CoolTrade™
Frequently Asked
Questions
What is Robotic
Trading?
Robotic trading means letting the computer do the work for
you - executing your rules for when to buy and when to sell – repeatedly, all
through the trading day. This means that
you could ‘scalp’ profits all day long as stock prices move up and down. The CoolTrade Robotic Automated Trader will
‘watch’ the market for you, looking for the conditions that affect your
trades.
Once I turn it on,
what do I do?
Nothing. You can go
to work, go shopping, go golfing, etc.
With CoolTrade, you don’t have to be chained to your computer watching
stock prices, charts, or other data.
Before you have a chance to make sense of all that information, the
CoolTrade Robotic Trader will have already seen the data and reacted for you.
Do I need to create
a strategy right away to use it?
No. The Trader
comes with sample strategies that you can evaluate and if you wish, use as a
template or starting point for your own strategies. We suggest you run a sample strategy in
Simulator mode to get a feel for robotic trading. You can then test your strategies in the
Simulator for as long as you wish. Our
Simulator is a real-time test environment running during actual market hours to
give you the most accurate assessment of your strategies.
You may also share your strategies and/or download other
strategies from other CoolTrade members who make their strategies available.
Do I need to open a
brokerage account right away to use the Trader?
No. You do not need
any real money or a brokerage account to start using the Trader in Simulator
mode. You will open an account with
InteractiveBrokers.com only after you are ready to start trading with real
money.
How much money do I
need to start trading?
This depends on your trading style. A conservative trader can start with as
little as a few thousand dollars. Please
consult the broker for the type of account and funding requirements to suit your
trading needs.
Does CoolTrade
recommend stocks or strategies?
No. CoolTrade is
not a broker or investment advisor.
What kind of support
does CoolTrade provide?
We provide free
phone and email support as well as free in-office training. The Trader also has a built-in online Help system that explains each feature
of the Automated Trader. Additionally,
you may communicate with us and others who use the Automated Trader through our
community message board.
CoolTrade® Overview
CoolTrade® Snapshots
A few snapshots are displayed here to give you a feel for the CoolTrade® software. It has the features of traditional trading platforms, but includes many powerful, patent-pending features, not found in any other trading system.
CoolTrade® Advantages
CoolTrade®, a fully automated, adaptive stock trading system, is the first of its kind on the market. CoolTrade’s revolutionary features, intelligence, and sophisticated decision-making processes are unmatched by any other trading system. With CoolTrade®, “fully automated” means that after you have selected your favorite strategies, the software will take care of every step of the stock trading process continuously and repeatedly without requiring any personal intervention. These steps include identifying stocks with profit potential, and opening and closing positions based on market conditions, indicators and profit goals.
CoolTrade’s tremendous power is made possible by its ability to evaluate, second by second, the vast amounts of real time stock market information, and to react to those conditions with lightening speed –something no human could possibly do. So while a traditional trader is sitting in front of his computer ‘waiting’ for something to happen, CoolTrade has already seen it, and reacted. CoolTrade® is faster, more efficient, and fully unattended.
Finding the proper stocks to trade
Profitable stock trading starts with selecting the proper stocks as trade candidates. The Watch List Rules screen in the Strategy Wizard allows you to build rules just for this purpose.
You can start with selecting the Exchanges and Sectors by checking the boxes on the right side of the screen. Without any rules, all the stock symbols from the selected Exchanges and Sectors will appear in the Current Watch List on the rightmost side of the screen.
Suppose you only want to consider stocks less than $20 a share:
- First click the indicator “Yesterdays Close Price” on the upper-left indicator list.
- Then click the operator “Less Than”
- Type “20” in the number box,
- Then click the “Dollars” button.
The rule being created is displayed on the yellow line in the middle of the screen below the “Add Rule” button.
- Click the “Add Rule” button and the rule “Yesterdays Close Price is Less Then 20 Dollars” will appear in the Completed Rules list at the bottom of the screen.
The following shows the CoolTrade®
Strategy Wizard Watch List Rules screen.
Suppose you want the stocks' where the5-day SMA (Simple Moving Average) is at least 2 percent greater than the 10-day SMA:
- First click the indicator “5-Day SMA” on the upper- left indicator list
- Then click “Greater Than” in the middle
- Next click “10-Day SMA” on the upper-right indicator list
- Type 2 in the number box
- Click the “Percent” button
- Now click the “Add Rule” button.
*Anytime a Rule is incomplete, the “Add Rule” button is grayed out and inactive.
With each addition of a new rule, the number of stock symbols in the Current Watch List will decrease. CoolTrade® scans thousands of stock symbols from the AMEX, NASDAQ, and NYSE at lightning speed and only picks up those symbols satisfying ALL of the Watch List Rules. Selecting all the stocks you prefer has never been so easy. Only CoolTrade® makes it a reality.
Open positions at the right moment
Stock and market conditions change from moment to moment. To reduce risk and increase the chances for profit, the stock and market conditions, at the moment just before a position is to be opened, must be evaluated. CoolTrade’s Strategy Wizard uses intra-day stock and market indicators to build the Open New Position Rules used in this analysis. Second by second, CoolTrade® evaluates the Open New Position Rules for all symbols in the Current Watch List, using real time information. At the moment that ALL the Open New Position Rules are satisfied for the stock, the stock's position is opened.
The following shows the Open New Position Rules screen in the CoolTrade® Strategy Wizard. A group of sample rules are listed.
Close positions for a profit
CoolTrade® closes the position for a stock when the user’s specified Profit Goal is reached and a pre-defined Pullback amount has occurred. If the Profit Goal is not reached, the Pullback amount will be ignored. To protect the profit already gained before the entire Profit Goal is reached, you can select a Profit Protection amount which is less than the desired profit goal.
The following shows a sample CoolTrade® Automated Trader screen. On the right side of the screen, the letter "Y" indicates that the first stock symbol "ATML" was closed after the Profit Goal was reached. (The profit amount of $30 is only Today's profit and not the total profit. ) The letter "P" indicates that the fourth stock symbol "OPTV" was closed after the Profit Protection level was reached.
Learn why CoolTrade® ‘did that’
The CoolTrade® Automated Trader does things automatically, but not secretly. If you want to know the decision making rationale at any given time, click a symbol in the Watch List or Active Trades list and then click the "Rules" button. The list of rules with the current indicator values are shown on the right side of the screen. You can then inspect which rules have been satisfied or not satisfied, thereby explaining why an action is taken or not taken.
The following shows some rules with their current indicator values on the CoolTrade® Automated Trader screen.
*You may also simply click on any stock symbol and a message will pop up with a description of the rule that is preventing a trade.
|
|||||||