Trading Software and Books Reviews

MTPredictor Review

Trader One

After working my way through MTPredictor’s 149-page first volume, I was sold on the general premise behind the software.

Unlike a spate of programs currently on the market that deal with the intricacies of Elliott Wave theory, MTPredictor narrows the theory down to several key, and more importantly, tradeable, ideas.

To a beginner, Elliott Wave theory is a rather complex concept to get your head around, a task not made any easier by various materials out there that make it seem like rocket science rather than what it really is.

MTPredictor, on the other hand, offers a simplified take on Elliott Wave theory that is absolutely invaluable to the novice trader.

The real find for the new user will be chapter eight of the first volume of the manual, which details crucial elements of trading such as position sizing and reward to risk. I have yet to find a better chapter on the subject anywhere for beginners.

However, as much as MTPredictor offers an ingenious take on Elliott Wave theory and appears to be an exciting instrument for the new trader, I did run into some problems.

For a start, despite the MTPredictor website being easy to navigate and jam-packed with information and tips, the software and my computer decided to butt heads from the outset. I was disappointed to find an error message appeared on my computer when I tried to open the software. Several resets later and progress was still at a snail’s pace.

Seeking the wisdom of the extremely helpful support staff, emails were traded with rapid response time but despite their best work, the software would still not load on my computer.

I was eventually told the error occurs on a small number of systems. Therefore, as I write this, I can say little about the functions of the software, only that I liked what I saw during an early online demo I was treated to.

I will continue my efforts to get it up and running on my computer, but was also pleased to hear that a new version of the program, EOD v6.0, which has been built from the ground up, will be out later in the year.

Aaron Lawton has been trading options part-time on the US stock exchanges for a little over two years.

Trader Two

New or prospective MTPredictor users are given a live demo of the program over the internet by a representative. I found this to be a great way to jump start into the program.

MTPredictor is straightforward to use and happily there is an ample library of short and succinct video presentations for training. I found the videos were a very easy and time-efficient way to learn to use the program.

The support staff for both MTPredictor and Paritech (the data suppliers) were most helpful in solving some initial teething problems.

I have never applied Elliott Wave in my trading before and found this program to be a great introduction, as it makes Elliott Wave immediately usable to the novice. In addition to Elliott Wave principles, MTPredictor incorporates money management far more comprehensively than do most programs. The user follows a process that generates a number of trades from which the user chooses. The program gives the user a systematic approach to trade selection and even provides risk/reward analysis and exit trigger information for traders. This means the user is more likely to trade in a more consistent manner, which is well known to be an ingredient of successful trading.

This software is geared towards really helping the user qualify and manage their trades in a disciplined fashion, as well as assisting the trader to determine how much to invest in each trade. It is a very user-friendly program, which helps a trader at any level apply very sophisticated trading methods.

Ulla Decken is a part-time trader.

Trader Three

MTPredictor EOD, distributed in Australia by Paritech, is a trading software front-end that facilitates trading of a proprietary Elliott Wave-based trading method.

Built-in trade scanning software analyses market data for potential low risk/high return trade opportunities, providing a list of qualifying instruments for that day. Data is not supplied, but MTPredictor can be pointed at almost any data format – even custom format for non-standard data. Paritech offers a fully compatible data service, though this involves some hassle and the installation of separate data download software.

The system utilises a number of variables that can be tweaked to alter trade parameters; these are discussed in regular daily reports and online forums. Risk/reward analysis and trade size functions are central to MTPredictor, ensuring proper risk control.

The software front end is neat and minimalist without skimping on necessary features. A standard charting package is available, with the option of saving charts for future reference and a useful ‘training mode’ that enables scrolling back and forth through a chart one bar at a time – an effective visual aid for new traders.

MTPredictor is well documented, with a comprehensive series of online videos detailing the operation of the software and interpretation of the system. The designers also offer online demonstrations via conference call with video support that leaves a new user with no doubts as to how best to employ their system and software.

