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Support / FAQ - Frequently Asked Questions


Get quick answers to the most frequently asked questions about Tradecision


General questions

How can I try the trading software before I buy it?
What is a "30-Day Money Back Guarantee"?
How can I determine that the software is right for me?
What are the strengths of your trading software?
Which would be better for me to purchase - Standard or Professional Edition?
Can you guarantee I will become rich after buying your software?
Is it really so easy to make a profit?
What makes Tradecision different from other trading software in the market?
Is Tradecision easy to use?
Can I install Tradecision on multiple computers?
What are the system requirements?
Has Tradecision any help materials?
What about support? How long does your technical support last and how much does it cost?
Will I pay for the products just once or monthly/annually?
Which markets can I trade using Tradecision?
Why are you selling the technical analysis software instead of making $$$ using it?
I would like to get more info about Alyuda.
I am a beginner trader. Couldn't you please recommend a resource for traders where I can find some valuable information?

Charting

Can I work with Candlestick Chart?
Can I work with Point & Figure Chart?
Can I work with weekly/monthly charts?
Can I display the charts of two or more different stocks at the same time?
What should I mark with buy/sell markers?
What are Fibonacci Retracements?
How many sub-charts can I open?
Can I save my charts with modifications the way I like?

Analytical Studies and Indicators

Could you tell me what the Elliott Waves Theory is about?
How Tradecision does Elliott Waves?
Where I can read about the description of indicators?
What are Fibonacci Clusters?
Can I build my own technical analysis indicator?
Can I use data and indicators from 2 stocks in one neural study? I think qqv will be helpful while predicting qqq.

Neural Networks, AI, GA

Is it really so easy to build a profitable strategy based on neural forecasting?
Why can neural networks be better than other technical analysis techniques?
What are neural networks?
Do I need the knowledge in neural networks / programming / statistics / artificial intelligence to effectively use your software?
What level of accuracy should I expect while making predictions about out-of-sample stock data?
What information should I feed into a neural model to achieve good forecasting results?
What types of neural networks are used in Tradecision?
What is the target column?

Trading Strategies

What is a trading system and what is it for?
Can I use backtesting of Tradecision?
What is the Strategy Performance Report?
What is a strategy simulation?
What is a strategy optimization?
How can I manage my trading strategies?
What is the Improvian Language?
Its pretty hard to learn using the Improvian Language, isn t it?

Money Management
Why using money management rules is important for me?
What kind of money management rules can I use with Tradecision?
What are the Optimal F, Kelly, Fixed Fractional Trades and Williams formulas?
What is a Trailing Stop?

Data Management
What kinds of data feeds does Tradecision support?
How can I import MetaStock data?
I have problems with importing data from ASCII files. What am I doing wrong?
How to import data from ASCII files?
How can I start working with Tradecision Data Manager?

Tradecision Real Time
What are the key capabilities provided by Tradecision Real Time?
What is streaming data?
How can I select the streaming mode?
Which data providers the Tradecision Real Time supports?
Where my real-time data will be saved?
What real-time data feeds will be supported in the future versions?
Can I import intra-day data from text files?


General questions

Q. How can I try the trading software before I buy it?


A. We do not offer any demo or trial version. We offer a 30-day money back guarantee. If you are not satisfied with our trading software, you can return it within 30 days and get your money back. Additionally, you can find a great deal of information on our product on our website.

Q. What is a "30-Day Money Back Guarantee"?

A. If, for any reason, you are not 100% satisfied with Alyuda’s Tradecision, you can obtain a refund of the full amount of your payment within 30 days following the key activation.

Q. How can I determine that the software is right for me?


A. If you need a robust technical analysis tool to test your trading ideas before actually using them, and if you have been disappointed by other specialized technical analysis or neural network software as being too complicated to use, Tradecision is for you.

Use Tradecision to make better trading decisions in your everyday trading. You can use it for any of the following tasks:
  1. Charting with easy-to-use drawing tools;
  2. Analyzing price data with technical analysis indicators and analytical studies;
  3. Developing and testing trading systems based on neural networks and technical indicators;
  4. Forecasting market moves and turning points to act before others;
  5. Using genetic algorithms for fast and efficient trading system optimization.

Q. What are the strengths of your trading software?

A. Whether you're a beginning investor or veteran trader, Tradecision provides you with the practical and advanced collection of tools to support your trading decision-making process.

The following Tradecision’s strengths are at your service:
  • Power of both traditional technical analysis and artificial neural networks in a single software package.

