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Introduction to automated trading – Guest Editorial – FinanceFeeds

Michael Buchbinder, Managing Director of Scandinavian Capital Markets, goes into great detail on automated trading with the cTrader platform By Michael Buchbinder, Managing Director, Scandinavian Capital Markets

Michael Buchbinder, Managing Director of Scandinavian Capital Markets, goes into great detail on automated trading with the cTrader platform

By Michael Buchbinder, Managing Director, Scandinavian Capital Markets

Online trading and investing is a Pandora’s Box full of new lessons and experiences that can help you to improve your technique, psychology or understanding of analysis. Automated trading is it’s very own, never-ending rabbit hole. There is no denying that automated trading is a burdening subject, and it’s hard to know where to start.

There are typically two types of individuals who enter into automated trading on cTrader, developers who are interested in applying their skills to online trading, or experienced traders who desire to automate their trading strategies. If you don’t have experience in either of these two disciplines, you should probably get some. Since this article is on our blog for traders, the best place to start is reading up on the basics of forex trading, fool around on a demo account and take it steadily from there.

Going further into this topic, we’ll assume you are already well aware of the benefits of running an automated trading strategy and get right to the hard information.

Meet Automated Trading on cTrader

At the end of 2011, several months after the initial launch, automated trading on cTrader was introduced. This capability was first introduced in the form of a stand-alone application called cAlgo and promoted as an algo-trading platform. It was based on cTrader, except all the point-and-click manual trading functionality was stripped out and replaced with controls for building, testing and running automated trading strategies and customised indicators.

Recently cTrader rethought this model and merged all products into a single, unified application. All of these algorithmic trading functions are now packed into a dedicated section named cTrader Automate.

The Evolution of cTrader Automate

From the get-go, one of the most significant value propositions of cTrader Automate is that scripts are written in c#, one of the worlds most common programming languages, created by Microsoft. While other platforms forced the adoption of proprietary programming languages, anyone wanting to develop their trading robot on cTrader could access a pool of experienced developers who already code in c# for a vast number of other purposes. In addition to supporting c#, traders can write their code in Microsoft Visual Studio as opposed to the cTrader Automate built-in code-editor.
For traders who evaluated cTrader in the past and perhaps omitted the platform due to its lack of certain features, you will be pleased to know that cTrader is overtaking the competition in terms of automated trading functionality.

Over the past several years, cTrader has broadly increased its functionality. The most recent killer-feature to be added was multi-symbol backtesting. This feature allows one trading bot to backtest against multiple trading pairs.

A Broad API to Create Awesome Indicators

Throughout 2019, the cTrader development team really doubled down on the extensibility of the cTrader Automate API. In particular, a large focus was put on chart controls, making the platform even better for building custom trading indicators by using clouds, customised colours, panels, shapes, buttons and a wide range of content management tools to control how elements are contained on the charts.

User-Orientated Features to Aid Development

When analysing trading history or backtesting results, tables jam-packed full of numbers can make you blind to critical details. cTrader offers several formats of information to help digest your performance quickly and intuitively. A Deal Map shows your entry and exit points and plots a line to connect them across bars. This map helps you to gauge the duration and profitability of your hypothetical trades. Trade statistics breakdown and highlight many key performance indicators such as the maximum drawdown, number of long trades vs short trades, number of winning trades vs losing trades, P&L of long trades vs short trades and much more.

A Rich Community of Experts

Getting started with any sophisticated software solution can be perplexing. Whether it’s for video editing, visualising data, computer-aided design or building automated forex trading strategies, some questions and obstacles can manifest. Having a committed and informed community of users helps new users is a valuable resource. User-guides and videos can only get you so far. While the number of users in the cTrader chats and forums may not be as vast as other platforms, the quality of the community is tremendous, and the support provided by the cTrader team is incredibly valuable.

Automated Trading with Scandinavian Capital Markets

At Scandinavian Capital Markets, we’re pleased to offer clients multiple automated trading solutions. Besides cTrader Automate, our clients can use MetaTrader 4 to build and operate their Expert Advisors. Additionally, for those traders who don’t require an underlying platform to trade through, we provide FIX API access to connect directly to your trading account.

