I know three more people who have the same opinion as you and me. It is not perfoming the way it is said to be in their sales brochures or marketing material.
I have send lot of e-mail to Nirvana Support with various questions. They seem to have no clear answers.
For example I asked them why back testing every 20 days if the market is changing so much. Every time I just get same reply. Also the LAB mode does not work same as real mode i.e. if you think you have got it using Lab mode then doing the same setting in real WILL NOT give you same results. I know someone who used LAB mode to check his ideas and burnt his fingers in Real Mode.
I like Omnitrader. I think it is important to look at what it is. It is a prospecting tool. It is a way of looking through 1000+ shares, and shortlisting the ones where there are opportunities - short or long. It then allows you to browse them, to look at what sysyems are firing, the performance when these systems fired previously in the past etc. It has never said that it is the holy grail. If anything, it only highlights opportunities which you must then look at, and discard/acccept. YOU must still interpret the signals on volume, news and overall market direction.
I do agree with the point that 20 days is tool long in these markets. However, this is customisable. I run a system that re-analyses and alters the back-test every 5 days. This can of course be done less, even on a daily basis.
My only problem thus far, is that of all the systems, I would like an OBV indicator. If any of you chaps can say which OT system is analogous, I would be grateful.
OT has never said that it wil choose a winner evertime. That is up to you. For me though, that is half the fun!
All the best,
I use Omnitrader 4, and I bought the Video Making Money with Omni Part 2 from Nirvada on how to optimise your settings. I wouldn't recommend buying it becuase it was about $50 not including shipping, and the main points could be summarised on a couple of sheets of paper.
I've written notes for it and will shortly post this in the forum. It might help improve the success of Omnitrader buys and sells.
OT certainly doesn't do what is claimed for it, IMHO.
I would agree that the hitrate is less than 50% - what's the good of that? I understand what was said above about refining your choices from there on, but if what you've got is less than 50%, you might as well select stocks with a pin (you'd get a higher hitrate that way!) and then use your other software to narrow down your choice.
I've only had the system up and running for about a month therefore I have not finalised my conclusions.
I am presently looking at the FTSE 350 with a modified short term aggressive, ( I have set the Reward/Risk to 2:1).
My filter choices are Advisor >70, Hit Rate >70 APR% >50 and Long tests in backtest >2.
I tend to back test each time, having set my stop losses and potential profit exits beforehand.
Following this I only have a short list of candidates and can quickly discard the most unlikely on a visual check.
So far the results have been encouraging, I am making a profit from AMEC and Schroder N/V (SDRC). I have also used the simulator facility, which I find quite educational. I have also tried back dating good candidates and stepping forward a day at a time to gain a feel for the share.
Still early days, I would welcome comments about the settings others are using.I shall continue to perservere as this software appears to suit my way of doing things.
I have only had Omni a few months, but there are so many signals, that to begin with I was knocking myself out trying to look at all of them.
I now only look at those with a BTHR back test hit rate of 100, paying special attention to those with the highest ADV rating.
I feel much more relaxed about the whole process now, and although I might miss some great buys, I feel I would probably miss them anyway just by information/signal overload.
I also have more time to closely analyse the charts of the shares picked.
Thanks for the warning. Sadly I am able to make a loss, even if as you suspect it is rigged favourably.
I still find the charts with their support resistance lines drawn a quick method of sorting a list of candidates. There is no way I would trust any computer system with my money, and to be fair this is advised against in Omnitrader.
There is no "Holy Grail". There are however far too many shares to check all of them, hence the need to pick a few.
It may be possible to select candidates at random or throw darts at a list, however that is the starting point of the exercise. From that point onwards there must be intervention by your own research, expertise and instinct.
Being lazy I want a quick list to look at, I have learned the hard way that if I can't find a share that is suitable, I walk away and wait for the right ones to come along.
I suspect that in the early days even with a "Holy Grail" system I would have lost money through lack of patience, bad money management and careless disregard for stop losses. Even now I would back fear against greed stopping me from maximising profit.
I will continue to perservere with Omnitrader for a little longer and will continue to tune the filters etc. Thanks for the warning, I would be interested to know what settings you used.
Just been reading Market Wizards by Jack Schwager, and so far all the traders I have read about advocate patience and stop losses.
It is frustrating sometimes when there are people buying all around you, but there is no point rushing in to buy for the sake of it. You need to be calm & rational and pick your own trade for your own reason.
It is also amazing how implementing a stop loss (even though you might have lost a little money) can give you confidence and a feeling of being in control.
From: Rich Ralph <firstname.lastname@example.org>
Date: Sat Dec 11, 1999 8:54am
Subject: OT versus the others
I haven't bought OT, but I thought I'd weigh in with my experience of the
past few weeks. I joined this list because I'm in the process of evaluating
and upgrading my trading tools - decision support, I call the software - and
I wanted user feedback on OT. I've found that every other package I've
looked at, and even some of the data services, have an active, open user
community. (Every one, except OT!) And these groups have been a great
source of info. because the people are actually using the programs, (most on
a day-to-day basis) and I'm not getting a lot of marketing BS. Frankly,
I've concluded that it's a really bad sign when a piece of trading software
doesn't have an open user community. Oh sure, you can join the Nirvana Club
for $2500 to $3500 - gimme a break. Strike one.
In doing my research, I found no one that actually trades with OT! The few
whom I could find that bought the program, all said what has already been
written on this list:
-- Bought it
-- Don't trust it; Have difficulty with data service download; Ticker
database more than a year old, and no update in sight; Too buggy; Lousy GUI;
[Fill in the blank with your experience...]
-- Keep upgrading hoping the newer version will be what I want
And so it goes. Strike two.
Company charges you for a new version that by all accounts is really just a
bad attempt at bug fixes. On top of that, they'd like you to buy lots of
add-ons. Strike three. Your out OT.
Its taken me a long time to learn, but you must 'trade' in your own style and time. If you want to deal 10 times a day or once a year, it doesn't matter. A decent selection and timing is the secret. Have your own selection method and don't follow the crowd. Do your own thing. You don't need many positive deals a year to earn an enviable wedge in the back pocket.