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Insight Trader v18.1 Insight Trading Pty Ltd ACN 009 946 932 02 4751 2932 New features implemented in Insight Trader version 18.

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Presentation on theme: "Insight Trader v18.1 Insight Trading Pty Ltd ACN 009 946 932 02 4751 2932 New features implemented in Insight Trader version 18."— Presentation transcript:

1 Insight Trader v18.1 Insight Trading Pty Ltd ACN 009 946 932 02 4751 2932 New features implemented in Insight Trader version 18

2 Disclaimer This presentation refers to certain securities and portfolios of securities only to illustrate the philosophy behind certain developments in Insight Trader software This in no way constitutes a recommendation to buy or sell any of the securities mentioned that may or may not be suitable for your personal circumstances Past price performance is not necessarily any guide to future price direction Before investing in any security you should seek the advice of an appropriately licenced financial advisor Neither Insight Trading Pty Ltd nor any of its officers, servants, agents, independent contractors or otherwise are licenced financial advisors 2

3 Warning The performances, over a very limited time period, of the two portfolios of stocks used in this presentation have influenced the development of new tools in the Insight Trader software that may assist in stock selection These tools are simplifications of the actual methods used in the Experimental Portfolio and have not themselves been tested in practice Stock selection is only one component of a whole strategy that ultimately determines portfolio performance where amongst other things management of any holdings is critical Overall performance of a strategy cannot be properly assessed until it has been demonstrated over at least one but preferably more bull-bear cycles 3

4 In creating a presentation on incremental changes to disparate parts of a software package it is difficult to produce a coherent continuous and interesting narrative. Instead such a presentation will of necessity be piecemeal. Nevertheless I will try my best to maintain your interest. 4

5 Two main themes mark this upgrade 1.Two new proprietary indicators Velocity and Behaviour – global throughout the program – that are targeted towards improving your returns 2.The incorporation of important portfolio information into the charting display In addition we have introduced a large number of other miscellaneous features designed to expand speed up and simplify your analysis. 5

6 First let us look at the interface changes There are changes to the 3 toolbars 6

7 Four new main toolbar buttons Risk Calculator Arrange charts by Velocity Arrange charts by behaviour Show Portfolio trades and other info on charts 7

8 Two new Portfolio toolbar buttons Generate/Update Equity curve Convert Commsec Today file 8

9 3 new Floating Toolbar buttons Velocity Behaviour LRGR 9

10 And on the indicator menu I 10


12 Why Velocity? Why Behaviour? Velocity was on the drawing board for several years The performance of our Experimental Portfolio encouraged us to bring it forward It has been designed as a simplified and rapid way to emulate the analysis behind the Experimental Portfolio although it is not exactly the same 12

13 What are they? Velocity is a single value measuring the rate of price increase based on the compounding rate of price growth from three different time frames Behaviour assesses a type of statistical volatility that is not captured by traditional measures such as ATR or Bollinger and acts so that the smoother the price change over time compared with the rate at which it is rising or falling the closer this indicator approaches 100% 13

14 Velocity Velocity is expressed in terms of percent per annum compounding (%pa cpd) and can range from minus 100 %pa cpd to plus several thousand %pa cpd. If for example a security displayed a Velocity of 100%pa cpd what this means in practical terms is that if it continued to exhibit the same Velocity over two years then at the end of the first year it would have doubled while over two years it would have quadrupled in value. 14

15 The Experimental Portfolio In October 2012 we set aside $100,000 to create a new real portfolio (The Experimental Portfolio) to test the performance of a new trading strategy against that used in our existing long standing portfolio (Main Portfolio) This comparison was maintained until the end of March 2014 – a little over 17 months 15

16 The Experimental Portfolio This is the portfolio as it stood at 16/3/2014 16

17 And these are the relative performances Currently standing at over 70% the cumulative outperformance of the Experimental Portfolio over the 17 months is noteworthy 17

18 This was of particular interest to us And it stimulated us to ask what would be the absolute upper limit of performance that one could possibly expect to achieve in a buy and hold portfolio composed of financially respectable stocks over the same period With the benefit of complete hindsight we cherry-picked the 12 best performed stocks we could find and notionally invested in a hypothetical portfolio, on 2 June 2012, $8.3K in each for a total of $100K 18

