Tutorial: Creating Trading Signals
What To Do Next
Congratulations!
Congratulations, you should now have a basic understanding of several methods for creating trading signals in TradingSolutions. These include:
· Applying Existing Trading Solutions
· Predicting the Optimal Signal
· Applying an Entry/Exit System
· Working with Multiple Stocks
Also, from the tutorial on Using the Interface, you should have a basic understanding of the following topics:
· Importing Data
· Displaying Charts
· Displaying Spreadsheets
· Analyzing Signals
· Modifying the Portfolio View
More information on all of these topics is available in both the Video Help and help documentation. You may also want to repeat specific tutorials if you ever need to review specific topics.
What To Do Next
With this wide range of tools, you may still be wondering how to approach creating profitable models (and making money) with TradingSolutions. Here are some suggestions as to how to continue.
1. Begin by following the Solution Service. The signals and commentary provided with the Solution Service provide an excellent starting point for seeing how models can be used on a day-to-day basis.
Ä Note: Remember, the Solution Service is updated each evening to provide you with information about what you could trade at the next open.
2. Look at previously created models for examples of financial indicators people are using to create profitable models.
Ä Note: Good sources of existing models are the Solution Service, the TradingSolutions web site, and TradingSolutions users groups.
3. Instead of concentrating on individual stocks, try applying approaches to entire groups of stocks and working on improving the models that show some potential.
: Example: Try importing the S&P 100 or NASDAQ 100 into a group and apply trading solutions to the entire group. Use the Primary Signal and display fields to identify the best performers and concentrate on trading or improving those.
Ä Note: Don’t get frustrated if you can’t model an individual stock. If you are having trouble creating profitable models for a particular stock, that stock may be very difficult to model.
4. Don’t discount your own knowledge of trading when selecting inputs for models. If you have previous experience in technical analysis, what financial indicators would your normally look at? When you look at a chart of the price and the optimal signal, what information might lead you to trade around when the optimal signal trades?
Ä Note: Magazines and websites can be excellent sources of additional information concerning technical analysis and financial indicators.
5. Use correlation analysis to identify potential inputs for your models. Correlation analysis will be introduced in the Advanced Features tutorials.
_ Continue to the next tutorial.