OmniTrader employs a Trading Strategy to generate signals and exits.  Trading Strategies are unique to each profile in OmniTrader. For example, the Breakout Profile uses systems and settings to bring candidates to our attention that are "breaking out" of a consolidation or "breaking away" from the previous trend direction.  (To learn more about the specific profiles in OmniTrader, refer to Chapter 4 of your OmniTrader guidebook.)

The Three Step Process

Trading Strategies use a Three step process to generate signals and exits:

1. System Testing: OmniTrader tests all of the active systems in the profile to find the most profitable systems for each security. 

2. Signal Generation: Once the systems have been selected, OmniTrader applies the Adaptive Reasoning Model to the systems to arrive at consensus signals.

3. Trading Model: Before the generated signals are reflected on the Vote Line, they must pass any Signal Filters that have been applied in the Trading Model.  Once the signal makes it to the Vote Line, it will stay "in trade" until one of the Exits in the Trading Model cause the trade to exit.

You can view a profiles Trading Strategy by clicking on Edit and selecting Trading Strategy.

The Trading Strategy Window in OmniTrader

In the next few OmniTrader Tips, we will look at the individual components of a Trading Strategy.

Regards,
Jeff Drake
Director of Education
Nirvana Systems
jdrake@nirvsys.com.