In futures trading, having the ability to consistently capitalize upon opportunity is what separates the novice from the professional. For those that have achieved long-run success in the marketplace, actively maximizing trade-related efficiency is a primary reason why.
The first thing a trader must do to promote efficiency is to secure market access via the right futures trading software. This eliminates many functional pitfalls and gives any viable trading strategy its best chance at success.
Choosing Your Ideal Futures Trading Software Platform
Software trading platforms come in all shapes and sizes, each having a unique functionality. Some are designed specifically for short-term technical strategies, whereas others cater to more traditional fundamental approaches. Finding the right one for your unique approach to the markets is the name of the game.
The initial step in selecting a suitable futures trading software suite is deciding what type of trader you are. Whether your style is fundamental or technical will determine the importance of the following features:
- Advanced charting: For technical traders, placing price action into a useful context is a day-to-day undertaking. In order to accomplish this task, a trader must be able to chart pricing data in real time, open multiple charts simultaneously, and apply any number of indicators. If you’re a technical trader, then your ideal platform will support these advanced features.
- Low-latency data flow: In futures, latency is the time it takes for information to flow from the exchange to the trader and back again. For short-term methods such as scalping, low-latency data flow is of paramount importance. Undue latencies lead to subpar order fills and slippage, which can compromise a profitable strategy. However, for longer-term approaches such as swing trading, latency isn’t as huge of a factor. Position management parameters are broader, thus taking the impetus off of precision.
- Order entry: Active futures trading involves buying and selling contracts in an attempt to secure market share. So it stands to reason that being able to buy and sell on your terms is an important feature of any futures trading software. Having an array of order types at your fingertips can improve performance dramatically. Limits, stops, stop market, and multi-brackets are order entry options that can streamline trade execution and boost long-run profitability.
- Live news feed: For fundamental traders, timely news and economic data releases are key components of the decision-making process. Although these elements are not as important to technical traders, they’re critical to fundamental traders. A surprise news item or official report can spike volatility and send markets reeling. Receiving such information in a prompt fashion can help to limit losses or generate extraordinary returns. If you’re going to trade futures from a fundamental perspective, having access to a live news feed is a must.
- User-friendly: Being able to quickly navigate charts, indicators, trading DOMs, and news feeds is an integral aspect of a platform’s functionality. Your platform should be intuitive and easy to use. If it’s not, it’s time to seek a viable alternative!
It’s imperative that your futures trading software complements your trading strategy. If you are employing a high-frequency scalping methodology, then low-latency and multiple order options are important. Conversely, if you’re a fundamental swing trader, then speed isn’t as much of an issue. In either case, it’s up to you to decide which features add more value to your overall trading plan.
Capitalize on the Utility of DT Pro
No matter which type of trading strategy you favor, the functionality of Daniels Trading’s dt Pro platform can help you optimize performance. From advanced intraday charting to a live broker connection via Instant Messenger, dt Pro has everything the technical or fundamental trader needs to succeed in the market.
The best way to find out if you like something is to try it out. Feel free to test drive dt Pro for 14 days, absolutely free. Sign up for your no-obligation $50,000 demo account today!
