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As a trader, you want to find trade ideas with a high probability to win easily and quickly.
Speed is key when it comes to trading because you normally have a very short opportunity window to take the trade.
That’s why it’s essential to have powerful trading software that can help you scan the stock market and find your trade setups in real-time.
So, is Trade Ideas a good artificial intelligence trading software?
How exactly can you use Trade Ideas software and technology to improve your trading and profitability as a trader?
Lastly, is Trade Ideas right for you?
These are the questions that I will help you answer in this article, so you can make an informed decision when it comes to whether or not it’s worth investing in Trade Ideas.
What Is Trade Ideas (and What Can It Do For You)?
Trade Ideas is an artificial intelligence trading software that was founded in 2002 to help traders, investors and hedge funds scan through the market to look for profitable trading opportunities quickly, so you don’t miss out any good trading opportunity
Let’s face it.
One of the biggest challenges as a trader is to have to look through the massive amount of market data (i.e. stock prices, charts, transactions, volume, news, etc) and find profitable trade ideas to execute in a timely manner.
Today, there are over thousands of stocks in the US alone.
How is it going to be possible for you to look through every single one of the stocks during market hours?
What about stock research after market hours?
Even if you didn’t sleep at all, it would still be impossible to do it manually by yourself.
But, with artificial intelligence trading software, things are different.
It can watch each and every trade of every stock in the markets and notify you of your trade setups in real-time during market hours based on your pre-defined filtering requirements and also event trigger settings, so you can be the first to act.
When it comes to stock scanning, Trade Ideas has a wide range of both fundamental and technical filters (i.e. over 200 filters) for you to choose from.
Here are just a few examples of the filters:
- Market cap
- Below high of the day
- Above low of the day
- Consecutive up days
- Consecutive down days
Now, what is an event trigger?
An event trigger refers to a particular condition or a set of conditions being met.
Here are just a few examples of event trigger settings:
- 20 period SMA crossed above 200 period SMA (15 minute)
- 5 minute opening range breakout
- Head and shoulders
- Double bottom
- Double top
When the specified event is triggered, you will receive an alert in real-time.
So, you won’t miss any of your trade setups.
If you are into algorithm trading, Trade Ideas can help you design and back-test your trading strategy without any coding.
You can simply use its built-in filters and alerts to help you do that.
Once you have tested and optimized your strategy, you can auto-trade your strategies directly through your Interactive Brokers account.
Now, what if you don’t have your own profitable trading strategy?
That’s is where Trade Ideas Holly Artificial Intelligence Technology comes in.
Trade Ideas has a machine learning Artificial Intelligence named Holly that looks at what happened in today’s market and then tests 50 proprietary algorithms after market close.
After running over a million trading scenarios overnight, only the strategies with a success rate above 60% and a 2:1 Profit Factor are presented to you the following day, together with suggestions on exactly when to buy or short and when to exit.
How cool is that!
How To Use Trade Ideas To Trade Better
So, how do you use Trade Ideas to help you trade better?
Below are the most important tools inside Trade Ideas platforms that you will be using to help you find profitable trade ideas:
Top List Windows
So, what is a Top List Window?
What a top list window does is that it shows you all the stocks based on your pre-defined filters.
As a trader, you might want to trade stocks that are liquid and have a high trading volume, and also you might want to trade a stock that is within a specific price range (e.g. above $5 and below $70).
Of course, there are a lot of other filters that you can choose from, depending on your trading strategy and style.
So, once you’ve selected your filters, and then “Top List Window” will show you a list of stocks that satisfy your requirements.
In the “Top List Window”, you can also sort the data by columns such as price, volume today, and percentage change. ( by the way, you can customize the columns as well)
Lastly, Top List Window updates every 30 seconds, so you will always stay up to date with the market.
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So, what is an Alert Window?
How is it different from the “Top List Window”?
Both of them allow you to set filters.
But, there are two key things that make the Alert Window different from the Top List Window.
For Alert Window, an event must occur for the stocks to show up in the window.
For example, Let’s say you want to see what stocks have made new intra-day high, you can create an alert for this event.
So, only stocks that meet the criteria for this alert (i.e. have made new intra-day high) as well as satisfied all your pre-defined filters will show up in the Alert Window.
