What is the best algo trading platform

Along with the rapid development of computer technology at the end of the 20th century, the process of trading in the financial markets changed and became almost entirely electronic. In addition, a separate segment of trading — algorithmic trading — emerged.

Algorithmic trading

Algorithmic trading is an automated system for placing and managing requests for trading in different financial instruments via computer programs based on mathematical algorithms. Algotrading is performed without human involvement. Algotrader or quant trader only describes the algorithm of the robot (mechanical trading system (MTS)) behavior in different situations in a programming language. Based on the analysis of the previous price series of financial instruments, they calculate the probability of the future price hitting a certain range. The best algo trading platform enters or exits the trade at certain changes in the price chart of the asset being traded. A popular method of algorithmic trading is High Frequency Trading (HFT), which is electronic trading at very high speed. High-frequency trading robots open and close a large volume of short-term positions in order to generate small profits.

Algorithmic trading strategies

There are many algorithmic trading strategies that programmers put into a trading robot. The main ones are:

VWAP (Volume Weighted Average Price).

Volume Weighted Average Price is a volume-weighted average price. It distributes the volumes of orders evenly within a certain period of time at the best bid or ask price, but not exceeding the weighted average price for a specified period.

TWAP (Time Weighted Average Price)

Time Weighted Average Price is a time-weighted average price. It executes bids by evenly dividing them into equal time intervals. The strategy does not take into account forecasted changes in trading volumes, which can negatively influence the market.

Percentage of Volume

Percentage of Volume. Supports a fixed percentage of market participation that is selected by the user. It trades in frequent and small trades and reacts well to volume spikes.

Iceberg Bid

Iceberg Bid — A placed Buy or Sell order does not show the full size of the bid. Potential buyers see only a part of the order, and only after its execution the next part is published. And so on until its complete execution.

Trend following strategy

The tasks of the strategy are early identification of an emerging trend using various technical analysis indicators, issuing signals to trade in the direction of the trend, and issuing signals to close positions when the trend stops.