However, we ran into a few bugs that can cause the software to crash unexpectedly in the course of editing and switching charts. While the need to manually reselect folders to be scanned is not a big issue for end-of-day trading, it remains an inconvenience.

The great video tutorials make MTPredictor an accessible software package for novice to intermediate traders, especially those who would like to understand and control their risk.

Tom Frtunik is an FX spot trader.

MTPredictor Response

Our thanks to YTE, the three reviewers and Paritech!

MTPredictor takes a trader through a four-stage process – finding a trade; assessing its risk/reward potential; determining the position size; and managing the trade. With customers worldwide, it is a pleasure to demonstrate the software in the Pacific Rim.

Reviewer One rightly highlights the tradeable approach we take to the complex Elliott Wave method and on the risk control/money management of the software. This separates MTPredictor from most other commercially available software. With regard to Reviewer One’s difficulty installing MTPredictor, three programmers here traced this to the computer’s registry not closing properly, probably due to a corrupted Windows .NET framework. A minor corruption may have occurred, for instance if, you have installed and uninstalled many programs over time. We are discussing a .NET re-installation/alternative PC with this reviewer and will report back to YTE.

We have found the online demonstration and video library to be invaluable introductions to MTPredictor. A systematic method of trade selection, as Reviewer Two points out, is crucial in the software. We agree: these are sophisticated methods deliberately simplified to be useable by traders – from newcomers (standard, automatic trade set-ups) to experts (advanced trade set-ups).

The Scanner is the start of the process, from which the risk/reward analysis and trade sizing follow. As Reviewer Three states, the Training Mode is there to help novice traders especially and we do pledge full support to our customers, worldwide. In fact, we have just hired a very good customer and trader to head our Support. Data, for the vast majority of trading customers, resides in a single folder – jumping between folders is unnecessary. Accordingly, we have very few customers who experience freezes.

This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.

Trend Following – How Great Traders Make Millions

A most interesting book – definitely a ‘must have’ on your shelf. Pull out the plastic and get it!

Trend Following is presented as a replacement for the Market Wizard series of books. However, it is not. The author’s own mindset comes across so strongly that it is difficult for the reader to see into the minds of those whom the author interviewed. Nevertheless, the book would make a good addition to the Market Wizards series.

Trend Following is well constructed, well written and an excellent distillation of the research undertaken by the author. Backed up by trading ‘legends’ like Ed Seykota, it convincingly argues that the most successful trading systems are based on trend following.

While you may read the book in bed, especially the first time, it is best read at a desk with a notepad handy. While seeming to come from the perspective of technical analysis, it is still a very good book on trading psychology. Covel gives the reader solid evidence for his ideas by drawing on the experiences of people and of specific history-making events.

All the people interviewed are survivors in the world of trading. They are open in sharing their thoughts, freely giving insights into the markets and into the emotions and feelings that come between people and their ability to follow their systems. The book is both a great read and an insightful textbook for all traders and investors.

This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.

Stator Professional Review

Trader One

I found the Stator software installation process simple and standard. From there the setup process did take me several hours of exploring the program before I understood what I was doing. I completed both the brief online tutorials offered, but was left needing still further assistance. Fortunately, I found the customer service help for the setup was extremely responsive and helpful.

The best aid in the setup process was the comprehensive help file, which contains all information required. The only stumbling block was that I did not always find it easy to locate that information. This is where I found the technical support via email very handy, as they promptly pointed me to the relevant help files.

Once set up, I found the most useful information the program generated was the performance charts feature for closed trades. It made a difference to see my trading performance represented graphically. This gave me new insight into patterns in my trading.

Stator updates prices from Yahoo data, which is great because it is free (great for trading on a budget). With the data updates I had an instant statistical view of the overall performance of my portfolio on that day. There are certainly more statistics generated than the novice trader needs, but this means there is room to grow with the program. There are a lot of statistical averages given and this I thought was interesting although not as helpful as the equity charts.

In short, it took several hours of trial and error to set up my trading information. However, the program delivered an abundance of performance information and gave me a good perspective on my trading.

