AbleTrend is a decision making trading system software. It is universal that it can be applied to any markets and any time charts including stocks, ETF, futures, commodities, e-mini, foreign currency and bonds etc. AbleTrend has provided traders with specific optimal buy and sell signals as well as dynamic and time-tested stops since 1994.
Only AbleTrend has won Stocks & Commodities magazine readers' choice awards of triple* trading systems for 29 years in a row (1997 - 2025).
*including stock trading systems, futures trading systems & option trading systems
"Among all the trading software I bought, AbleTrend 7.0 is the most simple and easy to use, and it works." - Dr. Edward Christy, Michigan
How to validate a trading system?
People often ask what's the winning rate to evaluate a trading system software. In fact, there are more than 11 factors we must check through to validate a trading system through back testing. Those factors are talked in Chapter 5 of the book "AbleTrend" published by John Wiley & Sons in 2010. Most trading software provides "red light" or "green light" type of indicators. It just tells when to buy, and when to sell without any way to verify it working or not. Beware of indicator software programs (colored lights/bars) that do not offer back testing capability. Back testing is the only way to validate the signal algorithm. How can anyone trust colored bars/lights or whatever indications that have no back testing validation. If you blindly follow unproven signals, you are just shooting in the dark. It will be very costly. Ablesys trading system software offers back testing capability. You can validate the signals and strategies before you risk any hard-earned money. Trading with back tested strategies is the best way humanly possible to trade in the market.
Why 80% winning rate doesn't matter?
Almost every new trader would ask, what's your winning rate? Winning rate is not important for whether a trading system wins or loses overall. A system with only a 10% winning rate can win big if you can keep the average losing trade small, and have a much bigger average winning trade. It's also true that a system with a 90% winning rate can lose big if you have a smaller average winning trade, and a much bigger average losing trade.
For example: suppose a trading system has a 80% winning rate with 100 total trades for a period. If the average winning trade is $100 and the average losing trade is $500, this results in net loss of $2,000. Here, gross profit was 80 x $100 = $8,000, and gross loss was 20 x $500 = $10,000.
When you look at a system, you need to look at the profit factor, maximum drawdown, winning rate and overall long-term performance. We are a CTA firm. According to the regulation, it is not appropriate to offer general winning rate numbers since it would be misleading due to the generalization. The software offers all important and specific details in the back testing reports. You should be able to find the reports that are relevant and specific to your trading styles and strategies.
A higher winning rate is relatively easy to reach if you set the profit target very small. This will not help you to make a profit. This is the trick many vendors are playing. Please watch out.
When you choose a trading system software, you also face many other tough questions: