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The Tradestation.com demo site talks about trade automation. In the past,
this term has been used loosely by omega to refer to the idea of automating
your systems and generating signals automatically. With their new brokerage
division and online connection, this could mean (and I would think that it
does) that trades could be placed automatically by your system (to their
brokerage) automatically, without any intervention on the part of the
trader. This is a good a idea whose time will come but right now there are
obstacles in the way for the stock trader that omega may or may not be able
to address. The main problem with automating a stock trading system that
relies on intraday stock market data, is that the data from the stock
market, mainly the NASDAQ, is basically crap. Closing ticks often fall
outside the bid/ask and many times during the day, you get ticks that are so
bad that you can tell just by looking at the chart they're bad ticks. Many
more bad ticks are slightly off and you can't notice them as readily because
they get covered over when price moves that direction in the same bar. Thus,
your systems for stocks like these can't use h,l,c reliably and tradestation
often generates many erroneous signals. These signals would get executed if
you just let the system trade by itself which could play havoc with your
account. This is less true in NYSE stocks where data tends to me
significantly cleaner than NASDAQ markets. Traders would have to evaluate
the suitability on a market by market basis but still data would have to be
monitored. Even NYSE data can be really bad. Take for example LU after it
missed it's earnings report a while back and gapped down 20 dollars or so.
The data didn't get better for almost a week and then a system trader would
have to wait even longer so that the system was working with nothing but
clean data.
True trade automation would be much more feasible in the futures markets
where data quality is superior to stocks. However, it seems at least for
starters, Omega has declined to pursue that market with TS.COM. Bad ticks
from Chicago markets are the exception rather than the rule and bad ticks
from new york markets are so far off the current price and usually not too
frequent that you could easily build filter for them. Data from NASDAQ
markets are a whole different story. I would feel much more comfortable
allowing my computer trade a system automatically in ND and SP or even
Soybeans than in a hi tech stock like MSFT or ORCL or even QQQ.
Brian.
> -----Original Message-----
> From: Bob Fulks [mailto:bfulks@xxxxxxxxxxxx]
> Sent: Friday, June 09, 2000 8:45 AM
> To: omega-list@xxxxxxxxxx
> Subject: Omega Research Unveils TradeStation.com at OmegaWorld
>
>
> ================================================================
>
> Headline: Omega Research Unveils TradeStation.com at OmegaWorld(R) 2000
>
> ================================================================
>
> New Web-based Platform for Active Traders Will Combine Streaming Real-Time
> And Historical Data, Next Generation Direct Access Order
> Execution Technology
> And Unmatched Strategy Testing and Automation Capabilities
>
> NEW YORK, June 9 /PRNewswire/ -- Omega Research Inc., (NASDAQ:OMGA), a
> leading provider of real-time trading tools for the online trader, today
> previewed TradeStation.com, a unique Web-based trading platform
> designed for
> professional and active individual traders. This integrated
> solution was the
> primary goal of the pending merger between Omega Research and
> OnlineTrading.com, which is expected to close next month. An
> overview of this
> next generation trading platform is available to the general public at
> http://www.TradeStation.com.
> This groundbreaking trading platform was demonstrated this
> morning by Bill
> Cruz, co-chairman of the board and co-chief executive officer of Omega
> Research, Inc., to active traders attending OmegaWorld(R) 2000,
> the premier
> conference dedicated to trading strategy development for active retail
> traders, running through June 11 at the New York Hilton and Towers.
> "We believe that TradeStation.com will be the new standard for active
> traders," said Cruz. "Our new direct access order execution technology --
> IntelliRoute(TM) and PowerOrders(TM) -- delivers unprecedented trading
> capabilities that previously were only available, if at all, to major
> institutions. We believe that the combination of this proprietary order
> execution technology with TradeStation's unmatched ability to historically
> test and then automate one's own trading strategies in real-time is
> generations beyond anything available today."
> IntelliRoute is an intelligent direct access order routing
> technology that
> automatically seeks the best price available at the time the
> order is placed.
> PowerOrders technology levels the playing field for individual traders by
> providing many of the same trading advantages currently available only to
> institutional traders, such as discretionary and non-disclosed orders.
> The active trader market targeted by TradeStation.com is estimated by
> Robertson Stephens to be over 800,000 online accounts, which
> trade so actively
> it is estimated that they represent more than 50% of the 1.5 million daily
> online trades.
> "With a database of over 100,000 registered customers who
> have paid over
> $125 million for our trading tools, we believe we have an
> enormous opportunity
> to migrate those customers, as well as attract the growing market
> of active
> traders, to TradeStation.com," said Cruz.
>
> About Omega Research, Inc.
> Founded in 1982, Omega Research, Inc. is a leading provider of branded
> real-time trading tools for the active trader.
> WindowOnWallStreet.com, the company's new online subscription service,
> offers traders award-winning tools including powerful analytical charting,
> Nasdaq Level II, time & sales, quote lists, option chains, market leaders,
> streaming news, Internet SmartSearch, live ticker, portfolio management,
> Profit/Loss tracking, discussion forums, and wireless access. Window On
> WallStreet and its Financial Data Cast Network(TM) (FDCN) were acquired by
> Omega Research in late October 1999 as part of the company's
> evolving Internet
> strategy. FDCN is widely recognized as one of the Internet's most
> sophisticated streaming real-time quote services. For additional
> information
> and to register for the service with a free 10-day trial, visit
> http://www.WindowOnWallStreet.com.
