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I've also used TS products for many years, and whatever the opposite to a
soft spot might be is what I inherently have for TRAD these days. However, I
view TRAD's latest efforts in two basic contexts, and I'm prepared to give
them another chance.
First, they're scrambling to find a way to survive because developing and
marketing software doesn't work any more, for them. They've found it too
challenging to leverage residual revenue for their R&D efforts, so they
decided to package their expertise, AND I know that's subjective, into a
service. Online brokerage with TSP adds significant value in the context of
being a broker. However, there's much more functionality needed for this to
substantially succeed, which I'll touch on shortly.
Second, TRAD is a broker, and like most brokers, they're a "storefront." The
"real broker" in this case is Bear Stearns, who I've dealt with directly for
many years. I'm not too concerned how TRAD might think they can malfunction
because I know my account is with a solid entity whom I can call if I need
to. For TRAD to maintain customers, it has to keep them happy or deal with
complaints laid at Bear Stearns' feet, which WILL make a lot of noise in
Florida. To Bear Stearns, TRAD is a (very) small customer, and from my
experience only a very little amount of crap will be tolerated. I wouldn't
be surprised if someone from Bear Stearns isn't subscribed to this list. If
TRAD changes from Bear Stearns, in and of itself that could be a barometer
of customer dissatisfaction.
A key strategy for TRAD to be significantly successful as a broker is the
need for much greater functionality in future versions of TSP. Today, TSP
only handles price data, which may well be satisfactory for technical
trading, but it's far short of the kind of data that most people who trade
stocks use (and need). Commissions on stock trades is where the bulk of
TRAD's (future) revenue must come from to grow earnings, imho. The notion
that orders can be automatically placed when a strategy signals to do so is
all but a pipe dream. Who'd trust TSP's math imprecision, to say the least?
There are many "bugs" of that nature that need to be fixed for TSP to be
used as TRAD may envision. What about analytical metrics data, third party
data on a user's computer, portfolio management. The list of "goodies" that
TRAD needs to differentiate and grow is extensive.
My take is that TRAD will try hard, but unless there has been a cultural or
paradigm shift they'll all but hit the wall. For small companies, high burn
rates often end with implosion. Not success. Overall TRAD has a tough road
ahead for the company to be considered "of value." But I for one hope they
make it.
-----Original Message-----
From: ribau@xxxxxxxxxxx [mailto:ribau@xxxxxxxxxxx]
Sent: Wednesday, October 31, 2001 7:16 PM
To: omega-list@xxxxxxxxxx
Subject: Re: TradeStation 6.0 and futures
I doubt you will continue to find them "above average for the industry,"
but let me explain. My disappointment with Omega is actually my own fault.
I should have known where Omega was headed because I've been using Omega
products for over eight years. I helped beta test SuperCharts 3, and I use
TradeStation every day. It has its own machine, my best machine, dedicated
to it only. There are others on this list who have been here much longer
than I and we've seen Omega change over the years from a very bright
private company with considerable promise to a shady penny stock with a
propensity to burn its bridges.
My anger at Omega and the Cruz Bros stems from the fact that they sold me
on a system called Easy Language in which I invested thousands of hours of
labor. They got me hooked, they pulled a switch, and they wanna be my
broker. I already have several brokers and don't need them, but if I want
to continue to use Easy Language, and remain current, I must open an
account with them. Sure, Bill, here...take my million...gone, gone,
goodbye. Quite frankly, over the years, I've learned not to trust them.
>>Not that I'm defending TRAD, but would you not think that several mill in
>>accounts, some of which are more than $1 mill, carry significantly more
>>clout than a $2-$4k license fee? At least I hope so? FWIW, the service
I've
>>experienced from TRAD since returning to the markets and opening accounts
>>with TRAD has been above average for the industry. I've dealt with brokers
>>for many years.
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