  • Easy-to-use technology and GUI. With Tradecision, you can employ advanced technology without the need to learn any new theoretical or scientific details.

  • Accurate constructive neural networks for making predictions and composing neural strategies.

  • Point-and-click Money Management Editor, allowing you to easily use and customize the most well-known position size, stop-loss, trailing stop and profit target rules.

  • Powerful strategy development and testing capabilities. Strategy Builder, a powerful language, Optimization Wizard and Simulations Manager, providing portfolio testing and detailed reporting capabilities.

  • Fast optimization with Genetic Algorithms. The system will allow you to automatically find the best inputs for neural networks, the number of the trading strategy parameters to be optimized being unlimited.

  • Extensive list of analytical studies and indicators. Support your trading decisions with over 100 technical indicators, auto-trends, chart patterns, Elliott waves identification, and other analytical studies. Any kind of analysis made using Tradecision is exceptionally accurate. This makes the application a great tool for active and professional traders.

Q. Which would be better for me to purchase - Standard or Professional Edition?

A. It depends on a number of factors, including your approach to trading, your need for using advanced tools and your desire to improve your trading experience.
With Professional Edition, you get the following significant advantages:
  • Ability to create your own custom technical analysis indicators.
    Since trading technologies and technical analysis are constantly developing, it is very important that this tool be used for experimenting and creating up-to-date, effective indicators.

  • Neural Models optimization with Genetic Algorithms.
    Use Genetic Algorithms to find the best neural model inputs and their parameters. Genetic algorithms combine the best characteristics of the other optimization methods, such as robustness and fast convergence, which does not depend on the properties of the optimization criteria (such as, for example, smoothness). At the same time, Genetic Algorithms are much faster than exhaustive search.

  • Perform a neural strategy optimization with Genetic Algorithms.
    The optimization process can take seconds, minutes or hours, depending on the number of simulations being run. To reduce the time required for optimization, you can either reduce the number of optimization parameters or use Genetic Algorithms for optimization. For those cases when you have a large number of optimization variables and wide search ranges, Genetic Algorithms are much faster than exhaustive search while remaining very robust.

Q. Can you guarantee I will become rich after buying your software?

A. No, we cannot Alyuda Research designed the analytical Tradecision software application in order to support YOUR OWN profitable trading ideas and significantly improve your trading experience. By automating neural network analysis, intuitive charting and money management, as well as by offering proven technical analysis tools, Tradecision gives traders the power to make fast and profitable decisions.

Experts say that no software will help you become rich if you lack discipline, sound cash management, risk control and profitable trading strategy(ies).

Q. Is it really so easy to make a profit?


A. This one isn’t so easy to answer. Tradecision is not a "system" or predefined trading strategy making money for you. It is a powerful tool that helps you create and test your own winning trading systems powered by proven technical analysis tools and the latest AI achievements. You should understand that being a great trading software application, Tradecision, just like any other software, does not provide magic bullets or Holy Grail trading systems.

Q. What makes Tradecision different from other trading software in the market?


A. In Tradecision, the Alyuda Research team has applied its thorough knowledge and expertise in developing efficient trading software and artificial neural networks.
The following are the powerful advantages of the application:
  • Neural network predictions and strategies;
  • Wizards’ guidance;
  • Advanced Money Management editor;
  • Powerful language;
  • Fast optimization with genetic algorithms;
  • Elliott Waves Analysis.

    In addition, Tradecision has passed numerous extensive tests and improvements allowing professionals to speak of a new and reliable piece of software hitting the market.
Q. Is Tradecision easy to use?

A. Yes, it is. It is both easy to learn using and use on a daily basis. Tradecision was designed to be as intuitive and user-friendly as possible. To work with Tradecision, you do not need any previous trading software and/or neural network experience. By using the application’s intuitively user-friendly interface you will become familiar with Tradecision right from the first click.

Q. Can I install Tradecision on multiple computers?


A. You may only:
  • install and use one copy of the Software on a single computer.
  • you may also make a second copy of the Software, install it, and use it on a home or portable computer used exclusively by you.
  • make one backup copy of the Software, provided your backup copy is not installed or used on any computer.
For details, visit the License Terms page.

