Trade Ideas Review
Trade Ideas is a software company located in California that offers a stock scanning and charting platform. They began as purely a stock scanning provider but have begun to branch into charting over the last year. As the move into charting they are taking on competitors like TC2000 and eSignal. In our opinion, Trade-Ideas offers far superior scanning vs any of their competitors. As they branch into charting, I suspect they stand a good chance at dominating this market space.
Trade Ideas Stock Scanning for Beginners
For a beginner trader, Trade Ideas offers what everyone needs: Trade Ideas. Idea generation is a challenge for new traders but it’s made simple with Trade-Ideas’ pre-defined scanners and channels. Traders can easily see which stocks are surging up, surging down, spiking on news, etc. Trade Ideas is the perfect match for a strategy based on scalp trading or momentum trading.
Trade Ideas for Advanced Traders
Currently the Trade Ideas Stock Scanning engine is utilized by brokers including ETRADE and Scottrade. Their engine consists of two separate types of alert windows. The first is a Top List, and the second is an Alert Window. In the example of the Pre-Market Scanning Channel (pictured below), the Top Gainers and Top Losers are both Top List windows. This means anytime a stock matches the criteria of the scanner they will be listed. Sorting can be based on any of the columns available. In contrast, an alert window provides a time stamp of the moment a stock met the criteria to be on the scanner. The value of an alert window is that traders can build stock scanners then go back and see what time a big moving stock first appeared. This gives traders the added ability of running Historical Back Testing reports with Trade-Ideas’ Odds Maker. A trader could actually see how profitable a scanner would be if they took every trade the first time it was alerted each day, over the last 60 days. Applying parameters such as Hold Times, Max Loss, and Profit Targets, traders and investors alike can work towards developing semi-automated trading strategies.
Trade Ideas Automated Trading
With the world of trading becoming increasingly automated, Trade Ideas has made the logical decision to release a new version of their software that includes Artificial Intelligence in the form of Holly. Holly generates trade alerts based on strategies she has back tested and proven meet a min threshold for profitability.
Each night Holly back tests her strategies and makes adjustments in preparation for the next day of trading. Only strategies that make the cut will be used the following day. Presently Holly is not an automated trading platform. The alerts are broadcasting through the platform and allows traders to manually review the setup and potentially take trades. In the future, I wouldn’t be surprised to see some form of automation with a broker, but in the short term, traders will have to place orders themselves.
In my experience with Trade Ideas, I think manually reviewing all alerts helps improve accuracy because there is always the likelihood of a false alert. Therefore the best combination is Trade Ideas plus a skilled trader to review the alerts. This is a tool every trader should consider adding to their trading station.
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