The moment the CME introduced electronic trading through Globex in 1992, Futures and Forex trading were changed forever. It did not take long for programmers to figure out that they could use technology to gain insight into markets that other traders could not see with the naked eye. As awareness of systems trading has grown over the years, many traders are now interested in systems development but don’t know how to get started or what it takes to be a systems developer. This article is an introduction to the three core subjects we feel traders need to understand in order to develop trading systems.
While there are many different languages used by systems developers, Java, C#, C++ and VBA seem to be the most popular. Due to their popularity and wide spread acceptance, there are various educational resources to learn these languages. If you already know these languages, that is great. If not, pick one and take an online course to learn more. Once you’ve learned the basics of coding, you should find a futures trading platform that allow for traders to write their own custom code into charts. Our flagship trading platform, dt Pro, allow developers to code in C# so they can write their own code and take their trading to the next level.
An important part of Automated Trade Systems is back testing. Back testing is a way for traders to test their systems against historical data for performance purposes. System developers can also use back testing to determine what methodologies performed best in specific markets over specific periods of time. Back testing brings a whole new level of technical analysis to the investor and can highlight trade ideas that may not have been seen before. It is important to remember that back testing is not the magic key to investing; it is merely another tool in your market analysis arsenal. When back testing, make sure to use a long time frame in order to generate a large sample size. In addition, always test out your trading system with real time paper trading to make sure the system works in both historical environments and the present. If you have a demo or live dt Pro account, you can visit our back testing features in Charts & Quotes -> Custom Indicators -> Back-Test Results or you can read our online user guide.
Application Programming Interfaces (API)
Application Programming Interfaces (API) is what enables a software program (i.e. trading system) to interact with your online trading account. An API’s purpose is to connect the trader at home or work to your trading account and then exchange. The developer runs the system on his computer, and when signals are generated, the orders are sent through the API for execution. The API allows the user to access real time data for charts, quotes, and trade execution confirmations.
Our dt Pro platform’s back end technology supports a fully object oriented API called OneLink. OneLink, a robust, low-latency application, is multi-threaded so it can support many simultaneous requests, and it’s asynchronous so you’re not stalling your application waiting for a response. Once your application is connected and authorized, you can utilize OneLink with a signal application or across a distributed network!
To learn more about systems trading, coding language resources, back testing on dt Pro and our API technology, please call us at 1-800-800-3840, email firstname.lastname@example.org or fill out the form below.
Elevate Your Futures Trading with dt Pro
Daniels Trading’s dedication to producing the premier futures trading software in the industry was driven by our relentless pursuit of satisfying the needs of active traders and developing a trading platform that would truly set us apart in the industry. The result is our dt Pro. dt Pro is an easy to use application that handles all of the complexities associated with trading and order management.
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADE PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF THE HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.