Traders prayed throughout the last century to eliminate human error from trading decisions. They often overlook their core trading details, jeopardizing their perfect trading streak.
Today, our trading businesses rely on computer algorithms that precisely decide and react following our predefined trade plans, thanks to technological advances and robotic process automation.
No more human factors in trading!
Many ready-made algorithmic trading robots now offer a plug-and-trade feature. You only need to buy the solution, specify transaction parameters, allocate funds, and enter or exit positions while focusing on other tasks.
However, considering your trading market and expectations, finding the perfect automated trading system is necessary and challenging.
In this article, we will review a few key points and discuss some of the best ready-made algorithmic trading robots on the market.
Characteristics of a Ready-Made Algorithm Trading Robot
It’s improbable that the software alone will generate a profit for you. It all depends on how you run your business with the help of the trading robot.
If you rely on an algorithmic trading robot, it should have concentrated features that serve as your constant companion.
Let’s go over some of these must-have characteristics.
Extensive Backtesting Opportunity
The efficiency and behavior of your trading algorithm depend on historical data testing. The trading robot’s algorithm understands different market scenarios from the historical trade data and learns to react.
A trading plan without a thorough backtesting plan may risk your algorithm’s feasibility, profitability, and sustainability. Therefore, choose a solution with efficient backtesting and extensive historical data collection.
Diverse Market Connectivity
If you are good at money making, you would move and try earning from different markets. But it requires a trading platform that connects to foreign markets and exchanges and reads multiple data formats. Thus, your ideal algorithmic trading robot should have the platform support to access different needs.
Least Latency
The temporal delay caused by sending data points from one application to another is crucial to algorithmic trading. This delay could break your high-frequency trading (HFT) operation because the original price quote can change several times in that interval. So invest in something that has the least latency.
Configuration & Customization
There are successful trading plans but barely any sustainable trading algorithms for steady success. Trading is fast and changing. You must constantly adapt to change.
Having a tool that responds to your orientation while on a crossover or whipping your Moving Average would be preferable. Instead of built-in functionality, you need a solution that lets you customize buying and selling parameters.
The 5 Best Ready Made Solution for Algorithmic Trading
Nonetheless, we have discussed the characteristics of competent and profitable algorithmic trading solutions. But, when you ask the market for the best ready-made algorithmic trading solution that is shining and serving well, what names do you hear?
Well, before getting into the details, let’s go to some key parameters and create an illustration table where each platform stands a firmer ground than the other.
| Parameters |
MetaTrader 4/5 |
cTrader |
Interactive Brokers |
Pionex |
Wyden |
| Trade Execution Speed | Fast | Fastest | Fast | Fast | Fast |
| Fees and commissions | Varies | Start free | Low | Varies | Varies |
| Asset coverage | Most Extensive | Good | Extensive | Good | Good |
| Algo Trading | Strongest | Good | Strong | Good | Strong |
| Analysis Tools | Most Comprehensive | Good | Extensive | Good | Good |
| Strategy Testing | Most through | Good | Strong | Moderate | Advanced |
| Scalping & HFT Capabilities | Supported, dependent on broker | Supported | Best in class | Supported, but market-dependent | Designed for HFT & algo trading |
| Reliability | High | High | High | High | High |
| Community and Support | Largest | Medium | Large | Small |
Small
|
So, now, if you want to learn more about these trading platforms, here’s a detailed rundown of some the 5 best ready-made algorithmic trading solutions you can buy at any time:
1. MetaTrader 5
MetaTrader is one of the most recited names in the trading world today. If you are a trader, you have most likely encountered Metatrader 4 or MetaTrader 5. They both function as a full-fledged algorithmic trading system.
Metatrader is the Swiss Army Knife of algorithmic trading, encompassing Contract-for-Difference (CFD), stock forex trading, and futures trading.
You can execute trades automatically with MetaTrader’s Expert Advisors (EAs). They can analyze market data, make trading decisions, and implement strategies 24/7, seizing opportunities in your absence.
Some of the pros of using MetaTrader:
- Expert Advisors (EAs): Automated robots executing trades 24/7 based on predefined criteria.
- MQL5 Marketplace: Offers 18,000+ algorithmic trading tools for regular trading.
- Strategy Tester: Backtests strategies on historical data to evaluate potential performance.
- Depth of Market (DoM): Provides insights into order book dynamics and price potential.
- Economic Calendar: Alerts traders to market-moving events for timely decisions.
