Trading Software and Books Reviews

FXCM Trading Station II review

FXCM Trading Station II is a software provided by FXCM Corporate which is a well known Forex broker to their clients in order to enable them to place orders to buy or sell the different currencies immediately or by delayed execution of their orders.

The program enables you to watch prices of many currencies live and see the price changes immediately in addition ,It has a nice feature of viewing charts and attaching different indicators that can aide in analysing the currency chart which is called (The market space).

The user can see the statistics of open trades and can close them using this software at any time.

The software has a feature where the user can know market news immediately when they are announced.

An excellent feature that makes this software ahead of its competitors (i.e. Metatrader ) is that it offers the ability to chat live with one of the FXCM representative which many users will find handy and useful another nice feature is that you can generate a report of your account including all your deals on the fly from inside the software.

Advantages of FXCM Trading Station II:

• Fast position opening.
• Instant update of market prices.
• You can analyze charts from within the trading platform.
• Multiple languages are supported.

Disadvantages of FXCM Trading Station II:

• Practice account creation is not done from within the software.
• You cannot add or create trading experts.
• The platform is said to hang upon fast market moves or during news announcements.

The Bourse Review

Trader One

The Bourse is user friendly. The installation process is simple and the beginner’s tutorial is comprehensive and concise.

The standard screen arrangement contains the stock list, and the other two screens contain the market depth and the chart relating to the selected stock, option, warrant or futures contract. The software has a sizeable choice of technical analysis tools. I found them very simple to apply to the charts. I was able to perform all the usual tasks, such as saving my drawings and altering the indicator parameters to my preference.

Creating my own ‘chart styles’ or mix of indicators and then applying them to all charts was very simple. Adjusting the layout was also simple and flicking between full screens was the only task that posed more of a challenge (a second look at the tutorial solved this).

The user can choose between live, snapshot or delayed data depending on needs and budget (rates are available on the web site). Some news reports are free with a 20-minute delay, or available from other commercial providers at a cost per item. Although I lean heavily toward charting as my method of analysis, the information for fundamental analysis appears more comprehensive than I have encountered on other software. There is a handy search function that allows the user to search by symbol or name. I also enjoyed the Google-like search function that can search for keywords in both the text body and in headlines of news reports.

The best features of The Bourse software are its simplicity and practicality. The fact that the program was so user friendly meant that I could immediately start focusing on what the stock was doing instead of working out how to master and tweak the program.

Trader Two

The ‘Getting Started Tutorial’ was an excellent introduction to The Bourse – concise, clear and comprehensive. By running the tutorial on my laptop while following the instructions on my PC I was able to gain, in one run through, a good understanding of the program’s capabilities.

The Bourse offers a pane layout, and users have the choice of fixed panes or multiple document interface. I found each had advantages, and one might use several different layouts for different purposes. My initial task was to set up a customised layout with a watch list and chart, and then populate a watch list; all of which was achieved with minimum confusion. The panes are synchronised so that the data simultaneously change in all of them as you flick through the watch list. The screen is clear and uncluttered.

There is an impressive array of indicators and drawing tools to satisfy even the most avid technical analyst, and I had a lot of fun playing with the different chart options. Defaults are determined by the user. It is then a simple matter to select different styles from the built-in list, or to create and save your own, using combinations of favourite indicators. One thing I did find disconcerting was the need to elect to save all lines drawn on the chart. I would rather have to elect to remove them.

Easy customisation is found throughout the program.

Information needed by options and warrants traders is available, plus a wealth of detail on company profiles, past dividend and trading history; useful internet links, and an excellent search feature.

A user-friendly platform, ease of access and customisation are the buzz words here, and given that it is not at the top end of the trading software price range, this bundle of features makes The Bourse a very appealing package.

Trader Three

The Bourse is a software solution for traders at all levels. It is a highly customisable, very smooth system to co-ordinate information viewing, charting, and reception of trading alerts.

The Bourse has all the features an experienced trader requires, but is also very friendly to newcomers – an extensive and comprehensive integrated manual is supplied, augmented by a very fluid and helpful video tutorial or even a short face-to-face instruction course if desired.

The Bourse’s greatest strength is its ‘customisability’. Virtually every element in the program is adjustable; furthermore, there is the option of synchronising a number of information windows (for example, market depth, a chart, and perhaps a news breakdown) with a selected symbol – changing symbols in a particular window changes them all.

