Trade Point Technologies

	A New Paradigm for Retail Proprietary Trading Operations

	Information = Equity

	The traditional paradigms of the operation of retail proprietary trading desks have put that business into a state of flux. A new model for these operations suggests that the operator take a bigger stake in enhancing individual trader success. That he provide his traders with a level of trade decision support technologies and training that make the carefully selected candidate a favorite for success. Operators who could provide such technologies and training would be more interested in trading profits than in commissions. Successful traders would be tied to the technologies and the operator could be very selective of future applicants. Long term trading success is not about instinct, divine inspiration or spontaneous intellectual combustion. It is about intelligent data processing and sound method. Breakthroughs in financial data processing, data visualization and the development of higher frequency trading protocols provide the astute operator with the opportunity to provide this higher level of trade decision support technologies, protocols and training. This article discusses the practical application of intelligent/predictive agents to today's financial data streams. The proper application of the same technologies that track missiles in three dimensions at mach 2 can now be used to look at least a few minutes into the future of the price/time/volume continuum that describes today's world financial markets. Such technologies as neural networks, genetic algorithms, decision trees and rules generators can facilitate the construction of certain smart applications such as our Market Heads-Up Display (HUD). This application serves as an EKG/EEG, cat scan, and pressure monitor of the market and reports changes in the market's condition in real time. In addition to other information, the HUD posts specific TradePoints for entries, stops. scalp profit prices or a "No Trade" recommendation in 7 different time frames. These TradePoints, the velocity of trade, commercial bias and others are all updated on a tick by tick basis. For a very few seconds and sometimes for only milliseconds, as local extremes are being formed, the dynamics of trade change dramatically. Operating in the sub-second time frame it has been discovered that when taken in combination and properly weighted, the acceleration and deceleration of buying and selling volumes, total volume and the velocity/rate of change in the balance of trade will reveal a dynamic of the price/time/volume continuum that is present at many, if not most, intra-session extremes. Our version of such an indicator is demonstrated on charts that range from the Emini S&P to 10yr Treasure Notes, ETFs and Soybeans. A sound test of the likelihood of how well a method or an indicator will perform over time and the inevitable changes that are the essence of the markets is how well that method or indicator transfers between markets, instruments and time frames. Most all of the indicators here are demonstrated for both different markets and different time frames. This primer describes the construction of a multi-time frame index of weighted biases that collects, stores, weighs and combines bias data from both slower and faster time frames to produce an index that in many instances actually changes and begins to trend before price. The text and charts on this page demonstrate a protocol so fast that it is designed more for auto-trading than for point and click trading. This is a protocol designed to capture the hum around the mean in both sideways and trending markets. In essence it is designed to fade the mean-reversion trades of many higher frequency bots as well as alpha neutral trade. The pages and articles above demonstrate the depth of our approach and the breadth of our trade decision support technologies. We look to partner with forward looking, existing operations and especially with new ventures.

Trade Point Technologies
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