- Signal Subscription: Allows direct copying of trades from successful traders.
Besides Fix API integrations, you can create black box strategies, private custom algorithms, and multilingual communication. It also supports popular trading charts (Line, Bar, Candlestick) and has over 21 timeframes.
Cons of Using MetaTrader:
- Complexity: Newcomers may find the platform overwhelming due to its many tools and features.
- Limited Asset Types: Due to its focus on Forex, MT4 may limit multi-asset traders.
- Locked Data Feed: Traders can’t use third-party data or replace any broker data.
- Backward Compatibility: MT4 programs won’t work on MT5. It could limit investors.
Metatrader has been the most influential trading platform. It offers a number of numerical and analytical benefits to the traders. There are so many situations where Metattrader can be your best pick.
Let’s look into some of the stats that stand MetaTrader platforms ahead of other platforms.
- Popularity Among Brokers: 90% of the Forex brokers use MetaTrader platforms.
- User Base: Millions of traders worldwide use MetaTrader platforms.
- Market Share: MetaTrader holds a dominant position of 83.8% in total market share.
- Profit Contributions: Most brokers use MetaTrader, so this contributes the most profit.
- Updates: MT5 adoption grew post-2018, showcasing advanced features, and profit grew massively for traders. Some reported growth of up to 105%.
2. cTrader
cTrader is one of the most popular ready-made algorithmic trading platforms for the Forex and CFD markets. It offers several efficient Algorithmic trading tools, indications, and strategic features.
Unlike other Algorithmic trading platforms, it’s primarily based on the C# programming language, which gives you access to a few more advanced features, such as an advanced trading chart type-Dots Chart.
Some of the pros of using cTrader:
- Intuitive User Interface: Modern, user-friendly design. Ideal for beginners.
- Advanced Charting Tools: It offers comprehensive tools, and multiple time frames are available.
- Level II Pricing: Displays market depth, giving clearer insights.
- Automated Trading via cAlgo: Create and implement custom trading robots.
- No Dealer Intervention: The STP platform ensures direct market access.
- Cloud Integration: Settings sync across devices for continuous access.
- Supports Multiple Accounts: Manage several accounts at once seamlessly.
Some drawbacks of using the CTrader:
- Limited Plugins: It doesn’t support many third-party integrations, limiting the expansion of platform capabilities with external tools.
- Broker Availability: Only a select number of brokers support cTrader. It limits the choice for traders preferring this platform.
- Limited Historical Data: Not all instruments have extensive historical data restricting in-depth backtesting for some assets.
- No Offline Mode: cTrader always requires an active online connection, which may be a challenge in places with unstable internet.
- Mobile Limitations: The mobile application might offer only some desktop features that limit on-the-go traders.
cTrader is one of the fastest trading platforms you can pick right now. It enables you to concentrate on trading speed and advanced trading features.
It’s not an all-around trading platform, but highly efficient in some contexts. Here are some stats and features that make cTrader a top choice:
- Faster Execution: The low latency and speed of cTrader ensure that trades are executed quickly. It reduces slippage and secures the best prices.
- Depth of Market (DoM): You can competently assess the market depth, liquidity and volatility with Level II pricing. cTrader offers 3 DoM options: Standard DoM, Price DoM and Volume Weighted Average Price (VWAP) DoM.
- Clarity: Direct market access without a dealer in the middle helps you trade results by ensuring fair prices.
- Analysis Tools: Market assessments with comprehensive tools can lead to more profitable trade decisions. Tools such as the Ichimoku indicator help you big time.
- Risk and Reward Management: cTrader’s assortment of advanced order types allows for precision in trade entries and exits, safeguarding profits and capital. Besides, you can create your risk and reward assessment bot.
- Depth of Market (DoM): You can competently assess the market depth, liquidity, and volatility with Level II pricing. cTrader offers 3 DoM options: Standard DoM, Price DoM, and Volume Weighted Average Price (VWAP) DoM.
- Clarity: Direct market access without a dealer in the middle helps you trade results by ensuring fair prices.
cTrader’s signal tools let you receive deal copies into your trading account. You can backtest them on historical and real-time data while calculating live performance. It’s an excellent option if you want risk-free daily algorithmic trading.
3. Interactive Brokers (IBKR)
Interactive Brokers is a global trading platform focusing primarily on traditional traders and small to medium-sized funds. The platform caters to the most common trading interests, such as stocks, futures, EFPs, Forex, bonds, and funds.