The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff

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Donald Trump blasts ‘fools’ who oppose good Russian ties

US President-elect Donald Trump has posted a progression of tweets censuring the individuals who contradict great relations with Russia as “‘dumb’ individuals, or nitwits”.

Mr Trump promised to work with Russia “to comprehend a portion of the numerous… squeezing issues and issues of the WORLD!”

His remarks came after an insight report said Russia’s leader had attempted to help a Trump race triumph.

Mr Trump said Democrats were to be faulted for “gross carelessness” in permitting their servers to be hacked.

In a progression of tweets on Saturday, Mr Trump said that having a decent association with Russia was “no terrible thing” and that “lone “idiotic” individuals, or simpletons, would believe that it is awful!”

He included that Russia would regard the US increasingly when he was president

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Bulls and Bears Took on More Currency Exposure in Week Through January

he most striking improvement among theoretical situating toward the finish of a year ago and the primary session of 2017 is not that modification were little. There was just a single gross theoretical position modification of more than 10k contracts. With sterling apparently not able to maintain even humble upticks, the bears added 13.1k contracts to the gross short position, lifting it to 120.2k contracts.

Or maybe, it is eminent that examiners for the most part added to positions, long and short, as opposed to close positions at the very end of the year. Examiners added to net long outside cash prospects positions, aside from in the Japanese yen and Swiss franc where 2.6k and 2.5k contracts were exchanged separately. Examiners likewise added to gross short positions. Here there was just a single exemption, the Japanese yen. Despite the fact that the dollar shut comprehensively higher in front of the end of the week, every one of the monetary forms we track here, spare the Mexican peso, picked up against the dollar in the three sessions since the finish of the CFTC reporting period.

Every once in a while it is helpful to review why many market members take a gander at the theoretical situating in the cash fates advertise. It is not that the outside trade is essentially a prospects showcase. It is principally an over-the-counter market in which every day turnover midpoints in abundance of $5 trillion a day.

Trade exchanged monetary forms and alternatives represented around 3% of the normal day by day turnover as indicated by the BIS study. Be that as it may, past reviews have discovered some contemporaneous connection between’s market heading and net position changes. We think it additionally offers knowledge into a specific market section of pattern supporters and energy brokers. It is not by any means the only device, yet one of a few data sources.

One ramifications of this is albeit theoretical positions in the money fates market are moderately extensive, it is still little contrasted and the money showcase. Along these lines, it is difficult to see the genuine essentialness of a record vast position, as though there is some market top. At some point, examiners are not driving the costs, possibly there is another fragment, national banks, enterprises, as well as genuine cash that is more essential at any given minute.

We invest some energy taking a gander at gross positions instead of just net theoretical positions, which is the more customary approach. We think a more granular look is frequently fundamental. There is a distinction between short-covering, for instance, and new purchasing, however it appears to be identical in the net. Additionally, the gross position is the place the introduction is not the net position. A net position of zero does not mean the market is nonpartisan. Net positions could be huge, which implies a short press or a negative stun could in any case troublesome. The positions that must be balanced are captured in the gross measure not the net figure.

We find numerous customers are likewise keen on theoretical situating in the US Treasuries and oil. The net and gross short theoretical Treasury position has swelled to new records. The bears added 23.8k contracts to the as of now record net short position, lifting it to 616.2k contracts. The bulls attempted to pick a base and added about 20k contracts to the gross long position, which now remains at 471.2k contracts. These modification prompted to a 3.8k contract increment in the net short position to 344.9k contracts.

The bulls delayed in the oil prospects toward the finish of 2016. They exchanged short of what one thousand contracts, leaving 608.1k gross in length contracts. The bears added 4.1k contracts to the gross short position, giving them 168k. These conformities trimmed the net long position by very nearly 5k contracts to 440.1k.

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3 ways to profit in the ‘year of the dollar’

In December, the Federal Reserve raised loan fees for the second time since the Great Recession and included the desire of a 2017 financing cost climb to its gauge. Furthermore, only a couple days prior, the abundantly anticipated minutes from the most recent Fed meeting demonstrated the most hawkish tone from the national bank in two years.

