So what is the best trading
software with buy and sell signals?
Now, as you know, there are
three pillars of trading.
The first is you need to have a
trading strategy.
The second pillar is you need to
have the right tools.
And the third pillar is that you
need to have the right mindset.
Now, when I say tools,
I'm talking about a trading
software that helps me with
my trading strategy.
And in this video, I'll show you
how to find the best one.
Now, as you know, if you've been
following me for a while, you know
that I've done a few how to
find the best, whatever videos
before. For example, How To Find The
Best Broker, How To Find The Best
Trading Strategy, and everytime
I do a best video I
first define what
best means.
And for that, I'm choosing criteria
that are important to me.
Now, these criteria can be different
for you, and that's fine.
But here are the criteria
that I use when looking
for the best trading software.
So let's jump onto our handy dandy
notebook.
Now, first of all, a trading
software needs to support my
trading strategy.
And here are the three elements
of a trading strategy.
Number one, a trading strategy
tells you what
should I trade.
Number two, a trading strategy
tells you when to enter.
And number three, a trading
strategy tells you when
to exit.
When exiting there's two ways to
exit. I mean, one is with a profit
and one is with a loss.
Anyhow. So obviously
the best trading software
needs to answer the questions.
So let's start with the first
one. For what should
I trade, I want a scanner
that scans through all of the
stocks or options that are out there
and finds the best ones to trade
for me. So the first criteria
that is important to me is
a configurable scanner.
Because, as you know, I do
not want to just stumble
across a stock or choose the stocks
that the talking heads on TV
are recommending.
Anyhow. So let me
do the following, let's write down
the criteria first and then we will
compare the two trading tools
that I personally use.
Now the next, the trading strategy
is asking for is when
to enter.
So this is where for me it's
important the trading software
should give me very specific
buy or sell signals.
So that's what I'm looking for.
Now, next for me, I
want to know when to
exit. And when to exit, I
actually want to know the stop loss
and the profit target.
OK? So this is super
important because
I want to know when to
exit right when I enter
the trade, and that's
what I do, right? Anyhow. So these
are the three basic criteria.
If a software does not fulfill
those criteria, it can't
be the best, right?
I mean, is this making sense thus
far? Because if it does, do me a
favor and click on like right
now. But I also want to dig a little
bit deeper. This is the absolute
minimum here, but now I
also would like to know how many
shares or contracts
I should trade if I'm trading
options. You see, that is basic
risk management.
And for me, that's critical.
So criteria number four is
I want to know what is my
position size based
on my account size.
Is this makes sense?
Because I mean, it's great if the
software tells you right now, buy
Apple, for example.
But I mean, how many shares or
how many options?
Now, the next thing on my
list, again, these are my criteria,
how I look for the best trading
software. And the next thing is a
trade report.
And here's what that means.
I want to know every
single trade that occurred
over the past year, or the past two
years, or the past three years with
the exact entry, the
exact date, the position
size, the profit target,
the stop loss, and the results.
So I want to know how
did this trading strategy perform
over the past year.
Now, and since I
have then a trading report, I would
like to also see a summary
for all of these trades and
this is called a performance
report.
So in the performance report, I see
the winning percentage, the return
on investment, the average winning
trade, the average losing trade,
the profit factor and other key
KPIs, key performance indicators,
that are important to me.
Now, here is why
the performance report is so
important to me.
The performance report gives
me confidence.
You see, when I know how the stock
performed over the past year, or
the past two years, or the past
three years, I have much more
confidence entering the next
trade because I know
what to expect.
Anyhow, so these are
my six criteria.
Now, let's use the two
tools that I'm personally using and
compare them using this
criteria.
So as you know, right now I'm
trading two strategies, and
one of them is called the PowerX
Strategy, and for
this I'm using a tool called the
PowerX Optimizer.
And another strategy that I trade
is The Wheel.
And to support me in
my decisions there, I'm using
The Wheel Calculator.
Let's talk about a configurable
scanner, and this is where you see
I actually had a software
programed for myself because
I couldn't find any software
that meets all these six criteria.
So with the PowerX Optimizer,
you see, when I scan for stocks
that I want to trade, I
can configure what are my
basic criteria.