Q. What are the system requirements?

A. The system requirements are the following:

Recommended
  • Processor: 3.0 GHz Pentium 4 or compatible. But the faster the better.
  • RAM: As much as possible. We recommend upgrading your computer or laptop to the maximum memory supported by your machine beginning from 512 MB RAM.
  • Hard Drive: Tradecision uses approximately 40MB of hard drive space. But it is better to have more space to store your studies, models and trading systems.
  • Monitor: 17" monitor with 1280x1024 resolution.
  • Operating System: Windows 2000 or Windows XP (Home or Professional).
  • Internet Connection: Direct (ISDN, Cable Modem, DSL) connection to the Internet.
  • Operating System: Windows 2000 or Windows XP (Home or
    Professional).
Minimum
  • Windows NT 4.0 (service pack 3)
  • 800 MHz Pentium III or compatible
  • 15" monitor with 800x600 resolution
  • 256 MB RAM
  • 40 MB available disk space
  • Microsoft Internet Explorer 5.0
For intensive back testing studies, optimizations, multi-input neural models and charts containing multiple objects, we recommend 3GHz Pentium 4 processor and 1GB of RAM.

Q. Has Tradecision any help materials?


A. Yes, it does. Tradecision contains a lot of help materials. Every dialog in Tradecision contains the Help button. When the Help button is clicked, Tradecision displays a window containing detailed information on the dialog or feature.

Q. What about support? How long does your technical support last and how much does it cost?


A. All registered users are entitled to free technical support without time limits. There are no limits on the number of requests either. We will provide prompt and detailed answers to all your questions. Our support team is dedicated to helping you succeed in improving your trading decisions with our technical analysis software.

Q. Will I pay for the products just once or monthly/annually?

A. No, you will not You are charged just once – when you are purchasing the technical analysis software.

Q. Which markets can I trade using Tradecision?

A. With Tradecision you can trade stocks, FOREX and futures.

Q. Why are you selling the technical analysis software instead of making $$$ using it?

A. Several professional traders work on our team as consultants. They successfully trade using the Alyuda software sharing their trading experience and market knowledge with us. The company’s employees also successfully use Tradecision but they do it on a private basis only and during non-working hours.

As a company, Alyuda does not engage in any kind of trading because it focuses on Artificial Intelligence research and technical analysis software development.

We do what we like doing the most: solve difficult real-world problems using neural networks. Just like in any other industry, there are companies that build and sell tools, and there are those that use these tools.


Q. I would like to get more info about Alyuda.


A. Alyuda Research helps traders, managers and data analysis specialists leverage the power of artificial intelligence. Since 2001, Alyuda has been successfully developing and marketing software products based on neural networks and other AI technologies.

Today, owing to Alyuda’s software products, thousands of business analysts, traders and engineers enjoy the benefits of AI. Visit Alyuda's web-site at www.alyuda.com for detailed information on the company.

Q. I am a beginner trader. Couldn’t you please recommend a resource for traders where I can find some valuable information?

A. Yes, we could. Below you will find links to Internet resources that as we believe will be of help.

Data vendors:

www.esignal.com
www.finance.yahoo.com
www.csidata.com
www.reuters.com
www.premiumdata.net

Forums:

www.elitetrader.com
www.trade2win.com/boards/
www.ai-stockmarketforum.com/

Magazines:

http://www.traders.com

Finance world:

http://online.wsj.com
http://finance.yahoo.com
http://www.thestreet.com
http://www.barrons.com
http://finance.lycos.com/qc/default.aspx/
http://cbs.marketwatch.com
http://smartmoney.com
http://www.forbes.com
http://www.fool.com
http://moneycentral.msn.com
http://dmoz.org/Business/Investing/Research_and_Analysis/
http://dmoz.org/Computers/Software/Business/Investing/

Stock Exchanges:

http://www.nasdaq.com
http://www.nyse.com



 
Charting

Q. Can I work with Candlestick Chart?

A. Yes, you can. Just click the Candlestick Chart button on the toolbar.

Q. Can I work with Point & Figure Chart?

A. No, you can’t. Tradecision does not support working with Point & Figure Charts.

Q. Can I work with weekly/monthly charts?

A. Yes, you can To change the chart time frame, on the Time frame of the Chart menu, then select the daily, weekly or monthly time frame.

Q. Can I display the charts of two or more different stocks at the same time?

A. Yes, you can You can add new chart windows to the current workspace with chart(s).
Also, you can resize chart windows, manage indicators, sub-charts, analytical studies, and your own trading ideas, and then save them on your local hard drive. Tradecision saves a workspace with your defined stocks in a file with extension Tradecision Workspace (*.tws).
.

