BetterTrader was founded in 2014 by a group of professional traders and statisticians who had worked together in a specialized trading room for over 10 years. They realized that they lacked real-time analysis of economic events. Seeing that this delay in the analysis of economic news resulted in missing important trading opportunities, they decided to create a solution and BetterTrader was born.
The platform provides real time insight and risk assessment for each major news and economic release. It also generates specific trade ideas derived from backtested analysis.
By integrating artificial intelligence and customized algorithms they essentially created their own automated team that works around the clock to analyse the markets and economic events. The outcome allows traders to make intelligent decisions fast, following economic and market events.
Trading Economic Events
Economic releases have several important qualities that make them a great source of opportunity in the markets.
- They provide a source of volatility and therein trading opportunities.
- They are pre-scheduled, meaning that it is possible prepare to trade them in advance.
- They are recurring, which makes it possible to analyse their history and how the market has reacted to them in the past.
BetterTrader calculates the magnitude of an event using historical data and artificial intelligence to predict potential market reactions. For every economic release the system calculates the surprise level and presents a visual indication of its magnitude.
Traders can understand, not only if the release is presently considered strong or weak, but also its magnitude in comparison past releases. BetterTrader also shows users the most highly correlated markets for each release – giving you an idea of the best instrument to trade.
Taking the monthly US Employment Report as an example, BetterTrader tells the user:
- The strength or weakness of the figures in relation to analyst expectations.
- Historical statistics, comparing the data to past releases.
- Market reaction: what happened in the past in similar situations.
In the screenshot above, you can see an example of a trade idea within the platform. After the EIA Weekly Refinery Utilization Release came out with a bit stronger magnitude, a bullish signal in Brent Crude Oil was generated.
Opening up the backtester (circled in red) the user can see that 6 out of 8 times Brent Crude Oil moved up following similar data from the EIA Weekly Refinery Utilization Rates report.
The underlying idea is that the market tends to react in similar patterns. The BackTester area provides a snapshot of market reactions in similar situations of any trade idea or economic event.
Risk-ON/Risk-OFF Real-time Monitor
The Risk-ON/Risk-OFF Real-time Monitor is the most popular feature among professional traders using the platform. These tools help you measure the mood shifts in the markets and to evaluate the money flow between asset classes in real-time.
When risk is perceived high (Risk-OFF), safe haven assets like Gold, US Treasury Bonds and the Japanese Yen are often preferred. Conversely, when risk is low (Risk-ON), assets like the S&P 500, Italian Bonds, the Australian dollar and copper often see inflows of buyers.
By monitoring the relevant instruments from 5 asset classes, BetterTrader algorithms calculate the magnitude of the moves and detect money flow between asset classes. From this, the risk indicator is calculated in real-time.
When algorithms detect that the mood of the market is changing from Risk-ON to Risk-OFF or vice versa, traders are alerted promptly and given the information to execute trades accordingly.
In addition, BetterTrader looks for divergence taking place within risk-on assets and safe haven assets. When a risk basket is moving in one direction while a separate instrument is not, users are promptly notified, providing potential trade opportunities.
The Twitter Scanner provides key updates on news that has not been scheduled. Most traders are familiar with how surprise news can move the market. A tweet from Donald Trump relating to US/China trade, or from Elon Musk on Bitcoin are examples that caused massive volatility.
The layout allows you to easily scan multiple feeds at a glance. Better still, you can be notified by voice of new tweets from your favorite accounts. This means that the tweet will be read to you and you do not even have to be watching the screen. In this way you’ll never be caught off guard when there is a tweet that might affect your trade.
In addition to the web app, BetterTrader is available for iOS and Android.
Trade Directly from the App
BetterTrader allows you the possibility of connecting your broker and trading directly from the platform – saving the precious time of switching in between apps.
The Bottom Line
BetterTrader is a powerful analysis platform that can also link to your broker and become a full trading platform. It is most useful for short term traders operating in the forex, commodities and indices markets. The trade ideas within the platform are triggered by both economic events and market movements.
Each trade idea is a market situation where back-testing has shown a minimum of 66% historical win rate in similar market conditions. BetterTrader is like having your own private team of analysts, working 24/7 to come up with trading ideas which have a high statistical probability of success. A free 7-day trial, no credit card required is available.
Learn more about BetterTrader at BetterTrader.co