TradersFreedom
      

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Frequently Asked Questions
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Frequently Asked Questions (FAQ)
 
What is TradersFreedom?
How do I test a stock?
Where can I find a list of stock symbols?
What is the "Test Period"?
When do I change the dates in my "Test Period"?
How do I decide between "Long and Short", "Long Only" and "Short Only"?
What do I enter in the "Investment" field?
Will the amount of money I invest affect the trading signals I am given?
What do I enter in the "Commissions" field?
What happens when I hit the "Analyze" button?
What information am I given in the "Summary" box?
What information am I given in the "Algorithms" table?
How do I choose an algorithm?
How long do I continue to trade a specific algorithm?
What information am I given in the "Trade Details" table?
Where do I find my "Trading Signal" for the next trading day?
Once I've selected an algorithm and have my Signal for tomorrow, how do I place my trades?
When will new daily market data be available?
What else should I consider as part of my trading method or process?


What is TradersFreedom?

Designed for traders, TradersFreedom is a web-based analytics tool that analyzes stocks and returns predictive trading signals for the following trading day. The tool includes sixteen proprietary algorithms, incorporating sensitive trading rules ranging from ultra-conservative to ultra-aggressive.

This tool is easy to use: All you have to do is fill in 5 simple data fields and TradersFreedom instantly returns 16 trading signals for each stock - 1 signal for each of our 16 proprietary algorithms.

TradersFreedom is designed to be an end-of-day system that generates new trading signals once a day. It will not generate any intraday signals.

We are not investment advisors and cannot offer any suggestions about what to trade, but TradersFreedom gives you a robust platform to test your own trading ideas.

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How do I test a stock?

Testing a stock with TradersFreedom is a simple process. You fill in a few fields of data and TradersFreedom returns a trading signal for each of the sixteen proprietary algorithms.

Log in to your account:

https://www.tradersfreedom.com/Freedom.Web/Login.htm

    1.Enter the stock symbol you want to test in the "Stock" field.
    2.Enter the date you want to begin your test in the "Start Date" field. When you first log in, the default Test Period is the last 30 days.
    3.Enter the date you want to end your test in the "End Date" field. This date will automatically update to the last trading day for which data is available after the web server downloads daily data each evening.
    4.Type the amount you plan to invest in the "Investment" field.
    5.Type the commission you pay your broker in the "Commission" field.
    6.Select the type of trades you want to consider - "Long and Short" (the default), "Long Only" or "Short Only".
    7.Click the "Analyze" button to view your results.

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Where can I find a list of stock symbols?

We are not investment advisors, so we can't suggest stocks for you to test or trade, but we do make a complete list of stock symbols available. Click on the search icon next to the "Stock" symbol field in the "User Inputs" box.

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What is the "Test Period"?

The "Test Period" is the timeframe of historical data that TradersFreedom analyzes to generate results for the sixteen proprietary algorithms. You will receive a predictive trading signal for each algorithm.

When you first log in, the default Test Period is the last 30 days. TradersFreedom allows you to control the time period to be tested - you can adjust these dates at any point. TradersFreedom downloads its data at the end of every trading day and will automatically change your End Date to match the most recent date for which data is available. The Start Date will be maintained until you change it.

For additional information on selecting your Test Period, please see our Things to Consider section.

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When do I change the dates in my "Test Period"?

Because the system measures analytical data and updates results at the end of each trading day, it can be helpful to maintain the same Start Date for your Test Period as you begin to trade. Think of it as a "benchmark" that will allow you to establish a point of comparison to see how the algorithm's results compare to each other for the stock in question. It is similar to marking a "starting line" for a race. By establishing a stationary point, you are able to see "who ran the best" by the end of each day.

The End Date will update automatically at the end of each trading day once the system has loaded its end-of-day data. The log in page will tell you what data is currently available. This date appears under the log in box.

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How do I decide between "Long and Short", "Long Only" and "Short Only"?

These options determine the kind of trades you want to consider. You chose the kind of trades to consider based on your own trading approach.

For the definitions of "Long", "Short" and "Out", please see our Definitions page.

When you first log in, the default setting is both "Long and Short", which means your daily signals will flip between "Long", "Short" and "Out". If you chose to look at "Long Only" trades, your signals will be "Long" or "Out". If you look at "Short Only" trades, your signals will be "Short" or "Out".

There are some instances where a trader is unable to trade short. For example some IRAs do not allow short trades within the account. We are not investment advisors - please contact your individual broker for complete rules and regulations.

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What do I enter in the "Investment" field?

This is the amount of money you intend to put into a trade.

At the end of each trading day, TradersFreedom assumes that you continue to have this initial amount invested + or - any profits or losses, and calculates your profit/loss based on this assumption. This is also true when the signals flip. Your commissions are included in the profit/loss calculation.

