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Spark algos respond to market events in microseconds, giving our users better fills.
How To Really Make Money Trading | Trading Systems
Spark also allows users to create simple, fast algos without writing code through our Algo Studio. Users with more complex needs can create their own algos using our APIs, all while retaining control over their source code and IP. Spark is supported by a responsive team with one goal: complete customer satisfaction. BTS Spark was designed for consistently superior performance during times of high volatility.
Spark offers two APIs to extend functionality on both the server and client side. Since spark runs on your co-located servers you maintain control over your strategies and intellectual property. Our Client Control API gives you access to market data, orders and trades on the client; we built our front end with this API so it is so it is well tested and highly functional. BTS Spark was developed with insight from top risk managers in the derivatives industry. Spark Admin, an intuitive web based interface for the management of users, accounts, and risk on Spark systems including size and limit controls as well as live margin management.
Some platforms have been specifically designed to allow individuals to gain access to financial markets that could formerly only be accessed by specialist trading firms. They may also be designed to automatically trade specific strategies based on technical analysis or to do high-frequency trading. Electronic trading platforms are usually mobile-friendly and available for Windows, iOS and Android.
The term 'trading platform' is generally used to avoid confusion with ' trading system ' which is more often associated with the trading method or strategy rather than the computer system used to execute orders within financial circles. Transactions have traditionally been handled manually, between brokers or counterparties.
However, starting in the s, a greater portion of transactions have migrated to electronic trading platforms. These may include electronic communication networks , alternative trading systems , " dark pools " and others. The first electronic trading platforms were typically associated with stock exchanges and allowed brokers to place orders remotely using private dedicated networks and dumb terminals.
Early systems would not always provide live streaming prices and instead allowed brokers or clients to place an order which would be confirmed some time later; these were known as ' request for quote ' based systems. While this typically requires more effort than using the platform's wizard, it allows a much greater degree of flexibility, and the results can be more rewarding. Just like anything else in the trading world, there is, unfortunately, no perfect investment strategy that will guarantee success. Once the rules have been established, the computer can monitor the markets to find buy or sell opportunities based on the trading strategy's specifications.
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Depending on the specific rules, as soon as a trade is entered, any orders for protective stop losses , trailing stops and profit targets will be automatically generated. In fast-moving markets, this instantaneous order entry can mean the difference between a small loss and a catastrophic loss in the event the trade moves against the trader.
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There is a long list of advantages to having a computer monitor the markets for trading opportunities and execute the trades, including:. Automated trading systems minimize emotions throughout the trading process. By keeping emotions in check, traders typically have an easier time sticking to the plan. Since trade orders are executed automatically once the trade rules have been met, traders will not be able to hesitate or question the trade.
In addition to helping traders who are afraid to "pull the trigger," automated trading can curb those who are apt to overtrade — buying and selling at every perceived opportunity. Backtesting applies trading rules to historical market data to determine the viability of the idea. When designing a system for automated trading, all rules need to be absolute, with no room for interpretation.
The computer cannot make guesses and it has to be told exactly what to do. Traders can take these precise sets of rules and test them on historical data before risking money in live trading. Careful backtesting allows traders to evaluate and fine-tune a trading idea, and to determine the system's expectancy — i. Because trade rules are established and trade execution is performed automatically, discipline is preserved even in volatile markets.
Discipline is often lost due to emotional factors such as fear of taking a loss, or the desire to eke out a little more profit from a trade. Automated trading helps ensure discipline is maintained because the trading plan will be followed exactly.
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In addition, "pilot error" is minimized. For instance, if an order to buy shares will not be incorrectly entered as an order to sell 1, shares. One of the biggest challenges in trading is to plan the trade and trade the plan. Even if a trading plan has the potential to be profitable, traders who ignore the rules are altering any expectancy the system would have had. After all, losses are a part of the game. But losses can be psychologically traumatizing, so a trader who has two or three losing trades in a row might decide to skip the next trade.
If this next trade would have been a winner, the trader has already destroyed any expectancy the system had. Automated trading systems allow traders to achieve consistency by trading the plan. Since computers respond immediately to changing market conditions, automated systems are able to generate orders as soon as trade criteria are met.
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Getting in or out of a trade a few seconds earlier can make a big difference in the trade's outcome. As soon as a position is entered, all other orders are automatically generated, including protective stop losses and profit targets. Markets can move quickly, and it is demoralizing to have a trade reach the profit target or blow past a stop-loss level — before the orders can even be entered. An automated trading system prevents this from happening. Automated trading systems permit the user to trade multiple accounts or various strategies at one time.
This has the potential to spread risk over various instruments while creating a hedge against losing positions. What would be incredibly challenging for a human to accomplish is efficiently executed by a computer in milliseconds. The computer is able to scan for trading opportunities across a range of markets, generate orders and monitor trades.
Automated trading systems boast many advantages, but there are some downfalls and realities traders should be aware of. The theory behind automated trading makes it seem simple: Set up the software, program the rules and watch it trade. In reality, automated trading is a sophisticated method of trading, yet not infallible. Depending on the trading platform, a trade order could reside on a computer, not a server.
What that means is that if an internet connection is lost, an order might not be sent to the market. There could also be a discrepancy between the "theoretical trades" generated by the strategy and the order entry platform component that turns them into real trades. Most traders should expect a learning curve when using automated trading systems, and it is generally a good idea to start with small trade sizes while the process is refined.
Although it would be great to turn on the computer and leave for the day, automated trading systems do require monitoring. This is because of the potential for technology failures, such as connectivity issues, power losses or computer crashes, and to system quirks. It is possible for an automated trading system to experience anomalies that could result in errant orders, missing orders or duplicate orders.
If the system is monitored, these events can be identified and resolved quickly. Though not specific to automated trading systems, traders who employ backtesting techniques can create systems that look great on paper and perform terribly in a live market.