Recent trends in trading behaviour show that traders are increasingly using chart analysis to establish new trading positions. Accordingly brokers are providing clients with charting packages tailored to all levels of experience.
As expert traders seek to find an edge in the market they are more likely to use a wide variety of customisable technical indicators. This flexibility, not simply following the most commonly used charting indicators, can be crucial to a successful trading plan.
InterTrader offers the advanced charting package from IT-Finance to meet exactly these needs. The charting package is fully integrated with the InterTrader web-based platform allowing traders to access charts for any market quickly and accurately.
While most basic charting packages focus on drawing trend lines and creating Fibonacci calculations, the advanced charts from IT-Finance offer more than 70 different indicators that can be applied to any chart, either alone or in conjunction with each other.
Click any indicator to access a short tutorial, explaining the calculations used by the indicator and how it is normally employed by traders. You can then select specific technical parameters as they align with your individual trading plan.
Perhaps the biggest advantage of the advanced charts is the level of customisation you can use to fit your specific trading style. You can alter the colours and styles of your charts so that certain trading conditions can be more easily identified, or alter the indicator presets to assess price performance within a wider array of perspectives.
What many traders fail to understand is that, most of the time, indicator calculations follow a set formula that may or may not be best suited for certain types of trades. The programming language of the advanced charts, ProBuilder, allows you to customise these presets and view price activity in perhaps a different way to the majority of the market. This potentially allows you to identify and enter into trades before the rest of the market.
Indicator modifications can be saved and templates built for quick access at a later date. Before long you’ll have built a customised set of charting tools for any market situation.
Find out more about the ProBuilder language in our Advanced Charts: ProBuilder Guide.
Another feature that will likely be of use to experienced traders is the ability to apply strategies to historical price data, to see if the method has a successful track record over time. This is also referred to as ‘backtesting’ and is a way of determining whether or not a strategy would have worked in the past, and could prove useful in the future.
The ProBacktest application allows you to create a new backtest either by programming or by using the in-built wizard. As you define your backtest you can set money management parameters and trigger trades based on indicator settings and price behaviour to see how trades play out over large historical timeframes.
Statistical reports are generated which outline the success or failure of the trading strategy, including return on investment figures, trade numbers, frequency of position entries and a detailed list of specific price levels where trades would have been initiated and closed. In addition to this, an equity curve is generated, showing account growth over the timeframe of the test.
Many experienced traders would not risk money on a strategy that has not been tested in this fashion. The ProBacktest application makes such tests relatively easy to complete.
Once backtesting exercises have been run, you can then alter your trading parameters to try to maximise gains and limit risks, fine-tuning your strategy. Further tests will likely be required so you can compare different conditions and decide your preferred strategy.
For more on backtesting see our Advanced Charts: Backtesting Guide.