Trader Two

Not having a strong accounting background, I initially approached my review of Stator Pro with some trepidation, but my fears were quickly allayed after I worked through the online tutorials. I was soon up and running, and after a few hours exploring the program’s numerous features I felt I had sufficient grasp of what it offered to begin using it.

Stator is a portfolio management program designed to monitor all investment transactions and provide money and risk management strategies for portfolios from the simple to the most complex. It is easy to navigate, and offers a lot of help for the new user.

Users may have multiple systems within multiple accounts, and these can then be consolidated to give a complete overview of the portfolio, or sub-consolidated into smaller groups as required. The position sizing and position overlay features allow for customised money management rules so that positions are quickly and easily calculated and risk minimised.

It was a simple matter to open an account, establish some trading rules, and then start entering transactions. Closing prices are updated each day either manually or through a simple online system. These functions may provide sufficient record-keeping for the novice with a small account, but for the more sophisticated user trading a large account with different instruments or foreign currencies, a wide range of tools is available to facilitate such things as currency conversions, adjustments made for splits and rights issues, and entering of irregular finance costs.

The program contains a wealth of sophisticated features including detailed analysis to enable performance to be monitored, the ability to import trades from a spreadsheet, and importantly, produces a range of comprehensive reports for your accountant. It offers a flexibility and functionality that will be enjoyed by all traders from beginner to the serious professional.

Trader Three

Stator is a position management platform allowing one to keep track of multiple trading systems across a variety of instruments and markets and apply analysis techniques to measure risk, exposure, and performance.

Stator has an extremely comprehensive and readable help file and a range of online tutorials in flash and text. The program runs very efficiently and provides multi-user support.

At its core, Stator is a portfolio management system, but it also provides some powerful performance-chart analysis tools, cost management analysis tools, and quick and useful access to a host of statistics about a given trading system.

Stator is easy to customise, allowing grouping of trades and systems together; the display of data can also be tailored to show data you want to see efficiently.

It is easy to use Stator immediately to log trades and combine a number of instruments into systems. While the more advanced analysis tools take a little experimentation to learn, they are not hard to master (Stator’s excellent online tutorials help a lot here).

It is also easy to make the transition to Stator: a flexible data import interface can bring in your past trading history easily; price data can be obtained free from Stator and updated with a one-click interface, or updated manually from their website or a text file.

Stator also tracks the relevant taxation details of any trade through a taxation module. This module is updated as tax laws change.

Stator is a worthwhile investment regardless of whether you are just starting out or have been trading for years. New traders will find it a boon, particularly to trading discipline, while experienced traders will find it saves a lot of time. The quick and powerful statistics and performance management tools are worthwhile for any trader.

Anfield Capital Pty Ltd Response

Stator provides one of the most comprehensive portfolio management solutions available in the market today. Stator’s market leading position is gained by providing both traditional trade management functionality and a wide range of performance metrics in an easy-to-use platform. It is designed to provide the flexibility required to manage multiple, sub-consolidated and consolidated portfolios.

Stator allows control over the entire process from entering a trade to closing a trade, and allows a user to manage risk, reward and performance at both a trade and portfolio level.

Stator allows a user not only to manage trading activity but also to use this information to help become a smarter trader. For example, a user can analyse trading statistics to comprehensively assess and enhance trading strategies.

All of the features mentioned above are encapsulated within two versions of Stator – Stator Standard and Stator Professional. Stator Standard provides portfolio management for a single currency and trading instruments like shares, share CFDs (leveraged or GSL), options, managed funds, trust units and warrants. The Professional version accommodates all Standard version functionality plus multiple-currency trading and support for more complex trading instruments including foreign exchange, index CFDs and futures.

Frequent upgrades to Stator meet the needs of traders and the changing face of the trading landscape. A user can upgrade to a new version from within the program itself, which makes upgrading an efficient process.

Proudly Australian made, Stator enables a user to manage trading activity with a truly global perspective. In-depth reporting, data exporting, dividend and trust income management, performance statistics, trading pools, accounts management, performance charts and a trading journal are just some of the many features which are included.