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Will the amount of money I invest affect the trading signals I am given?

No. The same signal is generated for everybody looking at that stock/algorithm combination, regardless of how much money and how many shares each individual is trading in that position.

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What do I enter in the "Commissions" field?

This is the cost you incur with your broker each time you place a trade.

Remember - when the signal flips from long to short (and vice versa) you are actually placing two separate trades - one to exit your current position and one to open your new position.

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What happens when I hit the "Analyze" button?

Using the inputs you provide, (stock symbol, start/end dates, investment/commission amount, Long/Short positions) TradersFreedom analyzes historical data and generates a predictive signal for the next trading day.

TradersFreedom is an analytics tool that does not take news items, (earnings reports, ratings upgrades/downgrades, Fed policy decisions, etc.) into account when calculating signals. It is up to you to decide how these items will influence your trading decisions.

There are sixteen results returned for each stock - one for each of our proprietary algorithms. This means you have sixteen unique approaches to trading each stock.

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What information am I given in the "Summary" box?

The Summary box tells you how many of the proprietary algorithms have a "Long", "Short" or "Out" signal for the trading day following the End Date specified.

The Summary is designed to give you an overview of what the algorithms think of your stock for your specified Test Period, and indicates how many of the algorithms are "winners" (making money) or "losers" (losing money).

As a point of comparison, the Summary also calculates you how much money you would have made (or lost) if you had bought and held the stock during the same Test Period, rather than trading it Long, Short or Out along with the signals.

The Summary box will also display the Signal for your algorithm, once one is selected from the sixteen choices in the Algorithm table. You select an algorithm by clicking on the row for that algorithm in the "Algorithms" table.

Example:

    Each trader using TradersFreedom has or will develop his/her own individual trading approach. Some insight into how you might utilize TradersFreedom as a part of that methodology:

        If you are considering a long trade tomorrow and 16 out of 16 algorithms are generating "Long" signals for tomorrow, this indicates a consensus that might help to support your position.

        If you see that 16 out of 16 algorithms are also "winners" making money, this indicates that TradersFreedom has been making successful predictions for your particular stock which might help to support your decision.

        For further information, please see our Things to Consider section. Also, click on the "information" buttons next to each section of the "Summary" box.

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What information am I given in the "Algorithms" table?

The "Algorithms" table compares the performance summaries of all sixteen algorithms for the stock you are testing.

The Algorithms table can be sorted in ascending or descending order by clicking on the header of any column. The default setting sorts the results in ascending order by "Algorithm #" (1 through 16). Once you select a sort preference, TradersFreedom will remember this as the new "default" setting until you change it.

The columns you can sort by are:

    1.Algorithm #:  These are the sixteen patented algorithms used to test every stock. They are ordered from most conservative (#1) to most aggressive (#16). Typically this means the lower numbered algorithms will have fewer total trades in a given Test Period as they react more slowly to market fluctuations.
 
    2.Net P/L:  The Net Profit (or Loss) in net $ - this figure is based on your investment, commission costs and change in the stock price and is calculated at the end of each trading day. TradersFreedom also assumes that you are reinvesting all profits/losses in your next trade and calculates your Net P/L based on this assumption. This remains true when the signals flip.
 
    3.AROR:  Annualized Rate of Return is the net profit or loss calculated as an annual % - this figure indicates what your return would equal at the end of a 52 week period, assuming you could continue to generate the same return over a full year period. This number standardizes all Test Period timeframes so traders can compare results equally. Ideally you want this percentage to be high.
 
    4.DD:  The Drawdown or largest pullback in your investment measured in % during this particular trading period - this is calculated by subtracting the lowest value from its peak Net P/L. The lower the DD the less the volatility. Ideally you want this number to be low.
 
    5.# of Trades:  This is the # of trades in the particular Test Period you've chosen. Generally, the lower the number of trades the lesser the commission costs, and the less frequently you will need to trade
 
    6.Long:  The net profit (or loss) in net $ for the Long trades in the Test Period
 
    7.Short:  The net profit (or loss) in net $ for the Short trades in the Test Period
 
    8.Signal:  The "Long", "Short", or "Out" signal for the next trading day after the End Date specified in the User Inputs box

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How do I choose an algorithm?

Each trader has a different appetite for reward, risk, and trading frequency and your own preferences will help to determine which algorithms you ultimately choose. Because each of our proprietary algorithms analyzes data differently, you will have sixteen unique trading approaches for each stock tested.

