TradeStation is a leading online broker in the world offering access to stocks, options, futures, and forex trading. It offers an intuitive platform with powerful tools that allow traders to customize their trading strategies with customizable indicators, analytics, and real-time data from more than 20 markets around the globe. The company also provides investors with an array of educational resources for beginners as well as experienced traders.
Features
- Automated Trading Strategies: TradeStation allows users to create and test automated trading strategies using their EasyLanguage programming language.
- Advanced Charting Tools: The platform includes a variety of advanced charting capabilities including drawing tools, indicators, signals, backtesting and alert notifications.
- Mobile Platforms: Traders can access the TradeStation app from any iOS or Android device for on-the-go trading.
- Commission-Free ETFs: Investors have access to more than 100 commission-free ETFs with no hidden fees or minimum balances required.
- Low-Cost Margin Rates: Margin rates are as low as 8% depending on account size and investors may qualify for even lower rates based on their activity.
Automated Trading Strategies
TradeStation is a popular platform for developing and executing automated trading strategies. With its powerful tools and robust capabilities, traders can create strategies that automate their decision-making processes and increase their efficiency. Here are some of the automated trading strategies that are commonly used on TradeStation:
- Moving Average Crossover: This strategy involves the use of two moving averages, which are commonly the 50-day and 200-day moving averages. When the short-term moving average crosses above the long-term moving average, it signals a bullish trend, while a cross below signals a bearish trend. Traders can use this strategy to enter and exit trades based on the moving average crossovers.
- Bollinger Band Breakout: This strategy involves the use of Bollinger Bands, which are volatility bands placed above and below a moving average. When the price breaks above the upper band, it signals a bullish trend, while a break below the lower band signals a bearish trend. Traders can use this strategy to enter and exit trades based on the Bollinger Band breakouts.
- Relative Strength Index (RSI) Reversals: This strategy involves the use of the RSI, which is a momentum indicator that measures the speed and change of price movements. When the RSI reaches overbought levels (above 70), it signals a potential reversal and traders can sell. Conversely, when the RSI reaches oversold levels (below 30), it signals a potential reversal and traders can buy.
- Mean Reversion: This strategy involves the use of statistical analysis to identify when security is overbought or oversold. Traders can then enter trades with the expectation that the security will revert to its mean price. This strategy is often used in conjunction with technical indicators such as Bollinger Bands and RSI.
Advanced Charting Tools
TradeStation offers a suite of advanced charting tools that can help traders identify trends, analyze market movements, and develop automated trading strategies. Here are some of the key charting tools available on TradeStation:
- Customizable Charts: Traders can customize their charts with a variety of indicators, drawing tools, and chart styles to suit their trading strategies. They can also save their chart templates for easy access in the future.
- RadarScreen: This tool allows traders to monitor and analyze multiple securities in real time from one screen. Traders can set up alerts and use custom indicators to identify securities that are meeting their specific criteria.
- TradeStation Scanner: This scanner allows traders to quickly and easily find securities that meet specific technical criteria. Traders can create custom scanning criteria and save their settings for easy access in the future.
- Matrix: This tool provides traders with real-time market depth information, allowing them to see bids and asks at different price levels. Traders can use this information to make more informed trading decisions.
- Strategy Back-Testing: Traders can use TradeStation’s strategy back-testing tool to test their trading strategies using historical data. This allows traders to see how their strategies would have performed in different market conditions and make adjustments accordingly.
Commission-Free ETFs
TradeStation offers commission-free ETFs which is a great option for traders looking to reduce their trading costs. Here are some of the key features of commission-free ETFs available on TradeStation:
- Diversified Selection: TradeStation offers a diverse selection of commission-free ETFs, covering a variety of asset classes, sectors, and investment strategies. This allows traders to build a well-rounded portfolio that meets their investment objectives.
- No Redemption Fees: Traders can buy and sell commission-free ETFs on TradeStation without incurring redemption fees. This provides traders with greater flexibility to adjust their portfolios without being penalized.
- Low Expense Ratios: TradeStation’s commission-free ETFs have low expense ratios, which can help traders save money on management fees. This can lead to higher returns over time, especially for long-term investors.
- No Trading Minimums: There are no trading minimums for commission-free ETFs on TradeStation, which means that traders can invest in these funds regardless of the size of their account.
Low-Cost Margin Rates
TradeStation offers low-cost margin rates, making it an attractive option for traders who want to leverage their investments. Here are some of the key features of TradeStation’s margin rates:
- Competitive Interest Rates: TradeStation offers some of the lowest margin interest rates in the industry. This can help traders save money on borrowing costs, particularly if they hold positions for an extended period.
- Tiered Margin Rates: TradeStation’s margin rates are tiered, which means that the interest rate charged decreases as the loan amount increases. This can benefit traders who need to borrow larger amounts of capital.
- Customizable Margin Requirements: TradeStation allows traders to customize their margin requirements based on their individual preferences and risk tolerance. This can help traders manage their investment portfolios more effectively.
- Margin Education: TradeStation provides educational resources to help traders understand the risks and benefits of trading on margin. This can help traders make informed decisions about how much margin to use and when to use it.
The Review
Summary
TradeStation offers a wide range of tools and features that can help traders find success in the markets. These include charting templates, real-time market depth information, scanner tools, strategy back-testing capabilities, commission-free ETFs, and low-margin rates. All of these features make TradeStation an attractive choice for both beginner and experienced traders alike.
PROS
- Charting templates and scanner tools provide traders with the technical analysis needed to make informed trading decisions
- Strategy back-testing capabilities allow traders to test their strategies using historical data
- Commission-free ETFs offer investors a way to reduce their trading costs
- Low margin rates provide traders with the opportunity to leverage their investments
CONS
- TradeStation's platform has a steep learning curve, which can be intimidating for new traders
- The cost of some of the advanced features may be too expensive for budget traders
- Trading on margin carries inherent risks that must be managed carefully