There are a large number of alert events that you can choose from inside Trade Ideas Platforms.
Here are just a few examples:
- % down for the day
- % up for the day
- 75% pullback from high
- 25% pullback from high
- crossed above 200 day moving average
- crossed below 200 day moving average
- Double top
- Double bottom
Another difference is that Alert Window has time stamps and price stamps which show you the exact time when the event happened.
It also allows you to view the data in multiple time frames.
For example, it can show you all the events that satisfy both your alerts and filters in real-time, today, yesterday and other time-frames.
In short, “Alert” is a tool for designing and monitoring a specific strategy. And it’s chronologically sorted, event-based notification.
There are also “Channel Bars” which you see on the left side of the screenshots above.
So, what are “Channel Bars”?
Channel Bars are a menu for selecting layouts featuring Trade Ideas tools all of which are designed around various market themes such as Premarket, After Hours, Social, Crypto, Volume, and more.
For example, the “Social Media” Channel Bar will show you a layout that features all the tools used to track and monitor interesting events based on the frequency of social media mentions and unusual mention activity.
Let’s say you want to know what stocks are getting mentioned at least 5 times more than usual on social media.
Then, you can set the social media mention filter, and you will see a list of stocks that meet your filter requirements.
Let’s say you want to know if there is anything unusual happening in the pre-market that might present a good trading opportunity for you.
What you can do is to set the appropriate alerts and filters and find a list of stocks that meet your criteria.
For example, you might want to know if there are any stocks that gap up or gap down from yesterday’s close in pre-market.
Of course, you can also set additional alerts and filters to further narrow down your list of stocks to watch.
With this tool, you can make better trade decisions quickly and never miss a good trade.
The cool thing about Trade Ideas is that you can save your custom layouts and your alerts and filters, so the next time you don’t have to build everything from scratch.
Trade Ideas Holly Artificial Intelligence
First of all, there are three versions of Trade Ideas Holly Artificial Intelligence which are Holly Grail, Holly Neo and Holly 2.0.
So, what is the difference between them?
Holly Grail runs algorithms that are mostly technical analysis-based.
For example, you will see popular trading strategies such as Fibonacci pullback, Breakout, Engulfing, VWAP Bounce, Topping Formation, Not A Double Bottom, Gap Up and Gap Down.
Holly Neo only looks at stocks with high trading volume and are also in the news.
It runs two trading algorithms on these high volume and news stocks:
- Breakout Long (or Short): Algorithm trying to take an early move in the stocks in the direction of the big move
- Pullback Long (or Short): Algorithm trying to look for stocks that are moving sideways before pushing higher again
Holly 2.0 is built from scratch using all the knowledge gathered from running machine learning artificial intelligence for years.
It runs about 8 algorithms each day, which include some very interesting trading strategies that are different from your conventional chart pattern-based strategies.
For example, one of the algorithms called “Bear/Bull Trap” is looking for a classic trap pattern where a stock will break high of yesterday just barely and then start to reverse to force the other side to sell.
So, how exactly does Holly AI work?
In other words, how does it find high probability trade ideas for you?
Every night after the market closes, what Trade Ideas Holly AI does is that it runs backtests on their algorithms for the past 3 months.
Then, it looks at the backtesting results such as equity curve, risk-reward ratio, and drawdown and subsequently optimizes the strategies.
There are over a million trade scenarios being run by Trade Ideas Holly AI overnight.
Once it has done that, it will take into account the current market condition and look at everything from fundamental to social.
In the end, five to eight trading strategies with the highest win rate will be displayed in the AI Strategies Window before the market open.
What’s more, it also shows you exactly when to enter and when to exit.
Basically, it gives you a complete trading plan.
The best part about using artificial intelligence is that it will probably make better trades than you because it manages trades without any emotions.
Trade Ideas Holly AI Performance
Now, how is the performance of Trade Ideas Holly Artificial Intelligence so far?
Can you really trust the trade suggestions with your money?
Below is the performance for the Holly Grail, Holly Neo and Holly 2.0 from 2019 to date, running Moderate Risk Mode risking $100 per trade with slippage and commission ignored.
