Quick Start

The following is a stereotypical example of how StockWave™ would typically be used.

Start the Application

Decide what you want to do — look at tutorials, browse the share price and company information, or go straight to your portfolio and start trading.

Main Window Buttons

Start Tutorial — links you to a set of Webpages which explain the history and mechanics of the stock market; what you need to know to get you started. Background material. 

Market News — shows where todays market action is and recent news stories from the mainstream financial media; this is a useful starting point for further enquiry.

Create a Portfolio — a portfolio holds together your individual trading interests; trades you've made, analysis you've done, your broker accounts.

Choose a stock by clicking on its entry on the main grid; if you then right-click you will get further choices.

open a chart

Research — use this to search the internet for useful chunks of information.

Open a Stock Chart

Customise the look and feel; check the news; do some analysis, get a prediction about the market.

Select a region of interest — zoom in to where the action is

zoom in on the chart

Change the look — choose a different colour scheme

chart display menu

See the news events in relation to the market moves

chart and news

Select Data — drag from the left edge of the desired range to the right extremity.

sweep select price data

Use the data selection to so some analysis — check the price move histogram, open the advanced filtering tool or run a Monte Carlo simulation to create a probabilistic prediction.

advanced filtering
probability heatmap

Check other Information

Automatic queries can be created from the context menu.

other information

Open your Portfolio

Create a new portfolio if you do not have one already — you need to enter your name, email address and phone number.

open the portfolio

Once your portfolio is open, you can proceed to analysis and trading, in particular you can create probabilistic predictors from the Monte Carlo tools on the StockChart menu.

portfolio window

Go to the Trade Creator

This can be used to craft complex trades; work left to right, and top to bottom.

First of all select a stock of interest — you need to enter its symbol and market designation. Trade Creator will then check your portfolio for any available analysis for this stock; if it finds any it will load it to the analysis list.

select stock of interest

If the analysis list is non-empty you can load one of the probabilistic predictors onto the form; a two dimensional image will be loaded onto the middle left hand panel — the colours on this image represent probability; the brighter the spot, the more chance of the price achieving that given value. The contour lines represent the concentration of probability, e.g. between the two 50 lines, there is a 50% chance that the share price will be bounded by these lines. The analysis we have chosen should represent our best prediction for the future share price — we are going to use this to evaluate the performance of the trades we create (NB the analysis can be changed if we want to see a 'different opinion').

select analysis

When trading we assume that it will be for a finite time only (no 'buy-and-hold' here!) — we wish to open a trade, let it run for a while, then close it to realize a profit; select the implied closing time for the trade we are about to construct by sliding the scrollbar underneath the middle left panel; on the middle right hand panel you should see a histogram — this is a one dimensional slice of our two dimensional image and shows the price probabilities for the current stock at the selected closing time.

select timeslice

Next, select a trade. On the bottom extreme left panel you will see a drop down list which contains a number of trade types — these are ordinary stock trades, CFDs (contracts-for-difference, this is a derivative which simulates a stock trade, but without the stamp duty), spread bets and options. Choose one of these types; a form will appear containing the trade parameters. Currently you have to set these by hand, but its not too hard — the main thing is to get accurate current bid and offer prices for the trade, possibly from an online brokerage, and set reasonable estimates for the transaction charges you will incur. One the parameters are entered, we can get our payoff graphs.

add a trade

Once the trade parameters are entered the program can calculate the profit and loss figures for any closing price; you can see this by looking at the profit-price graph on the middle right panel — red represents a loss and green represents a profit; from this we can read off our profit and loss regions, and also find where the breakeven points are. But we can go even further than this.

payoff graph

Remember from our analysis we have the price probability at the closing time; and from our trade selection we have our price profit graph — by putting the two of these together we can produce a profit probability graph. This is the crucial point in our analysis for it tells us very concisely all we need to know, and from it we can produce summary measures that tell us what we really want to know, i.e. how much do I expect to make, what are my chances of making money, and how much could I lose?

There is more to the Trade Creator than even this; we can use different analyses if we want to, and we can build composite trades. Composite trades are combination trades crafted specifically to take advantage of current market conditions. Combination trades can be made with Trade Creator — all the payoff calculations are done automatically.

And yet there's more... rather than spending a lot of time hand-crafting a trade, why not use the AutoSearch facility. You start by entering a number of basic trades to seed the algorithm, then it exhaustively calculates the payoff measures for all possible trade combinations, producing a summary list of the best trades found as its output.


Make a Trade

Check the Payoff Graph — if you like the chances of the return, then make the trade.

Set your Alarms

Once a trade has been made a trade alarm is set which warns you if the price is moving badly against you.

trade alarm