Software for identifying trades based on a custom risk-reward/risk capital

This is a discussion on Software for identifying trades based on a custom risk-reward/risk capital within the Trading Software forums, part of the Commercial category; Hello All. I have looked through a number of threads on this forum but could not find an answer. I ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Nov 13, 2008, 12:42pm   #1
 
kkarank's Avatar
Joined Oct 2006
Software for identifying trades based on a custom risk-reward/risk capital

Hello All.

I have looked through a number of threads on this forum but could not find an answer.

I am looking for a software (desktop/web based) that allows me to set risk/reward ratios per trade and also the amount of capital I am willing to risk as a percentage of my account. I then want it to be able to identify high probability setups from a range of instruments such as Nasdaq 100 stocks, futures, t-bonds, FTSE 100 etc. I want this software to automatically calculate stop losses, entry and exit points for each trade.

Does anyone know of a platform like this?

Thanks,
KK
kkarank is offline   Reply With Quote
Old Nov 13, 2008, 2:08pm   #2
Joined May 2005
Quote:
Originally Posted by kkarank View Post
Hello All.

I have looked through a number of threads on this forum but could not find an answer.

I am looking for a software (desktop/web based) that allows me to set risk/reward ratios per trade and also the amount of capital I am willing to risk as a percentage of my account. I then want it to be able to identify high probability setups from a range of instruments such as Nasdaq 100 stocks, futures, t-bonds, FTSE 100 etc. I want this software to automatically calculate stop losses, entry and exit points for each trade.

Does anyone know of a platform like this?

Thanks,
KK
Try here:
Discover trading systems automatically with APS Automatic Pattern Search trading software

Hope this helps.
Eduardo.
ZEPPO is offline   Reply With Quote
Old Nov 13, 2008, 2:33pm   #3
 
kkarank's Avatar
Joined Oct 2006
kkarank started this thread This seems to be more of a pattern search tool pretty much like metastock or tradestation. What i want is for the package to identify tradeable opportunities based on my risk/reward criteria and willingness to lose capital on a single trade. So what i am looking for is a package that will ask me something like 1) the market (e.g. nasdaq 100, FTSE 100 etc.), 2) my account size 3) my risk capital per trade . Then it will automatically suggest high probability trades that provide me with my expected risk/reward in the given market.
From the looks of it this package does just pattern search but does not tell me if a sugegsted trade matches MY risk/reward criteria?

Thanks
KK
kkarank is offline   Reply With Quote
Old Nov 13, 2008, 6:46pm   #4
Joined May 2005
Quote:
Originally Posted by kkarank View Post
This seems to be more of a pattern search tool pretty much like metastock or tradestation. What i want is for the package to identify tradeable opportunities based on my risk/reward criteria and willingness to lose capital on a single trade. So what i am looking for is a package that will ask me something like 1) the market (e.g. nasdaq 100, FTSE 100 etc.), 2) my account size 3) my risk capital per trade . Then it will automatically suggest high probability trades that provide me with my expected risk/reward in the given market.
From the looks of it this package does just pattern search but does not tell me if a sugegsted trade matches MY risk/reward criteria?

Thanks
KK
I would suggest that you read the articles on the subject in that website; there is also a thread about this on this very forum.
It might be that what you want is bespoke.

Eduardo.
ZEPPO is offline   Reply With Quote
Old Nov 14, 2008, 11:23am   #5
 
alexander's Avatar
Joined Mar 2005
Quote:
Originally Posted by kkarank View Post
Hello All.

I have looked through a number of threads on this forum but could not find an answer.

I am looking for a software (desktop/web based) that allows me to set risk/reward ratios per trade and also the amount of capital I am willing to risk as a percentage of my account. I then want it to be able to identify high probability setups from a range of instruments such as Nasdaq 100 stocks, futures, t-bonds, FTSE 100 etc. I want this software to automatically calculate stop losses, entry and exit points for each trade.

Does anyone know of a platform like this?

Thanks,
KK
APS Automatic Pattern Search is what you are looking for. It does exactly what you described but you will have to determine your position size based on your risk/reward parameters. Actually, the program has a tool for doing just that.

I suggest you read carefully the articles on that website as ZEPPO suggested. Even if you do not buy a license you will learn a lot from those. This program has transformed my trading life for the better. It is NOT the Holy Grail but it offers a sound quantitative approach to trading and its effectiveness increases with you experience and understanding of its capabilities.

I would start by reading this article:

http://www.tradingpatterns.com/synthesis.pdf

and then this one:

Tradingpatterns.com Michael Harris paper on pattern robustness

I hope this helps.

Alex
__________________
Buy high, sell higher - Sell low, buy lower
alexander is offline   Reply With Quote
Old Nov 19, 2008, 11:08am   #6
 
trader3cnd's Avatar
Joined Mar 2008
Metastock or tradestation are not pattern search tools but pattern backtesting and analysis tools. You need to know patterns first to use those programs. APS finds patterns. I have tried several programs and I found APS to be the faster and most user-friendly.
trader3cnd is offline   Reply With Quote
Old Nov 24, 2008, 10:00am   #7
Joined Jan 2008
Quote:
Originally Posted by kkarank View Post
From the looks of it this package does just pattern search but does not tell me if a sugegsted trade matches MY risk/reward criteria?

Thanks
KK

Risk/reward criteria depend on many things. As long as you have a high probability entry signal and know where to exit with profit or loss, you can adjust your position size to make sure your overall risk does not exceed a given level. I use the percent risk position sizing method as described in detail by Michael Harris in this paper:

http://www.tradingpatterns.com/PositionSizing.pdf

Actually, APS has a tool for calculating position size based on the risk percent method.
intradaybill is offline   Reply With Quote
Old Nov 24, 2008, 5:40pm   #8
 
3 Posts
Joined Jun 2008
try mtpredictor.com
kchannar is offline   Reply With Quote
Old Nov 25, 2008, 11:05am   #9
Joined Jan 2008
Quote:
Originally Posted by kchannar View Post
try mtpredictor.com
This is a "black box". APS is a "white box". Huge difference. You can't modify the system code and add you own indicators in mtpredictor other than control of position size and exit strategy. In general, EW theory does not tell you when to exit.
intradaybill is offline   Reply With Quote
Thanks! The following members like this post: ronblack
Old Dec 1, 2008, 11:04am   #10
 
trader3cnd's Avatar
Joined Mar 2008
There is a new APS version planned for release early next year and they have an offer for a free upgrade, which I think I'll take

APS Automatic Pattern Search Version Releases
trader3cnd is offline   Reply With Quote
Thanks! The following members like this post: Albert Carey
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Risk reward smbtnt Psychology, Risk & Money Management 5 May 22, 2006 6:17pm
Optimal Risk .vs. Reward Ratio on FX trades roguetrader100 Forex 44 Nov 24, 2004 12:52am
Calculating Risk/Reward in SB trades rjay Spread Betting & CFDs 3 Apr 7, 2004 8:49am
Risk / Reward Wideboy Psychology, Risk & Money Management 9 Dec 16, 2001 10:52am

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)