System properties, which you should know about.
The intellectual adaptive SmarTrading mechanical trading system is intended for trading according to end of day principle. This term means that every position must be open and closed within one day. The system offers ready to use trading solutions in online mode, therefore your participation, as trader, in decision-making process is reduced to the minimum. All you need to do, is send orders to your broker or, if you are trading through ECN, send signals to the market. Therefore, SmarTrading system is intended for active traders focused on high trading frequency and rapid account growth, and willing to take statistically precalculated risk.
The system is intended for trading with amounts from $25,000 to $75,000. The first amount is determined by daytrading regulations adopted by SEC and effective since September 28, 2001. The second amount is selected due to our findings – as a result of numerical experiments, we have found out that this amount, which every user could invest in trading without influencing other users receiving the given type of service at the same time. If those limiting sizes were exceeded, we couldn’t guarantee continuation of statistical properties of our product. The reason for such thresholds in our product is that we also take into consideration, in addition to market risk, risk of liquidity. We do not sell "our optimal portfolio” to hundreds and thousands of users, because we realize, that the value of such advice becomes extremely small even with the smaller number of users, than hundreds and thousands of traders using our product simultaneously. Remember, the market does not make money itself, it only redistributes it from less successful to more successful, from less informed to more informed and more professional traders. Therefore, it is not enough to guess future price of any asset, it is also necessary to be able to sell or buy the number of shares in the given asset required by your strategy. We are the first company, which in numerical experiment has calculated thresholds according to numbers of simultaneously trading users and value of limiting amounts "thrown" into trading by them due to discounting trader influence on each other. Therefore, our statement about the limited number of "seats" in our user “Smart Trading club”, is not just an advertising gimmick. Due to opening and closing trading positions intraday, our trading strategy and the product exclude long-term influence of adverse factors on changes in market assets selected, be it stock portfolio or a single stock. Initially "bad" financial assets are simply not considered, while the level of possible losses is limited to one-day price fluctuations. Level of both yield and risk is limited to average daily volatility in a particular asset, i. e. intraday market risk. Press the following link, if you wish to get acquainted with "structure" of our SmarTrading product in more detail.
Therefore, by giving SmarTrading advice to you, we help you in making sound selection of each of the three main steps of investing – filtering out "bad", from the mechanical trading system point of view, assets; generation of correct and maximally accurate forecast of their dynamics; and, based on knowledge of the "future", synthesis of correct trading signals.
SmarTrading system application efficiency.
SmarTrading generates trading signals on the daily basis. Using those signals allows receiving yield above average market level. SmarTrading system efficiency has been proved by trading emulation results based on historical data for 3 years (January 3, 2000 to November 19, 2002), as illustrated in the following charts. We do not guarantee that using our product you will always win, we only affirm that our system has got statistical properties, stable in time, providing any user with steady account growth.
SmarTrading system yield as per one dollar invested has been calculated under the following conditions:
- Daily initial investment amount was $25,000, i.e. the profits received were not reinvested, while losses were compensated.
- Commission is $10 per order execution.
- 100 traders were trading simultaneously.
Modes of system operation and rules of exploitation.
Due to significant computer complexity of algorithms being the basis of SmarTrading system, the system operation is distributed in time – the entire database analysis (NYSE, AMEX, and NASDAQ stocks) and calculation of signals takes quite some time. Therefore, the moment of trading advice inquiry formation and the time of receiving concrete market orders are standing hours apart. By virtue of the same reasons, plus traders mutual influence, we are compelled to calculating orders not for all SmarTrading system registered users, but for those applying for the next trading day only. Next, we will discuss rules of requesting advice and using services of mechanical trading system in more detail.
Time of sending request for trading signal calculations.
- You should send us service request for the next calendar trading day until 21:00 (EST). At this time reception of requests for the next trading day is closed. If trading signal calculation request is sent after that time, it will not be accepted. Trading signal calculation is the hardest, from the computing point of view, procedure, and as a result, we cannot take orders after the time indicated because we won't have enough time to calculate signals and provide them to our other users at the required time.
Time of system trading signals receiving.
- Mechanical trading system's signals are provided to our users at our website daily in online mode at 8:00 (EST) on trading days, which is two hours prior to exchange opening in the U.S.A.
Amount, for which the system calculates signals daily.
- SmarTrading is intended for working with accounts not exceeding $75,000. Always keep it in mind and execute our recommendations precisely. Mechanical trading system is a very sensitive and delicate mechanism, any deviations from the optimal parameters selected for you in each concrete case might result in inverting results, and potentially profitable trade might turn into a loss.
Method of selecting number of assets to be traded.
- Number of financial assets comprising your daily stock portfolio is selected by the mechanical trading system user independently (one to nine a day).
- Number of financial assets is set by the system algorithm (in the same range).
We named the first mode DayTradingI, while the second one Day Trading ALGO. Therefore, SmarTrading allows trading both with stock portfolio, and with a single asset. In the first case, trading yield will be a little bit lower, but risk, as compared to trading in one asset, will be lower, too.
SmarTrading in Day trading ALGO mode
SmarTrading in Day trading I mode
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