Beginners in trading must comprehend file references. Traders need file pointers to explore and manipulate file data. File pointers, their importance, and their use in trading will be covered in this article.
A file handle, or file pointer, indicates a file’s position in a computer’s storage structure. It tracks the next input or output activity by pointing to a file record. It connects the underlying file to the trading software or system.
How traders use file pointers?
Working with data helps traders make educated judgments. Large files include historical market data, including prices, transaction volumes, and other measures. File pointers let traders analyze and anticipate market patterns by effectively accessing and processing this data.Trading uses input and output file references. The input pointer monitors data reading, whereas the output pointer tracks data writing. These pointers guarantee sequential data reading and writing.
Trading file references enable traders to:
Input file pointers let traders browse files and examine historical market data. This information is essential for backtesting trading methods, finding trends, and making educated choices based on historical performance.
Add data: The output file pointers let traders add new data to existing files. For real-time trading systems that create data, traders may add the newest data to their files for examination.
Update Existing Data: File pointers allow traders update file data. This may help when adding fresh market data or altering data based on better algorithms or methods.This example shows how file pointers are used in trading. Say a trader wishes to backtest a strategy using previous prices. A file pointer lets the trader access price data for each time period consecutively. The file pointer tracks the last-read location to retrieve data quickly and precisely.
After processing historical data, the trader may add the trading strategy’s performance measures to an output file. The output file pointer will direct the new data to be written sequentially and combined with the old records.
Conclusion
File pointers let traders explore and modify file data, making them essential. They allow data reading, adding, and updating for trading strategy research and development. Trading novices may improve their decision-making and performance by knowing and using file references.
Sources and References:
- Wikipedia: File Handling in C++ (https://en.wikipedia.org/wiki/File_handling_in_C%2B%2B)
- Investopedia: Backtesting (https://www.investopedia.com/terms/b/backtesting.asp)
- MarketWatch: Understanding Stock Market Data (https://www.marketwatch.com/story/market-data-what-the-numbers-mean-and-how-to-use-them-to-trade-2021-11-30)