19 The Hindsight Portfolio This is the Hindsight portfolio as it stood as of 16/3/2014 19

20 And these are 2 portfolios compared with the All Ords accumulation index So even the Experimental is only 30% of the way to achieving the theoretical maximum return 20

21 So what special attributes characterise the 12 Hindsight Stocks 1.They are financially strong (Stock Doctor rated) – 6 are Star Stocks (almost a quarter of all stars) – 3 are rated Strong and 1 Satisfactory – 2 are Early Warning 2.They all have high rates of price growth 3.Their growth is smooth and steady without wild erratic swings (ie low swing volatility) There are a total of only 26 star stocks in the Stock Doctor universe and we unknowingly chose a quarter of them for this portfolio 21

22 How do we find such stocks For: Financial Health – Can use Stock Doctor or instead scan with Insight Trader with appropriate fundamental criteria Price Growth Rate – Can use Velocity Smooth and steady growth – Can use Behaviour 22

23 Let us look at one of the stocks CAJ has spent over a year with a Velocity of between 100-700% pa compounding The Behaviour Index has been above 90% for most of that time Velocity = 100%pa cpd Behaviour = 80% 23

24 Most of the 12 Hindsight Stocks Have spent around 12 months growing with a Velocity between 100-300% pa compounding Simultaneously they have exhibited values of Behaviour Index of between 80-100% for a similar period 24

25 Velocity and Behaviour values are also immediately accessible on the F12 databox 25

26 Filter reports are ordered on Velocity so that the fastest rising stocks are at the top of the list and seen first

27 And a column for Ranking Number has been introduced into the reference lists to allow the position in a list to be assessed for any particular stock

28 Filter list is ordered on Velocity Velocity Behaviour Ranking column 28

29 Velocity & Behaviour are also implemented as Systems Functions 29


31 Important Portfolio data is now incorporated into the charts But we need to first look at the changes in the Portfolio Manager itself

32 Portfolio changes Risk calculator has been extended to incorporate: – New risk management scheme for existing units – Risk posed by illiquid stocks – Limit posed by remaining available cash Can toggle a stocks daily change between % or $ Daily change in whole portfolio displayed at top The portfolio summary has four new columns – (i) Velocity (ii) Behaviour – (iii) % of Daily tover (iv) max addnl purchase possible 32

33 Changes to Portfolio Summary Daily change in pfolio How much more can I buy Percent of daily turnover Behaviour Velocity Toggle button to display between daily % change / $ change 33

34 New Scheme for Risk Management Three methods are now available that differ in the way they treat the contribution to the total risk arising from existing units. These risk contributions are as follows: Method: 1.Colin Nicholsons scheme as outlined in his books Risk=current price – sell stop price 2.Colin Nicholsons scheme predating his books Risk=MAXIMUM(averagepricepaid – stopprice,0) 3.An amalgamation of 1 and 2 Risk=MAXIMUM(averagepricepaid,currentprice) - stopprice 34

35 New Scheme for Risk Management In addition we assign a risk to the total portfolio from all possible positions, say 16% This is then multiplied by the % parcel size, say 6% To give a risk for that 6% parcel of 6% x 16%=0.96% This scales the risk according to parcel size 35

36 Method 3 addresses several issues In certain scenarios in Method 1 you could lose over twice as much as you had bargained on For certain scenarios using Method 1 in order to get your full complement in successive purchases your stop had to move closer and closer to the buy price In Method 2 if the average price paid for existing units is below the stop the maximum allowable purchase remains fixed no matter how many extra parcels are purchased until the average price paid rises above the stop 36

37 This is the new Risk Calculator Set total risk from all positions Set liquidity risk as % of turnover If box ticked then position limited by: Risk to total capital Total maximum position size Average daily turnover Remaining cash available 37

38 Now we are in a position to see how this portfolio information is integrated into the charting function 38

39 Load a Portfolio, chart a stock and then toggle this toolbar button 39

40 Portfolio data displays on charts 40 Toggle the button again and …….

41 Portfolio data is removed 41 Toggle the button again and …….

42 Portfolio data displays on charts Buy flags Buy flag Sell flags How much do I currently own How much capital profit have I made How much more can I buy Average buy price for all open positions 42


