Jump to content
Marek Liyanage

TradeStation Trading and Brokerage Platform

Recommended Posts

Posted (edited)

After almost 2 years trading on DAS I switched to TradeStation platform and brokerage services. I have done a lot of the leg work researching so I am highlighting features for TradeStation s/w platform and brokerage:

Instruments & Commissions Structure:

STOCK & OPTIONS

- currently zero commission trading plans are limited to US residents. Residents in almost all countries outside the US can sign up for plans with commissions on stock trading. Canada and a few countries in Europe are excluded from brokerage subscription plans. All foreign residents can sign up for a software subscription plan.  Contact TradeStation directly for more info - they will try work with you.

- lightning fast executions

- Level 2 DOM (depth of market) matrix

- TS gives volume at price per bar, on all time frames from monthly down to 15 seconds. ...

- Stock trading 8am -8pm ET

- Direct routing is possible for a per share fees similar to IB

- with "intelligent" (zero commission/SMRT) routing order flow could be sold to third party market makers for execution. Read up more in TS disclosures about this:

https://uploads.tradestation.com/uploads/SEC-Rule.pdf

Since sale of order flow recently has become a hot issue...a couple other links discussing sale of order flow to 3rd parties:

https://www.cato.org/sites/cato.org/files/serials/files/regulation/2002/4/v25n1-8.pdf

https://www.investopedia.com/terms/n/nbbo.asp

- no commissions for stock trading with a $2K funded account under the TS Select plan (above 10K shares per trade there's a per share fee similar to IBs per share fee that's charged and exchange/FINRA fees still apply)

- $0.6 per options contract 

FUTURES

- Around the clock futures trading 24/7 Sunday 3pm to Friday 5pm ET

- $1.50 per futures contract, 0.5 per Emini micro contract, futures trading requires a separately funded account, intra day futures margin rates of Eminis and micros are 25% of the full margin. 

- TS offers access to the entire world of CME, CBOT, NYMEX and COMEX traded futures in real time with market depth Level 2

Market Data:

- large selection of market data incl all US and various foreign indices in real time. Also access to important real time NYSE market breadth indices TRIN, TICK and advance/decline volume/issues breakdown numbers

- great degree of freedom and flexibility for customization of market data feeds

- zero fees for  Level 1  Nasdaq and Level 1 & Level 2 for NYSE, AMEX equities and options, CME, CBOT, NYMEX and COMEX futures.

- Nasdaq Level 2 market depth requires a $11 or $17 subcription 

- Enhanced market depth for $25 plus add-on oder books from ARCA, BATS, Nasdaq BX all for $26  (see screenshot w. my  current subs as an example)

Software

- no platform fees (with a funded account)

- excellent charting

- large selection of studies w extensive flexibility for customization

- market replay currently not (yet) available

- StreamDeck hotkeys currently not supported

Scanner

- Powerful built-in RadarScreen s/w scanner. This is a great free feature and the scanners are very customizable.

 

Programming, Backtesting, Strategy Testing

- Portfolio-level back-testing and analysis, seamlessly utilizing TradeStation data and strategies

-  full access to Easy Language (EL) programming language w hundreds of built in tools and a TS app store for purchase from third parties

 

News

Free integrated news feeds and fundamentals data - a great feature that's available directly on the platform. Includes:

- Free Benzinga news service

- Reuters financials and stock data from in one place and various other useful data....

- Yahoo Finance integration: insiders, funds etc is imported from 

Help, tutorials, video library, education channels

- help function within s/w has a large searchable database that quickly helps find documentation

The TS youtube channel has many videos featuring tutorials for desktop, web and mobile apps, RadarScreen scanning, charting, order entry, Matrix (level 2 depth of market DOM), strategy/back testing, Easy Language programming tools and library as well as futures and options trading.

https://www.youtube.com/user/tradestation

Education channel with free and pay-as-you-go content at:

http://www.youcantrade.com


With the all-in-one integration of excellent charting and trade execution together with scanners, news, and fundamentals TS has potential to replace other trading s/w and feeds for many users (i.e. paid scanners, news services and fundamentals, journaling s/w). I will post an update in a few weeks about my experience using the platform and TS as a broker. You can also DM me here or on Fintwit MarekLiyanage or email [email protected] with questions. Last updated 08/10/2020

 

TSData.jpg

Edited by Marek Liyanage
  • Thanks 2

Share this post


Link to post
Share on other sites

They had me up to the limitation on trading before 8am. Couldn't deal with that. Please let us know if they start allowing trading earlier.

Thanks!

 

  • Like 1

Share this post


Link to post
Share on other sites
1 hour ago, dmiles said:

They had me up to the limitation on trading before 8am. Couldn't deal with that. Please let us know if they start allowing trading earlier.

