Easily and intelligently create a stock trading strategy: (read more...)
There should be a step-by-step guide to show novice traders how to create a trading strategy. Are there off-the-shelf strategies that are available for your use? Are there any fees involved or are they offered for free? Can you modify the off the shelf strategies?
Note that firms should not guarantee you a certain return. The best firms will have long and short stock trading strategies available at no charge and will allow the stock trader to create their own. Some firms will even allow you to copy strategies from a "friends" list. One size does not fit all. If the company doesn't tell you the details of the strategy or why they selected or recommend a certain stock, then it's not advisable to use it. You may be overpaying for "proprietary" services and may be able to obtain free stock market tips and recommendations online that will perform comparably.
At CoolTrade, there is no fee for any strategy. Many CoolTrade automated trading software users have generously offered the strategies that they developed for public use. You can use the strategies as is or you can modify them any way you like. Of course, you can develop your own strategies from scratch. Most users test any strategy they run in the simulator mode for a period of time before going live with real funds.
Have one long and one short strategy per account: (read more...)
Due to the size of the online trading platform, there may be a limit to the number of strategies that you can have loaded on each account. For example, if you want to run two long trading strategies, you may need two accounts.
Also confirm if you have enough memory on your computer for two or more accounts. CoolTrade allows you to run one long and one short strategy per account. Experienced active traders may run two or more live long and short strategies, while having additional accounts for strategies that they are testing in a simulator mode.
The more robust the automated trading system, the greater the memory requirements. Check this before you sign up or purchase a new computer. If you sign up for more than one account, will your machine have enough RAM to run both or will you need to purchase an extra computer or more memory? If you have a Mac, ask if the software works on Mac, as not all do. You may want to have one computer dedicated only to your automated stock trading programs and run other word processing or spreadsheet programs on a separate computer.
Choose from hundreds of technical indicators: (read more...)
There are literally hundreds of indicators that stock traders can use to determine which stocks to buy and sell and when. The most robust programs will offer hundreds of indicators for technical analysis, such as Bollinger Bands, and some will even include indicators for Candlestick Chart formations.
Robot trading programs use these indicators to set conditions under which online investing will occur. At CoolTrade, we have over 500 technical indicators. Cool Trade is a rule-based trading platform. Indicators are used to select stocks for your watch list, to open new positions, to add to current positions if you choose, and to exit your positions. You can copy your watch list rules into your open position rules or add to current position rules to make it even more user-friendly. You can even create timed indicators that only become active at a specified time. Adding or deleting rules is as simple as clicking on the Add Rule or Delete Selected Rules buttons—no programming required!
click here to view the list of technical indicators
Stimulate strategies in real time before running live: (read more...)
Most traders would agree that they'd like to "test drive" a system before using it. Some programs allow this through "back-testing," in which the program uses historical data to execute the trades and show you what they would have been.
This is not always accurate, as there is much data needed to perform a thorough back-test and it's nearly impossible to replicate all the circumstances with just the historical data. In addition, how the system performed in a market last month or last year does not indicate how it will perform in the here and now. The best automated trading software will let you practice stock trading using a live real-time data feed during market hours. This is the preferred method, as it gives traders a very realistic view of how their trading strategy is performing and the ability to feel the highs and lows of daily trading without investing real money. If you can simulate trades, you won't need to open an actual brokerage account until you go "live" with real money. Ask if there is a limit on how long you can run in the simulation mode.
One of the highlights of CoolTrade is its ability to simulate strategies in real time indefinitely before you run them live. CoolTrade has its own data feed, which allows you to run the strategies in a simulator mode. You should also review the size of the trading lots—are they 100 shares or 1000 shares? When you see how the strategy is performing, you can make changes or determine which broker is best to use, based in part, on the size of your trades.
This feature is indispensible, as traders who value their money rarely run a strategy without testing it first.
Automatically Execute Your Trading Strategy: (read more...)
Even While You're Away From Your Computer
Only the best stock trading software automatically executes your trading strategy, even while you're away from your computer. For the rare program that has this capability, it's done based on the trader selecting technical indicators, comparison operators and numerical inputs that will activate opening, adding to, or closing stock positions.
Essentially, it's a rules driven software system. The trader can select from hundreds of historical indicators representing the stocks' previous conditions. The indicators should be updated daily using the latest data. Programs that can trade automatically are the cream of the online investing software crop. They take the emotion out of investing. Long time traders report that the simplest strategies, when left to run on their own for long periods perform best. The program should also have a manual override so the stock trader can manually place a trade as well. Specifically ask if the robot trading system has this capability. Many market themselves as providing “automated trading software” but are not truly automated.
CoolTrade IS fully automated! In fact, it’s the only fully automated robotic trader in existence. You can literally set your Automated Trader to start automatically every day, go off to work, golf, or shopping and check your profits after you return.