AlgoTrader software facilitates the development, automation, and execution of numerous strategies at the same time. The AlgoTrader download enables automation in forex, futures, options, stocks and commodities markets. It is also one of the first to allow automated trading of bitcoin and other cryptocurrencies. This page will break down their system, including features, benefits, price, and performance.
Breaking Down ‘AlgoTrader’
Swiss-based AlgoTrader GmbH has contributed to the rise in automated trading systems. In fact, 80% of all stock market orders now placed by such systems.
Since 2009, AlgoTrader has introduced a number of comprehensive versions, from 2.2 and 2.3 to the popular 4.0 version of today. Below you will find details on the developments.
AlgoTrader is built on open-source technology, frameworks, and methodologies. These include Java SE 6 Model Driven Architecture and Code-Generation based on AndroMDA CEP-Engine based on Esper Persistence Framework.
Before getting technical with source code downloads, Python and Github, the AlgoTrader platform offers a number of basic but beneficial features. It supports multiple currencies and enables automatic conversion of currencies.
In the web-based platform, you will find a selectable view option and menu for the rarely used functions. A financial overview will appear at the top of the screen. This all helps de-clutter your platform, allowing you to focus on what’s important and relevant to you.
Charts & Indicators
FX, stocks and futures day trading is tough. However, AlgoTrader reviews have been quick to highlight the TradingView chart library allows access to many popular indicators. ATR, Bollinger Bands, Donchian, Keltner, and Parabolic SAR could all aide market analysis.
In addition, there is a generous choice in terms of chart types. You will find lines, bars, candles, area, selected linear, percentage, plus log axes for sharp price movements. Customisable charting and drawing tools are also available, including Fibonacci and Gann tools, as well as Elliot Waves.
In response to client feedback and market analysis, Algotrader has introduced a number of new features. Reviews show users are content with many of the changes. The new AlgoTrader offering allows multicolumn grouping, plus you can display all tables at once. The gives day traders the ability to make fast decisions. You will also now find a number of alarms and notifications.
On top of that, you will not have to wait or refresh to see market data. Instead, live market data and updates are automatic and in real-time.
The cost of AlgoTrader 4.0 will vary depending on individual circumstances, including the size of assets traded and the strategies you want to employ. For an accurate price, head over to their website and submit a request. You can also check out their demo offering to get a feel for the platform before you sign up.
Automated Bitcoin Trading
With Bitcoin and cryptocurrency experiencing a phenomenal rise in popularity, AlgoTrader has been quick to introduce the first professional algorithmic trading solution to support such trading.
Through integration with Coinigy, AlgoTrader connects to over 45 of the world’s most commonly used cryptocurrency exchanges. This enables individuals to day trade hundreds of cryptocurrencies, including Ethereum, Litecoin, Ripple, and Dash.
Below are just some of the available exchanges:
The AlgoTrader system has a lot to offer technical traders. You have the ability to process live market data, plus automated downloads of Coinigy accounts, exchanges, as well as currency pairs into AlgoTrader.
On top of that, you can trade your cryptocurrencies against fiat currencies via forex brokers. There is also arbitrage trading of digital currencies between exchanges, as well as the automated rebalancing of portfolios.
You will find AlgoTrader can now support 15 interfaces and adapters, including:
- Quandl – This is a popular source of economic, financial, and alternative datasets.
- QuantHouse – This uses extremely low-latency market data QuantFEED.
- Coinigy – Often used to trade bitcoin and other cryptocurrencies.
- Nexus Prime – This is a popular MetaTrader 4 server, FIX interface supplied by IS Risk Analytics.
Strategy-Specific User Interface Extensions
AlgoTrader 4.0 allows you to extend the HTML 5 user interface with a number of strategy-specific customised widgets. The benefit of this is day traders can visualise strategy-specific data or amend functionality, such as parameters.