A full range of tutorials, material and support is available online and an electronic help file is included within the software.

This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.

Trend Trading Review

Does Daryl have anything new to say in this book, or does the book contain a more concise treatment of the ideas expressed in some of his early books? Possibly both.

If you haven’t bought any of Daryl’s books before, then it could be time to stick your hand in your pocket and buy two: this one, Trend Trading, and his book on risk management, Better Trading, which I reviewed a year or two back.

Drawing on his market experience and building on an ever-growing understanding of the tools he uses to trade, Daryl has put together a concise book dealing with many of the challenges faced by traders. The catch is that adhering to the guidelines he suggests will test the patience of market students. If a trend doesn’t exist, don’t trade.

The usuals are there, such as his count-back line technique, multiple moving averages and an exploration of Darvas trend trading. While, once again, this is not the ultimate book on technical analysis, it does have some important lessons for both the novice and the experienced trader. It is easy reading and written from the perspective of someone who has made money in the markets – not just talked about doing so.

Remember Daryl is a trader. That’s how he makes his money. To me this means he is worth listening to, especially when the thoughts are expressed as well as they are in this book. Together with Trend Trading, keep in mind my earlier comment about the value of understanding risk management from your own and your trading account’s perspective, and get a copy of Better Trading.

This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.

Seismo Review

Trader One

I have found Seismo to be the perfect answer to the challenge of defining and assembling all the elements of a good trade. It provides both a training system and a fully customisable charting package. Seismo teaches a trading system that employs indicators such as trend, candlesticks, support and resistance.

The installation process is through a first-rate customer service line where the instructor guides every client through the setup process, which saves an enormous amount of time. After this first training session I was confidently able to use the program.

I was happy to find that the instructors tailor their training for each client. Being a CFD trader, I was trained on the CFD-specific functions as well as the standard trading functions. Apart from the phone training I found the Powerpoint training modules on indicators and on the recommended trading method to be very easy to understand and apply.

Seismo has functions for tracking positions in equities, CFDs, options and warrants that facilitate risk management (importantly for CFD traders this includes the margins and the interest component). This means that trade positions can easily be tracked enabling the user to adhere either to the risk management rules that the Seismo training prescribes or the user’s own criteria.

The scanning tools and indicator templates are already set up with the Seismo prescribed parameters, but are also very simple to modify, so an experienced trader can experiment with different settings. I love the user friendliness of the package, the various ranking filters and especially the alert system, which allows you to add your own notes and ideas about the share. The program also contains many other sophisticated indicators and functions, so it adequately accommodates users who are able to develop their own trading system.

I want to emphasise how easy, practical and enjoyable the Seismo program and training is to use, even for a still relatively new trader like myself. n

Trader Two

Seismo>ShareChart is a software program designed to assist beginner and intermediate stock market traders and investors to get off the starting block and improve their performance. It is, in essence, a charting package inclusive of an inbuilt trading system and proprietary market searches in addition to most standard charting tools such as MACD, RSI and Bollinger bands, as well as unique CFD tools.

The software is very simple to load and its basic mechanics are easily grasped within the phone training provided (approximately three hours). Those who like to consider fundamental data would find Seismo’s data package of interest as it contains both technical and fundamental information. The data serves a dual purpose in updating an inbuilt basic portfolio management service that enables the user to track the open position value of their equity and CFD holdings.

The proprietary market searches contained within Seismo>ShareChart would be best described as a collection of ‘white box’ systems, as the trading and investment concepts are able to be clearly defined by the user. They allow amendment of such factors as time period, and the addition of price, volume and indicator filters.

Careful thought has been given to providing some stand-out features such as an interactive alert system that is displayed as and when the user-defined conditions occur, and a clever interest and margin calculating function for CFDs. I was also quite impressed with the ease of navigation around Seismo>ShareChart.

At present it is not possible for users to develop their own indicators or specific search functions. My understanding is that the staff at Seismo are happy to consider any sensible trading system suggestions for incorporation into their package. However, I feel Seismo>ShareChart would be of limited value at present to the advanced trader interested in system design and back testing.

