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Part
III: Trading Model
The
Trading Model Window in OmniTrader
Trading
Models: A Trading Model consists of
Entry Filters and Exit Rules. Once OmniTrader
has generated a signal to be shown on the vote
line, it will need to pass any filters that are
in the model before it will be reflected there.
One the signal makes it to the vote line, it will
stay "in trade" until one of the models
exit rules cause the position to exit.
To explore Trading Models further, we are going
to look at the Short Term Trending Model (displayed
above). Click on the Edit Model button to
look at the filters and exits more in depth.
Entry
Filters: OmniTrader can create
Entry Filters based on the indicators provided
in the program. In this model, we see that
an exponential moving average is being used as
a filter.
The Entry Filter for the Short Term Trending
Model
In the
bottom right corner of the Entry Filter Window,
we see that this filter is used a 40 period exponential
moving average. You have the ability to
adjust the definable parameters of an indicator
to customize your filters as well.
Exits:
The Exits tab shows which exit rules are being
used in the current model. In the Short
Term Trending model, we are using the Eighth's
Stop and a Fixed Loss Stop.
The Exits Tab in OmniTrader
Similar
to filters, you can adjust the definable parameters
for each exit rule as well. Chapter 4 of the OmniTrader
guidebook explains each of these exit rules in
detail.
The
final tab, "General", allows you to
define the number of periods OmniTrader will use
in calculating ATR (Average True Range) values.
Anywhere you see the term ATR in OmniTrader (mostly
in the Trading Models) will use this parameter
to calculate its value.
Trading
Models give you the ability to use the same profile,
but select different models that are looking for
specific types of signals and exit strategies.
Feel free to experiment with Models, but be sure
and save any changes under a different name, as
you will want to maintain the Trading Models provided
by Nirvana Systems.
This
concludes our discussion on Trading Strategies. Chapter
4 of the OmniTrader guidebook contains in-depth
information on the topic, as does the Help file.
Best
of luck with your trading,
Regards,
Jeff Drake
Director of Education
Nirvana Systems
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