AUTOTRADING – Fully automated or self-controlled solution?
When you are serious with leasing of automated strategies, you have to decide what kind of broker service suits you more. There are two ways how to get your automated systems traded by your broker.
- Fully automated solution
- Self-controlled solution
Advanced systems developers give you the choice of how you want to autotrade their systems.
While fully automated trading provided by broker gives you the advantage of no-worry solution, it use to be more costly than self-controlled way.
Self-controlled autotrading in the other hand is mostly cheaper, but requires quite a lot daily attention provided by you.
I trade my ATS with 2 brokers for many years. Fully automated Striker and self-controlled TradeStation brokers.
Below I am comparing my extensive experience with both brokers:
STRIKER, fully automated solution:
Specializes in the disciplined execution of 3rd. party trading systems. Maintains independent performance records.
- fully automated autotrading, no need any action from system subscriber
- system performance monitored and controlled online by responsible staff
- authenticated all trades results published daily
- performance history of automated systems available
- trading systems ranking (top 5 performers in various periods available)
- no need to pay for data
- realized slippage in real trading comparable with Trade Station
- you can use 40+ Striker introducing brokers. Download the list of introducing brokers here:
- higher trade commission
TRADESTATION, self-controlled solution:
Great award-winning trading platform, trading software and online broker for automated strategies.
- nice trading platform integrated with own historical data and easy strategy implementation
- competitive prices of trade commissions
- customizable platform integrated with own TradingApp store with trading systems
- realized slippage in real trading comparable with Striker
- you have to download, install and setup each strategy yourself. Need to install strategy updates when released by developer.
- need to monitor the platform yourself several times per day. In case of disabled platform functionality need to apply your own solution ASAP. It is necessary to check EVERYDAY, most important whether your strategy closed the opened position correctly. Otherwise do it manually ASAP.
- to manually rollover futures contracts traded by your strategies (monthly, quarterly…)
- to pay for data (if you are lucky, you grab the offer for some free data when sometimes available)
- need to reserve and keep running reliable computer for autotrading. Best results are by leasing your own VPS
- to manually switch off strategies during the market holidays. I switch off also in shortened trading days. Don´t to forget swich on the next trading day.
Striker is 100% comfortable solution. You pay a bit more for it.
You have to compare your commission plan between Striker and Trade Station and multiply it by number of trades made by your strategy/ies. Don´t forget to add to comparison monthly data payment and maybe VPS lease in Trade Station.
TradeStation is cheaper solution.
By increasing of number of strategies and trades the difference could be interesting. In the other hand, it requires your daily attention, with NO EXCEPTION. Common issues are energy and internet shortages, data issues, order executions issues etc.
I remember how during the New Year’s Eve party in Cape Verde I forgot to control the close of my opened positions in crude oil. When I checked my VPS, the markets were closed already. I have been locked in opened positions 2 days till market opening. From profitable unrealized exit, which wasn ´t executed by the strategy due the internet shortage, I finished with $7k loss by market opening in New Year.
Self-controlled autotrade requires discipline and routine. Also a bit deeper understanding of the platform and manual rescue plan when accident happen.
It could save you several thousand $ annually, but one failure could costs you a fortune.