By Jeff Drake

By Omni Traders International, LLC

Introduction

• The Adaptive Trade Management System (ATM) is advanced technology that is destined for OmniVest, but is currently available in OmniTrader.

• In this presentation, we’ll look at how ATM can be used. – ATM can take advantage of

using multiple strategies.

– ATM can also the improve the performance of ANY individual strategy.

ATS vs. Adaptive Trade Management

Trending Market

Trade Ranking

Trade Filtering

Long/Short Balancing

Trade Allocation

Strategy Selection

Trade Ranking

Trade Allocation

Automatic Trade Selection Adaptive Trade Management System

Volatile Market

Trade Ranking

Trade Filtering

Long/Short Balancing

Trade Allocation

Strategy Selection

Defining Market States

Strong Bull Market

Volatile Market Sideways

Market

Steady Market

Market State Adjustments

• When markets change, we want to consider adjustments to our trading approach.

Trending Market

Trade Ranking

Trade Filtering

Long/Short Balancing

Trade Allocation

Strategy Selection

Volatile Market

Trade Ranking

Trade Filtering

Long/Short Balancing

Trade Allocation

Strategy Selection

Matching Strategies to States

Certain Strategies work better in certain markets.

Bullish Market (L)

Bearish Market (S)

Neutral (L+S)

Drastic Improvement

Can ATM Help One Strategy?

• Four of the five features in ATM still apply even if we are only using one strategy.

Trending Market

Trade Ranking

Trade Filtering

Long/Short Balancing

Trade Allocation

Strategy Selection

Volatile Market

Trade Ranking

Trade Filtering

Long/Short Balancing

Trade Allocation

Strategy Selection

Ranking Strategy Signals

• We want to take the trades that have the highest rank.

• ATM uses any number of rankers, and then applies weight to each ranker.

Raging Bull Market

Ranker Name

Ranker Weight

Ranker Definition

Different Market, Different Allocation

More Trades, Lower

Allocation

Higher Allocation

Less Trades, Lower

Allocation

NEW! The Single Strategy Method

• The Single Strategy Method is meant to improve the performance of ANY End of Day strategy.

Single Strategy Method Market States

0%

50%

100%

92%

65%

Max Drawdown

iZones DT Strategy w/ ATM

0%

200%

400%

600%

800%

117%

739%

Return Percentage

iZones DT Strategy w/ ATM

iZones DT Strategy

0%

200%

400%

600%

800% 457%

700%

Return Percentage

UIS Hull Moving Average w/ ATM

0%

20%

40%

60%

80%

76%

51%

Max Drawdown

UIS Hull Moving Average w/ ATM

UIS Hull Moving Average

ATM Strategy Improvements

Statistics generated by running strategies and ATM on the stocks in the Russell 1000 Index from 1/1/2005 to 2/12/2017.

0%

500%

1000%

1500%

2000%

243%

1645%

Return Percentage

Squeeze Classic EOD w/ ATM

0%

20%

40%

60%

80%

80%

54%

Max Drawdown

Squeeze Classic EOD w/ ATM

Squeeze Classic EOD Strategy

0%

500%

1000%

1500%

2000%

620%

1731%

Return Percentage

UIS Relative Strength w/ ATM

UIS Relative Strength Strategy

0%

20%

40%

60%

80%

79%

56%

Max Drawdown

UIS Relative Strength w/ ATM

ATM Strategy Improvements II

Statistics generated by running strategies and ATM on the stocks in the Russell 1000 Index from 1/1/2005 to 2/12/2017.

0%

500%

1000%

1500%

334%

1201%

Return Percentage

RS1 Timing Strategy w/ ATM

0%

20%

40%

60%

80%

69%

35%

Max Drawdown

RS1 Timing Strategy w/ ATM

RS1 Timing Strategy

0%

1000%

2000%

3000%

4000%

909%

3753%

Return Percentage

RS1 Trending Strategy w/ ATM

0%

20%

40%

60%

80%

77%

51%

Max Drawdown

RS1 Trending Strategy w/ ATM

RS1 Trending Strategy

ATM Strategy Improvements III

Statistics generated by running strategies and ATM on the stocks in the Russell 1000 Index from 1/1/2005 to 2/12/2017.

