Error
Handling
Forex trading platforms
do not consider traders utilizing forex autotrading.
Forex autotrading is a rather new phenomenon and
trading platforms have been set up to serve internet
customers issuing manual buy/sell orders.
We are aware of some market makers that are
considering incorporating autotrading features but
for now, traders will have to handle these problems
themselves. Below are some circumstances and
some general discussion for advanced autotraders to
consider, but is by no means a complete inventory of
forex autotrading.
Possible errors and Error Handling Solutions
Most
trading platforms do not have a mechanism to protect
against receiving bad data.
When autotrading, your program
will automatically take every trade without
question, just as you have programmed it.
-
Solution: Take only
trades when the current close price is within a
current predefined spread. If the spread is
larger, than you can have your program fire off a
warning to notify you of bad data.
-
Solution: Implement a heartbeat function
in your strategy to address platform data feed
freezes (when Tradestation charts stop updating
you can be notified within a predetermined time
frame).
What
happens if you lose your Internet connection after
you have a trade on?
You might have the
perfect forex trading strategy but it does you very
little good if your application can't send its signals to
the dealing platform for you. There are multiple
solutions to this problem.
-
Solution: Send an alarm if you lose
your
connection with the dealing platform.
-
Solution:
You can add a
redundancy checking
tool for power outages or internet failures such
as
http://www.ks-soft.net .
-
Solution:
Co-locating
on the
trade server in the data center
to address Internet and power outages.
-
Solution: Send stop orders with buy/sell
signals at the same time so you always have both
signals on. If there is a power outage, then your
stops are already in place to protect your
position from going against you.
-
Solution:
two
computers running at the same time with different
internet connections and different data feeds.
Your
code triggers unwanted buy/sell signals.
It is helpful if your
trading system has plotted support/resistance levels
and buy/sell areas ahead of time so that you know in
advance when your system is about to place its
buy/sell signals.
Register here.
Forex
autotrading design considerations and features:
-
The Forex autotrading
system should be completely hands-free but allow
you the option to turn-on confirmation of every
trade.
-
The Forex Autotrading
system should incorporate
Risk
Control and Position Sizing.
See Van K. Tharpe >>.
-
Should
be able to handle bad data or bad ticks when they
occur with automatic error handling.
-
Impervious to market makers purposely attempting
to blow out (programmed) stops. Forex.ca does not
associate with any market makers that follow that
practice. However, it makes sense to place
stops past natural support and resistance areas
that many professional traders are aware of.
See our free course >>.
-
The
Forex autotrading system should be able to handle
partial-fill orders without problems.
-
As mentioned
previously, your system should be able to handle
the inevitable internet failure or hard-drive
crash. A simple way to test this is to turn
off your computer after your autotrading system
sends its first signal. What will happen?
-
You should have a
system in place to handle the catastrophic failure
mentioned above without any worry or stress.
After all, one of the reasons that you are
autotrading is that it removes the emotional and
psychological factors that could affect your
trading decisions.
-
Your forex
autotrading system should have a means to start
the program while you have an order already
active.
It's easy to register
with Forex.ca.
Click here.
Provided courtesy of
www.Forex.ca
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