Seismo’s customer service intention is clear. They are not simply a software and training company, but an organisation dedicated to assisting those who wish to develop their trading and investing skills. In addition to the software, a brief overview of technical analysis is contained on the educational CD that accompanies the software and further tuition can be purchased if desired. n

Trader Three

Seismo is an equities and equity derivatives charting package that offers access to market data from Australian and other major stock markets.

The outstanding feature of this package is the training provided. The software and training manuals are supplied on CD and Seismo also provides telephone installation assistance and training for all clients.

Seismo charts instruments in separate windows and allows application of various charting tools, charting indicators and the design of basic trading strategies by allowing price, volume, and indicator change tracking. The CFD support is exceptionally strong, allowing the trader to define his/her own risk profile and match it to the broker through whom they transact.

I found Seismo’s filtering ability extremely appealing. Even an experienced trader finds it difficult to track changes across multiple instruments and markets. Seismo allows the trader to define their trading rules and then search for all instruments that have passed or failed these trading rules. Multiple rules can be designed, stored, and accessed through a single mouse click, making market review and decision-making extremely easy.

In my view Seismo is an ideal package for beginner- to medium-experience level equities traders. I would advise these traders to trade through brokers that use Seismo, too. This will make communication between the two straightforward, allowing the broker to provide trading advice by phone.

The training offered with Seismo is essential, in my opinion, and should be undertaken by any trader who wishes to trade equities or CFDs. I recommend it strongly, because it provides a short yet comprehensive course in charting, strategy review and trading application with an introduction to indicators and trading signals. It will reduce the time required to read the signals with confidence, and the potential losses due to lack of charting experience.

Seismo is an excellent product, which I would recommend to any equities or CFD trader, particularly newcomers to share trading.

Seismo Response

Seismo has developed a total solution to assist traders, investors and market professionals achieve consistent returns and manage risk – in all market conditions.

Seismo systems are used and recommended by stockbrokers from some of the world’s largest investment banks. Seismo’s powerful market scanning and new CFD tools are highly regarded by share market professionals and traders of all levels.

Seismo provides an intuitive and integrated approach to software, data, training, brokers and CFD providers – at a fraction of the ongoing cost of older packages and seminar based training courses.

This total Seismo solution is designed to get traders and investors up and running quickly without the need for expensive and time consuming training courses. We provide in-depth telephone installation support and ongoing training for all clients. This saves months of difficult, costly and unnecessary experimentation, which is often required with older, more complex, systems.

Seismo>ShareChart does not currently allow users to code their own scanning or indicator criteria. Our research shows that less than five per cent of traders world wide request these features and few have the necessary IT skills or desire to program the coding languages required. (Back testing will be added as a future upgrade.)

Seismo’s powerful ‘point and click’ market scans provide fast, accurate and reliable results without the need to program.

Seismo has an enviable 87 per cent plus annual client renewal rate and we are committed to the ongoing success of our clients while encouraging maximum trading and investment independence for all.

This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.

Analysing Company Accounts Review

Okay, there are some people out there who want to do more fundamental analysis than just look at the index of Roth’s book, Top Stocks 2004. Chances are though that you don’t know where to start. Well, Mr Roth has given you a good start. While you won’t finish the book as a CPA, you will certainly have a much greater understanding of how he, as a fundamental analyst, does what he does so well.

One of many challenges is seeing through all the marketing glitz that is used to embellish a company report. The lessons and insights in this book give you tools and help you to develop processes for slashing through the hype to the core issues, so you can decide whether the company is sound enough to invest some of your hard-earned money with.

The author also provides suggestions for portfolio monitoring, which gives even more value to the book, as it makes company analysis relevant to the reader.

This is the fourth edition of this book, suggesting that it is both a worthwhile book in its own right and that it is regularly updated to match the changes in company reporting practices and requirements.

