The modern world of active trading exists in an online, exclusively digital format. Internet connectivity, computing power and software platforms have replaced the hand signals and verbal queues of yesteryear. Today’s trader is part analyst, entrepreneur, and technology practitioner.
In the contemporary marketplace, the difference between success and failure often comes down to how efficiently a trader conducts business. A large part of optimizing performance depends upon selecting the best trading software for your venture into the futures markets.
Where Do I Start?
Selecting the software platform most suitable for your approach to the markets can be a challenging task. The trade of currencies, futures and equities offer a wide-variety of software products, each with a distinct collection of attributes. Ensuring that a trading application has the capabilities necessary to service your style and objectives is critical to maximizing the probability of success.
In order to make an educated decision, it’s a good idea to clearly define your market-related goals and objectives. This is readily accomplished by addressing the following questions thoroughly:
What type of trading will be the focal point of day-to-day operations?
Different strategies and styles require specific functions from the trading platform. For instance, high frequency algorithmic traders demand different features than discretionary swing traders. Developing a comprehensive trading plan can help to identify your primary needs and the software functionality that will be necessary to satisfy them.
What markets and products will I be trading?
Each market presents participants a unique set of challenges. In futures trading, products facing a broad spectrum of asset classes are offered, all with a specific signature. Understanding the inherent volatility, liquidity and overall behavior of a market is crucial to identifying the best trading software for the job.
Having an idea of your strategy, targets and goals is the first step in addressing your software needs. By first eliminating as much of the guesswork as possible, you will be able to focus on achieving profitability from a sound technological foundation.
Be Sure That You Have Adequate Functionality
After taking an in-depth look at the type of strategies and markets involved in your comprehensive trading plan, it’s time to decide on a suitable platform. When it comes to selecting the best trading software for your needs, adequate functionality is of paramount performance.
The functions and features of trading software are local to three main areas:
Technical and fundamental analytical packages are commonly included by any software trading suite. Advanced charting capabilities, indicators and custom studies are regular features important to technical trading strategies. Conversely, a live news feed or real-time tote board may be included for traders who prefer to make decisions based upon fundamental market drivers.
A crucial aspect of active trading is the ability to enter and exit the market with maximum efficiency. The availability of market, limit, and stop orders can enhance or diminish the effectiveness of any strategy. Chart trading applications or a conventional order entry DOM are other factors that may play a major role in a strategy’s execution.
Properly aligning risk to reward depends greatly upon active trade management. Advanced management strategies such as OCO bracket orders, trailing stops or options for trade automation are popular methods of augmenting profitability.
Many software trading packages are broker-direct, meaning specific platforms are offered to clients on a discounted or complimentary basis. Reduced commission structures, direct market access (DMA) or server-side hosting are a few advantages of specialized broker-direct platforms.
Choosing the Best Trading Software
Selecting trading software that is designed with your style and objectives in mind is a task best not overlooked. For more information on the software products available for futures, contact the industry professionals at Daniels Trading. Led by the robust dt Pro software suite, Daniels Trading furnishes clients with a wide range of platform options.