Today we are publishing an interesting overview of our web terminal made by our partner, journalist and financial analyst Sergey Golubitskiy. He reviewed the selection of instruments available in EXANTE terminal and found out, if it is convenient for his personal trading needs.
Trading is a sphere where the current state of things matters much more than any plans for the future, however grand they are. For this reason, although it is a rather arguable initiative to review a constantly developing piece of software, today I will take a glance at EXANTE ATP, trading terminal developed by the homonymous prime broker (exante.eu). What I want to focus on is its functionality, and the opportunities it gives to predict the future of assets, in particular.
Any trading activity is in this or that way connected with the attempts to rule — or at least to predict — the future. One may follow the news, watch the price charts or analyze the reliability of companies, but it is all aimed at ensuring that his position is safe and profitable.
To what extent is the future prone to prediction? Well, there are two polar viewpoints on that. Some say that the special people already know some secrets that automatically put all the world wealth into their pockets. The opposite point of view is that the economy is absolutely unpredictable, and even the analytical instruments that seem to be efficient are nothing more than a trick for newbies. But none of these viewpoints reflects the reality, in my opinion.
Those who insist on market unpredictability must have never seen fundamental and technical analysis in action. Those who believe in the global conspiracy significantly underestimate the way the world is organized. The world economy is a giant mechanism that is affected by billions of factors and people, including the most, it seems, insignificant economic agents. It is very naive, in fact, to believe that this jumbo is ruled by a group of forecasters and manipulators who know the secrets. The complexity of the system does not necessarily mean its unpredictability: on the contrary, the general mechanisms always remain the same, and they are very likely to react similarly to similar factors.
For the trader, it is very important to find a balance between these two polar viewpoints, and to act in the paradigm of knowledge maximization: the more techniques, methodologies and instruments they can apply in the market analysis, the more likely they are to achieve success.
I have selected a number of tests that help me create a representative view on the current market state based on my personal experience. I usually take into account indicator analysis, visual and wave patterns, spectral analysis, neurons, and a number of macroeconomic indicators, as well as numerous fundamental analysis ratios.
In this article I would like to focus on the EXANTE web version.
We will observe futures on RTS index, the most popular and liquid instrument of Moscow Exchange. This is what its chart looks like:
First of all, let’s try the indicators of trend power. I usually use Parabolic SAR, Aroon and Vertical Horizontal Filter. Parabolic SAR and Aroon are available in EXANTE terminal, and this is how they are visualized:
Vertical Horizontal Filter has not been included yet.
As for me, momentum indicators are more important in analysis, that’s why let’s check if the widely used Stochastic, Williams' %R and Relative Momentum Index, RMI are available in EXANTE. Well, they all are present in the terminal features list.
Here is the classic Stoch. Its visualization is quite vivid.
This is Williams' %R.
And here is RMI. In the terminal it is called Chande Momentum Oscillator.
Well, so far we have found six out of seven instruments, which is rather favorable. Let’s now try to find another four indicator systems which are definitely my favorite: Directional Movement (DMI), LRS +r-squared, Ishimoku Kinko Hayo and Profitunity.
Here are DMI and Ishimoku.
From my point of view, the color scheme of Ishimoku is not quite optimal. It would be nice to let users choose color schemes themselves. In the current interpretation, the display of kumo (zone between Senkou A and Senkou B) is rather confusing: usually the cloud is blue when Senkou B is higher than Senkou A, and red when Senkou A is higher than Senkou B.
Unfortunately, I could not find Linear Regression Slope and r-squared. Profitunity by Bill Williams is available in EXANTE terminal, but it is represented only by Alligator, so it becomes useless because fractal signals and oscillators like Awesome Oscillator, AO and Acceleration/Deceleration, AC, and Market Facilitation Index (MFI) are unavailable.
I also use visual constructions like Gann charts and Elliott wave theory. Gann is present, while Elliott has not been added yet. This problem can, however, be easily solved by using specialized technical analysis packages like Elwave.
All things considered, I would say that the current state of EXANTE terminal is satisfactory for most operations required by traders. The rest can easily be covered by using so-called dedicated packages. In any case, it is worth remembering that EXANTE is developed for trading, not for pure analysis, so the current functionality is quite sufficient for its purpose.