Q. What should I mark with buy/sell markers?


A. In Tradecision, the Buy marker and Sell marker are drawing tools used to mark out specific parts of a chart you believe to be important. Using the markers, you can denote specific occurrences, such as the bar you purchased a stock, sold a stock, identified an uptrend, and so on.

You can use markers in conjunction with analytical tools. For example, there is always a period of time between a trading strategy generating an order and filling that order. This difference in price is known as slippage.

To determine the average slippage amount, you can insert a marker, indicating the actual bar that your position was filled, and then calculate the difference between the point in time when your orders are generated in accordance with your strategy and the point in time when they are filled.

Q. What are Fibonacci Retracements?


A. Fibonacci Retracements help anticipate support and resistance levels along with price targets. Fibonacci Retracements indicate the possible support and resistance levels from important highs and lows. The distance between the start and end points is divided into Fibonacci Retracements, which suggest possible support and resistance points.

The Fibonacci Retracement tool is used to measure the amount the market has retraced compared with the overall market movement. When used together with Elliott waves, Fibonacci Retracements are normally drawn from the beginning of Wave 1 (the Zero point) to the top of Wave 3 to find a target price area for the Wave 4 retracement.

You should keep an eye out for the end of a trend or correction at the Fibonacci Levels. Horizontal lines are drawn at the common Fibonacci levels of 38.2%, 50%, and 61.8%. As the price retraces, support and resistance often occur at or near the Fibonacci Retracement levels .

Q. How many sub-charts can I open?


A. You can use up to 6 visible sub-charts with indicators.

Q. Can I save my charts with modifications the way I like?


A. Yes, you can. This can be done using workspaces.
Workspaces provide a convenient way to manage charts and organize your investment ideas. Workspace itself is a single file that contains all the charts with their drawing objects, indicators and studies.


Workspace is a single file that contains all the charts with their drawing objects, indicators and studies. When a workspace is opened, each chart is opened and displayed on the screen exactly the way it appeared when the workspace was saved, including all the chart's elements. When you save a workspace, you save all your changes and modifications in all active charts.

You can create a separate workspace for your favorite stock, a group of stocks, an industry or anything you decide to work with together. For example, you may want to analyze QQQ and Dow along with four of your favorite indicators. Or you may want to save the current positions of windows with all their elements. The best way to save your time and manage groups of charts/sub-charts/objects is using workspaces.

Once you have created a workspace, you can add new chart windows to the workspace, manage charts, indicators, sub-charts, analytical studies, as well as many other trading ideas, and then save them on your local hard drive.
You can work with one workspace at a time.
Tradecision saves a workspace in a file with the Tradecision Workspace extension (*.tws)

 
Analytical Studies and Indicators

Q. Could you tell me what the Elliott Waves Theory is about?

A. In 1939, Ralph Nelson Elliott published a pattern-recognition technique, which holds that the stock market follows a rhythm or pattern of five upward waves and three downward waves to form a complete cycle of eight waves. The three downward waves are referred to as a "correction" of the preceding five upward waves.

Wave is a movement in the market, either upwards or downwards. The size of the wave depends on the period of time that is being analyzed. Impulse Wave is a wave that moves in the direction of the main market trend. It subdivides into 5 smaller waves (1-2-3-4-5). Waves 1, 3, and 5 move in the direction of the main market trend. Waves 2 and 4 move against the main market trend.

Corrective Wave is a wave that moves in the direction opposite to the direction of the main market trend. It subdivides into 3 smaller waves (a-b-c). Waves a and c move against the main market trend. Wave b moves in the direction of the main market trend.


Q. How does Tradecision Elliott Waves?

A. Tradecision’s Elliott Wave study uses the simplified Elliott Wave theory that states that price usually makes a 5-wave pattern in one direction, followed (in most cases) by a corrective pattern, and, finally, by a new 5-wave pattern in the opposite direction.

The Tradecision Elliott wave study uses a special mathematical algorithm to resolve conflicting situations and identify waves and corrections as precisely as possible. Experts can fine-tune this algorithm. For example, it’s possible to specify a parameter that indicates the percentage for which Wave 4 can overlap Wave 1 before the Wave count is considered invalid .

Q. Where I can read about the description of indicators?

A. Tradecision’s Help contains a library with a description of the 100 + most popular built-in indicators, including MACD, RSI, Stochastic, PercentR, Bollinger Bands, Average True Range, and others.

