striker report

Special Edition:
System Developer Interview

Striker Securities, Inc. - Phone: 800-669-8838 / 312-987-0043   E-mail: info@striker.com   Web: www.striker.com

 

Charles Tanti

President of Advanced Trading Systems, Inc. (www.ats200.com)
System Developer of ATS-3200 and ATS-6400.
Interviewed by John F. Gallwas, Founder of Striker Securities, Inc. - August, 2004

John Gallwas: In our interview published in the 3rd / 2004 issue of Futures Truth (www.FuturesTruth.com), we discussed your engineering background, your obsession on problem solving using pure mathematics, and how that ultimately led you to being President of Advanced Trading Systems, Inc. ("ATS") (www.ats972@ata3200.com) and the development of your ATS-3200 T-Bonds trading system. Like many traders, you were introduced to the markets the hard way by managing to loose money trading before you recognized the essential need of a disciplined trading system that would analyze the market in an objective un-emotional and consistent manner to make trading decisions. From start to finish, it took you 13 years to launch the first version in ATS-3200 in 1993 and since that time you have continued to improve the system, with better filters, better algorithms and added functions to reduce risk, draw-downs and the number of loosing trades.

Please explain how you see your mission now toward the development of systematic trading systems?

Charles Tanti: The ATS-3200 and the ATS-6400 are the result of many years of market observation, technical analysis, research with new indicators and countless hours of quantitative analysis and my mission is to continue to improve the systems with better filters, better indicators, better algorithms and better functions. At the same time I am always trying to simplify the systems, because simple works better. And I also would like everyone to understand the simplicity and beauty of these systems, in order to gain confidence in technical analysis and system trading and to become better traders. For this purpose I conduct a weekly trading seminar, in which I explain in great detail with hands on examples the 5 design stages of the "ATS" systems. I have prepared a special offer for the seminar for your readers at the end of this interview.

John Gallwas: What is the difference between a "trading system" and "system trading"?

Charles Tanti: "System Trading" is when an investor is trading a number of uncorrelated systems, to balance the risk of his portfolio. Different systems trade different markets. Some systems can be long term trading systems, while other systems can be short term trading systems. By trading a basket of systems, an investor can diversify his trading portfolio, and sometimes this helps to neutralize drawdowns. The "ATS-3200" is an example of one "trading system". It is a long term trading system that trades interest rate futures, the 30 year T-Bonds. An investor may prefer to trade a system like the ATS-3200 and at the same time trade a shorter term currency system to improve his returns. A good broker can advice an investor how to balance a portfolio to achieve the best results.

John Gallwas: What are the various ways your customers are using your ATS-3200 to improve their portfolio results?

Charles Tanti: My customers have found a number of ways to use these two powerful systems because the ATS systems are dynamic technical trading tools that many traders use in trading programs once they understand the various indicators and observing how they work. With these systems an investor can:

1. Trade all signals generated. Simply follow the systems and take all signals.

2. Use an ATS system in a basket of trading systems (systems trading). Some customers own and trade a number of trading systems in different uncorrelated markets. Since the "ATS" systems are long term systems, some customers include an ATS system in a basket with short term systems to reduce volatility and improve results.

3. Use the systems to trade with the trend. Other customers use the system to find the long term trend of the market and operate a short term trading program with the trend.

4. Use the system to simulate one or two weeks ahead. In order to prepare for a long term trend change customers can use the ATS systems to forecast future trading signals by running the system on simulated higher or lower price data.

5. Use the system as a confirming indicator. Many of my customers have developed their own trading systems and/or purchased other trading systems. They use the "ATS" systems to trade the bonds and the notes as well as a confirming indicator for their other trading systems.

6. Use the system to trade profitably in sideways market. There are four "Chaos" or sideways mathematical indicators built into the systems. These indicators are displayed in a special "Sideways Market" report for better analysis, and when indicated the markets will generally move in a narrow trading channel for some time. During a sideways period some customers elect to either trade inside the channel or write "out-of-the-money" options.

Charles Tanti: Under what circumstances would you suggest considering using a broker-assist programs?

Tanti: I believe that anyone can benefit from using a broker to trade the systems. A broker will execute the signals generated by the system automatically without any hesitation. This can be most beneficial to (1) traders with limited system trading experience, (2) traders who find it difficult to control their emotions and follow every signal, (3) traders that do not have the time to operate a system, and/or (3.) traders who are system trading a basket of systems.

John Gallwas: How can investors learn more about systems trading and if the ATS systesm would be suitable for their portfolio needs?

Charles Tanti: Investors need to learn about technical analysis, and realize that technical analysis is a tool that can turn the odds in their favor. Every trader should consult with his broker to find out which system or systems are suitable for his account size and trading objectives.

A trading system is not the "Holy Grail" as many would like to believe. A trading system is a mechanical methodology with historical results (hypothetical and "real time"). A trading system helps investors to trade in a disciplined manner, which when coupled with good money management principles, in my opinion is the only way to succeed in the long term.

Every investor must also realize that trading is a very demanding business and it is important to take the time to understand trading systems before starting a program. To trade using systems takes discipline and confidence and it takes time to become knowledgeable.

The "ATS" systems are relatively simple systems even though it took many years for their development. Every week I conduct an on line trading seminar, during which I explain in great detail the stages one by one how I designed and built the ATS-3200. During the seminar we go over the following topics:

1. The Big Picture - Finding the Long Term Trend.
2. Using a simple adaptive filter to Stay with the Trend.
3. Using filtering algorithms to Improve the Performance.
4. How to Buy near the Bottom and Sell near the Top.
5. Functions that Limit Risk and Reduce Drawdowns.

During each session I explain each function of the system. You will run a few tests using the ATS-3200 system, so that you can see how the performance is improved with each new added function. This seminar will help you understand why long term trading works.

The online-seminar costs $250, however the seminar is free for the first 10 people that call me at 416-487-0565/416-319-9038 to sign up for the seminar and mention the Striker Report.

At the end of this seminar, my objective is that every participant will gain the knowledge to become a better trader, and learn about the ATS powerful trading systems.

John Gallwas: We thank you again for your comments and we wish you the very best in the future.

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