While designing the algorithm trading system the major components research tool, risk manager, execution Engine, and portfolios optimiser should be considered. There are different trading strategies except them which will greatly in designing of the system. Once you decide the trading strategy, then it becomes easy to architect the whole system. The trading system includes the selection of operating system, choice of hardware, resiliency against rare and potentially catastrophic events. Before considering the system architecture first consider the performance, research tools as well as live execution environment. You can hire freelancers who know about trading.
Before deciding which programming languages are the best for creating the trading system first define the requirements of the system. Decide whether your system is completely execution based? Is your system required risk management software? Do your system require high-performance back tester? The trading system has two type of research and signal generation. The research of the system is the process of evolution of strategy performance over historical data. Signal generation is the process which generates the set of trading signals from the algorithm and sends such it to the market through a brokerage. The strategy of the trading algorithm impacts the design of the system. It is necessary to consider the connectivity to external data vendors, and volume of the strategy while developing the traded system.
Best Programming Languages for Trading
C# is a programming language which is developed by Microsoft .NET framework. It is language mostly used for web development. C# and Java programming language has more similarity than the C++ programming language. You can use C# and Java for the same function in trading. It is the general purpose object-oriented programming language so this language performs a lot of functionality and developer can easily create the trading application using this language. Now C# is also used for developing mobile apps for iOS and Android.
C++ is a general-purpose object-oriented language that has an impact on other programming languages, and this programming language creates the tons of applications, drivers, and firmware, etc. The C++ plays an important role in developing the component of High- Frequency trading that are latency sensitive because it is most efficient at processing a high volume of data. The software of C++ is also used in a different business application and also used in the banks legacy systems. Developing the trading application in other language becomes difficult because these programming languages require a lot of resources; so many developers prefer the C++ programming language for creating the trading application.
Java is a high-level object-oriented programming language is used for creating the server side applications, video games, and mobile applications. This programming language mostly used for data modeling, simulations, and low latency execution. This programming language is used for developing the native Android apps and web-based application. It is popular language because of its simplicity and readability. It is the language compatible with any system hence the developer can easily modify the existing developed application with this language. It is the language which has established itself as one of the most influential and solid programming languages. You can hire freelancers who have knowledge and experience in Java programming language.
Python has general purpose programming language usage. It is slower programming language than C++ and C# but greatly used in quant trading because it is a high-level programming language. Python has a great framework so anyone can develop application easily using this language. Because of the Python’s high performing libraries, the research and prototyping are easy. It is beginner friendly language because of its simple syntax structure, so it is easier for traders to pick up. Because of its simple programming structure developer can easily express the concept in fewer lines. Once you become mastered in basic syntax of Python, then you can easily comfortable with this language.
R is a programming language primarily used in statics and data analytics. R provides extensive variety of statistics such as classical statistical tests, linear and nonlinear modelling, and time- series analysis, clustering and graphical techniques. Use any sample data, and any good trading algorithm needs to get tested. R programming language allows designing of programs that generate trading signals and maximise strategy returns. It is the open source programming language which compiles and run on a wide variety of UNIX platform and similar system. You can find freelance jobs online in R programming language.
In this article, you get information regarding the best programming language for trading. Before picking the proper programming language for trading, you have to put extra efforts, setting aside time every single day to learn and practice, and participating in problem-solving events. Above mentioned programming languages easily helps you for analysis for trading.