Q. What is Fibonacci Clusters?

A. Using Fibonacci Clusters you can determine the probability of a trend reversal for each price level. Fibonacci Clusters indicate the price level on which a potential change in the trend may occur. The stronger the cluster, the greater the likelihood that the price level is a support or resistance level for the current trend.

Fibonacci Clusters were not designed to be used alone. They should be used as a confirming indicator or for gauging where in a trend a change may potentially happen.

Fibonacci Clusters are calculated using the following procedure: the price range of a security is divided into a specified number of sub-ranges (clusters). After that, Tradecision uses all pivots (minor, intermediate and major) to form all possible Fibonacci Levels (Retracements and Extensions). The more Fibonacci Levels are assigned to a cluster, the stronger the cluster is


Q. Can I build my own technical analysis indicator?

A. Yes, you can. Tradecision affords you the opportunity to create and improve your own custom technical indicators. Since the trading technologies and technical analysis are constantly developing, it is very helpful to use this tool for experimenting and creating up-to-date advanced technical analysis indicators.

A custom technical analysis indicators can be a combination of other indicators. Some well-known indicators are simply a combination of other indicators. For instance, Chaikin Oscillator is a subtraction of a 10-period EMA of Accumulation-Distribution from a 3-period EMA of Accumulation-Distribution, and TRIX is a combination of 3 Exponential Moving Averages.

You can create or edit your own custom indicators using Indicator Builder.


Q. Can I use data and indicators from 2 stocks in one neural study? I think qqv will be helpful while predicting qqq.

A. To do this, you need to use External function


 
Neural Networks, AI, GA

Q. Is it really so easy to build a profitable strategy based on neural forecasting?

A. The Tradecision interface is very easy-to-use and all the scientific details are hidden inside the application. With Tradecision, you can use the most advanced technology without the necessity to spend your time on getting familiar with the latest AI achievements. You don’t need to have any mathematical or artificial intelligence background to effectively use the technical analysis software.

However, you need to be persistent and ready to experiment, since different markets and stocks require different inputs and strategies. You should be prepared to spend some time on preparing your neural models.

Technological specifics, such as neural network architecture and training algorithms, data preprocessing, and so on are completely automated but you still have to select the necessary data, verify your ideas, adapt models to changing market situations. You will have to rely on your own judgment while assessing system performance or selecting the best neural model based on your trading style and risk preferences.

Tradecision is not a ready-made strategy but rather an advanced technical analysis tool that offers you a significant advantage over other traders. It helps you obtain accurate forecasts and build winning strategies based on the latest achievements in the artificial intelligence technologies.



Q. Why can neural networks be better than other technical analysis techniques?


A. A neural network can process a huge amount of data and detect those trends and price patterns that cannot possibly be seen in charts by humans or discovered using the traditional technical analysis methods.

Neural networks learn from price data and discover complex non-linear dynamic patterns in price movements. Unlike typical technical analysis indicators, neural networks have the ability to learn from the data itself. Neural networks learn the patterns of price data whereas standard analysis techniques assign a model form to the data and then test it to determine whether the data fits the assigned structure or not.

A very often, regular trading systems work for a while until the market situation changes, causing the system performance to deteriorate. A neural network-based trading system can be retrained every time you have new data and thus be adapted to any new market situations.

Q. What are neural networks?


A. An artificial neural network consists of a large number of simple processing units linked by weighted connections. By analogy, the processing units may be referred to as neurons. Each unit receives inputs from many other units and generates a single output. The output acts as an input for other processing units.

The power of a neural network stems from the combination of multiple units in a network. A certain network can be tuned to solve a specific problem by modyfing the connection topology and values of the connecting weights between its units.

Neural networks have proven to be among the best methods of detecting hidden relations in stock market data. Once a neural network has analyzed your dataset (i.e. “has received training”), it is able to make predictions based on the hidden dependencies that have been found .

Q. Do I need the knowledge in neural networks / programming / statistics / artificial intelligence to effectively use your software?


A. The Tradecision interface is very easy-to-use and all the scientific details are hidden inside the application. With Tradecision, you can use the most advanced technology without the necessity to spend your time on getting familiar with the latest AI achievements. You don’t need to have any mathematical or artificial intelligence background to effectively use the technical analysis software. In fact, you will be ready to use your first neural model several minutes after you started using the application. However, you need to be persistent and ready to experiment, since different markets and stocks require different inputs and strategies. You should be prepared to spend some time on preparing your neural models.

