Omnitrader by Nirvana Systems

Testimonals

Interviews

Allan Fox - Stocks Trader

Allan has used OmniTrader since 1995. He uses OmniTrader to filter stocks to determine which ones to use in his profile. He also takes the philosophy that he wants to make a little money on each trade and then get out. His world is made up of moves of less than one point. He also depends on his judgment for determining the price target and the stop loss placement.

How did you come to use OmniTrader?

In the early '80s, I used to invest with newspapers and graphs. I lost a bunch of money in '82 and swore I would never fool with the stock market again. About one and a-half years ago, my younger brother talked me into buying some stock in a company he was involved with. I wanted some software to help me track it. I tried Teletrade and didn't like it. I went to Worden and liked what they had. On their CD ROM was a copy of an OmniTrader demo. I bought OmniTrader and used it with Worden Brothers.

Can you give us an overview of how you trade?

My sister says I play monopoly with real money. I use QuotesPlus' database of about 10,000 stocks to build my OmniTrader profile. Each day I look at the top 50 stocks in volume -- 20 from the New York Stock Exchange, 20 from NASDAQ, and 10 from American. I also screen for all stocks from $5-$40 having less than a 30 price-to-earnings ratio, less than 30 RSI, less than 30 stochastics, more than 100,000 shares traded each day for the last 30 days, and 750,000 or more shares traded in the current day.

Each day I find around 6 stocks -- last night there were 10 -- and I add them to my profile. My profile now contains 300-400 stocks. Every night I test the stocks and run signals. I get a lot of good hits. I only look at stocks for which OmniTrader has a hit rate greater than 70%. I also look at the 200, 50, and 20 day moving averages -- I try to get something at the moving average with the moving average rising. I trade 1,000 shares at a time and look for 1/4 -3/4 point. I want to get in and get out fast -- in one day if I can. I try to make a couple of thousand dollars a week.

How have you done?

My hit rate is greater than 90% and I am up about 70% so far this year. Last year I was up 63%.

Fantastic performance. Let me try to flesh out some of what you have said. How did you develop this philosophy?

When I got OmniTrader, there was a videotape by Ed Downs. On the tape he mentioned that just 1% a day can add up to a great performance. I wanted to consistently make a little bit of money.

How do you decide to take your profit?

When I enter my buy order I also enter my sell order. I decide where the sell order should be based on my review of the history of the price action in the stock. Sometimes I hold it a while-up to ten days or two weeks, but I usually don't want to hold a stock that long.