Getting Started with the Create Tab

This discusses how to use and the features of the Create tab within TradeMachine.

How to Use the Create Tab in TradeMachine

The Create tab in TradeMachine is a powerful tool designed to help you visually and computationally develop successful trading strategies based on technical analysis. This guide will help you understand the key features and how to use them effectively.

Real-Time Quotes and Technicals

• Real-Time Quotes: The Create tab provides real-time, automatically updating stock quotes throughout the trading day.
• Show Pivot Points: By clicking "Show Pivot Points," you can view various moving averages in real-time, as well as Fibonacci extensions and other technical indicators.

Earnings Settings

• Toggle Earnings: You can toggle between "Never Trade Earnings" and "Hold Through Earnings" settings.
• Never Trade Earnings: This option creates a blackout window two days before and two days after earnings, closing trades and preventing new trades during this time.
• Hold Through Earnings: This setting allows you to hold positions through earnings.

Building a Technical Analysis Visual Chart

• The Create tab allows you to build a visual chart profit builder. You can drag and drop technical conditions onto the chart to see triggers visually and analyze trading results computationally.
  • Example: For example, if you want to analyze a Bollinger Band Buy the Dip breakout for a stock like Facebook, you can choose the Bollinger Band breakout and select the conditions (e.g., crossing up through the lower band, three standard deviations).

Analyzing Trade Results

• The right-hand side of the Create tab displays the results of your triggers over various timeframes (e.g., 1, 5, 10, 22 days, etc.).
• You can also view key statistics such as win rate, average trade return, and maximum drawdown.

Creating a Backtest

• After defining an opening trigger, you can refine it further by clicking "Test Trigger." This brings you to the backtest tab.
  • Example: You can test different strategies, such as a call diagonal or a short put spread, to see which provides better returns and win rates.

Testing Common Indicators

• You can test popular indicators like moving averages or exponential moving averages in combination with other metrics like the VIX to gauge market conditions.
  • Example: You might test a scenario where the 10-day exponential moving average crosses above the 50-day SMA, combined with a VIX level above 18.

Instantaneous Technical Analysis

• The Create tab enables instantaneous visual and computational analysis, allowing you to test technical triggers effectively.

Conclusion

The Create tab in TradeMachine is an innovative tool that combines visual chart analysis with real-time technical data and computational analysis. By following this guide, you can develop and test effective trading strategies that align with your investment goals.

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