The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists.
Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS).
In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing concepts performing run time series analysis (or trend analysis), and execute trades in real-time.
Advantages of Cloud Computing in Trading
An advantage that stems from cloud computing would be that entities don’t need to construct a data center infrastructure themselves.
Instead, entities can conduct trials and perform refinements, and should no solutions pan out then the cloud may be shut down while the payment terminated at the same time.
This methodology of renting virtual space and time in cloud tends to be far more appealing than the costs, time, and resources required with constructing hardware and software infrastructures.
These also happen to be the exact concept used in SaaS with trading related software.
While executing trades via the cloud is an important capability to keep intact, most retail traders are drawn to the cloud for the research, backtesting, and analytics advantages that stem from using the cloud.
In forex, traders that use Expert Advisors (EAs) and automated trading software are uploading their solutions onto a broker’s cloud account.
The cloud is an ecosystem for multiple industries, sectors, and niches.
Its versatility has not been peaked while in trading many retail traders are transitioning to cloud computing as a means to reduce expenditures, optimize efficiency, and maximize available resources.