While all the usual terms like EPS and PE ratios are discussed, Roth expands on their use, giving insight into their relevance and application. Although he comes out with ratios and comparisons that I had never heard of, I realised that they add to the clarity and reality obscured by the company spin-doctor’s marketing hype. The book is certainly worth an hour a night at your desk with a calculator for a month or so, as you internalise and apply the concepts Martin Roth presents.

This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.

MetaStock Professional Review

Trader One

Firstly, I am completely new to MetaStock in general, not just this new version. I found the installation setup is a simple, standard and brief process. There is a tutorial offered when the program is first installed. This explains the very basics, and there are two PDF manuals under the Help menu which assisted in getting me up and running.

The process involved to open, customise and draw on the charts is simple to grasp, which meant that I was using the program within the space of an hour. There are many functions that the software can perform and this needed more time with the manuals. I put several hours of working through the “Power Tools” part of the manual with still more practice required. Nevertheless, the time spent was most rewarding, as the possibilities of these tools take some time for the newcomer to fully grasp. I did find the “MetaStock in a Nutshell” by Simon Sherwood helpful as it filled in a few blank spots I still had about the Explorer tool in particular.

The very long list of indicators are so quick and straightforward to use because of the drag and drop application method, this minimises clicks required. For any new trader your favorite tool will surely be the Expert Advisor which applies the rules of various indicator systems to the chart you are viewing and explains what is happening in the chart from the rules that apply to that system. Depending on your level, this tool either functions as a technical analysis tutor or becomes a source of confirmation for chart interpretation. I am also excited about the Explorer tool and the Enhanced System Tester which makes very complex tasks easy to operate and modify.

From the perspective of the new trader, there is a lot of room to grow with MetaStock, I would thoroughly recommend any new trader look into this program, it is a wonderland for technical analysis.

Trader Two

MetaStock has held a place as an industry standard charting package for many years. It has held its position as a market leader as it is one of the few commercially available programs that enable a user to create both custom indicators and user defined search (exploration) facilities.

MetaStock Pro extends upon these features by incorporating intraday functionality to the standard end of day package. At first glance, charting of time frames from tick values, through standard increments up to one hour seems to offer only a marginal advantage above what a sophisticated internet based broking house is able to provide. However, in integrating internet functionality, the creators of MetaStock have added a powerful and unique alert function that enables the user to integrate email/SMS real time system alerts based on custom indicators/criteria. This feature alone commands the attention of the serious trader.

MetaStock Pro is packaged together with QuoteCenter data as a download direct from the Equis website. However, in my experience, the process for downloading the software was slow and inefficient. Anyone purchasing MetaStock Pro would do well to order a copy on disk.

In general, I found the Reuters based QuoteCenter data to be quite clean and easy to use. It is understandably slow to initialise an intra-day chart, yet once loaded, price moved in sync with market moves without any noticeable delay. Needless to say, a broadband connection is a vital system requirement.

It would be remiss of me not to mention that there a large learning curve involved in proficient use of MetaStock. However, there are a number of commercial training programs available on both basic and advanced functionality. In addition, the Equis website (www.equis.com) offers a wealth of information on effective use of the MetaStock program.

Trader Three

MetaStock Pro is a software solution for advanced and professional traders. It is designed to assist trading in any financial instrument in any market accessible by Reuters. The companion QuoteCenter product offers real-time updates of financial instruments.

This is a package for experienced traders. The software and training manuals are supplied on CD, pre-registration is required for installation, which was smooth and easy. The documentation was professional and comprehensive, provided in .pdf format.

The MetaStock Pro charting system is second to none. The charting module is supplemented by trading analytics, trading systems and expert systems; the trader can also write their own trading strategies and test these against data from various periods. This testing is comprehensive and detailed, though I found it a little slower than other professional packages. Nonetheless, it is an extremely potent capability which I find essential for any professional trader.

I was most impressed with MetaStock’s event alert mechanisms, which allow for continuous market scanning and, if a trading system is applied, generate the trading signals. The abundance of trading functions enables the trader to select the most appropriate analysis of the market itself and the movement of the instrument in the market.

