JBL Risk Manager 9.0
Contents
1. According to the PDF user manual that comes with the software core trading capital is based on a combi nation of available cash plus any realized trading capital that is your initial trade value plus or minus the profit or loss that would occur if each open position GOOG GOOGLE INC LONG TRADE I Short Trade Sector INTURNET Proft Target optiona Symbol GOOS Buy Date 1 20 2015 Buy Price 511 00 x Quantity 13 1 20 2015 511 00 512 50 506 016 06 90 9 42 1 21 2015 507 25 519 28 306 20 518 04 9 44 1 22 2015 521 48 536 33 S19 70 534 99 9 593 W2Y27015 535 59 542 17 S3900 599 95 9 67 1 26 2015 538 53 39 00 529 67 535 21 9 75 18 63 9 92 510 00 10 10 493 65 519 51 510 86 52 79 1 27 2015 529 97 530 70 518 19 1 28 2015 522 78 522 99 510 00 471 95 454 10 Maximum Risk 1 75 Mariman Risk R 875 Risk 1 75 v Last ose 510 00 on 1 28 2015 Sel Date 1 28 2015 Se Price 522 00 Core Trading Capital 50000 EXIT Cash 50000 44 Recommended Buy Quarility 13 Antidpated Buy Total 6652 99 Actual Risk 875 Risk Share 67 308 Pfi per Share 9 463 x Quantity 13 EO o y stop were hit Thatconceptunderlies the calculations for stop loss and money management guidelines The first guideline is related to initial risk management and is prob ably familiar to most traders It states that you should never risk more than 2 of your core trading capital on any Maximum Brok2. Management Current Porlbelio Nedeg 00 Talal Brokerage 39 70 Oosed Trades andy Total Gain Loss RE 1 60 Average Lapectancy RE Standard Deviation 0 33 Syebens Quakbty Number 2 Core Capital s2785 19 a Por Cash 37351 41 FPortfiolo Comparison Manage Capit New Trade user Gaite Chose x FIGURE 1 JBL TRADING SUMMARY SCREEN The trading summary page tracks the open and closed trade information win loss percentage reale Her Load Pulito Selings Daele Open Trade oe Can enE drawdown average dollar trade expectancy and trading system efficiency for each portfolio It also contains the tabs at the bottom of the screen allows you to enable that set up the trading portfolios the next tab The program highlights JBL RISK MANAGER Malvern Victoria 3144 Australia Website www jblriskmanager com Phone 61 3 9013 4123 Mobile 61 4 0938 7317 Skype barrington lew Product Money risk amp trade management software Price Free 14 day fully functional trial period one time cost AUD 299 with free upgrades for the first 12 months by Barbara Star PhD he best way to avoid blowing out your trading account is to develop a consistent method of maintain ing control over your trading losses Many traders think that using stop losses alone will do the trick but that s only one part of the equation Successful equity protection involves account manage ment position sizing a
3. amount of trading capital available for any one position The guideline states that you should never trade more than 20 of your core trading capital on any one trade In fact to be on the safe side the JBL Risk Manager defaults to a 19 trade size so that funds are available for slippage or other expenses Both guidelines constitute the basic rules for accounts 50 000 or less and are automatically integrated into the software calculations for each trade entered The percentages for risk and position size decrease for trading ac counts greater than 50 000 The factors of risk and trade size along with the entry price and initial stop loss determine the number of shares the pro gram recommends per trade Changes the user makes to the entry or stop loss price may create a change in the number of shares the program recommends in order to maintain the proper risk and trade size balance Stop loss and profit taking The program offers several built in and user defined options for determining stop loss placement including initial stops trailing stops profit target stops and time based stops The software recommends an initial stop loss placement based on an algo rithm that prevents losing more than the pre allocated amount of trading capital However the user may enter his or her preferred initial stop Taking into consideration brokerage fees the software also determines the breakeven price Once the breakeven price has b
4. Stocks amp Commodities V 33 07 42 45 Product Review JBL Risk Manager 9 0 by Barbara Star PhD PRODUCT REVIEW JBL Risk Manager 9 0 that will identify the country and ex change being used and keep track of information about open and closed po sitions after trades S700 x S3 69 95 SOR LG on YRS Lest Price 609 91 on 440015 Slop al 71 23 S71 227 x G3 0 95 5258 SPS 10 11 alter 64 Daye Enan TORR MOONEN MOUNTER oouo nene rote eena Chea Trach t Ss Maximum Draedowns 60 09 0 00 Figure 1 But first the user L Long SORSAN 1d 9 95 GL on WLS BO 12 99 SEE Son aS S0 H O40 after 15 Days SIL MS Lit Dae wiz GOOG leg REL 13 005 S265 on 005 RS PA inn RS 133 24 NG after amp Days ghna 153 02 15 15 needs to activate the four tabs or buttons at the bottom of the Won 3 100 Last o Woe 2 100 Lesko 0 Wom 100 l sta 0 Win Totek 1453 14 Awerage Wine S20 6 9 Lass Tatak 40 Win Totak s771 58 Loss Tetak 4 Win Tatak 4717 00 Loss Telat 6 Greatest Wine 717 10 2 Greatest Lowe 0 0 0 Greatest Wine 999 2 4 Greabest Lass 0 00 trmabesk Wins 5717 i 10 Greabest Loss 0 00 Average Lows 4 fa ou Awerage Wine SH Th decree laaa MITEA Aorrrage Win 4717 10 256 Awerage Loss H 0 0 screen that takes the trader through the simple steps necessary to set the conditions for the trade Each step must be completed before the program Capital
