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Chapter 9: Introduction to TradeMaker
Tom Hougaard introduces TradeMaker, the innovative tool from Saxo Bank that delivers real-time trading ideas for Forex and CFDs right to the trading platform.
Transcript:
Scene 1 - Intro
Losing money in the forex and CFD markets can often be attributed to the factor of Information asymmetry. No matter how close you are to the markets, someone out there is closer, and can spot market opportunities faster.
In this chapter I will introduce you to TradeMaker, a powerful tool that delivers real-time trading ideas on foreign exchange and CFDs - directly to your trading platform.
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Trading and speculation is part science, and part art. It is almost impossible to avoid feeling a sense of emotions when you place trades. However, like any art, we may at times feel a little short of inspiration.
And that is where TradeMaker can lend you a helping hand. It is tool which is embedded into your trading platform, which provides trading ideas as and when it happens in real time. Those signals are given to you in real-time, and they are available on Forex, CFD indices and commodity CFDs.
TradeMaker was developed in response to two observations about using information successfully. First, traders may be overwhelmed by the wealth of information available to them, and it is in her in which the good trade ideas are hidden. TradeMaker extracts those ideas and publishes them as ready-to-trade ideas in the platform.
Second, TradeMaker may save valuable time for traders. Not only may the burden of sifting through information be reduced, but it can also save time through one-click execution of the entry point, as well as the profit target and stop loss which comes with each trading idea.
One-click execution is achieved by each idea carrying a trading ticket pre-populated with the entry price, as well as target and stop price levels. Each trade idea also includes a description and chart of the idea and the methodology behind it.
You might be curious what lies behind TradeMaker? Who or what creates the signals.
Ideas are sourced from select 3rd party providers that specialize in technical and statistical analysis of the financial markets.
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So, what does a trade idea look like?
A yellow light bulb flashes when a new trade idea is delivered. It will appear in the platform wherever the trader is looking at the instrument. For example, in the Trade board, Charts, Chat and Pricelist.
Clicking on the light bulb will display the TradeMaker module which contains the idea, its chart image and the order ticket pre-populated with the entry order, profit target and stop-loss levels.
The pre-populated order ticket enables fast execution of the idea.
On the screen now you can see an example of a EURUSD trade idea.
You can always change the account, volume and prices associated with the idea according to your personal preferences.
Once the trade idea has been acknowledged by the user, the TradeMaker light bulb will disappear until an update to the idea is available, or a new idea is published on the instrument.
If a TradeMaker idea is executed, the related orders, including the entry, target and stop, will be displayed on the relevant instrument’s chart. The open orders module will also display the TradeMaker icon and link related orders together to track orders associated with each trade idea.
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There are several providers of trade ideas into TradeMaker. Each one has its own methodology, presentation style and suggested position management but there are common themes when it comes to managing the ideas. Always check the account the orders will be placed against and the amount of money put on the idea. Ensure the risk/reward payoff on the idea fits your own risk appetite. Change the parameters if you feel uncomfortable with the original idea.
Take note of the entry order type and level and time horizon of the idea. Compare it to the most recent price action and the target and stop levels with a view to maximizing the risk/reward. If the market price is too near the target, particularly if the entry is a market order, it is likely the risk/reward ratio using the original stop-loss level is no longer favourable. A tighter stop loss or a more conservative approach would be best.
Don’t move stops if the market goes against the idea. The stop-loss level is the point which invalidates the originally expected direction.
Monitor all ideas taken for updates or amendments published within the trading session. Providers often suggest moving target or stop levels. Or they may suggest closing positions and canceling open orders to take profits or cut losses earlier than originally expected.
06:37 minutes
Tags: cfds, forex, saxo bank, tom hougaard, trademaker, trading