Technical trading system software is available in two forms, the open source, and the commercial. These two forms are available in PDAs (personal digital assistant), mobile phones, or computers. Through PDAs and mobile phones, traders and brokers can access their online technical analysis data even if they are away from their computer. These data require the utilization of Java applets, which may or may not work on older models of PDAs or mobile phones. To access these data, traders and brokers are required to submit and store their information with their service provider.
Apart from the two forms of technical trading system software mentioned above, there are common features that go with as well. Some day trading software in the market only focuses on particular aspects only. As a trader or broker, it is important that your trading software is fully automated and equipped with complete features that include charting, back testing, optimization, scanners, alerts, custom indicators, data feed, and broker interface.
The feature of charting in technical trading system software is the graphical interface that shows the technical analysis, volume, and price indicators. The chart shows various visual interfaces that include open-high-low-close (OHCL), candlestick, bar, and line charts. The data in the chart are presented in series of time that traders or brokers can typically view historically and within interval of periods. Some charting feature of this software allows users to draw resistance and support trend lines.
Another feature of technical trading system software is the back testing, which enables traders to test their strategies against historical movements of prices for either one or more specific securities. The strategies are compared to one another by using various performance measurements like sharpe ration, annual profit, and maximum drawdown. The objective of this feature is to try to develop a fx trading strategy based on the criteria of technical analysis indicator, which will give a good return of investment eventually.
The optimization feature of technical trading system software is the process of testing the parameters of technical analysis indicator. It also develops an investment strategy that will generate the maximum return of investment based on the movements of historical prices. The scanner feature allows traders and brokers to scan the market whether in currencies, options, stocks, or more. It helps identify the investment opportunities of the traders or brokers at a specific criterion of investment.
The alert feature in technical trading system software functions in monitoring specific equities like warrants, currencies, options, stocks, and more. It also provides the notification when specific conditions of technical, volume, and price analysis are met. The custom indicators feature includes a library of standard indicators. The feature of data feed feeds real-time data feeds to the traders while the broker interface feature can be integrated with brokerage platforms in placing trades.
