This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I downloaded a trial version of Button Trader, installed it, read the manuals, and today was my first day using it, (in simulation mode) but you can still use it to trigger entries for real trades, which is what I did. I went 3 for 3 on the SPY and DIA using the signals from Button Trader.
Button Trader (www.buttontrader.com) is a front end to Interactive Brokers that allows you to invoke trades with button clicks through Interactive Brokers, though the features are much more rich than that. I’ll explain further, but this is just a small fraction of what it can do.
One common problem I have is getting an alert from Trade Ideas, where a resistance level or support level has been penetrated, but the stock has not moved enough to know how to trade it. The volume is usually below normal, and this might be tradeable, but I don’t know.
With Button Trader, I can set an entry above and below with 2 mouse clicks, with a time out, and forget it. If the price level is hit, Button Trader will initiate the position with IB. It then will use a set strategy for managing the trade, like a break even stop and profit trail. With a click I can also move my profit stop and move my loss stop up or down to make my potential loss as low as possible, or take profit early.
On a breakout or breakdown, I’m in the move when it happened. My loss stop and profit stop are automatically set. I usually have a problem triggering into fast moving breakouts, This handles that problem for me. This also makes managing mutiple positions much easier.
I’m running this as a trial, and obviously just new with it. I was looking for a software solution to improve my trade execution and management once I decided I had a tradeable signal. So far, it lools pretty good. Below is a screen shot:
- TraderD
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
July 19th, 2007 at 3:49 pm
So it’s like having a discretionary automated trading system! There’s a discretionary element where you decide where to enter and a time window, and the program handles the trading execution automatically according to your rules. Sounds like a great idea. I’ll have to learn how to use that if I ever go to IB.
July 19th, 2007 at 4:43 pm
D: thanks for posting this…i downloaded zero line trader tonight, but i don’t know yet how it will work out
i was going to try ninja trader, but u can’t run it and quote tracker at the same time…i’m not yet comfortable with the ninja trader setup
July 19th, 2007 at 5:12 pm
John, I have read that people have issues with Ninja Trader, though I have not used it myself, the same with Zero Line. I use Quote Tracker/TWS/Button Trader/TradeStation/Trade Ideas all at the same time on three screens.
My experience with Button Trader has been very positive. I was making about 2 mistakes a week with TWS, usually not paying attention and setting a stop or a limit wrong that cost me around $500 a mistake. Too much for a wrong key or mouse click. Since I trade around 10 round trips a day, I’m bound to make an error on 2 trades per 100 per week. This cuts that out.
The biggest benefit I think is that trade entry is better on a signal, rather than trying to get a better price.
- TraderD.
July 19th, 2007 at 5:21 pm
D,
I’ve been a happy customer of ButtonTrader for four months now and I wouldn’t dream of trading without it. I love the security of having my targets & stoplosses entered automatically as well as having a mix of scalping, swing and breakout strategies.
Hope you like it, there’s a lot of power there.
July 19th, 2007 at 8:14 pm
D: thanks for the input…i will check it out before i get too deep into zero line…if u and tyro are having positive experiences with it, then i will give it a shot
July 19th, 2007 at 8:21 pm
D or tyro: i assume that even in the event of a net interruption, the stops and targets would fire off as planned
July 19th, 2007 at 10:11 pm
John, it depends on the strategy used - they have to be sent before the interuption because the “engine” is running on your system. The initial loss/profit stop would be in, but not the futher step modifications on the targets.
- TraderD
July 20th, 2007 at 4:43 am
thanks
July 21st, 2007 at 3:47 pm
John - some of the strategies use broker-stored stops and targets, some do not. They give you the option of having stops & targets that are not broker stored to give you some additional flexibility that you would not get by having them stored with the broker, though you do take on the additional risks. It’s entirely up to you.
July 22nd, 2007 at 3:53 pm
tyro: thanks