Articles Automating Your Trading Strategy: Platforms vs. Low-Level Broker APIs

Jonathan Wage Jonathan Wage

Jonathan Wage

When it comes to automating your trading strategy, you have two main options: using a platform like TradersPost and TradingView, or using a low-level broker API and a custom programming language.

Platforms vs. Low-Level Broker APIs

Both approaches have their own pros and cons, and the best approach for you will depend on your goals, resources, and level of expertise.

Platforms

Using a platform like TradersPost and TradingView together offer an easy way to automate your trading strategy by using webhooks. With webhooks, you can set up rules for your trades and have the platform execute them automatically when certain conditions are met. This can be a quick and easy way to automate your trading, especially if you're not a programmer or don't have the resources to hire one.

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Pros

  • Easy to use: Setting up webhooks on a platform is generally easier than writing custom code from scratch.
  • No programming skills required: You don't need to know how to code in order to use a platform and set up webhooks.
  • Lower cost: Using a platform is typically less expensive than hiring a programmer to write custom code for you.

Cons

  • Limited customization: While platforms offer a range of options for setting up webhooks, you may still be limited in terms of the level of customization you can achieve.
  • You are dependent on the platform to execute your trades. If there are any issues with the platform, your trades may not be executed as expected.
  • Limited access to data: Some platforms may have limitations on the data you can access, which can impact your ability to analyze and make informed trading decisions.

Low-Level Broker APIs

If you want more control and customization over your trading automation, you may want to consider using a low-level broker API and a custom programming language. This approach requires more programming expertise, but it can give you greater flexibility in terms of the trades you can execute and the data you can access. Companies like Alpaca offer a full developer API that allows you to trade stocks and crypto from any low level programming language.

Pros

  • Greater customization: With a low-level broker API, you can write custom code to execute trades and access data in any way you want. This can give you more control over your trading strategy and allow you to build a system that is tailored to your specific needs.
  • More control: By using a low-level broker API, you have more control over the execution of your trades. You are not dependent on a platform to execute your trades, which can be more reliable.
  • Greater access to data: With a low-level broker API, you can typically access a wider range of data, which can be useful for analysis and decision-making.

Cons

  • Requires programming skills: Using a low-level broker API requires programming expertise, which may not be accessible to everyone.
  • Higher cost: Hiring a programmer to write custom code for you can be more expensive than using a platform.
  • More time-consuming: Building a custom trading automation system from scratch can be more time-consuming than using a platform.

Conclusion

Whether you choose to use a platform or a low-level broker API to automate your trading strategy will depend on your goals, resources, and level of expertise. Platforms offer an easy and cost-effective way to automate your trades, while low-level broker APIs offer more customization and control. Carefully consider your options and choose the approach that is best for you depending on what is right for you.

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