What is a platform strategy?

A platform strategy isn’t a formal term in trading. Mostly, traders use it colloquially, which makes it a bit difficult to describe. That’s mostly because, in conversations, people aren’t really strict about their terminology. As such, when two different traders talk about a platform strategy, they may not be talking about the same thing at all.

However, that’s not an insurmountable issue. Simply put, this article will cover the multiple meanings of the term platform strategy, and how they can affect a broader trading strategy.

Which platforms traders use

The first, and most common meaning of the term platform strategy is finding the right mix of tools to go through a trading routine. Sometimes, 交易平台, and supplementary trading tools and services, can make a huge difference in overall results.

Most traders will choose a broker, see which platforms they offer, pick their favourite one, and call it a day. And while this approach is fine, and can yield positive results, it’s also leaving a lot of potential power unused.

There are tons of tools online that can be used to supplement research and optimise profits. Calculators, tools like TradingView, and economic calendars, are just some of the resources that traders can implement.

Still, some traders don’t want to pay extra for such tools. The good news is that there are widely available free versions that traders can use at no additional cost. It does require a bit of research and, as a rule of thumb, free tools are generally less potent than the paid ones, but it still works.

Next, this may also mean using different trading platforms. Let’s say MT4 is a trader’s main platform and they use it in their day-to-day routine. They’ll likely have no trouble going through their trading procedures, and they’ll have enough features at their disposal.

However, let’s say the trader is feeling down for a day and isn’t really thinking about their trades enough. They may alleviate that by using a copytrading platform and copying other traders without the need to focus on their strategy as much. Mixing platforms and using them to their full advantage can lead to significantly better performance.

Which broker or account does the trader use?

Sometimes, when people say platform, what they really mean to say is broker. As such, when they discuss platform strategy, they really mean balancing multiple accounts or brokers to maximise their performance.

How does this look? Well, for instance, a scalper wants tight spreads and doesn’t care about overnight fees, and a position trader is the opposite. However, most traders aren’t just scalpers or just position traders, they mix these strategies to keep a healthy portfolio and have the ability to capitalise on different market situations.

Rather than picking a middle-ground broker, with medium spreads and medium overnight fees, they could simply use two brokerages. One with tight spreads and higher overnights for scalping, and the other with higher spreads and lower overnights for position trading. That way, they’d be able to utilise both strategies to their utmost, rather than compromising their profits with unfitting trading conditions.

The same can sometimes be achieved with multiple accounts. Brokers generally offer somewhat specialised accounts, optimised towards a specific trading routine. As such, having multiple accounts, if the broker allows it, may be a way to maximise trading output.

The issue with this approach is that it’s less convenient. Very simply put, keeping up with multiple brokerages or accounts can be tedious. Some tools, like multi-account managers if the broker has them can help with this. However, it can still be frustrating, even with those.

Another issue, and a bit more significant one, is that tracking cumulative trading performance becomes more difficult. In general, the solution is to separate trading routines and evaluate them independently, but traders can also gather their data and calculate performance manually.

Even with these issues, having multiple options can lead to better results and more adaptability to different market conditions.

How traders organise their platform

Modern platforms are highly customisable, and traders view them as a virtual desk. It’s important to keep that virtual desk tidy.

This will not only let traders access what’s important to them quicker, it’ll also decrease mental fatigue. Needing to navigate through multiple menus for a simple action is frustrating and is a waste of mental energy. As such, it’s much better to have everything at hand.

This part of a platform strategy may involve organising an asset wishlist, closing the tools traders don’t use, setting up charts so that they open in the preferred form and with the preferred indicators by default, and more.

In essence, this is a process of cleaning up an interface from excess things and leaving only what’s important. With that, the trading process can become much more efficient and enjoyable.

Which tools traders use within a platform

The next bit about platform strategy is a bit more strictly trading-related. While two traders may use the same platform, their routines may look completely different.

For instance, one may be quicker and need to use one-click trading. One may be a bit more cautious, and prefer the combination, or employ a mix. The indicators they use may be different, as well as the way they place stop losses and take profits. They may also use different order execution types.

And that’s all without even getting into indicators, calendars, signals, calculators, and the other tools brokers commonly offer. The possibilities within every platform are endless.

However, even with endless possibilities, traders often end up using a limited set of tools. These tools comprise their trading platform strategy.

Choosing the right tools is important, but that’s a given. What pushes traders forward is organising them well and learning how to access them quickly. This may involve learning hotkeys and customising an interface.

Mixing the right tools, learning to locate them, and using them in coordination with one another is a great feeling. Traders who learn to do this well will really feel like a pro, as well as become able to react to markets more readily.

EAs/Algo trading

The last bit of platform strategy is what the platform can do by itself. MetaTrader 4, 5, and many other popular trading platforms offer algo trading functions. This allows the trader to set up their platform and let it run a predetermined trading routine.

Of course, it’s advisable for the trader to remain present and watch for anomalies. Platforms can over or undertrade due to mistakes in how their algorithms were programmed, which can lead to undesired results. On top of that, markets sometimes simply behave erratically, and this may lead to unforeseen cases and odd algorithm behaviour.

Conclusion

A trading platform strategy can encompass a lot of things. It encompasses which platform(s) you use, how you use them, how you set them up, and what they can do for you. A trader talking about their platform strategy may mean one of things, or even all of them.

However, it’s undeniable that creating a solid platform strategy that suits your individual trading type makes trading more comfortable, and trading processes easier to manage. As such, traders who have stuck to a single, out-of-the-box platform may want to experiment.

免责声明: This information is not considered investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.