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ATR = Average True Range True Range = Highest Price of the day minus the Lowest Price of the day. ATR(14) is the Average ATR over 14 days. A better indicator is ATR%, because knowing an ATR is .50 isn't helpful as a .50 move for a $100 stock is radically different than a .50 of a $2...

Your statement incinuates that they are so big that they could crush an individual trader. And how would they do that? Unless you are incinuating that they have the power to push prices up or down (something that I, an individual investor, cannot do, because I don't have access to their...

Hi Landis, No argument here. I'm not disputing that they do research on the companies that they recommend. However, when I sit in professional daytrading houses and see the games being played by even a handful of traders, the thought that the large banks are using computers to play those...

My point exactly! SELL! SELL! HA. It is good reading though. Thanks, Ed

I interpret that parable as "the institutions serve a good purpose in the market by adding liquity and moving prices, so traders (like you and me) can make money. And therefore, we should look the other way when things happen like: 1. mutual funds drop 50% in a year, and the fund managers...

Travis, That is a good question and there is no answer that will not be criticised by some. If you read some of my posts you will see that I am critical of the institutions that are running automated trading systems against the public, and can clearly see that their public...

Hi Landis, I'm sorry if I have offended you. That certainly is not my intension. The article above indicates that many banks are using automated traders to trade the markets, and also specifies that they are making tens of millions in profits each year. Dealing with the high-volume of...

You're right. They are talking about the kind of software (speed/volume) that can move prices - yet another advantage over the ATS systems available to the rest of us. Ed

It's a little difficult for me to take seriously the "Propaganda" of one of my competitors.

That's fine. I run multiple ATS systems and associate with many others who also run automated systems with different strategies. We are all constantly sharing ideas that make our systems better and better and better... For instance, a simple rule for picking stocks is to pick stocks that...

With the recent news about Goldman running trading software that is raking tens of million$ a year in profits, I'm skeptical of them raising a target on a stock as it could just mean they are ready to dump their holdings, as they draw the buyers in...

I will just give you comments to specifically address your strategy as you have described it: I am not opposed to shorting a stock, especially after it has gone up dramatically in a week, as many do pull back after a big run up. But I would only do it after it starts the decline. I also...

Travis, I have to agree with Monti on both counts: 1. Stop trading with Live money until you work out the kinks in the system. 2. Change your profit goals to go after smaller returns. That will allow you to lock into profits quicker and not be hanging around, waiting to lose. All of...

Travis, I like IB a lot. They have fast executions and an excellent datafeed, not to mention the $1 trades for 200 shares or less, $5 for 1000 shares. CoolTrade has been working great with Interactive Brokers since 2004. Regards, Ed

Travis, Your goal should be to strive for a system that accomplshes method #1. Whatever you do not like in your system, improve it. i.e. if you are staying in boring positions for too long, then add a rule that says "Exit position if Time In Trade > 5 Minutes/Days/Weeks", etc. I am not...

I subscribe to http://www.endofday.com/ for EOD historical equities, but it does not specify whether a symbol is an ETF or not. Does anyone know of a day source where I can retrieve all Long ETF's and Short ETF's? I'm actually not interested in the price data as I can retrieve that from...

Seems like a waste of an automated trading system to arbituarily just close a position after a certain period of time. Certainly closing a position after 25 days is not going to make the trade more profitable than holding it for 30 days or 35 days, unless the stock just happened to go down...

.....1. Can an automated system be created with end user tools that can ....... detect and initiate a trade based on a candle shape such as a doji bar? Yes. The CoolTrade system has dozens of the candle patterns built in. All you do is create a rule, such as "doji" is bullish or "doji" is...

You would need a separate CoolTrade account for each brokerage accounts that it trades against. (regardless of whether or not they were at the same brokerage house). We run 5 automated traders on each server in our office, but those machines have 16gb of ram. Also Vista machines use a lot...

The CoolTrade software (on your PC) talks directly with the broker. All of the buy/sell decisions are made by the software on your PC and the orders get sent directly to the broker. The CoolTrade servers are out of that loop. Regards, Ed CoolTrade CEO / Developer