Three Methods for ATM Users

• We currently provide three preconfigured ATM Methods:

– Universal Method

• Meant to be used with multiple strategies.

– Single Strategy Method

• Meant to be used with individual strategies.

– ARM5 ATM

• To be used with Nirvana Club exclusive strategies.

• And more to come!

By Ed Downs

By Omni Traders International, LLC

ATM Goal: High Returns, Less Risk

ATM Market State, Filtering,

Balancing, Ranking, Allocation

ATS Ranking Only.

Strategies ONLY

Forever Up?

Election Day 2016

We want to make money.

But we want to be protected, too...

... From events like this.

• How can we protect against market risk?

Market States that Avoid Corrections

See Mark’s Full Post at: https://www.omnitrader.com/currentclients/proforum/thread-view.asp?threadid=7558&posts=2#0

Formula for Market State to Cut Off Trading. (HHV(6) - C) / HHV(6) > .05 OR (HHV(6)[1] - C[1]) / HHV(6)[1] > .05

Equity Curve Comparisons

Ending equity is a bit less, but draw downs at the correction points were significantly decreased.

See Mark’s Full Post at: https://www.omnitrader.com/currentclients/proforum/thread-view.asp?threadid=7558&posts=2#0

Is there another way to reduce risk?

YES, with Index Puts!

Index ETF Puts

2%

5%

10%

price

Highest Volume Contracts

Loss Levels

Cost of Put Protection (current mkt)

In the current market, the cost of protection against a 15% Market Correction (using monthly Puts) is about 4% per year.

Table shows current option prices for options expiring 9 to 380 days in the future. The 30 day hedge is optimal because it will “reset” as the market advances.

Put Protection Simulation

Trading the Dow 30 Stocks in Lab Mode. Starting Jan 1, 2018 Universal Method Raging Bull Strategies Take all New Signals Hedge Exposure by purchasing new Put Contracts based on our current exposure in our equity positions.

Put Protection Simulation

Market down 9.5%

Lab Mode Test: Dow 30 Jan 1, 2018 through Feb 8, 2018 Each trade is 10% of equity ($10,000)

Account down 3.7%

The Protective Effect

Puts provided $3,300 (3%) improvement in positions.

Jan 3 – 3 Feb 260 Contracts (-$129) Jan 28 – 5 Feb 260 Contracts at $100 Feb 2 – 1 Feb 280 Contract at $380 Total Put Investment: $529

Coming Enhancement

We are adding a tab to ATM where the user specifies protection level, and automatically maintain the PUTS.

Index Put Protection [x] Protect my account against a 10 .% or greater market correction. New tab to be added

to ATM in Q1.

Theoretical Put

IRA Account

Long Only. No Margin

$227 M

Average ROI: 64% Average MDD: 16%

By Mark Holstius See http://downloads.nirvanasystems.com/atms/posts.html

About OmniVest

First released at the end of 2012, OmniVest has continued to be improved over the past 5 years.

Early Release

ATM is being developed by Omni Traders International, LLC

for the OmniVest platform.

Having the product developed for OmniTrader first enables us

to develop new methods quickly.

Early Adopters can use ATM NOW to improve their trading

early in 2018!

User Feedback...

“This is it! It’s what I’ve been waiting for...”

- John Leslie

“I’m very excited about using ATM for automated options trading!”

- Roger Boye

“An amazing development for OmniTrader and OmniVest users!”

- L.D. Newby

The Incredible Power of ATM

Never before have we built technology that is GENERALLY this powerful. Expect more updates as we continue to learn about the market and leverage this powerful tool.

Without ATM

With ATM

Special offer from O.T.I.

* Log In below to see if you qualify for additional discounts based on your OmniVest or Nirvana Club Status!

http://www.nirvanasystems.com/atm4ot

http://www.nirvanasystems.com/atm4ot