I just came back from Chicago with some good news for everyone.

First if haven’t experienced Chicago in the summer, the good news is you’re guaranteed a fun, good time – no matter who’s paying the bar tab.

Second as I mentioned in an earlier post, we are moving forward with optionsXpress to build an automated trading application that uses their brokerage services with Trade Ideas PRO strategies backtested and controlled by The Odds Maker.

Let me put this good news another way:

You created a strategy to identify momentum moves in this market using Trade-Ideas PRO. The Odds Maker backtests the strategy (or event-pattern as we also call it) over the last 3 weeks according to your position management rules that cover stop losses, time in trade, when during the market session trading occurs, etc. The Odds Maker reports great results and now the Automated Trading Bot (ATB) rolls forward getting you in and out of trades according to the same position management rules.

The 411

Readers of this blog hear this news first: A pilot program is being organized where Trade-Ideas and optionsXpress (OXPS) invite anyone interested in trading with these tools in an optionsXpress brokerage account to submit your name and contact us at info@trade-ideas.com. Our goal is to provide The Odds Maker and the Automated Trading Bot (ATB) at no charge to pilot participants with an optionsXpress brokerage account for 3 months. Note that OXPS will apply a special commission rate for trades via the Automated Trading Bot (ATB) (details below). An existing or new subscription to Trade-Ideas PRO will be required to participate but the cost of the subscription will be rebated back to participants by OXPS. The pilot will begin as soon as 100 participants are identified, but early participants to sign up for the pilot can be trained to use the tools before the 3 month program formally begins.

After 3 months it is uncertain at this time whether the tools will continue at no charge or if special pricing for pilot participants will exist different from the general rollout if the results are as good as expected. Despite this uncertainty for some individuals this arrangement will be too hard to resist – we already have our first participant (Thanks Frank!) who is an existing Trade-Ideas subscriber (and read our earliest mention of this opportunity) and is creating a new brokerage account with optionsXpress.

Purpose of Pilot

OXPS and TI will conduct a pilot program of the OXPS API Autotrading application that automatically trades from the backtested, pattern alert strategies of Trade-Ideas PRO and The Odds Maker. All participants will receive online training, understand the disclaimers involved with pilot participation, and watch demonstrations of the tools before using them.

Pilot Participant Requirements

Participants will be selected from the following available pools:

• Trade-Ideas (TI) customers with an existing OXPS brokerage account
• TI customers interested in opening an OXPS brokerage account to participant in automated stock trading
• OXPS customers interested in subscribing to TI PRO and participating in the pilot

Participants must opt-in to study and agree to all legal disclaimers – the pilot will be initially limited to 100 participants before evaluting the need for more.

Participants screened for following activity:

• Subscribe to TI PRO
• Have an OXPS brokerage account with ability to trade equities
• Trade at least 3 times/month

• Trade at least 200 – 300 share lot sizes (this is a recommended size in order to breakeven against the proposed commission rate described below)

PLEASE NOTE: ANY and all of these details are SUBJECT TO CHANGE. Participants agree to trade under the following commission schedule:

• $9.95/trade up to 1000 shares with a $1.95 rebate/trade (apply towards commission and TI PRO subscription)
• $0.01/share for 1000 shares or more

Remember: It’s Announced Here First Before It’s Formally Communicated Elsewhere

UPDATED: Related Posts

• 14 Questions and 1 Invite for Automated Trading

More on Chicago

I just came back from a week stay in Chicago. What a city! It’s such a gem of a town during the summer where everybody organizes block parties, festivals, and concerts that celebrate anything unrelated to the cold or snow. Staying in the city (I was in the Gold Coast neighborhood) makes everything practically within walking distance and enjoyable to do so in the perfect weather – like outdoor air-conditioning. Restaurant recommendation: http://www.mkchicago.com/

We have trips coming up to Toronto and New York. If you are in town, let us know if you’re available to meet!