Charting Software

"Your charting software can double
as your trading software."

There is some very good charting software available for traders, but it is just that - good charting software.

It will not be much use to you for testing and evaluating systems because the software required for that is specialized.

Your trading software must simulate live trading conditions and advance through each time period, trading each day's price information as if it were a 'live' day.

It must assess the ‘ at this moment’ situation of every commodity on your trading list - as to whether there are any buy or sell signals requiring action. Then it must carry out the risk management and money management tasks to decide the sizes of positions that may be taken on this particular day.

The simulation also requires such things as contract rollover costs and price slippage to be incorporated.

There are many other similar considerations, which require special trading know-how in the design and operation of the software.

This is the very same software that should carry out your live trading. As a systems trader, you will delegate all your routine trading to this software.

Of course, your trading software will also produce charts of markets and trades and many other reports necessary for you to analyze what your system is doing. However it is primarily designed as trading softwre.

You may still wish to have separate specialized charting software and there is nothing wrong with that. But don't expect this software to be capable of running your evaluation tests, simulating live conditions. It just won't be possible.

 

Modus Trading
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Copyright David Bromley 2006
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