To our beta users, the installer for Roo-Trader Beta 8C has been uploaded to Dropbox. This version includes: 1. Support for manual override of brokerage and OCH fees in Multiple Leg Trade (as suggested by Neil). 2. Standardized computational logic of overridden brokerage/OCH fees in Close Trade, Enter Trade and Multiple Leg Trade windows. 3. Re-adjustment of Banking Summary and Banking Transactions to show data in ascending order instead of descending (discovered by Alfonso to be incorrect and confusing). 4. Support for fractional shares/qty (as needed by Larry and others). 5. A new look and feel of the installer as suggested by Sean (simpler, more sleek and customized to have the Roo-Trader feel). 6. Some technical optimizations on the code-side which is non-visible to users (for enhanced maintainability). 7. Re-orientation of some windows (e.g Broker Details), some controls are inaccessible in low-res displays (e.g. Alfonso’s case). 8. Code-refactoring as suggested by Re-Sharper tool. 9. Other minor bug-fixes (mostly having impact on the front end side). We are testing this last release with our beta users and then going live! Thank you for all of you support and hard work. The Roo-Trader Team!
We finally got our final beta completed. Our testers will give it a look, and we’ll start shipping the new release. This update took a while to complete. We pulled back and refined a few pieces based on our beta users feedback. Items included: 1. Trading Rules – Multiple rules with multiple guidelines for each rule can be set, also Exchanges and Instruments can be set to which the rules apply. 2. Broker Styles have been added – default settings include AUS, EU, US – Broker Style Settings can be accessed at: Menu->Edit->Preferences And Setup -> Brokers -> Broker Styles 2.a. When portfolio of user is upgraded to have the Broker Styles, all current Broker’s are set to use AUS by default. Users can modify this by editing their Brokers settings (this window has also been updated). 2.b Broker styles determine the necessity for Broker fees, taxes OCH fees and taxes, including stamp duty and these fields are shown/hidden appropriately in Enter Trade window depending on the selected Broker. This has been integrated with the existing logic to also determine the necessity of these fields based on the selected Instrument. 3. User can now turn off annoying message asking if he wants to enter Trade Notes after entering a trade. 4. “Close Trade” menu item is not available for Single Trades. (Only “Close Single Trade”). 5. A lot of computational bug fixes brought about by the method to convert string to double datatype. 6. Fixed several UI errors and non-working windows (e.g. Finance Costs). 7. Automatic schema updating of old portfolios to use new DB schema, for new installs though the new schema/structure is readily available. 8. Bug fix on “Create New Portfolio” as found out by Aries (can make the DB structure but cannot add “default” records). 9. Minor details like add icons to context menu in View Trades window, and some icons in Main Menu. 10. Some other bug fixes and enhances which came our way. Note: A user request to support input based on his Regional Settings (using comma’s and decimal points the EU way to enter data) is very tricky (that’s the reason why some other software don’t really support that), but we are looking more deeper into it on what is the best/safest approach. We look forward to shipping the new version to you in May! William
We were going to release our next beta tomorrow. However, we had some feedback from the Yanks, that basically we need to clean up the configuration page when you set up a new broker. Right now, the entries cover both the USA and AUS (as well as other countries). The difference is in how taxes are charged by the brokers for a trade. We had everything on one page. This was not an elegant solution since it caused trouble tickets where the USA users would ask if they had to fill in the VAT components since they didn’t apply. By breaking this interface out, we are hoping to clean up some of the confusion. With so many trading centers around the globe, trying to get a generic interface built just didn’t work. So, we are trying to make it more specific. Pick where you are, and what you need, then set up your accounts. So far, we have: 1. A new Trading Rules section. This tool has been completely redesigned so you can build a new rule, pick the type of financial instrument it applies to, and what markets you want to use it with. 2. A completely new interface for the Trading Notes section. These notes are now integrated into the database so you can search for the notes on your previous trades. This should make them more helpful as you review your successes and failures at the end of the week. 3. Several logical errors we found in our code. This is a constant review with every beta release. We keep pushing to ensure our code is as clean as possible by the time we release. 4. Still working on the DDE updates. Some of our testers wanted specific imports. We are working to include them as menu options for everyone. As an example, one user wanted to import their end of data from their trading site using DDE. We are working to make that choice available for everyone. If you have an existing account, you will need to enter your user name and password to pull the data. Your feedback will help us make this tool more helpful to our users. So, please send your suggestions for version 6 Beta 9 after we release Beta 8. We expect to release Version 6 Beta 8 within two weeks for another round of testing by our users. Thank you all! The Roo-Trader / OTrader team. www.roo-trader.com www.otrader.com.au
Risk to reward ratios. If there is a cornerstone to any trading philosophy, it starts at the risk to reward table. Although identifying good risk/reward trades does not guarantee success, not identifying good risk/reward trades almost always guarantees failure. Let’s explore yet another important subject in the life of a trader and look at a trade setup we took late Friday in the context of this subject matter.
Determining a Good Risk/Reward TradeContrary to popular thought, successful traders can take on any type of trade in terms of size and risk as long as they first understand the implications of the trade and are willing to stomach the losses should they occur. If a trader feels that they have the hot hand, they may choose to press a bet (to make a larger than normal purchase or sell on the belief that the odds are in their favor). They do this knowing that they may suffer greater than normal losses if the trade doesn’t pan out. Traders do this all the time. It is critical, if you are to be successful, to understand that trading is a game of probabilities. Technical traders are simply looking for patterns with a greater than 50/50 chance of repeating themselves over and over again. Once such patterns are identified, traders attempt to recognize such patterns in current charts and then identifying entry and exit points based on those charts. Entry and exit points are typically associated with support and resistance areas of the charts. Ah, support and resistance areas. These were the tools of the early traders, traders that read the tape … traders that were successful at technical analysis long before the advent of all these derivative indicators, these answers to the problem of technical trading, this onslaught of technical wizardry. The oldest and purest form of technical analysis is support and resistance. Understanding it provides a large portion of the technical analysis that one needs to be successful at identifying entry and exit points.
Calculating the Risk/Reward TradeIn previous chapters we have talked about the need to identify potential trades based on chart patterns. The idea is that you collect a set of candidate charts, charts that have positive prospects for immediate or reasonably near term trading time frames. It is with these candidate charts that one can dig deeper into the possibility of trading that particular issue. The identification of a probable trade centers around the proper identification of realistic entry and exit positions based primarily on support and resistance. Once you have properly identified the support and resistance points you can take those numbers, plug them into a simple spreadsheet and calculate the risk reward. The simplest form of calculation involves nothing more than the following
- Entry Price
- Stop Loss Target
- Stop Profit Target
- The resulting Risk/Reward Ratio