Multicharts.com – Is It Really Automated Trading?

Multicharts.com – Is It Really Automated Trading?

One popular solution for day traders is making some pretty big claims – Multicharts.com that is. Let’s see, in 2010 and 2011 they won the t2w Members’ Choice Award, and in 2011

they won both the Technical Analysis of Stocks and Commodities Readers Choice Award and the BMT Best of Trading Award. They’ve been noted as trading platform of the year and they were semi-finalist for standalone analytical software (that costs $1000 and more.) So the big question you’re probably wondering: is this software worth the money. I’ve mentioned that it cost over $1000 and we’ll discuss price. But before we get that far, I’d like to discuss function and benefits. So here we go.

Regardless of your market plans, long term or day trader, Multicharts seems to be a good program that can help you reach your goals. The do so by proviing high-definition and in depth charts along with built in indicators, trading directly from the chart with one click and precision backtesting (don’t worry, we’ll go over these terms in detail if you’re unsure what they mean.) They also offer a choice of brokers for your feed, and support for various styles of trading. Here are some of their features, a bit more in depth for you to peruse.

Of all of the features of high quality trading software, charting is easily one of the most important. Noting the precise movements of the market to make sure you make the correct trades. And for this reason your charting software should be flexible to your needs. You should also have reliable software that has been proven and tested. Crashes are not allowed for a professional trader. Multicharts has been awarded for excellence in both reliability and quality. You’ve got to be able to see small details and big picture if you want to be able to trade successfully. However, you don’t need cumbersome and system
resource hogging extras. Multichart has all of these features in mind. They also have an award winning interface that makes traditional charting look out of date. It’s both intuitive and simple to use, so you won’t spend a lot of time trying to figure out this software.

If you’re a serious trader, then you subscribe to real time data feeds from a data vendor. Unlike some of the competitors Multicharts offers a wide variety of vendors to choose from for your data feed. They include access to most of the popular real time feeds, such as Zen-Fire (Zen-fire.com), csidata (csidata.com), barchart (barchart.com), dukascopy (dukascopy.com), quick, Universal DDE, and Yahoo Finance.

How about Autotrading? According the guys at Multicharts, they’ve got it. Here’s how it works, you can program (not as complicated as it sounds) Multicharts to generate orders based on a trading strategy that you provide. These orders are then sent your broker’s server automatically, which is automatically replied to by your broker. The successful trade is then charted for you, so you can track trades on a daily basis. This is an extremely stable way to trade because it removes the hunch from your trading. You’ll be making trades on numbers and strategy instead- definitely the way to go.

Need a real time market scanner? Also known as a screener, radar screen or quote board in other trading software’s definitions. Essentially, this looks Excel-like and can help you visualize thousands of streaming real-time quotes all at once. Once you are familiar with this function you can also add technical indicators to help get insight into the market. If you were to summarize its function, it would be to monitor and research, but also organization. Because you can spot multiple symbols simultaneously, this means a chance to see more opportunity. It’s a beautiful thing and this software seems to be the leader when it comes to screeners. The idea behind the screener is to allow you to see a bigger picture, meaning setting different resolutions to different row. This allows for easier monitoring of trends via different rows. You can even make templates to use for references. Multicharts also has a cool feature that will allow you to view a chart with a single click, and then create a unique trend histogram- the purpose being visualizing market dynamics without building a chart (although the full sized chart is available if needed.) You c an also scan and sort quite easily. If you use this in combination with hundreds of markers, you can easily dominate the market. Both visual and audio alerts from the scanner help keep you on task as new trends happen. You can even setup email alerts. Use these features; ten group the symbols to make it easy to view. You can then setup distinct and important sectors of a particular industry and monitor lots of data all in one place. Multicharts then allows you to export this data to Excel easily.

If you’re familiar with TradeStation Securities, then you’re probably familiar with the programming language that they developed called EasyLanguage. It’s a relatively easy language to learn without a lot of training, but it’s powerful for trading. It has taken over 20 years to develop, but what makes it unique is that it is one of the biggest collectiosn of trading ideas in the world. The EasyLanguage indicators and strategies are not a secret; in fact most traders have access via the internet or major trading publications. Multichart users, however, have an advantage over traders that choose other trading software, because it is easily compatible with EasyLanguage. This wasn’t something that was easy to accomplish.

Finally, a feature called portfolio backtesting is a tool included in Multicharts that provides some powerful benefits for the user. Please, don’t get portfolio backtesting and regular strategy backtesting confused, as they are actually very different because with portfolio backtesting we are looking at all the instruments in your portfolio as one whole. This is a very powerful tool. Essentially, if you were trying to define portfolio backtesting, you’d say you were trying to apply one or more strategies to many instruments at once. You use the historical data available and gauge the performance as if all the symbols were traded with the same strategy. You can also use different resolutions for various symbols. The brilliant part of this is that you can use more than one trading strategy for portfolio backtesting.
As we’ve shown, Multicharts has six key parts that make it powerful trading software: chart analysis, choice of brokers and feeds, automated trading, real-time market scanner, EasyLanguage friendly and Portfolio backtesting. It is the combination of these parts that make this software both unique and extremely powerful. In the past we have examined other trading software, but it would appear that based on functionality, awards and more that Multicharts leaves the competition in the dust. They have become industry leaders for day traders that are looking for solid software that performs. Sure, you’ll spend a pretty penny for the software (staggered pricing ranging from $99/month up to $9900 for a lifetime license) I think you’ll find that for a professional trader, Multicharts really does provide you with everything that you need to trade successfully!

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