The best trading software
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Trading software is a decision-making tool for individual traders. Its uses are very diverse: Chart pattern detection software, software to automate your trading strategy, software for your smartphone, etc. It can also include trading platforms that are interfaces between traders and the market. Most trading software packages are provided by your broker.
The best known software in this field is Autochartist. Its purpose is to identify the various chart patterns and technical indications on your chosen assets. The software works on all time units. This tool attracts a lot of novices who view Autochartist as a way to save time identifying patterns and therefore get trading signals quickly. This trading software is offered free of charge by several brokers.
I do not recommend using Autochartist. Why? I find that the technical layouts are often approximate. The software feels, so to speak, compelled to display a technical indication so that all users can benefit. It has no problem in identifying a trend line, but for more advanced chart patterns, identification is haphazard. Yet, with technical analysis, we need to be very precise about exactly those indications. Incorrect placement of a line on a chart pattern can lead to a false bearish/bullish signal. An experienced trader would be able to tell the difference, but only novice traders use this type of trading software.
As a result, these traders do not learn to draw chart patterns themselves. They become dependent on trading software. Worse, for them, the software isn’t helpful, they often consider it as a signal provider for the unit of time it examines. They then neglect to learn technical analysis and the basics of trading in general. A trader should never be dependent on software or a signal provider. He must be able to analyse a price chart himself and draw the right conclusions. Of course, it takes longer, but to date, I've never seen anyone make money using chart pattern detection software. A word to the wise!
Once you have found a trading strategy, you can have it coded to automate it. This is the case, for example, with the Molanis trading software offered by Activtrades.
Having your strategy coded enables you to do backtests over longer periods of time using the Metatrader platform. But be careful, positive backtests are far from a guarantee of success in your trading. Trading performance varies greatly depending on market conditions. All of them can show excellent results over a given period and plot a lovely upward curve. But beware! Past performance does not reflect future performance and the risk of slippage is not taken into account in backtests (which greatly modify true performance).
The problem with EAs is that you have to be able to modify the parameters to adapt to market conditions. Novice traders are rarely able to do this. Of course, automatic trading has its advantages (time saving and emotion suppression) but it still only works for a while. Even the best EAs, who sometimes generate earnings for several years, still end up razing the account one day or another. These are the facts!
Moreover, using trading software to code your strategy is not within a layperson’s capabilities. Some basic programming skills are required to be able to do this.
From a global point of view, I am not against automatic trading, but only if it is your own trading strategy that you have automated. This way, you understand it perfectly and are able to modify it.
Almost all brokers have launched their own smartphone applications. Through a simplified interface, this trading software provides access to their trading platform’s basic functionalities. This is obviously a plus for all traders.
This enables you to track your trades and to open and close positions. You generally have access to real-time charts. Real added value for individual traders but be careful not to abuse it.
Smartphone trading software should be designed to help you monitor your trades and that's all. At the most, you could close some of your positions if you see fit to do so.
On the other hand, I advise you not to open a position based on these programs. Why? An internet connection is from 3G or 4G. There is the possibility of the connection being broken or that you simply have poor network reception. As a result, your order’s transmission could have a long latency time. Using smartphone trading software, the price you click is rarely the one you get.
Opening a position from a smartphone also means opening a position quickly, by feeling, without any real tools to objectively open a position. For example, it is impossible to determine technical indicators, to be able to zoom in or out, etc. Moreover, if you use your smartphone, it is because you are not at home and you can therefore be distracted by thousands of things. You're not really focused on trading. Opening a position in bad conditions, from a smartphone, is therefore to be avoided!
Trading software is more of a marketing tool than a trading tool. These are selling points for brokers. They are often harmful for novice traders who use them abusively and inappropriately.
Trading software for chart pattern detection
The best known software in this field is Autochartist. Its purpose is to identify the various chart patterns and technical indications on your chosen assets. The software works on all time units. This tool attracts a lot of novices who view Autochartist as a way to save time identifying patterns and therefore get trading signals quickly. This trading software is offered free of charge by several brokers.
I do not recommend using Autochartist. Why? I find that the technical layouts are often approximate. The software feels, so to speak, compelled to display a technical indication so that all users can benefit. It has no problem in identifying a trend line, but for more advanced chart patterns, identification is haphazard. Yet, with technical analysis, we need to be very precise about exactly those indications. Incorrect placement of a line on a chart pattern can lead to a false bearish/bullish signal. An experienced trader would be able to tell the difference, but only novice traders use this type of trading software.
As a result, these traders do not learn to draw chart patterns themselves. They become dependent on trading software. Worse, for them, the software isn’t helpful, they often consider it as a signal provider for the unit of time it examines. They then neglect to learn technical analysis and the basics of trading in general. A trader should never be dependent on software or a signal provider. He must be able to analyse a price chart himself and draw the right conclusions. Of course, it takes longer, but to date, I've never seen anyone make money using chart pattern detection software. A word to the wise!
Trading software to automate your trading strategy
Once you have found a trading strategy, you can have it coded to automate it. This is the case, for example, with the Molanis trading software offered by Activtrades.
Having your strategy coded enables you to do backtests over longer periods of time using the Metatrader platform. But be careful, positive backtests are far from a guarantee of success in your trading. Trading performance varies greatly depending on market conditions. All of them can show excellent results over a given period and plot a lovely upward curve. But beware! Past performance does not reflect future performance and the risk of slippage is not taken into account in backtests (which greatly modify true performance).
The problem with EAs is that you have to be able to modify the parameters to adapt to market conditions. Novice traders are rarely able to do this. Of course, automatic trading has its advantages (time saving and emotion suppression) but it still only works for a while. Even the best EAs, who sometimes generate earnings for several years, still end up razing the account one day or another. These are the facts!
Moreover, using trading software to code your strategy is not within a layperson’s capabilities. Some basic programming skills are required to be able to do this.
From a global point of view, I am not against automatic trading, but only if it is your own trading strategy that you have automated. This way, you understand it perfectly and are able to modify it.
Trading software for smartphones
Almost all brokers have launched their own smartphone applications. Through a simplified interface, this trading software provides access to their trading platform’s basic functionalities. This is obviously a plus for all traders.
This enables you to track your trades and to open and close positions. You generally have access to real-time charts. Real added value for individual traders but be careful not to abuse it.
Smartphone trading software should be designed to help you monitor your trades and that's all. At the most, you could close some of your positions if you see fit to do so.
On the other hand, I advise you not to open a position based on these programs. Why? An internet connection is from 3G or 4G. There is the possibility of the connection being broken or that you simply have poor network reception. As a result, your order’s transmission could have a long latency time. Using smartphone trading software, the price you click is rarely the one you get.
Opening a position from a smartphone also means opening a position quickly, by feeling, without any real tools to objectively open a position. For example, it is impossible to determine technical indicators, to be able to zoom in or out, etc. Moreover, if you use your smartphone, it is because you are not at home and you can therefore be distracted by thousands of things. You're not really focused on trading. Opening a position in bad conditions, from a smartphone, is therefore to be avoided!
Conclusion
Trading software is more of a marketing tool than a trading tool. These are selling points for brokers. They are often harmful for novice traders who use them abusively and inappropriately.
