A trading system is a program that identifies trading opportunities based on defined criteria and conditions. When these conditions and criteria are met, the system notifies you or performs an operation according to the instructions programmed in the system.
Day trading requires processing information quickly and acting quickly to benefit from small, lucrative opportunities. While you can day trade manually, a large number of traders are investing in advanced automated trading systems and platforms to be on par with large financial institutions that have access to the most advanced trading systems and expertise.
FEATURES OF A ROBUST TRADING SYSTEM
There are many trading systems and trading platforms available in the market. A good trading system should have the following important features.
Healthy strategy
An efficient trading system is based on a solid strategy that is practical and backed by verifiable results. The strategy should be easily programmable to create a trading system.
Be simple
Your trading system should be simple and not overly complex as it can be confusing and can generate false signals. A simple trading strategy can be easily programmed into a trading system. While it can generate fewer signals, signals generated by a simple system are more likely to be strong and produce better results.
Working in different market conditions
Market conditions change quite often and your system should be able to adapt to these changing conditions. It should perform reasonably well when the market is trending or when it is in range conditions. It would be even better if you tested the system in various scenarios and also used it in real market conditions in demo mode.
High profitability
Your trading system should be able to identify high profitability trades as small gains can be quickly decided by one or two large losing trades. High probability and profitability trades are what make a trading system worth your time, effort and money.
TRADING PLATFORM
A trading platform allows you to enter your trades online and execute your trading strategies using various built-in tools, such as price charts, technical indicators, and others. Brokers offer several third-party and proprietary trading platforms to their clients for trading the markets.
The market is filled with countless trading platforms, but only a handful of them are popular and are used by millions of traders.
FEATURES OF A SOLID TRADING PLATFORM
You should look for the following qualities in a trading platform:
Order types
Day traders often have to place different types of orders under different market conditions to execute their trading strategies. Traders also use stop-loss orders and take-profit orders as part of their risk management strategies.
Trailing stop loss is another frequently used order that traders like to have in their platforms. So, a trading platform should have all kinds of important orders, which would give you great control over your trading.
Trading charts
A trading platform should give you access to a wide range of price charts to analyze price action. Candlestick charts, bar charts, and line charts are some of the common types of charts that your trading platform should have.
It is important that trading charts are also available on mobile platforms so that you never miss an opportunity even when you are away from your computer.
Technical indicators
Technical indicators help traders understand price action, which helps them to effectively execute their trading strategies. Some trading strategies require a combination of indicators, so it is essential that your trading platform has all the necessary indicators to successfully execute such strategies.
Mobile and Web Trading
Your trading platform should be accessible on all devices, including smartphones, and run on all operating systems. Nowadays, various brokers offer trading platforms with full functionality and functionality even on smartphones.
A trading platform should also be accessible on the web so you don’t have to install the package before making it work, which eliminates many inconveniences.
Business Automation
Day trading has become extremely fast, and a delay of seconds could rob you of profitable trading opportunities. To remove the limitations of manual trading, many trading platforms now allow you to automate your trading.
With automated trading, your trading platform makes trades automatically for you, based on the trading criteria you set. It is an essential feature that can set you apart from other traders and significantly improve your trading performance.