For example, I want to see a
60% return
on investment.
I mean, if the stock hasn't produced
over the past year at least 60%
return on investment I don't want
to trade it. Now, for me personally,
I like to see stocks that are
between $5 to $250.
But you see, if you have a smaller
account, you might want to consider
trading stocks between $5 and $100.
I want to see a profit factor that
is higher than 3, and a risk and
reward ratio that is higher than 2.
I want to see that over the past
year this strategy, on
this particular stock, has produced
at least 12 trades.
Why is this important?
Because I don't want to see that
only one or two trades, because
that's not representative for
results, right?
I want to see at least 12 trades.
And for me personally, I want to see
a minimum winning percentage of 40%.
Now, for you it can be different.
You might choose to go with 50%,
you might choose to go with 60%.
I personally, I'm fine with 40%.
The minimum volume that the stock is
traded at, I want to see at least
$500,000. So this is what I can
do, and this is when the
scanner runs and produces
every day a list of stocks
for me to trade.
So these are the ones that you see
here in the lower right.
So for today, for example, we have
BTAI as a
sell signal, CVET
as a buy signal, DKS
as a sell signal and so on.
But let's go back to our criteria
here. So the configurable scanner,
obviously PowerX Optimizer has
it because I had a development
team programing this software
according to my criteria.
But you see, it doesn't matter what
tool you use.
The important thing is in order to
compare different toolsm and you'll
see where I'm going with this here
in a moment. In order to compare
different tools, it is super
important that you have criteria
to compare them against.
I mean, you don't want to just go
with "look and feel," right?
Anyhow, so I also want to see
specific buy and sell signals.
Let's go back to PowerX Optimizer.
This is for every stock, whether I'm
choosing BTAI, BioXcel
Therapeutics.
See, it tells me exactly when
to sell, sell to open
when the price drops below
$40.75.
So I know exactly, there's no
guesswork, should I sell today
or should I sell tomorrow, or
should I sell in the open or should
I sell the close?
Now for CVET it tells
me buy to open at $23.10.
So I know exactly
when to buy and when
to sell. So here obviously,
yes, check.
Now I want to know my stop loss and
my profit target.
And this is where PowerX Optimizer,
this is why it's called the
Optimizer, goes back over the
past year and looks
for the optimal stop
loss and the optimal profit
target. And it shows me right here,
you see, even before
I enter the trade, I see
that here I want to go long
and I want to take profits as soon
as prices move up to $32.
It's a little bit outside of the
range here, you see up here.
I also want to see that I'm
getting out of this if I'm going
down to $21.62.
So you see, I know exactly
when to take profits and when to
exit. No guesswork here, whatsoever.
So needless to say, yes,
it's done.
Now, I also would like to know how
many shares, or how many options
should I trade whether I'm trading
stocks or options.
So here it shows me based on
the account size that I've chosen,
it's 270, let me just show you.
So here for this example, as
you know, here on YouTube,
I'm trading live a rather small
account of $20,000.
And I want to risk 2% of
my account.
Now, let's say that you have a
smaller account and your account is
only $10,000 and you want to risk
2% of the account.
You see, it'll recalculate right
now the position size and tells
you, well, based on your account
size, you should trade only 135
shares. Anyhow, you get the
idea here. So yes, it actually
calculates the size based on
my risk criteria.
Now, does it do a trading report?
Of course it does a trading report,
this is what you see here.
So in the trading report, it shows
you exactly over
the past year when should I have
entered, when should I have exited,
did I go long, did I buy or did
I sell, what was my position
size, what was the entry price,
what was my profit target,
what was the stop loss, what
happened, so where did I
actually exit, and what
is the profit. Now, very important,
this is what would have
happened if I had traded
this stock, CVET, according
to the rules of the PowerX strategy.
As you know, the PowerX strategy is
a strategy that I personally use
that has very specific rules.
I'm not trading based on my gut
feeling because, as you know, I
strive to create consistent,
repeatable, and systematic
profits. So this is why it is super
important to me.
By the way, if you would like to
know more about the PowerX strategy
get the book, there's a link in the
description. You can get it from a
website for $4.95,
or you can get it on Amazon for $20.
