What are the misunderstandings about the programmatic trading system interface?

One: A programmatic trading system is a computer program

In fact, many people think that programmed trading systems are computer programs. In fact, programmed trading systems do not necessarily need to be embodied by computer programs. People can quantify and rationalize predictive analysis, risk management, and investment strategies., standardized, and form a combination of artificial recognition (not realized by computer), such a combination is also a set of programmed trading systems.However, in the production process of the trading system, a lot of data statistics and analysis work need to be done. Moreover, the trading system is placed on the computer, and the computer gives various signals. Such signals are more objective and can prompt traders to better execute transactions.The system avoids the fluctuation of artificial emotions from affecting the trading results.So most programmatic trading systems are programmatic trading systems, or they may not.

Two: The role of the programmatic trading system is to save time

For traders, a complete programmatic trading system can indeed save time, but this is only one of the benefits, because a complete trading system has made strict discipline arrangements for investors, and investors must fullyOperate according to the instructions given by the trading system, and investors are not allowed to flexibly handle market entry and exit and position control.
It can be said that most investors have a history of making profits, but they do not necessarily have the ability to make profits.If these investors could be provided with a well-functioning programmatic trading system, it would be important for them to make money, not save time.

Three: The programmatic trading system is a forecasting system

An important part of the programmatic trading system is to give buy and sell signals. A buy signal means that the programmatic trading system finds that the trend of the market conforms to a given characteristic, changing from a bear market to a bull market.Therefore, the programmatic trading system thinks that it is possible to buy, but this signal does not mean that the market will change with a 100% probability. Sometimes the signal will go wrong, and even the possibility of error will be very high in a certain period of time.

If investors buy aggressively according to this signal, heavy positions or even full positions, the risks will not be controlled, and investors may suffer heavy losses.In fact, the analysis and prediction function is only one component of the programmatic trading system, and the programmatic trading system has two other important components: risk management and investment strategy.

These three components are complementary, and without any of them, the programmatic trading system is incomplete and cannot manage investments well.Only with good risk management, investment strategy and prediction system, if the signal is correct, the profit can be expanded as much as possible; in the case of wrong signal, it can stop loss and exit in time. Such a programmatic trading system is calledA complete programmatic trading system.