In the meantime, Europe has been dove into political turmoil after a year ago’s Brexit vote and the later abdication of Italy’s leader. Somewhere else, the Bank of Japan proceeds down the way of negative rates and forceful security purchasing.

Put it all together, and it isn’t astounding that the U.S. Dollar Index is up against 14-year highs.

Speculators may have missed so much discussion on account of babble about the Dow Jones Industrial Average at the end of the day almost hitting 20,000. Be that as it may, paying little respect to your assignment to stocks or your venture skyline, this sort of huge picture incline in the dollar implies right now is an ideal opportunity to position your portfolio to benefit and, maybe most critical, to keep away from a portion of the pitfalls that can originate from a solid local cash.

Here are a couple ideas dollar exchanges ought to consider:

Residential plays over multinationals

There’s a considerable measure of seek after shopper stocks in 2017 on account of an enhancing work market and any desires for a jolt under a GOP-controlled Congress and President Donald Trump. In any case, remember that not all retailers are made equivalent especially those with abroad operations that are adversely affected by the wide dissimilarity in monetary standards at this moment.

For example, retailer Wal-Mart Stores Inc.(WMT) said troublesome money trade rates shaved very nearly 2.5% off profit for each partake in the second quarter of 2016. On the other hand consider that in the monetary final quarter of 2016, athletic attire goliath Nike Inc.(NKE) saw its income development cut down the middle because of forex weights, from 12% year-over-year in consistent cash measures to only 6% including real money changes.

To take advantage of the “reflation” exchange that numerous financial specialists are counts on in 2017, you need to represent the headwinds that a solid dollar are making for multinationals at this moment. The most ideal approach to do that is to consider customer plays that do by far most of their business here in the U.S. – for example, Foot Locker Inc.(FL), which has been an uncommon splendid spot in retail throughout the most recent couple of years.

Supported money ETFs

Obviously, in the event that you need a steady portfolio, you can’t just purchase just local centered values. Geographic expansion is similarly as imperative as enhancement crosswise over parts and resource classes. Such a large number of financial specialists keep on holding worldwide plays in light of a legitimate concern for a balanced portfolio, regardless of the possibility that it implies battling a daunting struggle as a result of a solid dollar.

The uplifting news, notwithstanding, is that you don’t need to leave yourself to torment through a solid dollar and a powerless euro when you put resources into Europe. Nor do you need to stress over the yen-dollar conversion standard when you put resources into Japan. That is on account of there’s an entire group of cash supported ETFs to permit financial specialists to put their cash in outside business sectors yet keep away from forex issues.

Consider that Japan’s Nikkei 225 file is up around 25% from its July 2016 lows. The WisdomTree Japan Hedged Equity Fund(DXJ) is up 35% in a similar period on account of assurance from forex issues and a somewhat better-performing rundown of stocks – while the non-supported iShares MSCI Japan ETF(EWJ) is up only 10% in a similar period because of battling a difficult task against a solid dollar.

In the event that you need to differentiate your portfolio comprehensively, you ought to consider supported assets that incorporate the Japan-centered DXJ, the WisdomTree Europe Hedged Equity Fund(HEDJ) to play Europe or the iShares money Hedged MSCI EAFE ETF (HEFA) for developing markets.

Dollar list ETF

In the event that you are searching for an immediate play on a rising dollar as opposed to putting resources into stocks, figuring out how to exchange remote trade can appear like an overwhelming undertaking. Gratefully, there’s the PowerShares DB US Dollar Index Bullish Fund(UUP).

This ETF is attached to the U.S. Dollar Index, which is a measure of the greenback against a wicker container of other worldwide monetary standards including the yen and the euro. It’s a straight money play, however that doesn’t make it straightforward or hazard free. In the event that the dollar debilitates, you’ll lose cash similarly as though you’re putting resources into a stock that has fallen on difficult circumstances. Furthermore, obviously, PowerShares takes a little cut of your speculations en route that indicates 0.8% yearly, or $80 a year on each $10,000 contributed.

Still, in the event that you need to conjecture on the dollar or support against a solid U.S. cash keeping down other worldwide ventures on your rundown, it’s maybe the least demanding approach to do as such for generally financial specialists.

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