The package has a very intuitive design, helping professional traders focus on trading-useful shortcuts, templates and a systematic approach to building up trading strategies are all important features. It maintains a highly comprehensive level of detail, however, allowing traders to use as much or as little of its capabilities as their style dictates.

In my view, MetaStock is the ultimate trading software for experienced traders and research analysts. I would strongly advise the use of MetaStock’s trading system design capability to allow a unique, customised approach to the market dynamics when trading.

MetaStock is an excellent product, definitely on my list of top two trading products. I would recommend it to any professional trader.

MetaStock Response

MetaStock Professional is the real-time version of MetaStock and is now available to private traders.

Most users find installation a quick and easy process. There are, however, a plethora of avenues for assistance if required. The software is downloadable via email link or disk – your choice.

The support continues well past installation, with assistance available from an online forum, tutorials, manuals, live online training, phone and email support, to ensure you receive maximum benefit from the powerful features.

MetaStock Pro is sophisticated yet flexible, giving you the power to tailor it specifically to your own trading style – you can even create your own indicators!

Further unique features of MetaStock include:

* The scanning function enables you to scan thousands of securities based on any number of criteria in order to identify ideal trading opportunities

* Indicator builder – utilise one of over 200 built in indicators and studies, or create your own

We recommend pairing MetaStock Pro with real-time data from QuoteCenter – an ultra-clean, reliable and comprehensive real-time feed direct from Reuters.

Any trader at any level can find features and functions within MetaStock Pro to increase profitability and reduce the effort required to design, test and implement a trading system.

The software is available from US$100 per month or a once off purchase.

This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.

Charting Secrets Review

I have come across a few writers and a lot of readers who want to either create or read the ultimate book on charting and technical analysis. A sort of bible or holy grail for chartists. I don’t believe it is or would be possible to create such a book. My reasoning is that as we all have different personalities and learning styles we all look for different things in a book.

So where does Louise Bedfords’s latest book fit? I would suggest that it is a worthwhile book for anyone who has not completed the Security Institute’s course on technical analysis. To me the big plus, and for some a minus, is that it is written in Louise’s friendly informative and instructive style as opposed to being a sleep inducing, dry read that many expect good charting books to be. It is easy reading, well structured and quite thorough for an introductory book on charting. Though don’t get me wrong, by saying introductory I am not suggesting it is thin on detail. It is packed with information that needs to be understood.

To me the biggest bonus of the book are the exercises she insists, pleads and begs people to do before they look at the answers or move on to the next section. Why? Because it is in doing the exercises that the learning and understanding truly take place. Therefore, if you buy the book, and you are hungry for information and understanding, do the exercises and then look at the price charts you have been following and apply what you have learnt. I am convinced that through diligent study you will find that this book’s lessons are worth a thousand times or more than the cost of the investment.

This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.

Stock Market Logbook Review

I applaud anyone who goes to the trouble of encouraging people to think about investments and who provides tools to evaluate the strategies used to manage such investments. Mr Mills says Stock Market Logbook is educational; but I would caution that there is need for a reasonable amount of study before using this book, or, for that matter, before entering the markets.

Stock Market Logbook is designed to be a workbook/diary for the year and provides spaces where the trader/investor can fill in appropriate details on allocations, buying, selling and the general flow of money. It appears that the author hopes that people will buy a fresh book each year; I suggest that it may provide excellent templates for spreadsheet workbooks for the dexterous and computer literate.

I showed Stock Market Logbook to broker colleagues and they were delighted with the concept and with the layout, suggesting that it would help their clients to have a clearer understanding of how their accounts are managed.

If you have money in the market and have never seriously thought about how all your investments sit together, this could be a most valuable tool – provided you have done the homework elsewhere to understand the potential consequences of your decisions. At the very least, with the planning section completed, you can talk more knowledgeably with your financial adviser. At the end of the year it will certainly help answer those tricky questions the accountant always asks.

This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.

Easy Forex Review

Newcomer Level

The Easy-Forex foreign exchange trading platform is browser-based, so there is no need to download software. The ability to trade very small amounts (as low as $US2,500) gives the inexperienced trader an opportunity to interact with the market with low levels of risk. For the first-time trader there is a tutorial to walk you through a trade.

