There are many crypto trading software platforms on the market right now. However, a good chunk of them don’t even meet the needs they purport to serve. Many are times when people have lost money due to extended drawdowns caused by a faulty trading software. Other times the software executes the wrong strategy and keeps on going, driving your wealth to zero. To help you avoid all these problems and make the most of your trading activities, here are 3 tips to using the right software program.
Choose one that is not tied to a single platform
There are two types of trading software in the market, namely: Platform dependent and platform independent software. Platform dependent ones can only run on one platform. They are usually customized this way because they run some complex algorithm that requires a high level of customization. Such software is usually found in large and sophisticated trading houses such as those run by investment banks. As a day trader looking to make some money trading crypto, a platform-independent software would give you the best returns because it can execute your strategy, and also be accessed from anywhere. One of the best platform independent software you can get is the Crypto CFD trader software. This software is not only affordable but can also be accessed from any location, provided you have internet access, giving you profits and freedom at the same time.
Choose one that factors-in extreme market conditions
The crypto market, like every other aspect of the financial markets, is always affected by extreme news from time to time. For instance, we all saw how the price of bitcoin dropped sharply in January, after news that South Korea was banning anonymous trading. This was followed by a string of other bad news that all led to a sustained bear run in quarter one of 2018. A good trading software is one that it takes into consideration such extreme changes in the market and responds proactively. It can respond by closing the trade, or by reversing the trade to follow the new emerging trend. The ability of a trading software to proactively respond to the market can make all the difference between profitability, and extreme losses in the market.
Choose one that complies with the national best bid and offer policy
Every day trader knows that the entry and exit points in a trade make all the difference between successful trading and extreme losses. Unfortunately, most of the trading software in the market do not comply with the best bid and offer policy. They end up executing trades at prices that are way higher or lower than the desired price levels, leading to losses. In essence, it is best to ensure that the trading software you go for, offers the best possible entry and exit points in the market. You can easily determine this by testing out the software in demo mode. The more accurate the software is in demo mode, the better its chances of replicating the same in the real market.