Anyhow, back to the best trading
software with buy and sell signals.
So it shows me exactly
the 17 trades that happen.
And you see, the software does it
for every single stock.
And then I want to see the
performance report.
Now again, why is this important?
I want to know, based on a
$10,000 account, how much money
would I have made or lost if I had
traded this stock, CVET,
according to the rules of the PowerX
strategy.
And on a $10,000 account I would
have made
$12,116, so that's
121% ROI.
I would have had 10 winning trades,
7 losing trades, so this gives me
a winning percentage of
58.82%, so around 59%.
The profit factor has been almost
4. I see the average winning
trade has been
$1,618 and the average losing
trade, $581.
So I'm making almost three
times as much money on my winning
trades then I lose on my losing
trades.
Now I also see the average
trade length and you see for me
personally, it's always between 5
and 20 days.
So on average, I'm 11 days
in a trade.
The longest trade that I was
in here, if I had traded
it according to the rules,
would have been 29 days.
See, this is super
important because it helps me
to decide going forward,
right? Do I want to take the trades,
and what should I expect
when I'm entering this trade.
So if I take this CVET
trade and I'm buying it here,
I know that I can expect
6 out of 10 trades to be profitable.
I know that my average winning trade
is three times my average losing
trade, so therefore this
is a given. Now, of course,
no surprise that all of this
is a yes here because again, I had
PowerX Optimizer programmed to
my specifications.
But let's take a look at The Wheel
Calculator in comparison.
Now as you know when I'm trading The
Wheel, I'm using a very simple
calculator here, that shows me
what to do. So The Wheel Income
Calculator actually allows me
to enter my buying power.
And based on this, it is
telling me how many options
I should trade.
So let's go back to my criteria,
I jumped a little bit ahead, but so
it tells me my position
size based on my account size.
Does The Wheel Calculator have
a configurable scanner?
No, it does not.
I'm thinking about having one
programmed for myself, but at this
point it does not have a scanner.
You need to find the stocks that you
want to use for The Wheel income
trading strategy.
By the way, if you would like to
know more about both trading
strategies, The Wheel Income
strategy, as well as the
PowerX strategy, I'll leave links
in the description here.
Anyhow, back to The Wheel
Income Calculator here.
So it does not have a configurable
scanner. Does it give me specific
buy and sell signals?
Well, sort of.
It tells me the minimum
option premium that
I need in order to make
this work for me.
So kinda.
Is it giving me
an exit?
No, it doesn't.
So I want to say specific
buy and sell signals,
yeah, kinda.
Does it give me a stop loss and a
profit target?
Not yet, I mean in this version,
right? Not yet.
I might program a different version
where it shows it here.
So does this include a trade
performance report?
No, not at all.
It doesn't contain a trading report
and when I don't have a trading
report, I also don't
have a performance report.
So you see that there's only
one "yes." Anyhow, so
the important thing is how did we
start this video?
What what were we looking for?
We were looking for the best trading
software. And again, in order to
find the best trading software, the
most important thing that
you need to do is define your
criteria.
I mean, feel free to use my criteria
that I have here.
I mean, I've been trading for a
long, long time.
So I believe that these are
the six most important criteria.
Again, for you, it might be
different, and this is where you can
add or subtract some criteria or
just have a longer list.
And then you use the
software that you
actually want or consider
investing in and say,
"Hey, does this actually say
yes to all of these criteria or
not?" Because as you know,
the three pillars of trading, you
must have the right tools.
So the three pillars of trading,
number one, you need to have a
solid trading strategy.
And again, if you're interested in
the trading strategies that I
personally use, watch videos
where I explain these strategies in
detail, anyhow.
Number two, you must have
tools and the tools is actually
your trading software.
So you need to have the right
trading software and you need
a great broker platform.
So I did a video on the best broker,
feel free to browse this channel
for it. And number three, you need
to have the right mindset and we'll
talk about more of the right mindset
over the next few videos.
Is this helpful?
Because I get the question a lot,
"What is the best trading strategy?"
So I hope that this helps
and if you, if you enjoyed this
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Talk very soon.