Q. What level of accuracy should I expect while making predictions about out-of-sample stock data?

A. The majority of neural models, provided they been fed the right amount of data and relevant inputs, forecast with 60-85% accuracy. Out-of-sample accuracy and forecasting errors are reported after you perform walk-forward testing of your neural model.

Q. What information should I feed into a neural model to achieve good forecasting results?


A. Tradecision requires a set of input columns to base the neural model training on, and identify price patterns and relationships. All data that as you believe significantly affects the value of the target or represents the market situation should be used as inputs. This includes price data (open, high, low, close and volume), technical indicators (moving averages, lags, MACD, RSI, PercentR, and so on) market indexes (S&P500, Dow Jones Industrial, NASDAQ, and so on), as well as relevant stocks and other information that represents the market conditions.

Inputs are the only kind of knowledge about the market that will be available to a neural model to base its forecasting on. Therefore, selecting the right inputs is the trader’s most important task as the rest of the tasks in Tradecision are automated.

It is worth a mention, that irrelevant or insignificant inputs may deteriorate the model’s performance.

Another important aspect is the right amount of data. If your historical data has a small number of price patterns, the neural network will not have enough information about your market to train correctly. For daily bars, it is recommended that you have price data for at least 4-6 years (1000-1500 bars) for the network training and for at least 6 months for the walk-forward testing.

Too much data may increase a neural model’s training period but will not improve the forecasting quality. Additionally, some old price patterns will simply not be valid in the current market situation. Therefore, to reduce the input dataset you need to remove the oldest data.

Q. What types of neural networks are used in Tradecision?

A. Tradecision uses constructive neural networks. Having spent years on research, we have discovered that some types of constructive networks often outperform the other ones in stock market forecasting. Their main advantage is their easy adaptability and precision. Constructive nets grow and train themselves during iterative price data analysis.

Q. What is the target column?


A. The target column is a column that contains history for the value you have been trying to forecast. For example, if you are trying to make a three-day forecast of Close price , the target column will be Close.


 
Trading Strategies

Q. What is a trading system and what is it for?

A. A trading system (or trading strategy) is just a set of rules that unambiguously tell you how you should trade. A trader should strictly follow a trading system he has opted for. A sound trading strategy includes entries, exits, and stops, as well as sound cash management rules.

This set of rules shouldn’t vary subjectively from day to day based on broker recommendations, friends’ tips or emotions, and, therefore, can be tested on past data to understand objectively how profitable, reliable and suitable to your trading style these rules are.

A system approach to trading is an integral part of trading as a profession. Every professional trader has his personal trading approach, personal preferences and his own view on risks & profit.

We cannot offer advice on the kind of trading system that should be chosen. Only you know what you need to improve in your trading to achieve good results.

Therefore, it will be up to you to decide what should be included in your personal trading plan.

Q. Can I use back-testing in Tradecision?

A. Yes, you can. With Tradecision Strategy Builder, you can create a workable trading strategy and then historically test it to see how it works.

Prior to helping you effectively use your trading account, Tradecision will secure you against the perils of real trading by performing a precise and realistic trading simulation.

Simulations Manager allows you to realistically simulate your strategy on one or several stocks simultaneously. Once your strategy is simulated, you can analyze it strategy using buy/sell signals placed on a chart.

The Strategy Performance Report will provide detailed information on the profitability of the strategy, risks involved, results of time analysis, and more.

Additionally, you can receive the Trades report, providing more than 10 ratios for each of your trades as well as the Equity and Drawdown curves.

Any flaws of your trading system you have detected can be corrected. The strategy can then be tested over again until you feel confident in using it for making your future trading decisions.

Q. What is the Strategy Performance Report?

A. The Strategy Performance Report assists you in analyzing a strategy, as well as in evaluating its suitability to your trading style and risk preferences. The report provides over 100 performance parameters that can be used to analyze a strategy.
The Strategy Performance Report contains 7 sections:

  • Summary (including Net Profit, Return on Initial Capital. Gross Profit, Gross Loss, Profit/Loss, Commissions paid, Account Size Required, Return on account).

  • Trades (including Number of profitable trades, Number of losing trades, Average profitable trade, Average ratio, Average trade, Average days in profitable trades, Maximum number of days in profitable trade and more).

  • Return (including Initial Capital, Final Capital, Return on Initial Capital, Return on Max Drawdown, Buy & Hold return, Annual rate of return, Buy & Hold annual rate of return).

