The most effective trading algorithms for trading in the forex market

The automation of the trading process does not surprise anyone any longer, because for more than 20 years, more and more algorithmic trading strategies have appeared on the market that are capable of conducting an uninterrupted process of asset analysis and based on the obtained data, open and close trading operations without the participation of the fix api trader. And if we talk about the foreign exchange market, which is open 24 hours/5 days a week, this approach does help maximize the return on the investment capital.

But such popularity of the trading robots has also caused the appearance of substandard products, which are not only incapable of demonstrating an impressive result, but completely drain the investment capital of the manager.

Having analyzed many different trading algorithms, we came to the conclusion that not all types of algorithmic trading strategies are working. Based on our observations and analysis, we identified several key varieties of working trade robots to work on the fix api forex market, and we want to share this information with you.

 Scalping algorithms

Here, you need to understand that most of them represent a kind of work for volume and nothing more. Or that they perform a locking activity in order not to close the losing positions. However, from a huge abundance you can find scalp fix api forex robots, which will bring a positive result. For this, we recommend paying attention to the following parameters when choosing a scalping trading robot:

  1. The transaction volume per transaction should be based on the amount, but we recommend no more than 5-10% of all funds. The lower this indicator, the better. This will indicate that the strategy is able to obtain profitability with minimum capital expenditure;
  2. The maximum risk per trade should not exceed 0.5%;
  3. The expectation should be greater than 1.5. For scalping algorithms this is the norm;
  4. The work logic (trading strategy) should be based on at least 3x filters to open a deal, but no more than 5. All that more or less, based on our analysis, reduces the profitability of the strategy.

News algorithms

These robots gained their popularity thanks to the ability to use direct access to the streaming data based on various IT developments. Thus, trading robots connect to the information source and in case of data updating, for a fraction of a second spend them through their algorithm and on the basis of the results trading transactions are made. For example, the trading robot expects publication of US labor market data and is based on the monitoring of the USA Bureau of Statistics website. As soon as data appear on the given resource, the robot compares them with past values, thereby determining the dynamics (ascending or descending) and simultaneously compares them with market expectations. Thus, the robot already knows how the market will react and opens the deal at the very beginning of the impulse. Such fix api trading allows you to catch all the volatility and trade for no more than an hour, which reduces the risks.

Arbitration algorithms

 These trading robots were the first algorithmic principles of trading operations and in the future turned into modern HFT trading. The advantage of this approach is the ability to trade on the basis of exchange rate differences. So, the trading robot analyzes the same asset, but on different stock exchanges. After that, when there is a discrepancy, which corresponds to the parameters set in the robot, the algorithm opens a transaction and fixes the result based on the return to the regulatory range. This allows you to make speculative positions and conduct profitable fix api trading.

We took exactly the fix api arbitration form as a basis of our software developments and the entire product line – . This type is the least risky and stable, because for a correct analysis, you do not need to fully predict the future movement of a financial asset, but rather trade in the moment, on the basis of exchange rate differences, thereby fixing high yields with a minimum level of risk.

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