Sunday, April 7, 2013

JForex

It the past few months I had a lot of work and couldn't dedicate much time to my private research.
Recently I was asked by one of my customers fro a small project in JForex. For those of you who are not familiar with it I'll explain: Dukascopy has a web trading interface with Java based API. This is the programmable gateway to automated trading in this platform.
At a first glance it looks simple compared to the Metatrader. I checked in the past and moved on becuase it looked very primitive to the tools I was used to.
Each time I investigated the options to setup a reliable back test system I found that Dukascopy is a good and  free source for reliable historical tick data.
This is my short background with JForex until that small project I had last week.

Well, now I'm in love!

Why?
I'll explain:

  1. The platform is completely web-based. This way the data is not stored locally on your machine and it ensures the same historical data for all the users.
  2. The programming interface is done with Java. Java is like English... very common and almost  everybody speaks this language in the programming world. For me as a programmer it allows me to write fully object oriented expert advisors. From that point of view it is clearly better than MQL4. MQL5 is a different opera but it's not as common as MQL4.
  3. I think that this is the feature that hit me: the backtest. This platform allows the user back test his trading robots with real historical tick data. I think that the biggest Metatarader's flaw is the historical data and back test mechanism. First, the historical data is not accurate most of time. Different machines with the same platform has different history data. Second, there are no real ticks in historical data. The highest time resolution is one minute and then there are tick modelling techniques. This is a mandatory feature for automated trading.
  4. Multi-currency back test - this is something that did not exist in Metatrader 4.
Combing all of these together allow me to fully develop and test multi-currency trading ideas that showed great potential a few months ago. The key feature here is 100% accuracy. I don't claim that the past results ensure me future results but accurate past test is crucial.


No comments:

Post a Comment