5. een hit the software converts from the initial stop to a trailing stop that uses either a modified average true range ATR calculation or a fixed percent age whichever the program determines will provide the best profit safety The PS JELA 533I SIA MiS 535 59 A217 539 15 538 53 535 00 5296 15 529 97 530 70 SiG Mls Se 52199 S00 system highlights in red which trailing stop is in control One of the more unique features of the program is the way the software au tomatically changes the ATR and fixed percentage stops depending on the user s trading length preferences short medium or longer term Some traders prefer to be in a trade for only a few days others for weeks and still others for months The program allows the user to select independent time lengths for each individual portfolio For example in some cases a person who usually is a trend follower using the medium term length may decide to take a countertrend trade expected to last only a few days For that trade the user would select the short length and the trailing stops would adjust accordingly The trailing stops also change depend ing on the price of the stock As can be seen in the settings screen in Figure 2 the ATR and fixed percent decrease for higher priced stocks At any time during the trade the user may elect to override the current trailing stop with one of his or her stops If a stock does not reach breakeven within 10 days t
6. erage 9 99 Actual Buy Total 6652 99 Current Stop Action New Trailing Stop Time Stop s2_ si_ pp _ R1__ R2_ 445 23 500 41 517 16 527283 522 83 522 83 522 83 501 99 504 44 508 47 510 93 514 96 501 43 509 73 514 51 522 81 527 59 513 51 523 95 530 14 540 58 546 77 5279 70 SA SHS 543 75 547 54 525 30 30 25 534 63 539 58 543 96 510 00 514 31 522 51 526 82 535 02 SOLI 505 67 514 33 518 66 527 32 e stockspit Next Trade at 530 71 Breakeven 512 54 EXIT EXIT New Trag Stop Initial Stop 522 83 Preferred Initial Stop a sto Brokerage 9 99 Sal Tatal 677601 A 02 Save Trade Trade Size Maximum 7000 Trade Size Days Heki 8 Cancel anticipated trade date the software recommends the number of shares to purchase initial stop and displays the maximum risk based on the last close After confirming the quantity it displays the breakeven price and which trailing stop is being used and whether to hold or exit the trade The user may follow or change any of the recommendations This trade in GOOG was entered at the open on January 20 2015 and closed by the trader at the open on January 28 2015 the day following the exit recommendation signaled at the close of the prior trading day Copyright Technical Analysis Inc www Traders com Stocks amp Commodities V 33 07 42 45 Product Review JBL Risk Manager 9 0 by Barbara Star PhD one trade The second pertains to the
7. he software automatically suggests the user exit the trade so the trading capital can be put to better use At the end of each trading day the user updates new price information either from the data path or the Internet for the stocks being traded If no stop has been hit the program produces a large green sign that says hold But once price has triggered one of the stop loss levels the software produces a large red exit sign as seen with GOOG in Figure 3 It is then up to the user to determine whether to exit the trade at some point on the following day or whether to stay in the trade In the GOOG trade the recommendation to exit was given after the close of trading on January 27 2015 JBL Risk Manager offers users an easy way to improve their future trading performance by giving them the ability to create and backtest multiple portfolios Copyright Technical Analysis Inc The actual exit occurred the following day at the open The user must manually enter the actual exit price when the trade has been closed IMPROVE TRADING PERFORMANCE Not only did the creator of the JBL Risk Manager wish to assist traders to be more disciplined in the way they managed money in their trading he also wanted to incorporate other aspects that have a bearing on trading performance For instance by inputting the sector category when a trade is entered users may avoid overweighting certain market sectors in their portfolio such a
8. io Settings The next tab takes the user to the settings screen where decisions are made about trade length trailing stops money management and brokerage fees Figure 2 The software automatically defaults to settings that probably suit most traders However each of the set tings may be changed to meet individual user preferences The settings screen also stores infor mation about the price data path location www Traders com Stocks amp Commodities V 33 07 42 45 Product Review JBL Risk Manager 9 0 by Barbara Star PhD and choice of stock exchange Users may select from a large list of stock exchanges These include exchanges in the US NASDAQ NYSE AMEX as well as countries and cities including Australia ASX New Zealand NZX London LSE Singapore SGX Hong Kong HKEX Bombay BSE India NSE Shanghai SSE Toronto TSX Sao Paulo SAO Berliner Borse BSE and Deutsche Borse XETRA Once a stock exchange is selected the software automatically inputs the correct currency used for the stocks in that exchange Capital Inthe third tab manage capital the user types in the amount of money in a trading account to allocate to this portfolio Trade The fourth tab new trade lets the user identify the trade as either long buy or short sell and lets the user select the stock symbol the expected buy date and the anticipated buy price Itis recommended but not required that the user a
