From the August 01, 2012 issue of Futures Magazine • Subscribe!

Software Review: TradeMiner

TradeMiner
Gecko Software, Inc.         

Web site: www.TradeMinerPro.com

Requirements: WinXP/Vista/7/Mac OSX/Linux 200 MB free hard disk space, 1024x768 screen resolution (minimum) Larger recommended. RAM 2GB (more is better).  Requires Internet connectivity for installation, but not to run the application itself, CPU: 2.4 GHz or higher.

Price: $197.00 each version: Stocks, Futures, Forex. No monthly fee, once-yearly data update $69.00 per version. (14-day money-back guarantee.)

Overall Rating: 4 out of 4

Gecko Software’s TradeMiner is a deceptively simple trading package that “mines” for recurring patterns and cycles in price data. The program comes in three modules: Stocks, Futures and Forex. Each can be purchased as a standalone program, and each operates in fundamentally the same fashion. The cost of TradeMiner includes data for 600+ stocks, 25+ forex pairs, and nearly every tradable commodity. The data is updated yearly for a nominal cost. TradeMiner is a very affordable option for those traders wishing to identify short-to-intermediate-term trading opportunities based on past price history.

Installation, documentation and support: 4 out of 4

The installation of TradeMiner could not be simpler.  Once someone purchases the program, a link will be emailed that will contain the downloadable program.  The installation takes just moments, and you will be up and running almost instantly. Gecko provides excellent documentation in PDF format user’s manual, and several tutorial videos.

Within the program there is an “Education” tab that launches a web browser linked to Gecko’s “Electronic Education Center.” The website offers numerous video tutorials that include every aspect of the program. Especially helpful are the videos covering each of the modules. Even though each module functions basically the same, the videos do point out unique applications of the program tailored to that specific module. For example, the Forex video discusses how TradeMiner can be used for day traders.

For more specific user support, the developers of Gecko are available via toll-free telephone and email.

Features: 4 out of 4

TradeMiner lives up to its name as a data mining program. The user is able to search for, or mine, historical data patterns that meet certain defined criteria. These include the minimum and maximum length of the pattern, the % success rate (how often that period of time would have resulted in a winning trade), the minimum gain to be considered a winning trade and even the month of year for the trade to occur. Of course, by the very nature of the program, one has to believe in the concept of repeating cycles and patterns. It is beyond the scope of this review to discuss all the literature on either side of the debate concerning trading historical patterns, but it is crucial to use a little common sense when using TradeMiner. For example, after entering your constraints you may find that the program only generates a few historical instances given your parameters. With only a few samples it is difficult to assign statistical significance. As such, you may want to look for other trade opportunities.

The data mining aspect of TradeMiner can search in two modes: By particular security, or by month. For those traders who are indifferent to what securities they trade, using the “month” search would make more sense. Simply choose a month, enter your constraints, and you will be presented with a listing of potential trades. Searching by security works in the same way. The results of the search are presented in a table with numerous columns (each sortable) of trade statistics. Perhaps the most useful way of sorting is by “Score.” TradeMiner helpfully assigns a color based on how well the results match the criteria chosen. Green is best, followed by yellow, and then red. The score is based not just on return, but also risk and length of trade. (All things being equal, a shorter trade is considered preferable.)

After mining for trades and viewing the results, the program then has the ability to create a portfolio of any chosen subset of the results. This is very useful as it enables the user to print out simple, concise “trade sheets,” which is the next best thing after being able to directly link a brokerage account. (Maybe in a future version?)

Each module of TradeMiner also gives the user the ability to create and save an unlimited number of subsets of securities within the given universe. For example, within the Stocks module you could create a grouping of technology stocks (and any other sector), or a set of stocks that are in your current portfolio with the anticipation of selling them in the future – using TradeMiner to find the optimal dates.  

Conclusion

Gecko Software’s TradeMiner is the unique trading program that is at once intuitive, comprehensive and highly user-friendly. Intuitive in that the basic philosophy behind the program should appeal to users on the most primitive level.  I don’t know of any trader who believes that patterns and cycles aren’t embedded into prices in some way. TradeMiner, by offering stocks, futures and forex, is quite comprehensive, although some users may quibble that “only” 600+ stocks are part of the system. Last, TradeMiner is user-friendly. Even without the video tutorials, a user can figure out the gist of the program in a matter of minutes. Overall, Gecko has created a highly useable product at a very reasonable price.

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