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Monday, January 12th, 2009

January 12, 2009; Automated Trading using Trade-Ideas via TDA

Good morning and Happy New Year traders. Today is Monday January 12th and our team is getting back and rested from vacation. We are starting the new year working with the robot. Today we are showing the robot trading through TD Ameritrade. As a brief overview our robot connects to TD Ameritrade via their API and allows us to execute strategies that we have backtested with the OddsMaker. As we start the new year we are starting very small. We are only trading 50 share lots because often the new year brings more unusual volatility and different trading patterns so although our strategies are backtested we still want to start small. As you can see from the video we are in both long and short positions at the same time. We continue to trade our system of 3 long and 3 short strategies simultaneously. Today we got filled on only 11 positions, 5 longs and 6 shorts. As part of our risk management we always want to be on both long and short at the same time because opportunities exist in both directions every day. So far, the robot is really putting on a show as we are profitable in all but one position. We are approaching the 4 point mark. We know that although this is a great example of how to trade robotically, traders should not expect these kinds of days all the time. The robot is not immune to losing and I'm sure we are going be showing you losing days in the coming videos. Today we are also doing something different that we have not shown before. Today we placed profit targets as well as stop losses and that is why you see the “Mutiple” under order types. That means that there are at least two orders in for the stock. One a stop loss order to make sure that we are not going to lose too much in any one trade and the other a profit target in case something really runs in our direction. Our profit target is set for 2 points. We are now up over 4 points and only have one small loser. After exiting our trades with market orders we Grossed 216 dollars before commission and 106 after commissions of 5 dollars in and 5 dollars out.


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