9. lso type in the market sector for that stock and jot down in the diary the reason for wanting to buy or sell that particular stock From here the software uses the infor mation derived from the settings and the manage capital pages to automatically fill in the salient facts regarding the potential trade as seen in Figure 3 with the long trade in Google Inc GOOG Among the automated items provided on the trade screen is the amount of core capital available for trading the amount of cash to use for the trade the recom mended number of shares to buy the total cost including brokerage fees the suggested initial stop and the breakeven price For added measure it also supplies the daily floor traders pivots to help identify potential near term support or resistance Survival features The JBL Risk Manager contains several features that enable traders to maintain a consistent disciplined approach to preserving and growing their trading account The software incorporates a concept called core trading capital which Bar rington Lew considers a more realistic _ ENS MetaStock Price USA NYSE FIGURE 2 SETTINGS SCREEN Traders are able to select stocks from 15 major exchanges insert brokerage fees and indicate preferred trading duration The software automatically determines the appropriate type of trailing exit placement and percent of trade size to risk view of the trading capital available to the trader
10. nd sector balance as well as good exit strategies Program developer Joseph Barrington Lew JBL created the JBL Risk Manager software to incorporate all of those factors and more in an easy to use format JBL Risk Manager is a standalone money manager and trade risk manage ment software program for stock traders that operates independent of any charting service trading system or brokerage platform Currently it provides access to 15 major stock exchanges throughout the world The software requires local end of day price data downloaded in the MetaStock data format which is offered by many vendors However if that data format is not available the software furnishes a link to the prices needed for the stock symbol you wish to trade SIMPLE FOUR STEP SETUP The trader launches the JBL Risk Man ager after deciding which stock to trade but before placing the trade The software opens with a trading summary screen Copyright Technical Analysis Inc in yellow those ar eas that must be completed by the user in that step Portfolio The first tab create new load portfolio is the place to create and name a portfolio The software permits the user to create an unlimited number of portfolios which is useful for separat ing different stock categories or stocks chosen by different trading systems or for users with more than one trading account There is no limit to the number of stocks that may be added to each portfol
11. reas of trading psychology and www lraders com Stocks amp Commodities V 33 07 42 45 Product Review JBL Risk Manager 9 0 by Barbara Star PhD system performance Barrington Lew re ceived permission from Tharp to include Tharp s System Quality Number which measures the efficiency of a trading sys tem That number appears near the lower right hand side of the trading summary screen and is activated automatically after a minimum of two trades have been closed out According to the user manual a number greater than 1 65 shows that a trading system makes money better than a chance occurrence A number greater than 2 indicates a very good system and above 2 5 an excellent system The good news is that the JBL Risk Manager offers users an easy way to improve their future trading performance by giving traders the ability to create and backtest multiple portfolios That makes it possible to set up a practice portfolio for each trading method or trading system In essence the trader may backtest the same stock symbols in each portfolio using various entry amp exit strategies to quickly determine which provide the best results according to the system quality number CONCLUSION The JBL Risk Manager is more than a number crunching machine With its many automated features the software promotes an objective decision making approach to controlling trading risk and preserving trading capital which leads to added sta
12. s technology or energy stocks This is reflected in one of the categories along the top line of the open trade information on the trad ing summary screen Also filling in the diary section on the trade page with the reasons for buying or selling a stock may help traders identify those strategies and entry methods that seem to produce the best results The settings page contains a button labeled RTC which stands for risk tolerance calculator Here traders may obtain not only a realistic idea of how much account loss they would suffer in consecutive trading losses but also what it would take to compound the growth of their portfolio Information on the trading summary screen goes beyond the usual profit and loss numbers It also permits comparing the user s portfolio to a market index such as the NASDAQ or S amp P 500 in order to check whether his or her trades are under or outperforming the market Two other features are also based on closed trades One is known as trade expectancy which is the average dollar amount a trader can expect to make or lose per trade based on past closed trad ing results Every trader knows that it is the trade exit that determines whether the trade has made or lost money The software displays that average amount for the stocks in each portfolio The other feature included in the program was developed by Van Tharp who is well known in trading circles for helping traders overcome problems in the a
13. ying power Barbara Star PhD is a frequent con tributor to Technical Analysis of STOCKS amp COMMODITIES magazine Currently she trades part time and provides indi vidual instruction and consultation to those interested in technical analysis of the financial markets She lives in Wood land Hills CA and can be reached at 818 224 4070 or by email at star4070 aol com JBL Risk Manager 9 0 JBL Risk Manager See Editorial Resource Index Find similar articles online at Traders com Copyright Technical Analysis Inc www lraders com
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