I just opened an account at ThinkorSwim. Moving from OptionsXpress

you should receive email notifications. go to your account configuration and make sure your email address is there.

BTW, you should also ask for the advisory's track record. It is available upon request.

 

Why? ...we have been with them for two years?

 

I missread you. I thought you meant the advisory from TOS.

 

I am in the process of opening an account with TOS, and have so far been impressed with their customer service and the speed of the replies to my queries from Scott.

Has anyone had experience of their Autotrade facility? Some of the claims made by the companies involved seem a bit incredulous.

 

TOS is a good place to trade equity options, especially if you're new the game.

RedOption is TOS' own advisory firm, with or without autotrading. Their calls are pretty decent. You won't get rich, but it's a good learning experience for $20/mo per strategy. They have a basket strategy now, which combines some of the better strategies. There's also TOS' Option Planet arm, which provides free training.

Autotrade is just a service TOS provides (other brokers do as well). Most of the autotrader's claims are downright ludicrous. I would NEVER consider letting some of those idiots touch my money. I'm quite capable of losing money on my own, thank you.

Besides I bet one day the SEC is going to get off their a$$ and come after these unlicensed autotrading services. Most of them aren't even brokers or RIAs and yet they're trading for you in your account.

 

I have just taken a free trial to one of the Autotrade services offered. Am more than a little confused as to how they operate.

They admirably state :-

"Option Trading Rules for XXXXXX.
1. Stick with stops. Let winners run and cut losers early. "

I look at a current position:-

"Post OPTIONS PLAY: BRCM (April Calls)
Buying BROADCOM CORP April-06 $45 Call RCQDI Option @ 1.50

STOP @ 1.0 posted on March 27th 06."

The market trades through the stop level with a few days down to .75, leaving a 40% loss on the trade.

The next post is:-

"Post SELLING(HALF): OPTIONS PLAY: BRCM (April Calls)..+67%
Selling HALF @ 2.5 +1.0 ..+67%

trail rest @ 1.80 .. "

Hello?? A 40% loss has just become a 67% winner.

There is no way your stop would not have been filled, and that was confirmed on the forum by another trader who said he had been filled at .9 on his stop.

I contact the moderator/trader in charge of the service on IM:-

scenic58: According to TOS software on March 29th the BRCM $45calls had a low of .75.
: y
scenic58: was the position taken out again?
no.. i held it
i post when i stop also
i go with markets not stocks
stop when markets breaking down
if i know it's just a shake then i hold

scenic58: so would TOS autotrade have been told of this, or would the autotraders have been stopped out?
: i dont place hard stops with TOS

So more than a few questions are raised in my mind as to how a service like this can be autotraded when the stops are so "flexible" based on the moderators view of when a "shake" is in progress.

"When is a stop not a stop?
When I know there is a shake occuring."

This is not an isolated example either if the past archives are checked out.

 

As Monty Python would say;

Run away, run away!

 

Agree. I just wish I had this religious power to turn all my losses into 60% winners, and that I could cancel stops even after they had been filled!

It's a rare talent.

(P.S. Are we allowed here to name the services that look like snake oil saleman, or is that not allowed?)

 

caveat emptor

did you ask for their track records before you buy?

 

I checked out the published track records on the websites, and have accepted a couple of two week free trials, one options and one equities.