Usually for Forex and CFDs. Often the visual system is converted to a standardized script that runs on the free MT4 platform, and uses its (quite limited) optimizer and backtester. Typical advertising text: This visual strategy builder is designed for "non-programmers". Anyone can now create algo trading systems! You will master the principles in no time and turn your ideas into ready-made strategies. The intuitive and powerful "drag and drop" interface makes trading strategy development fun and easy.
Pro: Requires no programming.
Easy to learn. No syntax errors. Colorful display of your
trading strategy. And when it still fails,
you can at least blame yourself.
Retail trading platforms
Mainly designed for manual trading, they also support various script languages for charts and algo trading. The language for automated trading systems is often based on C or C#, or proprietary such as EasyLanguage™, MetaStock™, or PineScript™. This offers a lot more flexibility than visual strategy builders. Indicators or other functions can be freely added by the user. Many platforms support serious backtest methods such as walk-forward analysis, and offer not only the usual Forex/CFD assets, but also stocks, ETFs, and with some restrictions, even options. Typical advertising text: Take trading to a new level with the most powerful platform on the market. Create charts with plenty colorful bars and lines. Automated execution of algo trading scripts. 500 built-in indicators, genetic and brute force optimization, high-precision backtests.
Pro: Supports manual trading and many algo
trading methods with user-defined functions. Some
platforms have good
R and Python
These computer languages are often used for algo trading. They have plenty libraries, modules, or packages for all sorts of tasks, including broker connections, trading, machine learning, optimization, and backtests. Since they are not limited to trading, they can be used for research and analysis of any sort. Therefore they offer a lot more flexibility than automated trading platforms. No advertising needed - everyone knows them.
Pro: Very flexible, free, huge number of
libraries, excellent machine learning support, almost any trading algorithm or
market research project can be
Did we mention it already? A fast trading and backtesting engine with a compiled script language that can also utilize R and Python libraries. Specialized on algo trading with advanced data analysis and machine learning algorithms. Not as universal as R and Python, but much easier to learn and a lot more flexible than usual trading platforms. Typical advertising text: This is not a trading platform.
Pro: Very short scripts, fast backtests
and optimization, all is customizable, supports all trading methods including HFT.