Automated Trading Systems: BWT Precision Auto trader Review

The BWT Precision Auto trader has recently been launched so read our review about this new automated trading system from a company with a long pedigree in systems development.

BWT Precision Autotrader YM Trade

The BWT Precision Autotrader has been developed by BlueWave Trading, who have been supplying high quality trading indicators and systems for a number of years. The autotrader is based on years of discretionary trading experience and trading indicator development.

What is the The BWT Precision Auto trader?

The autotrader is a fully automated trading system with order and trade management built in so that it can enter trades, manage multi contract positions and exit trades using various profit and stop targets.

The system runs on either Tradestation or NinjaTrader and is designed to operate without manual intervention.

Trading signals are generated from use of the BWT Precision Indicators which can be tuned to individual instruments and time frames. Back testing and optimisation can be achieved within the Tradestation and NinjaTrader platforms.

The BWT Precision Autotrader can be used with any trading instrument, however it is particularly suited to currency majors such as the EURUSD, GBPUSD, commodity futures and index futures markets.

A trade example

You can see an example of the autotrader trading the Dow futures in the image above. (Click to enlarge). This was traded using Tradestation.

The system was successfully entering long trades with three contracts using a trailing stop. The trades were all held until profit targets were hit and the trailing stop took out the third “runner” contract.

All three trades were profitable.

Ease of use

The BWT Precision Auto trader is both easy to use and set up, particularly if you are familiar with the BWT Precision indicators.

If you are familiar with Ninjatrader strategies and indicators you will be impressed by the BWT Precision Autotrader interface. It has been created almost as a stand alone system that is very intuitive and powerful to use.

Although there are many parameters that you can tune, the interface makes these easy to set and it you are quickly arming the system for auto trading.

A very neat feature for Ninjatrader users is that the parameters are remembered for that session. Ninjatrader users will know what a great asset this is. I have not seen this in another NinjaTrader based system.

Trading Performance

This is only a brief introduction to this very powerful and flexible automated trading system. Far more detailed reviews will be published soon, with emphasis on the system trading performance.

In short, the trading performance of the auto trader is very good, although care must be taken with instrument and time frame selection as well as profit and stop loss targets. This applies to any trading system – manual or automated, of course.

It is not a “black box” system so you know how it is making trading decisions and this brings confidence to the trader, particularly with more experience of using it for live trading.

It trades like a very good trader and is probably far better than most day traders as it will stay in the trade until it is stopped out, profit targets are met, or trade reversal signals are encountered.

Experienced traders know that no trading system is perfect though. They take losses and so does the BWT Precision Autotrader.

BlueWave has back tested and traded the autotrader in real time extensively with a number of instruments and can provide tried and tested settings for a number of instruments. This is extremely useful, particularly for new users.

Click here to see the BWT Precision Autotrader performance with many trades

System Requirements

The autotrader requires full licenses of either NinjaTrader 6.5 and above or Tradestation in order to trade. It also requires connection through these platforms to a broker account. Use of a paper trade account is recommended to test and tune the system in a live trading environment.

It is not particularly memory hungry although it is sensible to run it on the highest spec PC that you have available, particularly if you are trading several instruments at the same time.

This applies to any PC for trading – it is advisable to run your trading platform on a dedicated PC with the minimum software stack for reliability.

The BWT Precision indicators are required for the autotrader so these have to be purchased with the system for traders who are not already Bluewave indicator owners.

Price

The BWT Precision Autotrader consists of two parts: The BWT Indicators and the BWT Auto Trader.  The auto trader costs an initial $5995 USD for the first three months, and then $3000 billed quarterly.

If you are already a license holder of the BWT Precision Indicators, then the BWT Auto trader is only $3,000 billed quarterly.

The BWT Precision Autotrader has taken many months to develop and test and the price reflects this. It will also deliver a positive return on investment over time (usual caveats apply about trading risk).

Click here for more price details

Conclusion

This is only the first in a series of detailed review articles about the BWT Precision Autotrader. It has just been an introduction to this powerful trading system.

The autotrader offers a huge amount of flexibility and user control without being difficult to use, set up and, most importantly, understand.

It is very transparent and predictable in its trading decisions and reliable in use. These are extremely important when you are placing your trading capital at risk.

It makes some excellent trades, and it makes some bad trades, then so does every trader I’ve ever come across, including me.

If time and effort is taken to back test and optimise the settings, the autotrader is very profitable over time, though, and that is what counts.

Its performance can be startling good, as we will show in subsequent articles – a 92% success rate trading Dow futures (YM) for example.

Overall, it performs like an emotionless professional day trader and that is very good.

Resources

BlueWave Trading Systems

More details about the BWT Precision Autotrader

BWT Precision Autotrader trade performance for August and September 2009

BWT Precision Indicators information

BWT Precision indicators and Auto trader pricing

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