Recommendations for Algorithmic Trading
Our key product and services recommendations for successful algo trading
Be under no illusions, successful algo trading is a difficult endeavour with many challenges. Without the right tools and services it is, in our view, close to impossible. Here are a few of the products and services that we feel are important for success, with some recommendations based on the tools we choose to use ouselves at Trade Like A Machine.
Choosing the right broker
Not all brokers are equal. Choosing the right one is absolutely key to success. A broker with goals alighed to the goals of the trader, and that isn't purely focussed on generating revenue from traders is essential. Surprisingly, brokers that meet this criteria are rare.
The broker that we use for our own algo trading execution, and would whole-heartedly recommend is Darwinex. But do your homework and find a broker that you are comfortable with.
Quality Historical Price Data
Historical price data provided by your broker is rarely good enough for backtesting and optimization purposes. You will need to source quality data from elsewhere, if you want reliable backtests you can trust.
We obtain our data from Tick Data Suite and again would highly recommend this as the best data source for use with MetaTrader. Get tick data with real spreads easily, with a convenient integrated download manager.
The right training
Whether or not you buy training is of course a personal choice. But the right training will significantly reduce the time to become profitable, and also help you avoid many costly pitfalls.
Do your research and find a training partner that suits your needs. We highly recommend that you choose a training provider that trades themselves and has a verifiable track record they are willing to share with you. You might want to take a look at our own training offering.
Using the right backtesting and Optimization software
The use of bad backtesting and optimization techniques is the main reason algo traders fail.
Using tools and techniques that help to make sure your results are statistically significant will help to ensure your trading systems are more robust and that backtest results more closely resemble what you can expect in live trading.
Again, do your reserach, but take a look at Walk Forward Pro, our own optimization software.
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We are passionate about algorithmic trading, and about helping other algorithmic traders reach their full potential.
We help traders to develop robust trading systems that deliver results in live accounts.