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What is program trading? How to do program trading?

2022-03-25
1832
  With the continuous advancement of technology,our transactions can now be more diversified,and it can also bring us a better convenient way.Therefore,more and more people are starting to use program trading.

  So what is program trading?

  In fact,he uses our computer software to help us find more trading opportunities in the market.We use our mature education system to calculate the data of the computer,and then write a set of strategies that can be invested normally.And in the market,find very suitable arbitrage opportunities.Because our personal capabilities are limited,for example,there may be hundreds of varieties in our market.But there may only be one or two varieties that we can keep an eye on.Therefore,many opportunities will disappear,and an operation of arbitrage is actually very complicated.If we operate in a purely artificial way,we will miss a lot of opportunities more or less.

  But the programming of the computer is different,because the programming of the computer can help us solve the problem of tracking the disk.It allows us to see all market movements,and once an order is issued,our entire system will keep up with it.So this kind of operation can avoid us from missing information as much as possible.

  After we write a set of programmatic companies,he will calculate through this set of programmatic companies.Then when the buy and sell signals appear,he will provide us with very perfect signals and trade according to our orders.It can make our investors more free,and also allow us to capture more good opportunities.

  So what are the advantages and disadvantages of programmatic trading?

  He has many advantages.First of all,in the first aspect,he is a relatively objective way of trading.With the continuous advancement of our entire programmatic process,he can better analyze the entire market,and he can also analyze the market more calmly.The most important thing is that there will be no human interference in him.There will not be too many opportunities lost due to subjective judgment,nor will the entire operation be hesitant due to subjective judgment.

  In the second aspect,its entire operation is relatively consistent.You know,because all his operations are done by the computer.Therefore,there will be no emotional factors in his operation.That is to say,as long as our signal can touch the operation of the whole program,our trading will be carried out automatically.It doesn't matter whether the deal is profitable or it is losing money.He will continue to move forward strictly in accordance with our entire method,which can bring us more lucrative profits.

  And in different markets,we can write different programs,and then we can treat them differently.For example,in a market,we can conduct a strategic transaction and obtain a investment profit.In the market of B,we can write out the plan and profit of B,so the operation of the two markets is carried out synchronously,and they will not interfere with each other,and they all operate according to their own processes.

  In the third aspect,his entire operation is relatively stable.A mature program transaction actually develops steadily for a long time,and its income can also reach a stable level.So under such circumstances,his entire entry point and exit point can be effectively implemented.As long as there are no major problems with our trading system,we can continue to grow steadily in the market,bring us more profit and space,and make our curve look smoother.

  Are there any disadvantages to program trading?In fact,he also has shortcomings,and nothing can be perfect.To know our entire program transaction,the biggest problem behind this is that his stability is too strong.So it is almost impossible to win the chance to get rich in this way.That is to say,we want to pass this system in this market,and it is still difficult to truly realize the small and broad.Coupled with this procedure,it is too fixed,so sometimes some market conditions are more obvious,which will also lead to the unbearable expansion of profits.

  But overall,the pros outweigh the cons.

  How to do program trading?

  First of all,we have to design the trading strategy,when we want to carry out a transaction.We must have corresponding strategies and rules.If we don’t know how to enter and how to exit,how can we gain profits and space?Therefore,we must first have a mature trading system,which can ensure that we can make money normally in the market.

  When we have a mature trading system,we need to start building our model.Building a model is actually a very complicated process.First of all,we need to understand the operation mechanism of the entire computer.Second,we also need to understand whether the model we have built and the content we have run can achieve commonality.result?

  If we cannot achieve common results,we must also adjust the parameters and continue to optimize in the market.

  That said,a full-fledged modeling itself is a very difficult thing.After we start to build our model,we have to conduct simulated trading in the market,at least we need to put this system in the market to run for 3 to 6 months.Then evaluate whether our system is perfect and whether there are various unexpected situations?Is there anything that needs to be added?

  Only through this series of operation methods can we form our preliminary program transaction.Then we have to put it into the market for testing to see if our entire market can be recognized by us.

  In the real trading process,there will be more problems,and this problem is very different from when we conduct simulated trading.After this system runs,it may take about a year to judge whether our entire program transaction is reliable.

  In fact,for people with very little investment experience,having a set of mature and feasible program trading is a very reliable way,but such a set of tools is not particularly easy to find.    

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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