  • Risk (including Gain to Pain Ratio, Sharpe Ratio, Return Retracement Ratio, Max Equity Drawdown, Net Profit / Largest Losing Trade, Net Profit / Max Drawdown).

  • Drawdown and Run-up (including Max Drawdown, Average Drawdown, Max Run-up, Average Run-up).

  • Outlier Trades (including Positive outlier trades, Negative outlier trades, Total outlier trades).

  • Time Analysis (including Trading period, Bars in the market, % in the market, Bars out of the market, Average time in trades, Average time between trades).

Q. What is strategy simulation?


A. Before you risk your trading account, Tradecision can perform a realistic trading simulation and inform you about the performance of your trading ideas.

Strategy analysis is a vital stage of the strategy development process. When you insert your strategy into an active chart, a new simulation is automatically created and all performance reports are generated and stored in the Simulations Manager. This is the fastest way to simulate and analyze a strategy.

With the New Simulation Wizard, you can simulate one strategy with different symbols at once. Moreover, within one run of just one simulation you can back-test several strategies with one symbol. In both cases, you can easily compare the results.

Simulations Manager enables easily creating, running and storing any number of simulations.

Q. What is a strategy optimization?

A. Optimization is the process of performing multiple tests while varying the parameters used in the strategy rules or technical analytics indicators. The purpose of optimization is to discover the most profitable settings for a specific indicator or rule when applied to a specific security.

Optimization can greatly expand your knowledge of each strategy and your competence in what works in different types of markets. Optimization allows you to experiment with the parameters of your strategy without changing its main functions.

When you have tested the strategy and are confident enough about its profitability, only then it will be the right time to start optimization.

Q. How can I manage my trading strategies?

A. Part of the Tradecision functionality is Strategy Builder - a convenient tool for managing your trading strategies. You can create, edit, copy, or delete a strategy, insert a strategy into a chart, and perform strategy simulations or optimization.

Q. What is the Improvian Language?

A. Improvian is a full-featured programming language. It gives you a variety of opportunities to implement your own trading ideas. For example, you can design a trading system or improve an existing study or indicator.

Tradecision makes it easy to limit losses by coding the trading rules using the powerful features of Improvian. It is possible to create custom functions, call DLL functions, and import trading techniques from EasyLanguage and MetaStock. For creating advanced trading techniques, the new language allows traders to use variables, inputs and skip words.


Q. Its pretty hard to learn using the Improvian Language, isn’t it?

A. No, it is not. The Improvian Language is a formal method with a strictly defined but rather easy-to-use syntax. Tradecision provides a detailed language help file, containing numerous examples and descriptions.


 
Money Management

Q. Why using money management rules is important for me?

A. Sound money management and risk control are the key factors in being a profitable trader. When setting up a trade, it is essential to define the amount of risk that you are going to allow for this trade. That means taking control of the position size, stop loss and profit target before entering the market! That is why the conditions for closing out (exiting) a trade are more important than the entry conditions.

When you take a proper money management approach, you are never afraid of your losing your account.

Q. What kind of money management rules can I use with Tradecision?


A. For your convenience, the most popular money management rules are predefined and easily accessible with an advanced point-and-click editor:

  • Position size can be automatically calculated using Optimal F, Kelly, Fixed Fractional Trades and Williams formulas;
  • Several stop-loss rules can be applied with a couple of clicks;
  • Trailing stop rule can also be easily defined as a combination of predefined conditions;
  • You can also opt to use a predefined Profit Target;
To test your own money management rules, you can define them using the Alyuda Tradecision Formula Language. The New Strategy dialog box contains special controls for defining and editing your stop-loss, trailing stop and profit target rules. You can create the same or separate rules for long and short trades. For more information on Strategy Builder, see Working with Strategy Builder.

Q. What are the Optimal F, Kelly, Fixed Fractional Trades and Williams formulas?

A. The following formulas are available for dynamic position size calculation:
Optimal F formula. This method of estimating the optimal risk percentage has been improved by Raplh Vince. While Kelly’s formula use only the average values from the past trades, Raplh Vince proposed to take into account all trades.

Kelly formula - defines the optimal percentage of risk that should be allowed to maximize the “usefulness” function presented as a logarithm of the capital.

Fixed Ratio formula. A common problem of all those methods that use a fixed fraction of the capital is they either maximize the capital growth without taking the risk into account (i.e. the optimal f) or minimize the risk (i.e. expose to the risks not more than x% of the capital).