This algorithmic trading solution requires no coding! Instead of coding, IBKR lets you implement and automate your trading strategies in English. However, the relief from complex coding can severely limit the trading algorithm’s performance.
Some pros of using Interactive Brokers:
- Assets: Interactive Brokers provide an unparalleled range of available investment assets, including stocks, ETFs, futures, cryptos, bonds, mutual funds, hedge funds, robo-advisor, and many portfolios.
- Order Execution: IB’s cutting-edge technology speeds order processing, reduces slippage, and boosts returns.
- Cost Reduction: You can enjoy competitive commission structures if trading in high volume. It lowers the trading costs and boosts your net profit.
- Analysis Tools: Advanced market research and analysis tools can help traders make more profitable trades.
- Adaptive Algo: Interactive Brokers offer superior support for the Algo traders to establish and use their Algo trading strategies using their Adaptive Algo feature.
- Global Market Access: IBKR allows you to choose from 150+ markets from 33 countries.
Some cons of using Interactive Brokers:
- Minimum Activity Fees: You must pay a monthly activity fee if you don’t do a specific amount of trading.
- Complex Platform: New traders may make mistakes and lose money using the Trader Workstation (TWS).
- Forex Fees: They charge a higher markup on Forex spreads, making them more expensive than pure Forex brokers.
- 5-Day Support: Support is unavailable on weekends.
IBKR is one of the strongest trading platforms you can pick, whether you are an individual or an institution. It’s one of the most all-round trading platforms.
Since you know all the pros and cons of using the IBKR, let’s get you through some of its impressive Here are some stats that make Interactive brokers a top choice:
- Low Trading Fees: It offers low trading fees and high interest (up to 4.83% for USD) on your cash balances.
- Advanced Trading Tools: Tools like Algo trading, scanners, and research platforms help you to identify profitable trades.
- Reliability: IBKR has an average 8.8 rating on Trader Union and an award of the Best Investment Broker in 2022.
- Direct Market Access: Direct routing to multiple exchanges speeds execution and boosts profitable entry and exit fill rates.
- Increasing Revenue: The net revenue for Q2 2023 is $1.32 billion, which was $709M in Q2 2022, showing a 45.51% growth.
4. Pionex
Pionex is one of the most comprehensive crypto trading platforms available today, with over 16 significant bots and various algorithmic trading strategies.
Pionex offers a sharp trade terminal for stop-loss, grab profit, and trail-in-one features in your algorithmic trading strategies. Besides, it provides a wide range of bots to select the type of premade trading bot you require for your Algorithmic trading venture.
Let’s look at some of the Pionex trading bots:
Grid Trading Bot: The bot trades like a regular day trader, buying and selling within a set price range and focusing on small and consistent profits from standard volatility.
Trailing Buy Bot: When asset value falls, it adds a position, and when the price rises, it stops buying. So you can sell when the price gains.
Spot Futures Arbitrage Bot: It trades in futures markets and focuses on price differences between futures and spot prices, with a profit target of 15% to 50%.
Margin Grid Bot: The trading bot locates and lends crypto coins to other Pionex traders for a percentage of the profits.
Pionex is one of the best options if you are looking for a simple yet effective and easy-to-use ready-made algorithmic trading solution.
Let’s get through some pros of using Pionex:
- 16+ Crypto Trading Bots: Pionex helps you adapt your trading methods to changing market conditions using trading bots.
- Low Trading Fees: Comparatively low exchange fees reduce trading costs-0.05% of trade value.
- Supported Assets: Pionex supports 250 coins, including Bitcoin(BTC), Ethereum(ETH), Litecoin(LTC), Dogecoin(DOGE), Uinswap(UNI).
- User-Friendly: The platform is easy for both beginners and pros.
- Liquidity Aggregation: Pionex collects liquidity from top exchanges to minimize slippage and smooth trading.
- Security: Protects your assets and trade privacy with industry-standard two-factor authentication. Binance and Huobi Global securely store Pionex wallets.
- Mobile App: Offers all the trading options on the mobile app to give you a trading experience on the go.
Some cons of using Pionex:
- Limited Features: Free and regular Pionex plans have fewer features than competitors.
- Only Crypto: You can only trade cryptocurrency using the trading platform and trading bots.
- Flat Currency: Limited fiat currency support
- Lack of Features: No advanced trading options like lending and margin trading
Pionex can be one of the best platforms for you if you focus on the Crypto trading strategies mainly. It will be handy if you intend to go into institutional or quant trading. But you can make some real profits if you focus solely on Crypto trading.