To evaluate the results generated by TradersFreedom, keep in mind:

  • The sixteen algorithms are ordered from conservative (#1) to aggressive (#16). Typically this means the lower numbered algorithms will have fewer total trades in a given Test Period as they react more slowly to market fluctuations.
  • The higher the Net P/L, the greater the profits - assuming you are comparing tests of the same length.
  • The higher the Annualized Rate of Return (AROR), the greater the profits - regardless of the length of the Test Period because the results have been annualized. Ideally you want this percentage to be high.
  • The lower the Drawdown (DD), the less the volatility -- regardless of the length of the Test Period. Each trader must decide what his/her tolerance for risk is and this number is a good marker. Ideally you want this number to be low.
  • Some traders will choose to look at the number of trades made by each algorithm during the Test Period as part of their selection process. This is where your own trading philosophy is important. One user may feel comfortable seeing a track record of numerous trades, while others will be satisfied with just a few - it is up to you. The fewer the trades, the lesser the commission costs, but fewer trades might not give you sufficient data to draw a sound conclusion.
  • Some traders will choose to look at the profits/losses for the "Long" and "Short" trades separately to see where the algorithm is making money. If the algorithm is only making money on "Short" trades and you prefer to trade "Long" only, then that particular algorithm might not be the best choice for you. Again, your personal methodology is an important part of the decision making process.

Once you have made some preliminary decisions about which algorithm appeals to you based on the sixteen summaries in the "Algorithms" table, you can click on that specific algorithm row to see the "Trade Details" table for that algorithm.

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How long do I continue to trade a specific algorithm?

How long you stick with a particular algorithm is a personal choice. However, as with any investment idea, traders are best to give themselves time to fully explore and evaluate any idea before they utilize it or discard it. If you keep switching philosophies, you run the risk of losing your benchmark for success. You must trust your own instincts about when it is time to reevaluate your strategies.

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What information am I given in the "Trade Details" table?

The "Trade Details" table shows you step by step how a specific algorithm traded your selected stock during your Test Period and how it suggests you trade the stock on the following trading day.

The data displayed includes:

    1.Trade #: This is the number of each trade for your selected algorithm during the Test Period. The numbers appear in descending order, which means the most recent trade is displayed first and the initial trade is displayed last.
 
    2.Days in Trade: This is the number of days TradersFreedom was in each trade.
 
    3.Entry Date: This is the date TradersFreedom got into each trade.
 
    4.Exit Date: This is the date TradersFreedom got out of each trade.
 
    5.Position: This is the position of each trade (Long or Short).
 
    6.Shares: This is the quantity of shares traded based on the starting investment size and commission value you entered in User Inputs, + or - any profits/losses from the previous trades in this group.
 
    7.Entry: This is the price where the stock opened on the first day TradersFreedom got into the trade (Entry Date). Remember - TradersFreedom always assumes your trades are filled at the opening price. You may do better (or worse) when placing your own trades.
 
    8.Exit: This is the price where the stock opened on the day TradersFreedom got out of the trade (Exit Date). Remember - TradersFreedom always assumes you are exiting your trades at market open, and assigns the opening price as your exit price. You may do better (or worse) when placing your own trades.
 
    9.P/L: This is the Profit (or Loss) for each trade.
 
    10.Net P/L: This is the cumulative Net Profit (or Loss) for this group of trades.

On a daily basis, the details for the current trade will change to reflect new profits/losses, prices, dates, etc.

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Where do I find my "Trading Signal" for the next trading day?

Once you have selected your algorithm by clicking on the row for that algorithm in the Algorithms table, you will now see a color band in the "Summary Box" that displays the Signal to be followed the next day.

TradersFreedom is designed to take as little of your time as possible, but you do need to check the system daily for your trading signals. If you are getting the same signal as the previous day, then you have nothing to do but maintain your current position. Because there is a fresh signal generated at the end of each trading day, there is a possibility that your signal will change daily.

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Once I've selected an algorithm and have my Signal for tomorrow, how do I place my trades?

TradersFreedom is an analytics tool and not a trading platform. In order to place a trade, you must contact your broker or place the trade through your online trading platform. We do not endorse one broker over another.

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When will new daily market data be available?

TradersFreedom uploads data at the end of the "After Hours" trading session. Typically data is available to our users by 9 PM EST. The Log In page tells you what data is currently available. This date appears under the Log In box.

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What else should I consider as part of my trading method or process?

    Each trader using TradersFreedom has or will develop his/her own individual trading methodology. This section is designed to give the user insight into how they might utilize TradersFreedom as a part of that approach.

    The Stock Market is ever-changing and involves risk taking. Although TradersFreedom is designed to take as little of your time as possible, you should consider allocating sufficient time to your overall trading process in order to make informed trading decisions. TradersFreedom is a valuable analytics tool, and will be a great addition to your "trading toolbox".

