Wednesday, 28 September 2011

The Right Tool for the Job

We have a host of electronic tools available to us now, at a cost that is comparatively very low.

Whether you are using MarketDelta and its best of breed volume analysis or MultiCharts and TradeStation's best of breed automation, the testing tools mean that there is no excuse for being surprised in live markets.

One tool I'd like to mention is WalkForward Analysis that is available in bot MultiCharts and TradeStation. At the present time, the functionality of this tool in TradeStation is superior.  However, the speed of MultiCharts and the data availability of MultiCharts is currently way ahead of TradeStation. 

Having said that, traders who haven't used Walkforward Analysis
( and who have access to the TradeStation page linked here might see something of real value.

WFA is one of the techniques we will explore in the November Workshop.

Another interesting tool is MarketDelta - probably the best discretionary traders charting package.  I've been showing DAX charts using MarketDelta not only because I like to trade the DAX but also because many U.S. traders have "discovered" this market. It starts trading in the middle of the U.S. night so suits many people who want to trade at that time. It goes on 'til the close of the NY Stock exchange. The trades below show how clearly the order flow can be tracked. This chart above shows the U.S. RTH first couple of hours.

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