Technical Analysis with Optimal Trader

Getting Started with
Optimal Trader Technical Analysis Software

1. Start Optimal Trader.

2. Click Add to add a new equity.

3. Select Market first, then Sub Category, followed by Equity and click Ok.

After you have downloaded data for the chosen equity you will see six different charts on the left half of the screen with the equity's price history. Each chart shows the result for a specific indicator/model.

The top chart is special because it shows the result of a neural network.

Five indicators are always active and their results are shown in the other five charts.

4. Click Auto Models to optimize all the models and to automatically select five models to become active models.

5. Read today's buy/sell recommendation to the right of the charts.

The models either show buy (green arrows) or sell (red arrows).

Buy indicates a recommendation to buy or to keep the equity. Sell indicates a recommendation to sell the equity or to wait buying it.

The color regions in the charts show when the models have generated buy and sell signals with the current settings.

6. The next day you only have to click Update or Update All to update price history with the latest prices.

7. Click Optimize or Optimize All to optimize the models again (with the latest prices taken into account).

8. Read the latest recommendation to the right of the charts.

 

Important!

  • If you trade with a brokerage fee you should add that cost (found under Options) so that the models will consider that cost when optimizing.
  • Strictly speaking, trading signals are only generated at a transition from buy to sell or from sell to buy. That means that if a company has shown red signals for several days in a row, the sell recommendation is only generated the first day it went red. Do not wait acting upon your trading signals! If you delay your actions you will join upward trends too late and leave price falling periods too late.
  • If the models generate different trading signals, you should either follow a model that shows good results for your equity or follow the signals of the neural network.

 

After downloading some equities the Portfolio Scan feature can be used to compare them and find equities that meet your investment criteria. You can combine several criteria and add weight to each criterion based on its importance. For further reading go to Portfolio Scan.

 

  Copyright © 2005-2008 Optimal Trader