The integrated charting system is comprehensive, allowing good flexibility in the application of a wide variety of standard charting tools. Charts can be saved and exported, and it is possible to save favoured chart templates and apply them to any chart as desired.

The Bourse offers streaming news and easy access to news related to specific symbols and their associated company or companies, currency, or commodity. The Bourse Data also offers access to its Bourse Research service, which gives easy access to every relevant piece of information about a company – it is also possible to search this database by criteria, allowing a user to quickly find stocks that fit a trading strategy.

The Bourse also offers an ‘e-lert’ service, sending you alert SMS messages based on a condition you set and ensuring you’re never isolated from their service.

In my view the Bourse is a user-friendly and comprehensive software platform for information management and data analysis, which will undoubtedly prove useful to many traders of all levels. If you’re in the market for a software package to enhance your trading, be sure to give The Bourse a whirl.

Bourse Data Response

Many people claim that their software will (almost) do the trading for you. However, we know that great traders are not successful because of the software they use. They have rules to guide their trading, and they seek out software that is comprehensive, flexible and easy to use to support those rules.

Our ongoing goal for The Bourse is to support you in making trading decisions confidently and effectively.

To that end, we understand that you need more than just pricing data or scanning tools. You need to know when a stock is going ex-dividend, or when a sensitive report has been released. Thus, the Bourse combines your choice of delayed or live ASX and SFE market data with:

• easy to use and comprehensive charts

• access to SMS alert services

• a portfolio system

• full financial information for every company traded on the ASX

• access to market scanning technology

• international pricing data (including currencies)

• access to a multi-broker trading platform

• customisable screens and layouts

• live AAP/RWE news and company announcements.

Our service includes full telephone support – so you never need to be caught out trying to remember how to use a feature of the program. We enjoy talking with our customers, and many of our best ideas have originated from customer suggestions.

Bourse Data also offers comprehensive trader education. This is focussed on setting up rules so that you can have consistent results without the fear of losing control.

Finally, we understand the importance of saving money. Our intra-day subscription data plans are more comprehensive and better value than most end-of-day data plans. Our education courses have been rated as superb value by nearly all attendees.

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.

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.

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.

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.

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.

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.

Sanford Pro Review

Beginner Level

Sanford Securities is an Australian online stock broker that offers client access to online equities, warrants, ETOs and managed funds. Sanford Pro is a live data/news service for clients who trade with Sanford or who wish to access a live service for a monthly fee.

The service is accessed via the Sanford web site. After a number of software downloads the Pro service appears as a single floating window under the browser. I had no trouble with the install or with accessing the Pro application.

The service is feature-rich and provides all the necessary information to assist in trade analysis. The interface is pleasant to the eye, easy to use and configurable to any view or pattern within the one window.

Sanford Pro offers watch lists, market reports, trade ticker, course of trades (last 20), alerts, company information (via InvestorWeb), charting (plus indicators), news (ASX/Dow Jones/Reuters), news ticker, derivative pricing (ASX ETOs), trade management, and portfolio management.

Support is provided by a comprehensive online Help function. Each window has an online Help button that provides help for that window. I found this feature helpful. Further help is available from a Help Desk (1300 access) and email.

A number of separate desktop configurations may be saved to your PC. The different views can be accessed depending upon need and market. A nice option is the linking capability where any number of open windows within the Pro application can be set to update when a new stock/option is being viewed. For example, I had market depth, course of trades, news and chart windows configured to update when I typed a new code in any one of the four windows.

Each window has the ability to be ‘undocked’, which allows an expanded view of that particular window, though it still stays within the Pro application window (that is, unable to free float). I used this facility for charting.

An added feature is the Dynamic Data Embedding (DDE) option, which is a Microsoft Excel option that allows a client to configure a spreadsheet to update with the live data stream from the Sanford Pro application. A sample spreadsheet can be downloaded. It provides live portfolio valuation, margin lending valuation, stop alerts and charts as examples.

Overall, I liked the application. It was easy to configure and use and throughout the trial the software worked well and I had no problems or difficulties. It is a helpful tool to access live data to assist with trade decision-making.

Michael Clancy is a private trader of ASX shares and ETOs.

Intermediate Level

Sanford Pro is a browser-based live charting and quote program offering dynamically updated data. It installed simply and quickly and ran immediately. However, I could not get it to work with the new Firefox browser.

