Developing your online trading strategy
As the online trading community continues to develop, technical analysis is increasingly being used by traders and investors looking to add an extra element to their trading. The use of technical analysis can be a valuable tool in building a market strategy and maintaining trading discipline. Our online trading platforms have built-in, easy-to-use tools that allow traders to harness the benefits of technical analysis.
Accessible systematic trading
Advanced tools, such as our technical analysis program, place comprehensive market data at the fingertips of the professional trader. Systematic trading has become accessible to all investors, not simply institutions and professional money managers.
The technical analysis tool allows:
- Pattern Recognition and Analysis: The advanced technical analysis tool offers classic pattern recognition in selected Forex crosses and indices
- Technical Insight: Review technical events associated with particular instruments
- Stock Screening: The Technical Stock Screener offers trading ideas based on technical analysis using selected or predefined screening criteria
- Customisable Charts: Enhanced flexibility allows traders to see the charts and patterns they want
- Event Alerts: Event Alerts notify individuals when a price or technical event occurs
- Other Features include: Daily market highlights, trading ideas and product performance outlook
Advance Your Online Trading
Our easy-to-use program helps traders anticipate price trends in Forex trading and the stock market by analysing price history and looking for patterns and relationships. When predefined criteria are met, users will be informed so that they can benefit from all opportunities.
There are many additional advantages to the innovative technical analysis tool available through our online trading platforms. A Technical Stock Screener offers trading strategies for online trading based on market data. These are developed by using screening criteria that users either select or input. Investors can specify both the data they are seeking and the format in which the results are delivered.
Technical analysis education
Included in the SaxoTrader and SaxoWebTrader technical analysis program is an educational section that teaches the user about technical analysis, explaining how it offers the opportunity to view the market in a different context from the ‘non-systematic' trader. Everything from Bollinger bands to Gann charts are defined clearly, with both the pros and cons of using each type of analysis concisely explained.
As the popularity of technical analysis has grown, it is estimated that as many as 80% of trading decisions are based upon technical rather than fundamental data. This statistic emphasises how today's uncertain markets have enhanced the requirement for informed trading decisions. When combined with both the streaming news modules and company-specific information available through our platforms, the technical analysis tool provides our clients with a powerful combination of trading resources.
Benefits of a systematic approach
The deployment of predefined rules by which trades are first placed and then managed is currently a growth area for private traders.
The benefits of such an approach to trading are many, most notably being the eschewing of behavioural bias, an emphasis on discipline, the development of a quantitative process and rigorous risk control. A trading system can be relatively easy to both evaluate and risk manage before any capital is put at risk, because the performance characteristics can be observed in advance over a wide range of market conditions.
Systematic trading provides discipline
The systematic trader observes and assimilates the various technical factors present in the market, making a judgement as to their significance. A strategy offering the greatest risk/reward trade for that scenario will be developed from this data. However, creating a consistently profitable trading system is an immense challenge and should not be underestimated. Beginners that simply apply stop-losses and profit targets to their favourite technical indicators hoping to succeed are likely to be disappointed in the long term.
It is important for traders to consider more than a single model applied to a single instrument. A portfolio of carefully chosen diversified models is likely to be more stable, resulting in controlled profit fluctuations and a smoother equity curve. That means greater leverage opportunity and potential profits.