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With Ed Downs
By Omni Traders International, LLC
ATM Goal: High Returns, Less Risk
ATM Market State, Filtering,
Balancing, Ranking, Allocation
ATS Ranking Only.
Strategies ONLY
Agenda for Part 1
UsingATM “How do I use the Universal Method every day?”
Symbol List “What symbol lists should I
consider?”
Strategies “How do I figure out which
Strategies to use in the software?”
Optimization “Should I optimize anything?
When and How?”
Getting Started
Install & Test • Installation • ATM Toolbar • ATM Interface • Activation • Run ToDo List
Trading in Paper or Brokerage • Allocation • AutoTrade • Times to Run • Caveats
User Guide: http://downloads.nirvanasystems.com/ATMS/ATMS.pdf
ATM in OmniTrader
ATM Tool Bar
ATM List
AutoTrade
Focus List Columns
Securities: More is Better
Because ATM is RANKS Signals to find the best ones, having a good supply is best. The UNIVERSAL method used the Nasdaq 100 and S&P 100 (200 symbols) by default. The OmniScan feature in OmniTrader that makes it easy to expand the list.
OmniScan – Liquid Stocks
Top 300 Liquid Stocks
Liquid Stocks Selected
Sort on Liquidity
Avg(C,14) * Avg(V,14)
4,000 Optionable
IRA: Long Only. No Margin
$227 M
Average ROI: 64% Average MDD: 16%
By Mark Holstius See http://downloads.nirvanasystems.com/atms/posts.html
Strategies: More is Better
Using More Good Strategies is better for the same reason more Symbols is better – More Signals to Rank. We can use OmniTrader’s analysis to identify the best population... And THEN use ATM to find the best Mix.
Page 12 of User’s Guide
Strategy Selection
Select all Strategies in the Strategy List that are MECHanical.
Run the ToDo List Performance
Select the top 7-10 top performers
Best RTM Strategies
Strategy Direction Hit Rate PPT
Fib. Extension Long 70 0.97
MVX-15 Long 70 0.98
RS1-Timing Long 73 0.79
SS Pullbacks Long 65 1.15
XLS-19 V2 Long 70 1.02
X-MFI Long 71 0.82
X-PRC Long 71 1.63
X-STO Long 71 1.58
X-ULT Long 72 1.02
NSP-41 Long/Short 62 0.35
RTM7 Long/Short 66 0.38
VBX3 Long/Short 62 0.24
Test Run
A run using these Strategies in each Market State showed favorable results. Avg Ann ROI: 44% Avg Ann MDD: 11%
Optimization in ATM
The following things can be optimized in ATM:
1. Ranking Weights
2. Trade Allocation
3. Strategy Selection
4. Formula Parameters
Users who make changes to
“Universal” may want to optimize
1 & 2
Targets for Optimization
Optimization Methods
There are 3 ways to optimize values in ATM:
• Exhaustive
• Incremental
• Bisection
Exhaustive will try every combination of every parameter in a market state. 10 * 10 = 100 iterations Incremental optimizes one parameter at a time in a market state, using defaults for the other values. 10 + 10 = 20 iterations Bisection will successively divide the range in half in to more efficiently search it, and stop when the improvement is less than the given Convergence %.
Ranking Weights
Different Symbols will react differently to the ranking indicators. Optimize the Weights to find the best solution.
Ranking Values
Allocation
We can adjust Long/Short balance through optimization in any Market State.
Optimizing Max Longs and Max
Shorts.
IMPORTANT: Set “Min” to 1 and “Max” to 10 and check “Optimize”
After saving settings, click “Run Analysis”
After Optimizing any parameter(s)
Copy Parameters
Un-Check “Optimize”
OmniVest Forum Resources
Members are posting about how they are using ATM in the OmniVest Forum. For those who do not have access to the Forum, the following page may be accessed to read copies of specific posts.
http://downloads.nirvanasystems.com/atms/posts.html
Preview of Part 2
Ideas for Improving Performance Further:
1. Creating new Market States, including “micro states”
2. Apply Filters to isolate the Best opportunities in each Market State
3. Exploring the latest insights from Forum posts and user experiments.
The Incredible Power of ATM
Never before have we built technology that is GENERALLY this powerful. Expect more updates as we continue to learn about the market and leverage this powerful tool.
Without ATM
With ATM
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