It is set up initially with a default desktop, including windows for watch lists, options, charts, market depth, course of trades, news and global markets. Others, such as trade ticker, tabular history and market movers, are available. The market mover’s window provides the choice of looking at today’s top stocks using volume, value or number of trades as well as an advanced function to filter the list using many other parameters.

Sanford Pro was stable during the whole of the review process and responded to mouse clicks quickly. The program is easy to use. Intuitively, I could zoom the chart or sort watch lists by right-mouse clicking. I could also enter stocks into the ticker by dragging directly from the watch lists. It’s always a sign of quality when a program reacts in the expected way. Window layouts can be completely customised: they can be docked or floating; can be linked within a specified group; and you can save a number of view layouts.

The charting provides almost live intra-day charts with a minimum of 1 minute bars and time intervals being fixed to 1, 5, 15, 30 and 60 minutes. It has most of the common indicators but to call the charting ‘advanced’ is a bit of a stretch. For example, I could modify only one of the three preset moving averages. The other indicators all had customisable parameters. Charts cannot be scrolled, so you are restricted to looking at a specified time period from today’s date backwards.

With the ability to trade directly from within Sanford Pro soon to be available, Sanford will have an elegant all-round solution for those traders who feel they benefit from having a trading platform with instant access to market information. The recent price drop has made the product much more competitive, especially considering that frequent traders (15 trades per month or more) can get the access fee rebated.

Peter Dujmovich is a private options trader, focussing on commodities and stock indices.

Advanced Level

Sanford Pro is a fully interactive real time online dealing desk for traders of Australian equities and options. It is a web-based application that attracts a standard monthly fee of $89.90. It is subsequently free for frequent traders conducting 30 or more trades in a single month.

Its features include fully customisable watch lists, basic charting facilities, and news services from a variety of sources – all of which come as standard with most online broking services. As a generalisation, I would say the Sanford web site is easy to navigate and customise to suit each trader’s individual requirements. However, the pricing of its various features is a little confusing. Brokerage is dependent upon value of the order and frequency of trading and the platform fee has various components, some of which can be offset through frequent trading, whilst others carry a monthly fee regardless. This could be partially offset by interest received on accounts holding $5,000 or more in cash.

I spent some time perusing the platform considering what Sanford Pro really offers over and above any other online broker. After much deliberation I decided that the answer was simply personal preference. Most online brokers provide features such as market depth, course of sales, personal watch lists and the like. Sanford Pro offers the advantage that these features are dynamic and Sanford is one of the few brokers to offer online options pricing. One feature offered that may attract some traders is the availability, for a small additional fee, of SMS alerts.

Sanford Pro offers an excellent alternative to a full-service broker for option traders. However, I found its features to be very similar to those offered by its competitor, Commsec, in their Professional Trader 2 application. The pricing of both applications is within the same ballpark and from my perspective they offer very similar features. Sanford may well have a market edge by providing efficient service in account management, but I believe this to be a very individual decision based on personal experience. I have not investigated it in conducting this review.

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

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.

Trading Solutions Review

Newcomer Level

TradingSolutions claims to be a very powerful software package that will allow the user to perform detailed analysis on a whole range of financial data in order to determine optimum times for buying and selling in that market. Shares, commodities, options, foreign exchange and indices can all be analysed using TradingSolutions software. It does this by combining traditional technical analysis with state-of-the-art artificial intelligence technologies including neural networks and genetic algorithms.

As I see it, TradingSolutions is a very expensive (up to $US5,000 for the top package) black box trading system. The promotional material claims: “…more than just a black box, TradingSolutions is a sophisticated trading tool built on a powerful neural network engine. (Neural networks) can predict future stock prices and optimal trading strategies.” This is classic black box stuff, with the user expected to follow blindly the many trading signals and commentary generated for each stock. In one 12-month period two trades per month were generated for a particular stock.

A study conducted at Deakin University in Victoria compared neural networks with exponential moving averages and linear regression in their ability to predict stock index prices. It concluded: “…It appears that linear regression and exponential moving averages better account for relationships between index values on successive days.”

Having said all that, the charting and technical indicator part of TradingSolutions seems perfectly adequate, with more than 250 indicators and functions built in, and the software offers the ability to modify these or customise new indicators.