All trades placed on Easy-Forex have a guaranteed stop. While this is great for limiting losses, it may not suit traders who want to manage trades themselves.

There is a reasonable range of currency pairs to trade, with all of the majors as well as the minors and some exotics. Gold and silver can also be traded. A custom watch list must first be set-up, as all trades are made from it.

One of the promoted features of the Easy-Forex platform is the ‘freeze price’ button. This allows the trader to hold a price for a few seconds to see if the trade moves in a favourable direction before locking the trade in. In effect, it serves to reduce the spread. Short-term momentum traders may find this tool useful.

In contrast to other trading platforms, Easy-Forex does not pay interest on open positions when long a base currency with a higher interest rate than the quote currency. This, together with the wide spreads, may make it a costly platform to use.

Colin Simpson is an active investor and has been trading shares for two years.

Intermediate Level

Easy-Forex orders are placed using a web-based trading platform or by phone, so you need not purchase or download any software. You can log in from any internet-friendly computer.

I found the platform to be quite basic compared to other FX platforms. It was not intuitively very easy to use. However, I understand training in the use of the system is offered as a matter of course on the opening of an account.

The platform consists of a website that contains most standard features, including dealing screens, account and order information, news, and a charting function. Whilst most trading platforms enable at least some form of personalisation of the screen layout and, more importantly, the ability to open multiple windows concurrently, this is limited on the Easy-Forex platform to the opening of a separate chart window. The website is not compatible with the Firefox operating system.

As to the cost of doing business, Easy-Forex does not charge a platform or any account management fees. However, I found the spreads to be quite high for the products offered. I was advised that all fees are negotiable depending on volume of business. n

Amanda Tonkin-Hill is a full-time private trader of Australian and International Equities and Foreign Exchange.

Experienced Level

Easy-Forex provides online FX spot, FX forwards and FX options trading through a clear and informative, easy to access website. The information offered is pertinent and clear, and will be of assistance to any FX trader. The site is easy to navigate, intuitive and the information is presented in logical sections with more detail available by drilling down through the structure.

I liked being able to freeze the deal rate; credit card deposit (beware if you are not experienced, as losses accumulate easily); frequent traders’ special rates; access to continuous Reuters news; and continuous updates of the major FX rates. Position tracking and management is really easy. It is great to see that one can monitor the progress of a trade by value and not just points. Account management is straightforward and removes the non-productive load from the trader.

The online charting tool allows for tracking in multiple time periods and provides access to the most popular technical trading studies.

I did not like not being able to set profit stops at trade entry time, and not being able to set stops by points rather than dollar value. Not being able to trade an instrument could be a major disadvantage for a technical trader. I prefer to be able to buy and sell against a pair (say AUD/USD) rather than enter the buy transaction in AUD-USD and sell in USD-AUD.

Tom Frtunik is an FX spot trader.

Easy-Forex Response

The platform was designed by an award-winning user interface designer, and has been praised by many active traders at all levels for it intuitiveness. A Firefox version of the platform is currently under development.

The guaranteed stop loss in all market conditions and the ‘freeze’ rate functionality puts Easy-Forex in a competitive market position.

The ‘freeze’ rate function is unique to Easy-Forex. Before trade, acceptance rates can be frozen for up to three seconds. The ‘freeze’ rate function not only serves to reduce the spread, it also enables the trader to enter and exit technically superior trades as the market has ticked in their favor at the point that they accept.

Easy-Forex traders can fund and top up their trading account online with a credit card 24/7. This feature can protect a trader in a rapidly moving market.

Unlike other platforms, a trader can hedge his/her positions by being long and short in the same market at the same time.

It is free to register to the platform; there are no onerous red tape requirements. Registered users obtain full access to the platform including a live charting package, and daily and weekly market reports.

This article was originally published in the Sep/Oct 07 issue of YourTradingEdge magazine (www.YTEmagazine.com). All rights reserved. © Copyright 2009, MarketSource International Pty Ltd.