Thanks!

 

Yes, its a very personal decision so you need to look at everything. Hopefully, the research I put will save others time one way or the other.

  • Thanks 1

Share this post


Link to post
Share on other sites
3 minutes ago, Marek Liyanage said:

Yes, its a very personal decision so you need to look at everything. Hopefully, the research I put will save others time one way or the other.

No doubt, I'm sure it will. I know I'll be keeping up with the thread for sure.

 

  • Thanks 1

Share this post


Link to post
Share on other sites
Posted (edited)

took me a couple days just to getting things setup a bit...still learning my way around....TS is like an aircraft carrier compared to DAS...very resourceful but takes a lot of tweaking
TS defines workspaces and desktops and you can have separate desktops launched from within the program each with several workspaces. This modular approach allows the user to customize which parts of the desktop he wants open and together with which workspaces. Nice when you have multiple monitors but only want to use a subset of them, e.g. in the evening or the weekend reviewing charts or trades. Also, you can fold a desktop into a separate workspace in another desktop if you simply want to save screen space. Then you can just toggle thru tabs of workspaces on a smaller set of desktop/screens.

So far been focussing mostly setting up my watchlists, markets and indices in RadarScreen. RS is basically a DAS marketviewer and scanner on steroids. The screenshot shows 2 1/2 screens and between the 2 RS viewers on the left and right there's 10 tabs each with different lists of various indices, market breadth data (TICK, TRIN, etc.), futures, indices, sectors, countries, currencies, commodities and groomed watchlists of stocks I keep tabs on. No limitations to how you configure these lists and no limits on the number of rows unlike DAS which I frequently hit the ceiling (1,000 rows) with. This is also where the market data feeds provide a much bigger variety to all futures from CME, CBOT, COMEX and NYMEX, forex pairs, Emini and micro futures. DAS is a lot more limited there.

Scanners are pretty good, a lot better than DAS but not as good as TI...you can customize scans a lot more than in DAS but the readouts have some fundamentals missing I like to have....e.g can't find the float or short float. This might still be good or even great for most traders...I will keep using TI for now as my primary goto scanner.

Chart are very customizable....probably lots more studies than I will ever use.... and then there's Easy Language programming feature that already allowed me to import custom studies another trader programmed and shared with me.

I haven't looked at most of the other stuff yet let alone traded .....too busy getting my desktop to the point my DAS layout was....but a couple other things....the fundamentals is ok, the news feeds too better than DAS but the data is imported from 3rd party so it's not the fastest...so far two mehs for news and stock fundamentals...

Matrix is fashioned in DOM style aggregating bids/asks, TS is pretty much the same. The montage/trade bar I haven't gotten to so not sure how hot buttons are going to work...more later on that...

 

TSss1.jpg

Edited by Marek Liyanage
  • Like 1

Share this post


Link to post
Share on other sites
On 8/9/2020 at 5:05 PM, dmiles said:

They had me up to the limitation on trading before 8am. Couldn't deal with that. Please let us know if they start allowing trading earlier.

Thanks!

 

Yeah, I was a bit disappointed about this too. Here I was trying to trade at 5am only to find out that the broker doesn't allow trading until 8am! Very frustrating. Don't know if they're ever going to change this.

  • Like 1

Share this post


Link to post
Share on other sites
On 8/15/2020 at 7:00 AM, wklodge said:

Yeah, I was a bit disappointed about this too. Here I was trying to trade at 5am only to find out that the broker doesn't allow trading until 8am! Very frustrating. Don't know if they're ever going to change this.

its unfortunate but not a deal breaker considering all the other benefits you get with the software and trading commission free...

Share this post


Link to post
Share on other sites

TradeStation is a power hungry piece of software...I have gone thru several upgrades to my gaming rig since the upgrade...it's also 32-bit, I am not sure bc I am not a programmer but don't think that helps with a 64-bit Windows 10 system either. I am curious why they don't lift the software up to 64-bit so it can take advantage of better performance under a 64-bit environment. Maybe someone else can comment on this.

 

Anyways the jist for those considering it would be ...you need a pretty solid PC rig bc if you load it up with workspaces and charts which I love to do it will push your system to the limits quickly. If all you use/need are a few workspaces and charts you won't have any issues. The best way to start out is load your basic workspace and then slowly keep adding charts, watchlists, scanners and other workspaces.

Share this post


Link to post
Share on other sites

I have been using TradeStation for the past year and went to their Masterclasses in Plantation. I used Andrew's book to earn 45% in six weeks and then lost 75% in one month due to the market turning and revenge trading.  Since that time I signed up lifetime for BBT and have learned the exact issues that I had. Now I have about twenty years of experience in the market studying Fundamentals, Modern Portfolio Theory, CFP and more, so adding AAs system was a no brainer.

