{"id":9069,"date":"2021-08-17T17:40:26","date_gmt":"2021-08-17T21:40:26","guid":{"rendered":"https:\/\/optimusfutures.com\/tradeblog\/?p=9069"},"modified":"2021-08-17T17:40:26","modified_gmt":"2021-08-17T21:40:26","slug":"identify-trading-tools-you-no-longer-need","status":"publish","type":"post","link":"https:\/\/optimusfutures.com\/blog\/identify-trading-tools-you-no-longer-need\/","title":{"rendered":"Identify Trading Tools You No Longer Need"},"content":{"rendered":"

This article on Trading Tools is the opinion of Optimus Futures.<\/strong><\/p>\n

\"\"<\/a><\/p>\n

Clutter breeds confusion – the last thing any trader wants.<\/p>\n

Profitable trading requires discipline.<\/a><\/p>\n

Hanging onto old trading tools isn\u2019t just a waste of time and resources, it can also impair your profitability.<\/p>\n

In this article, we dive into the why and how of a trading tool audit.<\/p>\n

You may not realize how much you are missing.<\/p>\n

Why you should perform a technology stack audit<\/h2>\n

Think of a truck driver.<\/p>\n

A speedometer, tachometer, fuel gauge, and clock are essential to job performance.<\/p>\n

What about a weather radar?<\/p>\n

Makes sense when you live in regions near an ocean.<\/p>\n

In Arizona, not so much. An outside thermometer works better.<\/p>\n

A long-haul driver that goes coast to coast might pick up various tools from on-board navigation to weight gauge.<\/p>\n

Take that same driver and make him run local deliveries.<\/p>\n

Now that he deals with heavy local traffic versus the open highway.<\/p>\n

Chances are he accumulated instruments and tools that are no longer useful.<\/p>\n

More to the point, those same tools are wasted money and could compromise the driver\u2019s attention.<\/p>\n

Like the driver, we as traders collect items along our journey.<\/p>\n

An old indicator here.<\/p>\n

An excess data feed there.<\/p>\n

In a profession where critical decision-making matters, streamlining your technology is imperative.<\/p>\n

Everyone should evaluate their trading tools<\/h2>\n

How many times have you missed a trade because one indicator didn\u2019t support the setup?<\/p>\n

How many times have you entered a trade because one indicator flashed a strong signal?<\/p>\n

Most of us experienced one or both of these in our careers.<\/p>\n

But have you ever stopped to ask whether those signals were useful?<\/p>\n

As we move along our trading journey, we study different techniques and test ideas, refining our approach along the way.<\/p>\n

Yet, most of us can open our platform and find relics of a strategy we dismissed long ago.<\/p>\n

These ghosts clutter screens, distracting us from executing a well-honed strategy.<\/p>\n

It doesn\u2019t matter whether you\u2019re a prop shop trading firm or a lone retail player.<\/p>\n

Trading is a business built on risk management and discipline. Anything that hinders our ability to turn a profit is, by definition, a cost.<\/p><\/blockquote>\n

Sometimes they\u2019re obvious.<\/p>\n

Sometimes they\u2019re hidden.<\/p>\n

Goals of a technology stack audit<\/h2>\n

Your trading tools audit aims to enhance your profitability.<\/p>\n

A Bloomberg Terminal is a great example. A one-year subscription runs ~$25,000.<\/p>\n

Does this make sense if you are primarily a technical trader?<\/p>\n

The terminal certainly has a rich set of data and news.<\/p>\n

But it doesn\u2019t necessarily align with a technical trading style.<\/p>\n

Direct cost isn\u2019t the only consideration.<\/p>\n

Excess indicators and feeds can slow down performance and execution<\/a>, leading to missed opportunities and order placement.<\/p>\n

An audit of your trading tools streamlines what you have and identifies missing resources.<\/p>\n

The process should focus on one or more of the following:<\/p>\n