Learn how DirectX visualization can improve your study and assessment of different trading instruments for maximum productivity and profitability.
Analytics technology has become an invaluable aspect of modern financial trading. A growing number of traders are using increasingly sophisticated data mining and machine learning tools to develop a competitive edge. This is one of the reasons that companies are projected to spend over $25 billion on financial analytics services by 2028.
Unfortunately mastering the nuances of financial analytics tools isn’t easy. If your trade analysis and trials are a pain in the neck or you barely register any results, you’ll undoubtedly be looking for ways to change things up.
Luckily, there are a few analytics optimization strategies you can use to make life easy on your end.
Let’s dive right into how DirectX visualization can boost analytics and facilitate testing for you as an Algo-trader, quant fund manager, etc.
But first, What is DirectX Anyway? How can traders use it to bolster their approach to analytics?
DirectX is Very Useful for Analytics Among Traders
There are many compelling reasons that companies are using analytics to improve financial planning. Trading is one of the biggest.
Simply put, DirectX is a string of application programming interfaces (APIs) that offer low-level access to computer hardware. This includes the PC memory, sound card, and video cards.
So, how can DirectX visualization improve your analytics and testing as a trader?
1. Highlights the different financial factors
First off, DirectX functions are specifically meant for 3D visualization of various trading instruments. For example, they can be used for studying price charts and other forms of financial data. This is one of the biggest examples of the benefits of using software to improve your trading.
As a result, they distinctively highlight the different important components of such tools. For instance, they display trend lines, pivot points, low volatility and other metrics in distinct colors. You can probably get a sense of the benefits of using these analytics tools, since you need to monitor all of these variables when trading securities.
Using the DirectX analytics interface can enable you to pick out important trading insights and points, which simplifies algorithmic trading.
These APIs feature an intuitive interface with the following useful trading features that can speed up your analysis and decision making:
- Technical indicators and chart patterns: These metrics can help you to preview past trends and anticipate future moves. Being in such a position can assist you make a maximum profit out of your trading.
- Target profit percentage: These metrics can enable you to set reasonable profit targets, which may help eliminate emotion in trading.
- Exit based on strategies: Such plans can assist you in limiting losses as they inform the system when to stop trading. For example, when your trading algorithm makes losses or a particular threshold or condition is met. This is possible one of the best reasons to use the data analytics features provided by DirectX.
- A powerful back-testing engine: It allows you to generate performance metrics for multiple stocks at the touch of a button. These can give you a lead over other traders or competitors.
And as if that’s not enough, DirectWrite, a component of the DirectX API, provides the following helpful features and more:
- GDI-compatible layout and rendering
- Layout and rendering support of text in all the languages that the function supports
- Advanced typography support for OpenType font features
- Multi-format text support
- Sped up hardware text support if used in Direct2D
- Crystal clear, sub-pixel text rendering that can use app-specific technology, Direct2D or GDI
- A gadget independent text structuring system that boosts text readability in UI and documents, etc.
All these attributes can help in the production of clear cut and high-quality text for easy readability and interpretation.
2. Allows creating 3D charts for an easy study of trading Algos
Similarly, DirectX functions enable the development of 3D charts on a flat display. Besides, allow the addition of various properties, such as shades, typography and layout for maximum effect.
Now the important thing is that the visualization of the created 3D charts will provide you with the following advantages:
- An understanding of how much money an algorithm has made within a particular period. Here, you can use the profit over time chart to determine how your trading algorithm has performed.
Let’s say for a few weeks or several months to determine the times it was underachieving.
- Helps you to determine areas of abnormal losses and profits to optimize your trading algorithm.
- Assist you to identify trouble areas in your Algo-trading, if you make losses. For example, the trading duration, volatility and risk involved, among other things.
- Can enable you to develop a plan within a high volatility period to improve returns
- Provide you with more accurate estimates or answers compared to a two-dimensional chart when measuring duration per trade.
For instance, a 3D chart allows you to put an opening time stamp on the X-Axis and a closing one on the Z-Axis to study duration per trade. This is in contrast to a 2D chart, where duration entails the trailing average.
3. Enables animation and object modeling of 3D charts for better analysis and testing
According to study, animation can help an audience clarify the reasoning behind an idea. It does so by revealing the transitions and intermediate steps involved. Or by showcasing how data gathered over time adjusts.
On a similar note, objective modeling preps an object for maximum visualization through sophisticated analytics features.
In your endeavors, you can use a robust trading platform such as MetaTrader 5 that supports DirectX functions for data visualization in 3D charts, with the following use cases and advantages:
- Allows pristine object modeling by calculating where each pixel point should be on a chart. Besides, the functions use the least number of polygons enabling effortless rotation and movement of the object.
- Enables Animation of 3D charts which can help you:
- Get a fresh perspective or deeper meaning of presented data and information
- Smoothly, identify the transition between two views or sets of data for easy study, testing, and comprehension, even if there isn’t a temporal piece to the data.
- Pick out the different market emotions or trends. For instance, quote volatility ratio, price momentum ratio, etc.
“Animation can be a powerful technique for visualization when used appropriately. Successful Animations can display a variety of types of transformations.” This is according to Danyel Fisher.
4. Helps in the design of simple geometric shapes for visual data analysis
Last but not least, DirectX functions allow creating simple geometric shapes that can help in data study. For instance, they showcase geometric trading patterns that can assist you in finding unique trading opportunities.
And here is how:
First up, you need to determine the most probable time when value can increase to create a successful day trading strategy.
Geometric trading patterns can help you forecast how markets will behave.
At first, the idea might seem absurd to you since most markets mimic human behavior. However, these habits still usually happen symbolically in a geometrical way.
Therefore, you can follow the four most current turning points preceding the recent market prices. As a result, be able to foretell where they will probably move to effectively.
These geometric trading patterns aren’t always totally flawless. But you can use them to predict most short-term market trends. As they usually take the form of a few basic shapes.
That said, you require an understanding of a wide variety of harmonic and geometric trading patterns to make the most out of them. In particular, their know-how will help you respond swiftly as they shape up.
Likewise, you can use a variety of technical indicators, such as price bands and Bollinger Bands, to better understand the current price movements.
Here is why: most of these geometric forms assume, at the minimum, some Fibonacci sequencing. Technical indicators can interpret them.
Examples of helpful harmonic and geometric trading patterns you can expand your knowledge on include:
- Symmetrical Triangle
- Ascending Triangle
- Descending Triangle
- Cypher Pattern
- Bat Pattern
- Shark Pattern
- Crab Pattern
- Butterfly Pattern
- Gartley Pattern
Final thoughts
As you can see, DirectX visualization can significantly improve your trade research and facilitate your Algo-trade testing.
For instance, it:
- Helps in highlighting the different financial factors
- Allows the creation of 3D charts for an easy study of trading Algos
- Enables animation and object modeling of 3D charts for better analysis and testing
- Lastly, helps in the design of simple geometric shapes for visual data analysis.
Therefore, it would be wise for you to invest in a platform that supports DirectX visualization for easy analytics and testing.