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Data Shaping Online Stock Trading Strategies: Overview |
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This graph shows a typical distribution of gains and losses using Data Shaping
strategies on GE. The yearly return was above 80%. You may wish to
check the
strategies'
effectiveness over time on various stocks.
Trading Concepts and Philosophy
Data Shaping recommends short-term trading on long positions, applying the concept of simulated shorting. The technique, for a particular stock, consists of performing one buy, one sell each day between open and close of market, and then keeping enough shares and cash overnight. Among the advantages, this technique does not require a margin account, yet allows for short selling.
About Data Shaping strategies
- Data Shaping trading strategies have few parameters, making them robust. They are NOT optimized to produce the highest returns: emphasis is on producing a steady return, month after month. Additionally, we use fast algorithms: buy and sell recommended prices require about 5 seconds to be computed.
- Data Shaping trading strategies have built-in implicit mechanisms to stop losses. The user can add explicit stop orders. The main algorithm also involves three sub-strategies depending on market conditions (up, down, neutral). Our system is considerably less sensitive to trading fees than intraday strategies.
- Data Shaping trading strategies are optimized using six months worth of historical data, with emphasis on producing high steady return particularly on the most recent weeks of the test period. Back-testing and real life testing can be performed with our Excel template.
- We design reliable strategies that work well under real market conditions. To achieve this goal we introduce small errors in our trading simulations, and check how the return rate is affected. We discard strategies that are too sensitive to small trading errors.
- We offer two types of strategies: targeted trading keys that provide very high returns on specific stocks, and universal trading keys that work well with most stocks but provide lower returns. Targeted or universal user-made trading strategies can also be created online, by experienced traders.
Advantages of our online platform, over traditional software
- You don't need to bring your laptop or your computer when you travel. The online platform is accessible worldwide from any device with internet access.
- You don't have to download software, possibly facing installation problems and viruses.
- Any product update is totally transparent and requires no user intervention.
- If you purchase a new PC or experience a crash, and need to re-install your software, you might simply not be able to do it because of software protection preventing multiple installations. This is not an issue with our online platform.
Online Strategies and Trading Keys
Possible Applications:
- Actual trading.
The system is designed for frequent trading on long positions, to further increase the return. - Simulated trading.
Use our strategies to simulate trading without placing orders with a real stock broker. - Education.
You can learn how to become a successful investor by testing our keys, before actually trading on the stock market. Our internet-based trading key system can be used in schools, familiarizing students with the concept of investing. - Entertainment.
You could organize a "simulated trading" contest with your friends or other people. Each participant picks up a different trading key. The participant with the highest return (over a fixed period of time) wins.
Trading Tips for our Members
- Selected Stocks.
Our members can choose a stock based on the return rate of the associated strategy. Conservative investors may choose a trading key with a return rate increasing at a steady pace, while aggressive investors may look at highest possible six-month return. In any case, the stocks associated with our trading keys are carefully selected. Emphasis is on minimizing return variance on volatile stocks. - Limit, Stop Orders and Short Sells.
Limit orders are recommended for volatile stocks. Short sells allow you to take advantage of a declining market. Each day, we suggest to place both a buy and a sell order, at specific prices. If the sell order is executed before the buy order, it is called a short sell. Typically, you will place limit orders, although in some circumstances described in the FAQ, you will use stop orders insead. We recommend selecting a stock suitable for the long term, and using up to 50% of the shares for short-term trading, thus avoiding the problems associated with margin accounts. - Frequent Trading.
A winning strategy - which is profitable even when the stock price drops - requires daily interaction to take advantage of the compound return rate. Frequent trading takes advantage of automatically detected short term stock- or market-related patterns. Finally, this method works if only a small proportion of frequent traders use it. Why? As Data Shaping traders are taking their profits, other traders will incur losses to compensate. - Reliability.
Data Shaping's trading strategies are designed to withstand small variations in price behaviour, minor trading errors or gaps between bid and ask. Strategy performance is assessed over a six-month period of daily trading, to corroborate success with statistical evidence rather than chance. We rate our keys according to various criteria, including reliability. You should strictly follow our strategies. - Dynamic Trading.
The set of parameters used in our trading strategies are updated regularly, typically every month. These parameters are computed using a six month period of historical data. The updating process is automatic and transparent to the user. So you don't have to worry about updating the strategies. - Easy Implementation.
Every day, you place two orders at our suggested price when the market opens, then you check before market close. You don't have to research the stock. Our return rates rely on technical analysis only. However, we think that fundamental analysis, combined with our strategies, can further improve the return. To reduce the impact of trading fees, use Data Shaping's strategies on not less than $10,000 per single position.Look at the graph to see how a typical key is performing, or check our return rates.