Spread betting trading software
Hi, I thought I would share my limited experience, for what its worth I only started to learn about trading 6 months ago. I have been writing back tests using ESignal and have written my own back testing software in vb. I have mixed feelings about back testing and will explain why: What I mean by this is that after reading a couple of tutorials I was able to quickly write tests and start generating reports.
The strategy that is under test can be overlaid the chart with sections highlighted where trades were executed making it is exceptionally quick to see where the strategy was effective or where changes to the logic of the script need to be made. This, I find, invaluable as it allows you to quickly develop test scripts and see the results visually in comparison to debugging own software. Disadvantages I have not found a way to run back tests against multiple symbols at one time.
Writing my back testing software Advantages You have complete control and aids with learning technical analysis. However, the language you use would affect the time taken to create the program. I have used vb. I have fully unit tested my software to ensure that is bug free which is also time consuming.
To think I, as a one software developer, with limited time, can write some software that is going to give a greater edge than a product, like ESignal, that has had many man years of development put in to it is a big bit bonkers.
Back testing in general Advantages Back testing is reassuring. My initial thought when I started learning about trading was, "How could you possibly risk entering a trade without proving conclusively that the strategy has worked successfully in the past? I think some parts of technical analysis just are not possible to write code for and your brain and eyes will do the job much more effectively. There is a danger of programmers writing the code to make the numbers fit.
In other words, customizing the strategy logic too closely for one set of test data so that it is useless on any other set of data. In conclusion, I believe, a mix of both discretionary and mechanical back tested trading strategies are needed but I have not found the right balance yet. Malcolm, I found your seminar at the moneyshow, a couple of weekends back, very helpful and instructive.
The software I'm using is Ninjatrader, which is free to download to start building strategies and backtest them. You do need a feed of data and there are some free ones available. You either create it via a wizard or through some scripting.
If you then want to trade properly then you buy a license for a particular broker. But I think there is a spread betting firm that use to have a connection to Ninjatrader called ProSpreads. I've been mainly using it to trade and test Forex at the moment. But I originally got into it when I was looking for a strategy testing system for Spreads.
I've tried automating some of my strategies and on the whole have seen positive results when running in real-time. So I think there is potential, although at the moment I tend to just use it as a trading tool with discretionary trades. The software was developed by Information Internet Limited, a sister company jointly owned by Peter Cruddas and the two developers that designed and built the first version of the software, Terry Johnston and Ben Fisher.
In , CMC Markets began to offer contracts for difference CFDs  and the following year it introduced online spread betting on financial markets. These two products would become the bulk of the business for CMC Markets. In the company began embarking on a major global expansion drive. It expanded quickly between and and opened offices in a large number of countries, as well as growing the spread betting business in the UK and the CFD business internationally. From , CMC Markets also operated the brand name deal4free.
This brand was designed to promote the zero commission charge service, used primarily for its UK-based spread betting business. Commissions were later re-introduced and this brand was dropped as part of the re-branding in September In , the company planned to become a public company via an initial public offering ; however, the IPO was cancelled at the last minute due to market conditions. In , CMC Markets acquired financial media and technology company Digital Look which ran the financial information site Digitallook.
The company was merged into CMC Markets' main operations in London, but continued to run the website and data services for third parties.
It continued to offer physical share broking services in Australia. In and , CMC Markets saw profits decline with the global financial crisis. In response, Peter Cruddas changed his management team and closed seven offices and reduced the company headcount from a high of 1, employees.
The new trading software improved on previous MarketMaker software; amongst other things being able to quote market prices to additional decimal points and provide trade execution without re-quotes. No reliable data exists for the over-the-counter CFD and spread betting industry. However, in some industry participants commissioned a survey to look at the UK market and results indicated that CMC Markets market share in was lower than its main competitor.
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