(1) Holly Grail Performance
|Total Net Profit||$23,820.59|
(2) Holly Neo Performance
|Total Net Profit||$30,332|
(3) Holly 2.0 Performance
|Total Net Profit||$34,484.33|
As you can see, all the three Holly AI produce positive net profits with impressive returns.
Now, the next important question you should ask is, how risky (i.e. volatile) are these algorithms?
Because an algorithm with lower risk is always preferred to one with higher volatility when the return is similar.
For example, which one would you prefer?
Algorithm A: 15% annual return with low volatility
Algorithm B: 15% annual return with super high volatility (i.e. up 20% one month then down 15% the next month)?
Obviously, you would choose Algorithm A.
Now, does Trade Ideas Holly AI make a lot of risky trades?
Let’s look at its risk-adjusted returns, which is best measured by Sharpe ratio.
So, what is a Sharpe ratio?
Sharpe ratio tells you how much excess return you get for the extra volatility you are taking.
The higher the Sharpe ratio, the better the returns have been relative to the risk it has taken on.
A very good Sharpe ratio is anything that is higher than 2.
A bad Sharpe ratio is anything that is lower than 1.
For Trade Ideas Holly Neo and Holly 2.0, its Sharpe ratio is about 3, which is exceptionally good.
So, how do you use Trade Ideas Holly Artificial Intelligence?
You can either follow the trade suggestions made by Holly AI and executes the trades yourself or you can have Holly AI to trade for you via Brokerage Plus.
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Odds Maker Window
OddsMaker is a tool that allowed anyone, including traders with no programming experience, to backtest any trading concept to see if it had a statistical edge.
So, how does it actually work?
If you suddenly have a trade idea for the next trading day, you can use OddsMakers to test and optimize your strategy.
What is cool is that you can use a lot of its built-in filters and built-in alerts to “program” your strategy without coding.
For example, let’s say you want to test if the odds are in your favor when you want to short a stock that has fallen quite a bit today when it would break support the following day.
So, you can simply use the built-in filters like “previous day change” and built-in alerts like “support break” to create your strategy in a few clicks.
Once you are done, you run it using “OddsMaker”.
At the end of the back-testing, it will give you an equity curve to show you if the strategy has a good probability to work out or not.
What is more, you can use Trade Ideas‘ “OddsMaker” to optimize what parameters can change to further improve trading strategy results.
You can also customize the summary view to instantly see how your starting equity, share size, commission, and slippage will impact your trading.
For a trader, charting is a very important tool to help you analyze a stock using technical analysis.
With Trade Ideas Chart Windows, you can visually confirm an alert instantly without leaving the Trade Ideas Pro platform and relying on third-party charting software.
Full Quote Window
Before you enter a trade, you might also want to check the fundamental data of the stock.
That’s what “Full Stock Quote Window” is for.
The Trade Ideas full stock quote windows let you see all of the fundamental data relevant to a stock’s price, including quick visual indicators to see where the stock is in its range for the last hour, trading week, and last 52 weeks.
Is Trade Ideas Worth It?
If you are a serious day trader who does not want to miss any of your trade setups, it’s worth investing in Trade Ideas.
Just the amount of time it can help you save and the number of profitable trade opportunities that you would otherwise have missed will make Trade Ideas worth every penny of your investment.
Also, if you are into algorithm trading, Trade Ideas is the perfect trading software for you because of the following:
- You can design and backtest your trading strategies easily without any coding
- You can auto-trade your strategies directly through your interactive broker‘s account using Trade Ideas
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How Much Does Trade Ideas Cost?
Trade Ideas is not free, but they offer a demo where you can try some of the most powerful tools for free.
- Trade Ideas Premium
- Trade Ideas Standard
Trade Ideas Premium Vs Trade Ideas Standard
So, what is the difference between Trade Ideas Premium and Trade Ideas standard?
Which one do you choose?
- Holly the A.I. (i.e. give you high probability trade suggestions)
- OddsMaker ( i.e. you can design and backtest your trading strategy without any coding)
- Auto-trading (i.e. you can have your trading strategies executed directly through your interactive broker‘s account)
So, if you want to get Holly A.I., OddsMaker as well as auto-trading, then you should go for the Trade Ideas Premium plan.
But, if you just want to make use of the “List” and “Alerts”, then Trade Ideas Standard plan is good enough for you.
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