    TradersFreedom is designed to compliment your own trading strategy and to help each trader make the best trading decisions he/she can make utilizing that strategy. A good trader knows it is unrealistic to expect that he/she will make every penny there is to be made on every trade he/she places. For example, it won't always be possible to find algorithms with 0% DD, and, if you do, it is possible that 0% DD is an indication that the stock is due for a change in momentum. These are all personal decisions that each trader will make based on his/her own personal beliefs and appetite for risk. Therefore establishing objectives for yourself and keeping good records are important parts of the process.

    "Test Period" date ranges:

    Each user will have his/her own opinion about what testing timeframe is most important when considering a trade. Some users will feel that the current market conditions have the most effect on what will happen next (and each user's definition of "current" will be different - one user could see "current" as the last month, another user could see it as the last week and yet another could see it as the last 24 hours). Others will be interested in how a stock has performed over time. The choice is yours and will undoubtedly be influenced by the methodology of your personal approach.

    When you first log in, the default Test Period is set for the last 30 days. You can change this period at any time.

    "Trader" vs. "Investor":

    It is important that each user have a plan about how they will approach the market. Are you more of a Trader or more of an Investor? Traders tend to hold on to stocks or securities for shorter periods of time and play both up and down trends, while Investors tend to hold on to stocks and securities for longer periods of time and are more interested in "investing" in the future of a company. TradersFreedom is designed to capitalize on both up and down market trends, which lends itself to a Trader's philosophy. However, Investors can also benefit from TradersFreedom when testing their investment ideas. The most important thing is that each user be clear about his/her own approach.

    Your personal tolerance for risk:

    Only you will know what your personal tolerance for risk is. TradersFreedom puts you in the driver's seat - you must decide how you will manage your own risk as part of your trading philosophy.

    TradersFreedom provides you with several data points that are helpful:

          DD (shown in the "Algorithms" table):  This is the Drawdown or largest pullback in your investment measured in % during this particular trading period. This is calculated by subtracting the lowest value from its peak Net P/L. The lower the DD the less the volatility - ideally you want this number to be low.
 
          # of Trades (shown in the "Algorithms" table):  This is the # of trades in the particular Test Period you've chosen. Some traders will prefer to trade algorithms that have a larger "track record" of trades in a given Test Period. This is helpful if you are trying to identify a successful trading trend (which is harder to do with only one or two trades). This is a personal decision and each trader will have their own preference.
 
          Long P/L (shown in the "Algorithms" table):  This is the Net Profit (or Loss) in net $ for the Long trades in the Test Period. This figure gives you an indication of how successful TradersFreedom is when trading a "Long" signal for the selected algorithm. If the selected algorithm is losing money in long trades, you might reconsider trading a "Long" signal.
 
          Short P/L (shown in the "Algorithms" table):  This is the Net Profit (or Loss) in net $ for the Short trades in the Test Period. This figure gives you an indication of how successful TradersFreedom is when trading a "Short" signal for the selected algorithm. If the selected algorithm is losing money in short trades, you might reconsider trading a "Short" signal.
 
          Buy & Hold (shown in the "Summary" table):  This is how much money you would have made (or lost) if you had bought and held the stock during the same Test Period, rather than trading it Long, Short or Out along with the signals. This is a good point of comparison.

    We can't stress enough how important it is for you to have a plan for trading. What you take into account is ultimately up to you.

    How often you want to trade:

    If you prefer to trade more often, you should consider focusing on the higher numbered algorithms as they tend to be more active. If you prefer to trade less often, you should consider focusing on the lower numbered algorithms as they tend to trade less frequently.

    TradersFreedom is designed to take as little of your time as possible, but you do need to check the system daily for your trading signals.

    If the signal for your selected algorithm is the same as the position you are currently in, then you have no additional tradeds to make - you simply maintain your current position.

    Because there is a fresh signal generated at the end of each trading day, there is a daily possibility that your signal will change.

    Timing your entrance in a trade:

    Because you will be looking at different stocks at different times, you may find yourself interested in a stock that is in the middle of a trading cycle, meaning it has been generating a "Long" (or "Short") signal for some period of time. Although it is up to each trader when they choose to execute their trades, entering in the middle of a cycle may affect your Net P/L. Often traders will wait to enter a trade until the signal for their selected algorithm flips.

    Other factors affecting the market:

    TradersFreedom is an analytics tool that does not take news items, (earnings reports, ratings upgrades/downgrades, Fed policy decisions, etc.) into account when calculating signals. It is up to each trader to decide how these items will influence their trading methodology.

    Stick with it:

    It is important that once you have an established routine for selecting your stocks and algorithms that is working for you, you should continue to follow your own system. Do your homework and when you feel confident in your process, have the courage of your convictions.

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