Monday, February 21, 2005

Algorithmic Trade Selection- TI "Black Box" system

UPDATE: All inquiries into our ATS Black Box trading system can begin by visiting our partner, ATrade Investment Technologies LLC:

We are currently in the beta testing phase of our ATS (Algorithmic Trade Selection) Black Box trading system. What is a Black Box trading system and what is Algorithmic Trade Selection?

When professional traders make trade decisions during the day they form opinions as to what is a good Long Entry, Short Entry, and corresponding Exit Signals based on their understanding of the current trading day and previous trading experiences. Using their knowledge and tools they quickly compare today's activity to previous experiences and make quick, appropriate decisions. In a Black Box system a computer is tasked with the same objective: make educated guesses on what is a good Long Entry, Short Entry, and corresponing Exit Signal. A system leverages its ability to evaluate many factors at the same time, compare them to one another, and do so without emotion.

As part of our human nature we understand that sometimes even the simplest rules are hard to follow: "Cut your losers and let your winners run". It sounds simple yet EGO can make you do quite the opposite. Here's another one: "Do as I say, not as I do."

Our solution to this problem is to task a computer with the decision making problem by giving it certain rules (Algorithms) and a strict discipline to follow. The system contains no EGO, avoids illogical heuristics and simply follows the rules. So far the results have been very encouraging. Here is a link with more details about this new service. We continue to tinker with the system and its deployment including, for instance, what is the best market environment to make the most of the system's signals? How good have the results been? Read on...

Tuesday, February 01, 2005

Nextrend's Lesson

Nextrend, a software and brokerage services firm, recently closed its doors. The sudden ending came as a shock to many of their customers who never received the company's farewell email. Here are a few of the comments the news generated at EliteTrader, a popular trader's forum: Nextrend problem

What's the lesson from Nextrend?

Keep on keepin' on. Our efforts to constantly improve our analytics engine, its capabilities, and our march along the Customer Learning Curve (Ed.: see January 21st post for more details) win us our customers. If we don't spend the resources to generate buzz, build access, and motivate visitors, we'll never stimulate a subscription, teach our subscribers, get them to experience value and ultimately turn them into fans of our service.

Now you know the reasons behind our press release below. In the spirit of generating buzz here it is...
Latest Press Release from Trade-ideas