Quantiacs – The Best Algorithmic Trading Platforms

Quantiacs – The Best Algorithmic Trading Platforms

Which trading platform is the best? This article was written to answer the question. In this post, you will learn about the pros and cons of 5 algorithmic trading platforms, as well as which platform is best for you.

Important Features of Algorithmic Trading Platforms

Before I get into the actual trading platforms, I want to give you some criteria to look at when choosing a platform.

Asset Class

The first thing you need to do is look at which asset types the platform supports. You cannot use a platform that only supports the stock market. You will have to find a platform that supports the assets you want to trade.

Live Trading Support/Broker Integration

Not all trading platforms allow you to do it. The platform provider will have to support broker integration. The platform may or may not allow you to link your algorithm to the broker you choose. Live trading is not supported by some platforms so you can’t trade through them. Only research and development can be done on the platform.

You can paper trade your test results on some platforms.

Data

Access to high-quality data is a must for any kind of trader. You can use their data inside of their platform for free. This is one of the best features of the platforms since it is very easy to get quality data yourself.

Intellectual Property

One of the biggest concerns of algorithmic traders is maintaining their intellectual property, regardless of where the program was developed. That is why it is important to find a platform that does not claim the rights to the software that was developed on their platform. This issue is relevant for advanced traders.

Some platforms offer solutions that will allow you to develop your own software directly from your own computer.

Programming Languages

There are obvious reasons why not all platforms support all programming languages. If you want to use a language that is compatible with your preferences, you should find a platform that supports that language. Even if a platform supports a programming language that you are familiar with, you will still have to learn the platform’s application programming interface.

Documentation/support

It can be difficult to learn to use a platform, depending on the documentation and availability of tutorials. More established and popular platforms have a lot more support and a helpful community which can be a big plus compared to smaller newer platforms.

Well-known open-source platforms have larger, active, and helpful communities than non-open-source options. Open-source software has a lot of transparency.

Competitions & Licensing Opportunities

You can submit trading strategies that meet certain requirements on certain platforms. You will be rewarded with cash or other prizes if your program performs well compared to other submissions.

Some platforms have the ability to get recognized by institutional investors, which could lead to institutional licensing of your algorithm.

The Best Algo Trading Platforms

Quantopian

The biggest and most popular trading platform was quantopian. They offered a lot of free data as well as a great platform to backtest and research trading strategies. Paper trading, competitions, and other features were removed over the past few years. All of their offerings will be discontinued in November 2020. The platform that can be used is no longer possible. There are other great platforms. One such platform launched at the same time as the other, and is still growing at a rapid pace. Next, we will discuss the pros and cons of the platform.

QuantConnect

A wide range of asset class funding for forex traderses can be supported by the platform. As far as I know, the only major trading platform that supports options trading isQuantConnect. Users can trade these assets through various brokers, but they also have access to tons of free data. There is a list of currently supported brokers by the company.

Interactive Brokers

Oanda

FXCM

GDAX

Bitfinex

Alpaca

You can paper trade on their platform. You have to pay for a live server if you want to trade directly throughQuantConnect. The prices are very reasonable. Students and teachers can take advantage of the generous discounts.

Both Python and C# are supported by the company. There is a large community that can help you with questions and comments. There is also a boot camp series which offers a great introduction to the platform.

One of the great features is the competition that allows you to compete with other members of the community in order to win. The winners of these contests will receive cash prizes and the chance to get institutional licensing for their ideas. Hedge funds sponsor the competition.

The platform acts as a marketplace for strategies that use computers. This means that you can let other people trade through your black box and earn money.

Intellectual property of all their users will be protected on their website. If you don’t want to use their platform, they offer the option for you to host their open-source trading engine on your own. This will be a lot more difficult than using their website.

Since they support so many asset classes, have a rapidly growing community, and host great competitions that offer a lot of potential for the participants, I would say thatQuantConnect is the best all-round platform that you can use.

Check Out QuantConnect Now

Quantiacs

Another popular platform is quantiacs. They support both strategies.

You can’t directly live trade your algorithms through a broker on the platform. The main idea of the platform is to find good user-made algorithms and fund them with capital. Half of the performance fees generated through these methods are given to the users that get chosen.

The marketplace for strategies is calledQuantiacs. The other platforms discussed so far are web-based. You will have to download their open-source development kit and use it on your machine. The toolkit can be used for both MatLab and Python. If you feel like you have a good idea, you can submit it to a competition when you feel like it. The biggest prize money pools of all the quant platforms can be found onQuantiacs.

While keeping your intellectual property, Quantiacs is a great platform for competition, prize money and licensing. It’s not the right platform for those that want to trade their own data. Compared to other platforms, the data offered byQuantiacs is relatively limited.

MetaTrader

The most popular trading platform on the market is MetaTrader. The MetaQuotes programming language is based on C++ and supports automated trading on the clean and feature-rich platform.

Due to the platform’s popularity among traders, you will be able to find a lot of tutorials and guides. You need to download and install their platform to be able to use it.

You can buy and sell on the platform. A lot of the available automated trading strategies are not very well researched, which is why I wouldn’t recommend buying someone else’s strategies.

Since MetaTrader is not solely an algorithmic trading platform, certain aspects of their platform might not seem as well polished for algorithmic traders as some of the other algorithmic trading platforms discussed in this article

It’s best for those who want a great platform for discretionary trading and market analysis but also support automated trading.

Build Your Own

It is possible to build your own platform if you don’t want to rely on any platform. You will need to find a broker that has an openAPI. You need this so that you can communicate with the broker. Here is a quick list of some of the best brokers in the country.

Alpaca

Interactive Brokers

E*Trade

TradeStation

and more

You will need a data provider after that. This is the biggest challenge for retail traders. If your broker doesn’t give you data, you will either have to pay for it or find a free one. Quality data can be pricey.

If you have a broker and a reliable source of data, you just need a way for you to keep running your algorithm on an ongoing basis so that it can trade for you. You will usually have to set up a server that isn’t free to accomplish this.

Creating your own platform gives you more control. It can be a learning process. If you are just starting out, I don’t recommend it since it comes with a lot more work.

If you prefer to use your own system for the trading portion of your research, it is a good option to use platforms such asQuantConnect.

Conclusion

Best All-Round Quanticas Equities, Futures, No Python, MatLab, and C# are available.

I hope the article gave you an idea of what the best platforms are. My recommendation for people just starting out in trading is to use quant connect. They have tons of free data, a great community, and support the most asset classes. They are a great place to learn quantitative trading.

Check Out QuantConnect Now

I created a free video course using Python and the platform. You can learn everything you need to know about the trading process in this course. If you want to get into algorithmic trading, make sure to check this out.

Watch my free algorithmic trading course here!

Let me know if you have any questions in the comment section.

I may receive a small compensation for links within this article. These referral links do not affect the objectivity of my content.


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