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

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Old Nov 13, 2008, 12:42pm   #1
 
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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
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Old Nov 13, 2008, 2:08pm   #2
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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.
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Old Nov 13, 2008, 2:33pm   #3
 
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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
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Old Nov 13, 2008, 6:46pm   #4
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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.
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Old Nov 14, 2008, 11:23am   #5
 
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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
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Old Nov 19, 2008, 11:08am   #6
 
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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.
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Old Nov 24, 2008, 10:00am   #7
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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.
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Old Nov 24, 2008, 5:40pm   #8
 
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try mtpredictor.com
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Old Nov 25, 2008, 11:05am   #9
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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.
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Old Dec 1, 2008, 11:04am   #10
 
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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
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Old Dec 2, 2008, 11:19am   #11
 
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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
Interesting new features, I especially like the ability to test all results at once, something that was tedious doing one by one using the backtesting function.

Also, the 1-bar success rate is very interesting parameter, I have to think more about its use.

Thanks for the link.

Alex
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Old Dec 11, 2008, 11:41am   #12
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Also, the 1-bar success rate is very interesting parameter, I have to think more about its use.

Alex
Very interesting feature. I ordered and already got a special version of the program that discovers patterns based only on highs - lows or closes of bars. That special version includes the 1-bar success rate calculation but only in scans.

Alexander, do you have any suggestions about using the P1 parameter? My approach is to multiple P times P1 to get the probability of a signal being profitable and exiting at the next bar at the same time.
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Old Dec 27, 2008, 2:00pm   #13
 
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Originally Posted by intradaybill View Post
Very interesting feature. I ordered and already got a special version of the program that discovers patterns based only on highs - lows or closes of bars.
intradaybill, are you satisfied with the custom version? I plan to order one that identifies pattern with 3 or 4 bars only. I was told 3 bars can be assigned to normal search and 4 bars to extended.

Best wishes for the Holiday Season!

Ron
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Old Dec 30, 2008, 3:53pm   #14
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intradaybill, are you satisfied with the custom version? I plan to order one that identifies pattern with 3 or 4 bars only. I was told 3 bars can be assigned to normal search and 4 bars to extended.

Best wishes for the Holiday Season!

Ron
Happy New Year Ron!

Yes, the custom version runs fine and it only searches for 3 and 4 bar patterns, 3 bars in normal mode and 4 bars in extended search mode.

Delay option can be also activated but I do not use it. My strategy is based on using the 4 bar patterns as a short term trend indicator and 3 bar patterns for confirmation and opening positions.

The idea is to have 4 bar patterns with a larger profit target and 3 bar patterns with a smaller profit target. In essence, the R:R of the 3 bar formations is to lie in the profit target envelope of the 4 bars R:R.

This strategy has a lot of potential when properly applied.
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Old Jan 9, 2009, 4:01pm   #15
 
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Originally Posted by intradaybill View Post
The idea is to have 4 bar patterns with a larger profit target and 3 bar patterns with a smaller profit target. In essence, the R:R of the 3 bar formations is to lie in the profit target envelope of the 4 bars R:R.

This strategy has a lot of potential when properly applied.
I agree this strategy may have potential. I just ordered the custom version upgrade.

Thanks for your suggestions.

Ron
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