Data can be imported in either text or Metastock format, and wannabe day-traders can also use streaming real-time data. Once data is imported, it is handled quite well, and the lists of stocks can be customised into groups such as those that are trading well, or those that have just given a signal. Data can be viewed in either spreadsheet or chart format, with charts being either basic close price only, bar charts (OHLC), or candlestick. A nifty tool is the signal analysis tool, which basically back-tests a particular strategy to see how it would have performed over a given time period.

As a straight charting package it is overpriced, and there are better options around. As a black box trading system I would leave it well alone.

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

Intermediate Level

The download time was a little longer than I expected. It took about four hours (using a dial-up connection) but it was a simple process.

Once the software was downloaded it was a matter of getting to grips with the more than 250 built-in formulas and technical indicators the system offers. You can also create your own formulas. The software uses ‘neural networks’ – a system that ‘learns’ from patterns of historic data to let you know the optimal time to buy and sell in the future.

TradingSolutions has the potential to pull in real-time data to scan for opportunities, as well as end-of-day. At present eSignal is the data provider used for the real-time data, but they are looking at incorporating more. (However, eSignal is more than capable of immediate real-time data.) For end-of-day you have the ability to link this software to many other data providers. The software can use any date-based data, so stock, managed funds, futures and foreign exchange data can also be downloaded and studied.

Obviously, with all that information to sort through, it takes a little while to come to grips with what the software can do. The step-by-step tutorials and video help come in handy as you can get visual answers to common questions. There are ‘how-to’ guides, and a free ‘Solution Service’ where you can download daily trading signals from the Internet and receive commentary directly into the portfolio you are trading. From the Solution Service web site, you can go to the library of trading ideas that have been published in the ‘Traders Tips’ section of Technical Analysis of Stocks & Commodities magazine and import them into the software for use.

Once it is set up with the signals you wish the software to look for in your data, this tool is very helpful in doing all the hard work for you and showing you at a glance the points where you should enter and exit a trade successfully.

Lisa Sadgrove is an investment advisor at ABN Amro Morgans Ltd, providing professional advice on equities and options. Lisa privately trades equities, futures and options.

Advanced Level

This review features the TradingSolutions package, version 3.0. A trial version of the software is available from the TradingSolutions web site, which is well presented and easy to navigate, with many click-throughs to the installation file itself – no problems there.

However, the size of the file is daunting even for broadband connections. Weighing in at about 57Mb, this wins a prize for being one of the biggest installation files I have ever downloaded remotely, and believe me I’ve tried a few. You would not contemplate this with a dial-up connection (to be fair, with the price of broadband at home these days you wouldn’t be considering trading if you couldn’t afford a half-decent connection…right?). My PC at home isn’t in peak condition, and it failed to maintain a connection long enough to grab the entire package so I had to use our industrial connection at work; even there it made me nervous. Being based in Sydney I wouldn’t be inclined to request a CD be shipped from Florida for their one-month evaluation. This could be a barrier for some.

Once installed – straightforward – you can appreciate just why this software needs to be so big…there’s an awful lot of number crunching going on in there. Technical analysis is all about statistics and their interpretation. While the usual analyses are reasonably easy to find and draw, the focus of this package is much more on data modelling, through the ability to use pre-defined or custom mathematical analyses; signalling, through the use of rules to inform you of critical price levels and advise what position you should be in according to your model; and prediction, through complex correlation and neural networking algorithms being used to compare and then learn how various instruments interact and consequently how they could behave in the future. The value of this package would seem to be in the combination of more traditional rule-based trading combined with the neural network analysis which has been developed relatively recently with research into artificial intelligence.

There are a lot of degrees of freedom with this package – a lot of potential if you can unlock it. Advanced traders will enjoy the creative freedom the package unlocks once the interface is mastered; it will be quite a learning curve though, as the complexity allowed means there is much to input. This is not a criticism – if you’re going to invest the money you should be prepared to devote the time as well. There is a very user friendly tutorial and free online lessons available. Phone support is during U.S. business hours. Less experienced users will be able to utilise the pre-defined studies until they grow beyond these, at which time there is plenty of room for the package to grow with you. Beginners may be overwhelmed and should probably start with something much more basic.

The time available for testing for this review was shortened by the Easter break so I don’t believe I really delved in deeply enough to see the software in full gear. In summary though, this is a big package for serious punters who will need plenty of time and patience to master it, but who should benefit accordingly by having done so.