AlgoTrader uses highly regarded time series database InfluxDB, to store both live and historical market data. As a result, you get to benefit from the following:
- Hassle-free installation with no dependencies
- Storage of up to one million values each second
- Sophisticated compression to limit storage footprint
- Data tagging to allow for flexible queries
- The possibility of accelerated backtests by up to 200%
- Real-time aggregation of tick data into straightforward bar data
In terms of AlgoTrader vs Marketcetera, Ninja, and other similar systems, you realise the AlgoTrader platform offers a number of unique features that you simply cannot get elsewhere. These include:
- Creating a signal based on a number of securities and then trading alternative securities.
- Automatic rolling allows you to continuously trade futures and options.
- Using time-based strategies that aren’t able to be programmed with traditional programming languages.
- There are a number of time-based window functions. These include, during, between, afterwards, parallel with, along with, finishes and begins.
- You can benefit from a sleek combination of Java and Esper. The former is used for procedural actions, such as placing an order. The latter can be used for time-based market data analysis and signals.
- You can automate quantitive strategies that use formal trading rules, based on MATLAB or Excel that previously had to be manually traded as a result of an inadequate trading platform.
Many of the FX AlgoTrader indicators and features you can find tutorials and PDFs for in their support documentation.
It’s important to note that AlgoTrader takes a different approach to their platform. They steer clear of chart-based software packages, such as NinjaTrader and TradeStation, that boast hundreds of indicators and straightforward menus. Admittedly AlgoTrader has a fast integrated Esper engine. However, it is perhaps better equipped for dealing with complicated trading logic, instead of latency in the nanosecond range.
Once you have completed your AlgoTrader open source download, you will also have access to a number of additional features:
- You can fully customise the Execution Model for Back Tests. This should allow you to include your own custom logic in terms of spread, slippage, and fill ratio.
- On top of Esper-based strategies, simple strategies based on Java code are also supported.
- You will find the examples strategies box, pairs trading and IPO all now have an HTML 5 interface.
- You have Tick Events, but AlgoTrader also now circulates raw quotes and trade events in live trading.
Why Use AlgoTrader?
With so much software now available on today’s market, why does the AlgoTrader system warrant your attention?
- Customisability – One of the greatest appeals is the open-source architecture. This allows for high levels of customisation to meet individual requirements and preferences. Also, integration with third-party libraries is possible.
- Speed – Using the Esper engine, the AlgoTrader system will automatically process high volumes of market data, whilst functioning at impressive speeds of 500,000 events per second.
- Support – Transitioning to automation can prove challenging. However, once you have installed AlgoTrader, you are provided with comprehensive guidance in the form of documentation, plus onsite and remote training.
- Reliability – The AlgoTrader Platform is built on robust architecture and up-to-date technology. Therefore, the system is relatively reliable. It uses Java, Esper, Hibernate, ActiveMQ, QuickFix/J, Grails, Docker, Spring, and others.
- Cost-effective – Employing an effective automated trading system with built-in features may increase total profits. It could reduce strategy development times and trading costs.
- Removes emotion – AlgoTrader removes the emotional influences that can lead to costly mistakes in manual, human trading. Just 1 loss can make even experienced traders doubt their strategy. Instead, the platform offers a purely systematic approach.
There are undoubtedly some distinct advantages to the AlgoTrader system. However, trading blogs and customer reviews have also been quick to highlight certain drawbacks and risks:
- Limited charting capabilities – AlgoTrader does have limited charting functionality. It can be used just to monitor a currency strategy’s trading activities when live trading.
- Increased volatility – The speed of trading with systems such as AlgoTrader is appealing. However, algorithms can widen the bid-ask spread when reacting to changes in the market conditions.
- Chain reaction – As a result of high integration in global markets, a slow down in one market may transition to other markets and assets.
- Customisability – If you do not utilise the customisability options, there is a danger of using broad standardised approaches, which may not best suit your individual circumstances and investment objectives.
- Monitoring required – Just like many automated trading systems, AlgoTrader does still require attention. Mistakes and technical glitches can happen, possibly costing you serious capital if not remedied promptly.
It is clear that AlgoTrader improves each year. The current AlgoTrader 4.0 offers a range of sophisticated features. When compared to others it stands out as one of the most comprehensive algorithmic solutions on the market. In addition, you can benefit from a free download and demo, regardless of your location, be it London, India or Singapore.
For further guidance on how automated systems can enhance your trading performance, see our automated trading page.