44 Miscellaneous 1 Soft stop implemented AutoEnvelope Ctrl F2 accesses FT.COM fundamentals website Extended fundamental information can be imported from other programs and websites for display, scanning and analysis Run profitability tests in batches for a number of systems for list of securities with single click Get data button 44

45 Soft Stop 45

46 Soft Stop A soft stop has been implemented by placing a slash after the figure for the hard stop and entering the value of the soft stop optionally followed by an h l or c. The letter will override the global setting for whether stops activate on the high low or close eg: 32/43c The other two stops can similarly be overridden 46

47 Soft Stop on High Low or Close 47

48 Alex Elders AutoEnvelope 48

49 AutoEnvelope You can set the Moving Average Envelope function to operate automatically to completely enclose at least say 95% of the bars You can alter the number specifying the maximum percentages of the bars say 5% that can extend out of the envelope by calling up the 'Default Parameters for Indicators' dialog box and entering say '5' in the 'Band' field for 'MA Envelope'. This will ensure that no more than 5% of bars extend out of the envelope 49

50 AutoEnvelope The envelope will automatically adjust to just enclose say 95% of the bars displayed 50

51 Financial Times Website 51

52 Accessing the FT.COM website From the currently active chart simply pressing Ctrl F2 will take you immediately to the Financial Times website page displaying extensive fundamental data on that particular stock 52

53 Financial Times website - Ctrl F2 53

54 Extended fundamental information using CSV files Obtain data from other programs and websites in the form of CSV files to supplement or replace existing fundamental data for searching and display 54

55 Expand Fundamentals with CSV files Display data (eg from Stock Doctor CSV files) Searchable data (eg from Commsec CSV) Database Manager (can be overridden by CSV files) 55

56 Run profitability tests in batches Run profitability tests in batches for a number of systems for list of securities with single click 56

57 Run batch of Systems for list of codes 57

58 Get Data Button 58

59 Get Data button on Reference List The Get Data button on any Reference List dialog allows Fundamental and Technical data for all companies in the list to be retrieved and tabulated 59

60 The Get data button 60

61 Data Retrieved 61 And it is automatically ordered on velocity

62 Miscellaneous 2 Extend alarm lines across chart with ~ key Zoom submenu provides preset time ranges Quickly list files for all available portfolio Equity curves Refresh all charts on screen - press ENTER Reverse F12/Ctrl F12 Export to Excel selected columns from Filter list Kill all Today files Reset all EMF files How far is my stop away display Quickly access HILITE.LST F12 turnover shows today this wk this mth More lists of standard ASX codes 62

63 Extend alarm lines across chart with the ~ key 63

64 Press the ~ key (unshifted) 64

65 Alarm lines extend 65

66 Zoom submenu Provides preset time ranges 66

67 Zoom submenu 67

68 List all available Portfolio Equity curves 68

69 Quickly list all available Equity curves You can quickly access a list of all available files of portfolio equity curves by simply pressing a button on the Load new security dialog 69

70 List Available Pfolio Equity Curves 70

71 Refreshing all Charts on Screen Previously you would have had to reload a saved chart arrangement or individually and manually update each chart on the screen eg to display new data

72 Now just hit ENTER To refresh all charts on screen For example: To update to new data on all charts (eg after a Datacapture or an intraday update) To extend/reduce alarm lines on active chart to all charts To hide/reveal detailed data and alarms To display or remove portfolio information on all charts in the arrangement 72

73 Reverse F12/Ctrl F12 to simplify access to most used function If you access the extended Ctrl F12 data box more frequently than the shorter F12 data box then reverse them to save finger movements

74 You can reverse F12 / Ctrl + F12 F12 Ctrl+F12 By ticking here To produce 74

75 Export selected columns from Filter list to Excel 75 This happens automatically whenever you print the filter list If you do not require a printed report then back out before the final printing process

76 Specify Columns to be exported from FILTER list to Excel 76

77 Then access the Filter List and choose Print and then back out of the dialog Ctrl+ This creates the file HiliteLV.CSV in the folder WINIT\WORKING\EXPORT 77

