Development of trading simulators
Algo trading provides the following benefits:
Transactions are made at the most favorable prices.
Placement of trading orders is instant and accurate (high probability of execution at the desired levels).
Trades are calculated correctly and instantly to avoid significant price changes.
Reducing transaction costs.
Simultaneous automatic check of several market conditions.
Reduced risk of manual errors when placing trades.
Algorithmic trading can be backtested using available historical and real time data to ensure it is a viable trading strategy.
Reduced chance of human traders making mistakes based on emotional and psychological factors.
The main components of an algorithmic trading system are research tools, performance, ease of development, fault tolerance and testing, separation of concerns, awareness, support, source code availability, licensing costs, and library expiration dates. Before deciding on the “best” tool with which to create an automated algorithmic system, it is necessary to determine the requirements:
What will be the trading frequency and likely trading volume?
Will the system require a risk management module or portfolio building?
Will the system require a high-performance historical tester?
Traders who require more complex and custom designed systems may consider using C#, Matlab, or Python, but I would say that for the remaining 95% of traders, algorithmic trading software will suffice.