Daniel Bernasochi has been professionally involved in the financial markets industry for over seven years. Daniel privately trades ASX equities, and more extensively the FX markets in recent years.

TradingSolutions Response

TradingSolutions is a comprehensive financial analysis software package that helps you make better trading decisions by combining traditional technical analysis with state-of-the-art artificial intelligence technologies. TradingSolutions supports almost all types of financial data including stocks, futures, options, Forex and many more.

Regarding the comments on supported data providers, TradingSolutions actually supports several data providers including eSignal (real-time), IQFeed (real-time), Prophet and QuotesPlus.

Regarding the perception that TradingSolutions is a “black box trading system”, this could not be any further from the truth. TradingSolutions is a completely open system for financial model development allowing you to customise every aspect of your model. Even the pre-built models we offer through our free Solution Service are open to viewing and can be customised by the user.

Regarding the study claiming that other technologies are better than neural networks, there are many other studies claiming the opposite. For example, a study done at the University of Manitoba in Canada tested the Efficient Market Hypothesis and demonstrated that neural networks outperform statistical and regression techniques in forecasting share prices.

Regarding the cost of TradingSolutions being $5,000, this price tag is for our TradingSolutions Suite, which is designed for only the most advanced users who have a vast knowledge of neural networks and want to delve more into the specifics of the neural network algorithms. Most of our users purchase TradingSolutions End-of-Day or TradingSolutions Real-Time, which cost $995 and $1995 respectively.

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.

OptionVue Review

Newcomer Level

For the software review, I received the 30-day trial pack, which contained a software CD (v 1.66), a training CD, two manuals, and instructions on CD installation and on working with ASX assets (as the software was designed for the USA options market). There was a 30-day free trial of a live data feed by a separate data vendor, a newsletter and an options book, plus several brochures. The trial pack allowed me access to end-of-day data and the weekly background database updates, which contain the volatility charts. By reading both manuals and going through the training CD, I gained a lot of practical information and knowledge about both the software and option trading in general.

I found the install easy, with the comfort of knowing I had access to technical support, which is provided by the Australian distributor via a free-call 1800 number. Getting started with the software required setting up a watch list in the ‘Quotes Display’ window. Selecting what underlying instrument you can trade meant selecting commodities, indices, currencies or USA, ASX and Indian stocks from a look-up list.

The initial screen is the ‘Quotes Display’ view, which has the spot details. From the ‘Quotes Display’ screen you gain access to the option pricing by highlighting the stock code and clicking on the Matrix button in the toolbar. This screen is one of three configurable screens providing detailed option information. The matrix screen is where trades are placed for analysis. I found the trade analysis capability to be very useful.

The second screen available from ‘Quotes Display’ is the ‘Price Chart’ screen. It allows for price charting together, with basic technical analysis.

The third screen that is accessible from ‘Quotes Display’ is the ‘Volatility Chart’ screen. This provides a graph of the Implied Volatility (IV) and the Statistical Volatility (SV) or Historical Volatility (spot price changes). I found it was a big help to be able to step quickly through each ASX ETO in the watch list.

The software has two further tools. The first allows for surveying (scanning) for either high or low IV/HV or a combination of high/low percentile volatility stocks. The second tool is the ‘Trade Finder’, which allows the user to select a number of parameters with which to scan the database. Once the results are obtained each trade can be analysed for profit/loss with the ‘Graphical Analysis’ tool. The Analyze button provides a ‘Graphical Analysis’ tool that gives all the details of the option trade together with a profit/loss graph. Any component of the trade can then be changed to see what impact it would have on the trade. I found this a wonderful tool that can highlight possible issues with a trade.

The ease of use and the power of the analysis tools make it a good package. The software was first created in 1983, so it is stable. It may not have the latest Windows GUI look and feel, but I like how it does the job of option pricing, scanning and analysis.

Intermediate Level

I found the OptionVue 5 software extremely well packaged and presented, with easy to read instructions about getting started, including an instructional CD which talked you through the OptionVue software and how to use it with easy to understand instructions – no tutor necessary. The whole process from start to finish, including downloading the background data, took only about half an hour. It took a little more effort to arrange a download for the ASX Options, but again, the information was easy to follow, and there was no trouble getting the data for the download. As long as you download the data at the end of each trading day, the system automatically picks up stock splits, consolidations and other corporate actions.

