Self-Driving Omni Traders
By Ed Downs
In the webinars I host, I often visit with people who have been “Omni Traders” as far back as 1994, when version 1 was first released. And many have written about their successes over the years, and that they always come back to OmniTrader.
What is it about OmniTrader that makes it so unique among all the trading software out there? For me, it’s the continuous and relentless pursuit of automation. While Nirvana is the only trading software company dedicated to the “automated trading” mission, other industries have been adopting automation for decades.
Automated systems are all around us. In the home, dishwashers and thermostats are automated. Cars have automatic braking systems, cruise control and vehicle proximity alerts. Every time a driver gets behind the wheel, he or she uses these systems to get from point A to point B without even thinking about it.
Automatic driving intelligence, which has become known as “self-driving cars”, is a new layer of automation that operates on top of the other systems of the vehicle, capable of making decisions a driver would previously have made.
In the same way, OmniTrader has many automated features that reduce work, automatically provide trading ideas, and help traders succeed. A few of the unique automated systems in OmniTrader include...
•Automatic Signal Generation using a Voting process
•Automatic Back Testing and Incremental Optimization
•Automatic Trade Management using Trade Plans
•Automatic Chart Pattern Recognition
•Automatic Option Trade Selection
The Adaptive Trade Management System (ATM), by Omni Traders International, operates on top of this framework, and is like “self-driving technology” for OmniTrader. ATM automatically selects the best trades, and applies long/short balancing and allocation depending on the market environment. It can adjust total allocation to be more or less aggressive depending on market risk, and can “apply the brakes” and go to cash if the market becomes too volatile.
Full Automation vs. Automatic Assist
The image in this blog is of the Guardian Angel autonomous vehicle system being adopted by Toyota, in which automation is combined with human intelligence.
“Toyota sees big benefits from “guardian angel” autonomous driving: The driver is always in control until he or she messes up and a crash looms, and then the car takes over. Toyota will continue working on traditional, fully autonomous (Google- and Tesla-style) vehicles as well.”
While ATM is capable of completely automating trades with a broker, it can also be run in manual mode, enabling the investor to select among the trades that ATM recommends. The user can also activate ATM to run under AutoTrade, but review and approve the trades each day before they are submitted.
The ultimate goal of the ATM project is to add the technology into OmniVest, the automated trading platform built around Nirvana Strategies. The good news is, users can benefit from using the technology in OmniTrader now. The version created for OmniTrader will continue to be supported, because that is where new ATM ideas will be built and tested.
Omni Traders International, LLC is pleased to provide licenses to ATM for OmniTrader users now, ahead of its adoption in OmniVest. The OmniVest version is expected to be completed before the Nirvana Club meeting in June 2018. We expect the ATM technology to continue to advance in 2018, both in terms of features of the software and the applications our users create with it.