However the psychology aspect which is what took me the longest only had one oversight. When I traded during the six weeks I was still working, so I had strict rules. Once I retired I broke all of them.  

 

Namely:

  1. I sat in front of the console for too many hours.
  2. My position discipline wavered.
  3. I broke all of the rules and revenge traded.
  4. I started to mix styles: Options plus Day Trading without a transition strategy.

I have since stopped trading and instituted strict controls around my day:

  1. Clear hours just like before.
  2. Solid exits and limitations.
  3. I now know how to read when the market turns - I have been a business cycle swing trader before so this confused me.
  4. Position and R:r risk reward ratios that match.

Some examples:

  1. risk: Reward, r:R : 1:2
  2. Win:Loss 3:2
  3. Daily max loss: 1% of Total Account
  4. Daily risk per trade: 1%
  5. Max Security Limits (I had one issue per day during the six week period. I upped it to two near the end. Once above that I started charts and darts!)
  6. Simple ranges for quick math:
    1. $100 issues: Size: 50, 100, 250
    2. $50 issues: Size 100, 200, 500
    3. $25 issues: Size 200, 400, 1000
  7. All of these limitations promise to return my previous profitability with slow consistent gains.

 

SUMMARY:

Restrict the amount of time you trade.

Restrict the size of positions, the r:R. Max Daily Loss, Trade Loss

NEVER revenge trade.

NEVER trade when market direction is unclear.

  • Like 1
  • Thanks 1

Share this post


Link to post
Share on other sites
On 10/7/2020 at 3:24 AM, combatmonk said:

I have been using TradeStation for the past year and went to their Masterclasses in Plantation. I used Andrew's book to earn 45% in six weeks and then lost 75% in one month due to the market turning and revenge trading.  Since that time I signed up lifetime for BBT and have learned the exact issues that I had. Now I have about twenty years of experience in the market studying Fundamentals, Modern Portfolio Theory, CFP and more, so adding AAs system was a no brainer.

However the psychology aspect which is what took me the longest only had one oversight. When I traded during the six weeks I was still working, so I had strict rules. Once I retired I broke all of them.  

 

Namely:

  1. I sat in front of the console for too many hours.
  2. My position discipline wavered.
  3. I broke all of the rules and revenge traded.
  4. I started to mix styles: Options plus Day Trading without a transition strategy.

I have since stopped trading and instituted strict controls around my day:

  1. Clear hours just like before.
  2. Solid exits and limitations.
  3. I now know how to read when the market turns - I have been a business cycle swing trader before so this confused me.
  4. Position and R:r risk reward ratios that match.

Some examples:

  1. risk: Reward, r:R : 1:2
  2. Win:Loss 3:2
  3. Daily max loss: 1% of Total Account
  4. Daily risk per trade: 1%
  5. Max Security Limits (I had one issue per day during the six week period. I upped it to two near the end. Once above that I started charts and darts!)
  6. Simple ranges for quick math:
    1. $100 issues: Size: 50, 100, 250
    2. $50 issues: Size 100, 200, 500
    3. $25 issues: Size 200, 400, 1000
  7. All of these limitations promise to return my previous profitability with slow consistent gains.

 

SUMMARY:

Restrict the amount of time you trade.

Restrict the size of positions, the r:R. Max Daily Loss, Trade Loss

NEVER revenge trade.

NEVER trade when market direction is unclear.

You have a big advantage being a market professional but that also can turn into baggage bc you need to settle the time frame you want to focus on. Even if you already know it's "intraday" that's still a wide spectrum and that's where many of us stumble bc we mix and match different styles that we haven't totally mastered well.

I began trading with TS at the 2 year mark of my day trading journey which is August/September. It's been great now for 2 months straight with only a few days of losses. After two years I consider myself consistent even though I knew what my "edge" was after about 3 months into trading. It took another 12-15 months chip away at the big losses scalpers suffer every now that wipe out weeks of hard work. I attribute a good amount of that to switching platforms.

One thing that has greatly improved has been stock selection in pre market and at the market open where for scalpers speed is absolute key. A lot of times the best stocks at the open are not necessarily the ones that showed in pre market so you need to keep a good eye not just on your scanners but also on a good number of charts. TS flexibility displaying number of charts and switching time frames just blows DAS away by light years on this. For scalpers DAS probably has the better fills overall but if you trade anything over a few minute time frames there's really no good reason not to use TS.

Time in pre market is better spent researching stocks and not trading....I had to give up post market trading too with the switch. Would have loved to short INTC on earnings but that's just the way it is...it frees up the mind. Remember trading can become an addiction just like any other gambling activity so you need to be mindful about your mental resources, energy and the rational limitations that sometimes might make more sense than having unlimited options.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.