>> From my brief review of the site, it seems a user overlays this product on the data feed and uses it as the quote/charting/trading interface and display. If you use RealTick, I don't know what happens to your RT pages and if you can use the RT order entry, etc.
*** Each quote vendor's interface can be run along-side SL4 on the same computer, and any RealTick pages, etc, would not be affected. However, RealTick's order entry could not be used -- but who would want to use it anyway next to SL4's advanced Order Entry Manager and Execution features. SL4 does have to be used in conjunction with a live account with an SL4-licensed broker-dealer (more will be joining soon).
>> It seems to be designed for the trader to focus on two or three liquid stocks and trade them all day. Many signals seem to be given.
*** This is ONE way SL4 can be used. SL4 also provides proprietary tools such as the ActiVu, not to mention many other proprietary alert types, that are always using complex and proprietary algorithms to provide accurate indications of what is on the move moment-to-moment. If you had only seen the amazing alerts it provided the other day when the IMNX news was released! mjt -- were you able to catch that move in SL4 the other day?
>> I saw nothing on the site about position trading.
*** With regard to position trading, SL4 again offers many advantages for this type of trading as well. Of course, for someone already position trading the simplest advantage would be the immediate ability to select more accurate entry and exit points for the position. Between the proprietary charting algorithms, ChartTrend features which clearly describe the underlying trend on multiple timeframes, and the alerts and indications that can be provided on a basket of stocks and indices (to name JUST a few), any type of trader should find more than enough unique and proprietary features to prove to be a tremendous asset to them.
>> I saw no mention of fees, although there is a demo download. Also, it is not obvious if you can use this with any RT broker or it must be one who partners with them.
*** Again, it must be an SL4-Licensed Broker (more coming soon). Basically, the fee for SL4 is $100 / month + $1.50 per executed stock trade. It is up to each broker dealer how they plan to charge commission-wise. Right now, LGT is offering SL4 at $1 minimum per trade, 0.01 cent per share after, ECN fees extra. Some brokers may pass-through SL4 fees, others may include it in their base commission -- it's their decision.
>> I saw no claims of win/loss or profitability. *** SL4 is not meant to be used to GO LONG when you see a LONG bias, and GO FLAT/GO SHORT when you see a SHORT bias. It is meant to provide the trader with a precise indication of where the stock is expected to go next, and should be co-confirmed using SL4's other proprietary features, the underlying market direction, and the trader's own analysis techniques -- WHATEVER makes the trader comfortable. If traders are not comfortable with the style of trading they're attempting, they will never be successful in the long run. SL4 provides unique LOW-RISK entry points, and each signal is completely separate. So, if you get a potential long bias, and then a potential short bias a minute later, that is meant as a new and unique trading opportunity. In fact, if a LONG and SHORT bias come near one another time-wise, both signals may be correct within the assessed risk parameters, and the stock may in fact begin a consolidation phase.!
If the trader took the first long, he could use the sell bias to go flat, or to
go short, or to do nothing at all. At the end of each day, SL4 provides a log of every signal, which shows the "Maximum Profit Potential" of each signal -- how far did the stock go in the signal's favor before the stock turned 0.25 (a quarter-point) against the entry point. The information included in the end-of-day log includes the following information:
Symbol (TradeDate, TradeTime, Bid-Offer(U=UpBid,D=DnBid), TimeToBreakAboveOrBelowTrdPrice):
LONG/SHORT TRADE;
DrawDown=[DDTime],[DDPrice],[DDLevels]; } Reflects DrawDown before Maximum Profit Potential Occurs
Lo=[LowTime],[LowPrice]; } Lo/Hi is in order of occurrance, and may show EOD for trades
Hi=[HighTime],[HighPrice]; } that were not stopped out before the close of the market that day
PP=[ProfitPotential in Price & $$],[LevelsOfProfitPotential],[TimeToGetToHighOrLow]
$$ ProfitPotential for Long = OFR to (HighOFR-0.01)
$$ ProfitPotential for Short = BID to (LowBID+0.01)
$$ for Long Wide Spread Trades (BID+0.01 to HighOFR-0.01)
$$ for Short Wide Spread Trades (OFR-0.01 to LowBID+0.01)
TimeToBreakAboveOrBelowTrdPrice =
for LONG, when Signal's BID matches Signal's OFR;
for SHORT, when Signal's OFR matches Signal's BID
Trade Stamp created after:
a) BID exceeds 0.25 point against LONG Signal's BID;
b) OFR exceeds 0.25 point against SHORT Signal's OFR;
c) End of Day
Regarding the statement comparing SL4 to IB regarding "something that could be of interest to traders" -- that really hits the nail on the head. SL4 is meant to do for trader "battlefield" support, execution, analytics, and training what IB did for low-cost / low-"barrier of entry" direct access trading. To confirm that we are on the right track here, we have already been getting traders with IB accounts starting to join us. There is also an Order Execution API available (up to the broker-dealer to allow it or not, since there may be additional risk incurred) to directly pass a trader's own orders in automatically (if the trader has their own signal analytics, etc).
As a final note, SL4 of course cannot in any way assure that a trader become successful. However, if a trader does not become successful using SL4 (whether it be psychological issues, gambling-mentality issues, or the like), there is little doubt in my mind they will trade successfully anywhere else or with any other trading platform. Hands down it simply provides traders with the best tactical and execution environment in order to maximize their chances of success.
