On Trading Systems
| 20 April 2009
Megatrade101 has the responsibility as a matter of due diligence to find out what trading systems and platforms are available that meets the highest trading requirements it needs to fulfill its trading objectives. That is why the company is in the process of getting itself acquainted with the various systems in the market by test trading the platforms itself.
A standard set of parameters is used to establish a common denominator to measure its effective and variance over a period of time. Most systems in the market are basically user friendly and easy to operate. Gone are the days that one has to set up its own parameters and charts with their corresponding analytical tools based on the systems provided to them. There was no real standard which one to use. Even now most of the systems available have a menu window where one can simply choose which of the trading indicators best fits their style of trading. There are over-lay charts and price parameters that would give the traders an overview of the market movements in one sitting, thus providing a better outlook and feel of the market behavior.
These are just some of the analytical and technical tools available and with a quick click on the mouse and presto! The data is on the screen. It took sometime in the middle 1990s towards the 2000 where most of the developments in electronic trading was starting to be recognize by the industry. This is because of the result of higher trading volumes and revenues that the exchanges and managing companies are getting from these systems. The standard norm for inter-bank trading was dedicated phones thru their dealing desks with Reuters which was connected to the bank dealing network. Not everyone was accessible to the market and the competitive prices that it provides.
And then came the retail brokers, market makers and the registered Futures commission merchants offering dealing services in foreign exchange. Most of the renowned data and technical services providers then were the likes of Telerate, Knight-Ridder, Future Source, Trade Station and of course without mentioning the top tier of the line such as Bloomberg, Dow Jones, Reuters and while Thomson Financial is the leader in the European sector. These companies do provide technical platforms to use for trading there were still no real standard way of trading the foreign exchange market.
Until now with so many systems even some companies carry not all will be able meet this criteria because each one investor has a different set of objectives and goals. And pay extra attention to the trading systems that are fully managed, monitored and traded by the systems designers and writers which are solely based on past performances and historical data. One never knows what composes the formulas embedded in the program that provides fair and competitive prices. As a figure of speech; if it walks like a duck, quacks like a duck then, it must be a duck!
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