TTA Media ArticleBy Monica Gutschi
Of DOW JONES NEWSWIRES
TORONTO (Dow Jones)--Investing can be an emotional business. But as any professional money manager can attest, for every gut feeling that helps pick a winning stock, there's the unfortunate tendency to hold on to a loser longer than warranted.
Titan Trading Analytics Inc. (TTA.V) hopes to take the emotion out of investing with its proprietary TickAnalyst software, which has just been licensed to G-2 Trading LLC, a New York-based trading group.
Since the announcement of its release last week, Edmonton-based Titan's phone has been ringing off the hook, says company director Joe Francese.
"We're getting a lot of demand for it. When a trader or hedge fund has seen what we've got, they've never seen anything like it," Francese says.
The software, which has been under development for 12 years, is essentially a proprietary algorithmic trading program that analyzes a stock's past activity to predict future trends. It takes a minimum of three years of historical data to determine the factors that move the stock. The software then analyzes real-time activity and flashes either a "buy" or "sell" signal.
Unlike traditional algorithmic models, Titan's software uses multiple timeframes to conduct its technical analysis, Francese says. He likens it to looking at a picture of a face, then taking an X-ray, and then an MRI - the latter being the equivalent of real-time ticks on a stock exchange. If all of those timestamps confirm the technical signals, he says, the program then executes the trade.
"It just runs by hard and fast rules," Francese says. However, while TickAnalyst can operate as a fully automated "black box," a trading group can opt to use it as a "grey box" and override the signals - injecting a bit of human element into the process. The program can also be tweaked depending on which and how many of the 21 technical models are used, and whether the trader wants to go long or short on the stock.
While the software can be used with any security that generates a chart - including commodities, currencies, futures, or bonds - it does need volatility to function properly. "As long as we have an uptrend or downtrend, it can move in and out," Francese says. "When a stock is on a flatline , we don't make any money. We make money when a stock is moving up or down and we trade on that momentum."
The licensing deal with G-2 Trading is a seminal event for the company, as it represents its first revenue generation. Under the deal, G-2 Trading will pay a monthly license fee to roll out the program to its 130 proprietary traders, with the potential of expanding to 250 traders. Francese says G-2 doesn't have full use of the automated program, meaning the trader will have to determine whether to respond to the buy and sell signals.
Titan is also developing a second revenue stream, under which it will manage assets using its proprietary model. "We're going to be, in a sense, our own hedge fund," Francese says. Although TickAnalyst was designed to target a 1% weekly return, he says years of testing have shown it can outperform that goal.
-By Monica Gutschi, Dow Jones Newswires, 416-306-2017 monica.gutschi@dowjones.com
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Great Article!
What I find interesting is the 1% weekly return. If we take this and subject it to the $5,000,000.00 for five months, we get a return of $1,000,000.00 non-compounded. We split this 50/50, so our take minimum $500,000.00. Why do we not have a release of this?
Good to hear that the phones are ringing off the hook. Now, let's get the share price moving in the positive direction.
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