As the matrix looks like, and works in a similar way, to an Excel screen, it was easy to customize the screens to include or exclude columns of data, and to find my way around.

One of the best things about OptionVue 5 was the abundance of information to help those who use the system, from the free 58-page ‘Getting Started’ booklet to online tutorials and help available via the website. The free CD explains how to download data and use the software to its best effect. The Product Consultant will talk you through how to use it should you need help. The two work together to diminish the need for a lengthy training course. I also liked the enclosed book on options trading and the User’s Guide was very thorough.

OptionVue 5 runs well using a delayed data system, enabling you to download the day’s data at the end of a day’s trading, and to scan the markets for tomorrow’s trades. You can vary parameters such as volume, volatility, probability, and, of course, price. It does all the legwork for you – you type your trading parameters into the Trade Finder and the software produces a list of options to trade that fit within those parameters. It can also list them on the probability of a positive outcome. The option of live data feed is available should clients wish to use it.

You can analyse each trade by running it through the matrix as a proposed trade. By using the profit and loss charts, you can see at a glance your break even point, along with predicted future prices, expected returns and the probability of success for the trade. You can also overlay two different trades to see which strategy would be the more profitable. There is an excellent facility to monitor paper trades, so you can monitor your trades closely before committing real money to them.

Experienced Level

OptionVue 5 is a mature product that has evolved since DOS times. However, despite the vintage look, OptionVue 5 is a sophisticated options analysis tool that has been written by traders for traders. Credit must be given that with such comprehensive features they have kept the interface simple and intuitive.

The introductory CD presented by Steve Lentz is excellent. It shows the main features being used as if you were doing a trade. The setup is straightforward and quick to get started. OptionVue 5 comes partially configured with some of the major indices, US stocks, commodities and currencies already in the quote list. Options on ASX stocks require you to download the OptList.csv file weekly from the ASX site but European indices aren’t available.

The toolbar buttons supply all of the crucial information as expected. The nicest part of the interface is the interconnectedness of screens. The data from one screen can be automatically loaded into the other screens for further analysis. This is a great time saver. For example, you can set a target in the price chart that is then used by the Trade Finder to suggest the best options strategy. This can then be sent to the quotes display and matrix to examine pricing and the payoff diagram. If you get confirmation from your broker you can convert the trade into an existing position, which is then registered in your trading account transaction log.

One of the most important factors when trading options is the implied volatility compared to the statistical volatility. OptionVue 5’s volatility charts are easy to understand yet they have enough detail to cater for different trading styles. I found the percentile concept very useful in providing an absolute measure to compare volatility for each underlying instrument. Although other charting capabilities and technical analysis studies are very limited, the ones provided are quite useful. I especially liked the alternative indicators based on the put/call ratios and volumes as a useful sentiment indicator. The software uses a proprietary method for options modelling and with its options matrix and summary, it displays a great deal of information to help you formulate your trading ideas. There is a bit of drilling down through dialogue boxes to get skew charts, but the process is very logical and again provides the flexibility to get a simple view from a complex number of choices. There are also some clever search features such as Trade Finder, Survey and OpScan to help find potential trading candidates, with the facility to programme your own searches.

As an options trader, you need a system that provides an advantage. I think OptionVue 5 provides this with its focus on helping you to find, analyse and execute good trades. Rather than just looking at lists of numbers you can understand options from a visual perspective and therefore have greater confidence in your decision making and in the management of your trading.

Options21 Response

We would like to thank the reviewers for their time and effort spent in reviewing the trial of OptionVue 5 – Options Analysis Software.

Clarification: Both ASX and US data are provided. What elevates OptionVue 5 above its peers is its exclusive capability to model how volatility can affect your trade’s value. Most software and web-based analytical tools use average volatilities across an entire option chain to perform calculations. This can result in less accurate analysis of how a trade may actually perform in the future. With 22 years of research and development powering them, OptionVue 5’s three proprietary volatility modeling techniques account for price changes in each option. This critical detail gives traders the ability to better identify and separate high and low probability opportunities before risking capital. Profitable options trading requires robust models to make accurate projections – the robust models found only in OptionVue 5.

With OptionVue 5, traders also have the unique capability to graphically analyze theoretical trade performance at any date, price and volatility in the future. This highly custom-built environment allows traders to analyze positions of any complexity and view profit and loss projections in definitive detail.

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.