Trying to solve this conflict Ryan Jones came to the conclusion that the relation of the number of lots traded to the capital growth required for increasing the number of lots by one (or by the minimum increment) should be a constant .

The Larry Williams formula
. A variation of the fixed ratio method recommended by Larry Williams. The position size in units/lots is calculated as follows:
% risk * Capital / (- Max_Drawdown) / 100.

Q. What is a Trailing Stop?

A. A trailing Stop is a stop-loss order that follows the prevailing price trend.
This rule allows a trader to set a limit on the maximum possible loss without setting a limit on the maximum possible gain.

Placing Contingent Orders may not limit your losses to the intended amounts

 
Data Management



Q. What kinds of data feeds does Tradecision support?

A. The Data Manager subsystems support receiving data from several data sources:

• Built-in downloader provides a quick way of receiving free end-of-day quotes from major US and International exchanges through Yahoo Finance data provider.
• User-configurable ASCII import wizard allows you to read quotes stored on your local hard drive in the format defined by you.
• Built-in MetaStock® database importer reads all stocks directly from your MetaStock database.

Q. How can I import MetaStock data?


A. You can import the entire MetaStock database (symbols and their data) using the following procedure:

  1. From the File menu, select Import MetaStock database.
  2. 2. In the Folders’ view dialog box, select the folder that contains the MetaStock database.
  3. Click Import.


Q. I have problems with importing data from ASCII files. What am I doing wrong?


A. Data Manager is flexible enough to import most date-based end-of-day price data. However, there are the following restrictions:
  • Only one Date column is allowed;
  • Information or blank lines between the lines of price data are not allowed;
  • Information following the last line of data is not allowed (i.e., total or summary information at the bottom of the columns);
  • Column names for date, open, high, low, close, volume and open interest must be labeled D or Date, O or Open, H or High, L or Low, C and Close, V or Volume and Open Interest or OI, correspondingly.

Q. How to import data from ASCII files?

A. To import data from an ASCII file:
  1. In the Symbol List, select a symbol, the data for which you want to import;
  2. From the File menu, select Import symbol data and then click From text file;
  3. Locate the ASCII file with the price data, click the file name and then click Open;
  4. In the Field order box of the New Import From Text File dialog box, select the field order you need.
  5. In the Delimiter box, select the data delimiter that you have in the text file: Comma, Semicolon, Point, Space, or Tab Character.

    Note: The First data row box allows selecting the number of the row from which your data will start in the text file. Select the Preview check box to verify in the preview pane that your data is parsed correctly.
  6. Click Import.

    The price data will be imported into the internal database.

Q. How can I start working with the Tradecision Data Manager?


A. To start working with the Data Manager you need:
  1. Click the Start button
  2. 2. Point to All Programs, select Alyuda Tradecision, and then click Data Manager.
    The Data Manager window will be displayed
Or, alternatively:
  1. Launch Tradecision.
  2. From the Tools menu, select Data Manager. The Data Manager window will be displayed.


 
Tradecision Real Time

Q. What are the key capabilities provided by Tradecision Real Time?

A. This version provides:
  • All the techniques used in the regular version of Tradecision, with the ability to be used in real time.
  • Streaming, real-time quotes and displaying of 1-, 5-minute intraday charts.
  • Intraday data from IQfeed.
  • Import MetaStock and ASCII intraday databases.

Q. What is streaming data?

A. Usually, using intraday data is most efficient when this data is used during the trading. The process of receiving intraday data in real time is called "streaming". In other words, the data is "streaming" from your data provider via the Internet into the Tradecision Data Manager.

Q. How can I select the streaming mode?


A. The data-streaming process is started and stopped by clicking the Start/Stop data streaming mode button on the toolbar.

Q. Which data providers the Tradecision Real Time supports?


A. To start streaming intraday data into Tradecision, you need to have an account with a Tradecision data source, supporting data-streaming.


Q. Where my real-time data will be saved?

A. Intraday data collected from real-time data provider(s) is kept locally on your hard drive. The data may require a large amount of hard drive space, depending on how many securities you are following and the periodicity you prefer.


Q. What real-time data feeds will be supported in the future versions?

A. We are planning to add Quote.com and Prophet.net.


Q. Can I import intra-day data from text files?

A. Yes, you can. You just need to have this file on your local hard drive. You will able to import the required data with the help of the Import Files Folder command or by changing a symbol's data source in Data Manager. All new records will be imported automatically from the corresponding file/folder when you click Update or Update All.

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