Regardless of the cons and limitations of the platforms, let’s learn some situations and stat that make Pionex one of the top choices for algo trading:
- Beginners Exploring Bots: Pionex makes automated strategy trading easy for beginners.
- Volatile Markets: Pionex’s grid trading bots can execute many small, profitable trades in volatile markets.
- Diversifying Strategies: Using multiple bot options, you can diversify your trading approaches to different market conditions.
- Passive Trading Approach: Using a bot and monitoring may be easier if you want to avoid being tied to charts.
- Crypto-to-Crypto Trades: Pionex may be suitable for cryptocurrency traders without fiat investments.
- Minimum Deposit: Cryptocurrency deposits start at $1.
5. Wyden (Algo Trader Quant)
Wyden, formerly AlgoTrader, is an institutional digital asset trading technology. It primarily focuses on daily trading, cryptocurrency, and portfolio management for both buy-side and sell-side institutions.
The Wyden quantitative trading solution generates and executes orders for buy-side funds trading digital and traditional assets. It includes automatic trade signal generation and algorithmic order execution.
It lets you create complex Java/Python systematic programming strategies from scratch. Wyden’s RESTful or WebSocket API can connect your algorithmic trading signal service to any programming language.
Let’s get through the pros of using Wyden:
- Charts & Indicators: Wyden reviews highlight the TradingView chart library’s popular indicator access. ATR, Bollinger Bands, Donchian, Keltner, and Parabolic SAR market analysis can help you.
- Automated Bitcoin Trading: Wyden connects to 45-plus popular cryptocurrency exchanges trading hundreds of cryptocurrencies like Ethereum, Litecoin, Ripple, and Dash.
- Latest Adapters: Wyden provides 15 interfaces and adapters, including Quandl, QuantHouse, Coinigy, and Nexus Prime.
- InfluxDB: Wyden stores ongoing and historical market data in InfluxDB, a top time series database that benefits you by storing 1 million values each second, data tagging, and accelerating backtesting up to 200%.
- Strategy-Specific User Interface: Wyden adds many strategy-specific widgets to the HTML 5 user interface. It lets day traders view strategy-specific data or change functionality.
Some cons of using Wyden:
- Limited Charting: Wyden can only monitor live currency strategy trading.
- Increased volatility: Wyden is fast, but algorithms can widen the bid-ask spread when market conditions change.
- Backtesting Overfitting: It offers to backtest, but over-optimizing strategies to past data may work better in real time.
- Monitoring required: Wyden needs attention like many automated trading systems. Technical errors can cost you a lot of money if not fixed quickly.
When Wyden was AlgoTrader, it was one of the most robust platforms for Algo Trading. Now, it focuses on its modular trading platform for custom solutions alongside algorithmic trading. It adds much diversity.
Wyden can connect to multiple data sources and provide historical data for trading signals. It guarantees the flexibility to adjust and optimize the backtest and live market.
Thus, it becomes a modular trading platform that ensures best execution by defragmenting liquidity through market-wide connectivity, end-to-end trade automation, and orchestration.
You might be wondering in which case you should pick Wyden or if it should be your perfect pick platform.
Situations where Wyden is the best trading platform:
- Institutional Trading: Wyden’s robust infrastructure suits hedge funds and institutional traders. If you’re trading a lot of money, you can count on Wyden.
- Complex Strategy: Java flexibility shines for strategies requiring intricate conditions or multi-asset monitoring.
- Quantitative Research: Teams relying heavily on quantitative methods and quantitative research benefit from its comprehensive backtesting and data tools.
- Global Markets: Wyden provides seamless integration for concurrent traders in different international markets.
- Cryptocurrency Markets: Given the 24/7 nature of these markets, automated trading through Wyden ensures continuous market participation.
Summary
Looking for the best algorithmic trading solution is akin to looking for a speck in a haystack. It’s because these ready-made algorithmic trading solutions have their significance, advantages, and disadvantages.
Thus, you can choose the one most users have trusted and relied on using your basic human instinct. Or You can select the one with the most extensive resources, support communities, and active user base.
Whatever algorithmic trading system you choose, remember that your strategies will nail whether or not you come out ahead. Your success depends on instinct, market knowledge, and your automated trading business strategy.
The post Technical Overview of Algorithmic Trading Robots [ + Characteristics, Pros, Cons, Best Solutions] appeared first on Datafloq.
