There
is no area of life that has remained untouched by technology. One of its rather
new offerings is algorithmic slash automated trading which is conducted through
auto trading systems. It means letting a machine do all the work for a human
trader such as collecting, analyzing and interpreting the financial data and
using it to find out most viable trade option.
At
first it may sound how can a machine do all that. But it is true! Before an auto
trading system or software is launched it is tested for its efficiency via back
testing.
Back
testing implies to trading uses associated with historical market data in order
to determine how viable the idea would be. For a system that is supposed to do
something as critical as place financial trade orders, all the rules must be
established in an absolute way, meaning the program cannot go to make guesses.
It
must be fed with precise instructions telling it exactly how to do and what to
do. To make sure whether the designed system is capable of making sound
decisions, programs are fed with historical data on which the set rules are
implemented. This way a trader can figure out the efficiency of the system
before risking his money. Careful back
testing is essential to fine tune the system for trading ideas.
Dragon Holdings AG:
This
German company owned by Niraj Goel, is known for devising auto trading systems,
after careful back testing.
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