78 Kill all Today files 78 Cleans out all old Today files including todays

79 Click here to Kill All Today Files 79

80 Reset all EMF files 80 Deletes all EMF files in the WORKING/EMF folder

81 Click here to Reset All EMF Files 81

82 How far away is my stop 82

83 In the caption bar of any chart you will see figures giving you the percentage distance that your stop is away from: – The recent peak – The last price How far away is my stop 83

84 How far away is my stop How far is my stop from the recent peak How far is my stop from the last price 84

85 Rapid Access to HILITE.LST Saves having to wade through several menus and dialog boxes to access the tabulated list

86 Shift + Lightbulb Shft + For narrow list 86

87 Ctrl + Lightbulb Ctrl + For extended Filter List 87

88 F12 Turnover figure explicitly specifies today, this week or this month This avoids confusion when the compression of the file in question is not daily

89 Turnover Today, This Wk, This Mth @D@W@M 89

90 New Standard Lists of ASX codes Updated weekly by Database Manager 90 Top 100 Top 200 Top 500 Codes of all Small Ords stocks Codes of subindices of ASX Codes of sector indices of ASX

91 Miscellaneous Portfolio Benchmark your portfolio both against a fixed target growth rate and also against the cumulative growth of a benchmark index eg XAO Accumulation Index Additional report on Portfolio Statistics Checkboxes facilitate reconciliations in Account Transactions Import your own transaction list from Commsec into PM Autofill Paydate with T+3 in Security Transaction dialog Export to Excel columns from Portfolio Summary Export to Excel columns from Account Transactions Resized Portfolio Summary columns stick within & between sessions Display all sold securities – only for date range 91

92 Benchmark your portfolio Benchmark your portfolio both against a fixed target growth rate and also against the cumulative growth of a benchmark index eg XAO Accumulation Index 92

93 Set Performance benchmarks 93

94 Toggle between Growth Rates and Cumulative Growth Benchmarks Portfolio growth Portfolio Growth Rate Securities Growth Securities Growth Rate Cumulative percent period growth for: Portfolio Target Securities Benchmark Index eg All Ords Accum 94

95 New Report on Important Portfolio Statistics Standard portfolio performance statistics for trades both closed within the period plus those still open or just only those closed. The final seven values require a portfolio equity curve to have been recently generated. 95

96 Portfolio Statistics Report 96

97 Checkboxes to facilitate account reconciliations Tick boxes where transactions have been processed so they will be added to the Balance column to enable easy reconciliations with bank statements 97

98 Tick the processed transactions 98

99 Import transaction lists Import your own transaction list from Commsec into the Portfolio Manager 99

100 Import Commsec transactions Only Buy transactions are imported as personal decisions need to be made as to which parcels are to be sold whenever there is a Sell transaction 100

101 Autofill Paydate with T+3 in Security Transaction dialog So that the date of the financial transaction in your bank account correctly occurs 3 business days later than the security transaction on the exchange 101

102 Autofill Paydate field for T+3 102

103 Autofill Payment Date with T+3 Set transaction date Payment date filled automatically with a date 3 business days later 103

104 Export selected columns from Portfolio Summary to Excel 104 This happens automatically whenever you print the relevant report If you do not require a printed report then back out before the final printing process

105 Specify the Summary Columns to export Go through the same process to specify the Account columns to export 105

106 Then Access the Printer preview but back out before the printing process This creates the file PfolioSummaryLV.CSV in the folder WINIT\WORKING\EXPORT 106

107 Export selected columns from Account Transactions dialog list to Excel 107 This happens automatically whenever you print the relevant report If you do not require a printed report then back out before the final printing process

108 It is the same process for Exporting the Account Transactions to Excel This creates the file AccountLV.CSV in the folder WINIT\WORKING\EXPORT 108

109 Adjusted column widths in Portfolio Summary sticky within and between sessions 109

110 Adjust column widths and the changes will stick within and between sessions Adjust column separators to suit 110

111 Portfolio Display all sold securities now shows only those sold in the current displayed Date Range Previously all securities sold within the total history of the portfolio were displayed

112 Display all sold securities now shows only in date range - not in all history 112

113 Those are the main changes in Insight Trader v18.1 See Help / Recent Enhancements for further details on all features mentioned 113

114 Questions

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