> Later this year, Omega Research intends to launch
> TradeStation.com, which
> the company believes will be the Internet's first trading
> strategy platform
> dedicated to serving the needs of the active trader.
> TradeStation.com will
> combine the strategy development, back-testing and automation of
> TradeStation
> with the streaming real-time delivery of market information and all other
> features and functions incorporated in WindowOnWallStreet.com.
> On January 20, 2000, Omega Research and
> OnlineTradinginc.com Corp. (NASDAQ:LINE), a leading direct access online
> broker for active traders, announced a definitive agreement to
> merge the two
> companies in an all-stock combination. The consummation of the merger is
> subject to satisfaction of certain conditions, including, but not
> limited to,
> approval by the shareholders of each of Omega Research and
> OnlineTrading.com,
> NASD regulatory requirements, and the registration of the new holding
> company's shares with the SEC and the listing of such shares with
> The Nasdaq
> National Market. The strategic combination of these two
> companies is expected
> to create a seamlessly integrated trading platform that will, for
> the first
> time, deliver a complete solution to the active online trader: powerful
> trading strategy tools, streaming real-time market quotes and
> news, and direct
> access to high-speed, order-routing execution services.
> Omega Research's principal client software products currently include
> TradeStation(R)2000i, OptionStation(R)2000i,
> RadarScreen(TM)2000i, and Omega
> Research ProSuite(R)2000i. Omega Research's 2000i line of
> software products
> is compatible with the following real-time Internet and broadcast data
> services: Data Broadcasting Corporation's (NASDAQ:DBCC) eSignal
> (Internet),
> InSite (Internet), and BMI (Broadcast);
> Data Transmission Network (NASDAQ:DTLN) DTN Real Time and DTNstant
> (Broadcast); and
> Hyperfeed Technologies, Inc.'s (formerly PC Quote, Inc.) (NASDAQ:HYPR)
> Hyperfeed(TM) (Internet and Broadcast). With the click of a
> mouse, the 2000i
> products can use the Internet to access the online brokerage services of
> E*Trade (NASDAQ:EGRP) and Wall Street Access.
>
> This press release contains statements that are
> forward-looking and are
> made pursuant to the safe harbor provisions of the Private Securities
> Litigation Reform Act of 1995. When used in this press release the words
> "believes," "plans," "estimates," "expects," "intends," "designed,"
> "anticipates," "may," "will," "should," "could," "upcoming,"
> "potential" and
> similar expressions, if and to the extent used, are intended to identify
> forward-looking statements. All forward-looking statements are
> based largely
> on current expectations and beliefs concerning future events that
> are subject
> to substantial risks and uncertainties. Actual results may differ
> materially
> from the results suggested herein. Factors that may cause or contribute to
> such differences include, but are not limited to, the company's ability to
> continue to effectuate its Internet strategy and to develop and
> successfully
> market the products and services described in this press release (and the
> costs associated therewith); their acceptance in the marketplace;
> technical
> difficulties or errors in the products and/or services; market pressure to
> lower substantially or eliminate pricing on the types of Internet
> subscription
> services described as a result of such services being provided at
> low or no
> additional costs by brokerages, financial institutions and other financial
> companies to their customers, or for other market reasons; the company's
> customer and active prospect base containing a substantially
> lower number of
> interested subscribers and/or brokerage clients than the company
> anticipates;
> the failure to consummate the pending merger with
> OnlineTrading.com at all (or
> on a timely basis) due to regulatory issues or other reasons; difficulty
> integrating the two companies from technology, operational and marketing
> aspects; potential NASD or other broker-dealer regulatory issues
> arising from
> the merger and/or the conduct of a brokerage business focused on active
> traders; the success (and cost) of new marketing strategies as a
> result of the
> merger; the company's future participation in any merger or other
> strategic
> alliance; unfavorable critical reviews; increased competition (including
> product and price competition); the level of market demand for real-time
> decision support tools, real-time data and/or online brokerage
> services and/or
> website services generally; the scalability, performance failures and
> reliability of the Financial Data Cast Network; the entrance of new
> competitors into the market; timing and significance of
> additional new product
> and service introductions by the company and its competitors;
> general economic
> and market factors, including changes in securities and financial
> markets; the
> adequacy of working capital, cash flows and available financing
> to fund the
> new business model and sustain expected operating losses; and
> other risks and
> uncertainties indicated from time to time in the company's
> filings with the
> Securities and Exchange Commission including, but not limited to, Omega
> Research's December 31, 1999 Annual Report on Form 10-K, its registration
> statement on Form S-4 filed April 17, 2000, as amended, as well
> as other press
> releases, particularly those released during and subsequent to
> the 1999 third
> quarter.
>
> SOURCE Omega Research Inc.
> -0- 06/09/2000
> /CONTACT: Sean Davis, Vice President of Investor and Media
> Relations of
> Omega Research, 972-470-4742; or Kim Shepherd or Jim Fitzpatrick, both of
> The Dilenschneider Group, 312-553-0700, for Omega Research/
> /Web site: http://www.TradeStation.com
> http://www.WindowOnWallStreet.com
> http://www.omegaresearch.com /
>
> ================================================================
>
>
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