Features in the JForex Trader Platform

[RichardCox 10]

he JForex platform was designed for traders or developers with some experience in software programming. Most of the platform features are directed at executing automated trades or for testing and developing new, JAVA based trading strategies. Because of this, the interface of the platform and its central functionality have many similarities with what is typically seen in JAVA platforms.

 

A cross-platform interface is part of the package and this enables traders to further customize their strategies and programming codes. The platform does offer integrated technical analysis tool so that positions can be tracked from the charts themselves.

 

One-Click Average

 

One of the more handy features of the platform (specially for longer term trading) is the One Click Average feature, which allows traders to adjust their average position size when scaling into losing trades. While this will not be viewed as much of an advantage to scalpers, short term traders or those who do not scale into losing positions, it can really automate the process for those of us that to not place their full position sizes in one shot.

 

Specifically, when traders tick the One click average box, you will automatically add to a losing position to give you the average price you want. So,if you are down 40 pips, for example, and you set your trading parameters to -20 pips, the platform will automatically double the position to reach this figure.

 

While this might sound dangerous (as it could lead to overly large position sizes) it should be remembered that there is an added feature, found in the MAX POS Lots field, which will enable you to limit the total trading size for any one position. This can help you to avoid over extending the margin used in your account. Overall,this is a very handy feature for those generally using this type of strategy.

 

Position Merge

 

The next aspect that we will look at is the position merge feature, which has some connection in terms of the overall usefulness relative to the one click average feature. Assuming you use a strategy that will scale into a position if market conditions move in the wrong direction, many platforms will show that you are moving into move that one trade (even you are dealing with the same currency pair).

 

This can make things cumbersome and more difficult to track (it is much harder to monitor 5 position than it is to monitor one condensed position). So this platform aims to simplify the process by combining the separate trade into one field on the account field. Of course, however, there will be trades with different parameters (such as a different stop loss or profit target).

 

So to rectify this the platform will only combine (or merge) the trades that show the same parameters (such as the same stop loss level). In these cases, if you would want to merge the entire position you would need to either delete all of the trade parameters or at least set them all so that they are equal. The use of these features makes it much easier to track your total trade exposure and avoid things like margin calls or just simple trade over extension.

 

Broader Overview of the Platform

 

While the JForex Trader platform is one of the lesser known product offerings in the forex trading space, the platform can still be run on all of the major PC operating systems (Windows, Mac, Linux, etc), so the automated strategies features can be run by traders will any of these systems.

 

One of the strengths of the platform is the ability to display results for a wide variety of strategies, using either real time trading conditions or with historical backtesting tools. These strategies are not limited to single currency pairs, so traders are able to use these features no matter which market is being traded. Trading strategies can be tested with multiple currency pairs over any market, and this will enable traders to tailor their strategies in more specific ways and to focus on whichever pairs are best suited for a given strategy type.

 

Backtesting Tools

 

All of the historical backtesting tools will base results on real historical tick data, and this has become a point of contention in some cases because there have been some cited examples of disagreements in backtesting accuracy. These disagreements have stemmed from the use (or misuse) of data interpolation and JForex makes it a point to suggest that the platform is free of these potential problems and that there will be no discrepancies in the tick data that is used for historical back tests.

 

Trading Indicators

 

While not exactly showing as the strength of the platform, there are roughly 180 technical indicators that can be used for trading (and applied to automated forex strategies). The platform offering in this area, however, is in line, for the most part, with that is seen from the competition and it is unlikely you will find another trader using the platform simply for this aspect of the application. Traders using the platform will have access to support for JAVA IDEs (Integrated Development Environment) and this can be helpful when determining the various ways new strategies can be implemented.

 

Market Depth

 

The market depth that can be viewed in the JForex platform uses prices and liquidity that is drawn from a variety of market liquidity providers. This can be a helpful area to watch, as traders that are developing new strategies. Specifically, traders are able to watch the complexities of the market depth offering and this can be interpreted as an additional resource (source of market information) when determining the features and behaviors of a changing market environment.

 

Placing Bids and Offers

 

A final aspect of the JForex platform to consider is the ability to place both bids and offers to the market, in effect allowing traders to act as liquidity providers themselves. This is done by placing individual bid and offer orders and sending them directly through the market. As these orders are placed, they can be matched by opposing liquidity consumers and this can help to be a bigger factor when considering spread costs.

 

Conclusion

 

While the JForex trading platform is a relatively little known offering within the forex markets, and while there are some clear deficiencies when compared to its more major and well known counterparts, there are some trading styles that can be served by some of the features of the platform. Specifically, these tend to relate to longer term strategies where trades are enlarged as prices move in the unfavorable direction.

 

So while chartist traders and those with very short term strategies will likely find little of use in the platform, there are situations where the entire automation process can be viewed as preferable when some of the other available platforms are taken into consideration.