Automated Trading can be understood with the concept of computer programming that basically creates orders and finally submits them to a market center or exchange for making profits. It is one of the important trading systems that helps a trader to do an effective business and bring stability in the market by executing it through a computer. Many researchers have pointed out that U.S stock exchanges report 70% to 80% shares traded through Automated Trading systems only. This blog will comprehensively help you learn more about automated trading as well as trading in python. Moreover, there are many trading platforms in python like IBridgePy in the market that are solely meant for trading purposes only. Let’s get started.
What AT requires?
It generally requires the use of computer software to get connected to a broker’s trading system. Also, a set of rules should be written in a programming language, such as Python. There are a few trading systems in the market, for example, easy Language and Ninja Script. However, those are not general programming languages like Java or Python. Therefore, we will focus on trading in Python.
Advantages of Automated Trading
In a tabulated form below, here are some of the basic advantages of Automated Trading system:
| Minimizing Emotions |
| Backtesting |
| Improving Order Entry Speed |
| Preserving Discipline |
| Diversifying Trading |
Cons. of Automated Trading
You need to be accustomed to many downfalls of Automated trading. Enlisted below are some of the cons that you need to take into consideration:
| Mechanical Failures |
| Monitoring |
| Over-Optimization |
| Poor performance |
Learn automated Trading or Algorithmic Trading in Python Through IBridgePy
IBridgePy is a flexible and easy-to-use Python platform to facilitate traders to execute automated rule-based strategies to various brokers like Interactive Brokers(IB), TD Ameritrade as well as Robinhood. One of the most important features of IBridgePy is to backtest and live trade in one platform without any code changes.
Key features of Automated Trading in Python through IBridgePy
Using this platform will take you through some of the key features including:
- Your privacy and intellectual properties are fully protected by setting up IBridgePy on a local computer or cloud servers
Without any code changes, you can do well with the backtesting and live trade together. - It will help you manage multiple accounts at the same time.
- order to fasten up your developmental process, you can make use of any Python packages.
- On minimal changes, you will be able to run Quantopian-styled strategies.
- You can execute various strategies at the same time.
- When backtesting strategies, IBridgePy supports the use of historical data from 3rd party data providers.
- It is important to note that IBridge is flexible, easy-to-use as well as privacy oriented.
Conclusion:
Hope this blog has covered some of the quintessential aspects of Automated trading and algorithmic trading in Python. For a clear understanding, you can refer to IBridgePy to know more about this process.