The featured question this month is from Pam Briggs in QLD:
I've come across a company called Eurosoft, they are selling a Sharetech Program and it all sounds great, but are they genuine? Please help!
Thanks for your email Pam. I’ve actually received a number of emails lately enquiring about the trading software company Eurosoft. The majority of emails have been regarding their end of day stock market Sharetech program. The big question people have been asking – Is Eurosoft genuine or is it a scam? I had some brief dealings with the company about 6 years ago, but nothing since then, so I decided to find out a little bit more about what they are currently doing and get a better look at the Sharetech end of day software which has been the common theme among a string of email enquiries. Hopefully my research will shed some light on who they are and what they are offering. I have recorded my findings below.
Since Eurosoft is a relatively
small firm they don't conduct a lot of marketing so many investors haven’t heard of the company and were dubious about
the returns they claim to offer. I think this natural scepticism is a by-product
of the world we now live in – it’s healthy and I encourage all my readers to ask
questions and do research before embarking on any investment. With Eurosoft there isn't a lot of of information available to the general public so I
had to dig a little deeper. After quite a bit of research into the company I was satisfied with their
past and projected results. Since Eurosoft is a boutique firm it’s not
surprising many average investors haven’t heard of them, however I am happy with the company and confident their claims are
accurate.
Eurosoft have been around for a
while and have a fairly rich pedigree, they first came on the scene around ten years ago in Europe. Currently
they have offices in Europe, Australia and the States. When they started out
their core business was assisting in the development of trading systems for
commercial finance companies and hedge funds but they have branched out slightly
and now accommodate the public also. For stock market insiders, Eurosoft first
made a splash in 2004. They developed an automated program for a prominent Wall
Street hedge fund which used proprietary algorithms and was capable of making
decisions without human input. It considered timing, price and quantity of a
trade order and then initiated the stock buy or sale, all without human
intervention. It was highly effective and kicked off a string of similar
programs and in a way changed the face of trading software.
In 2006 they advised on a project
I was working on with JP Morgan and had some progressive ideas on
technical trading strategies. I was impressed with their technical ability, but
I moved overseas and didn’t get to see the final outcome of the
project.
Over the last seven years the
major developments for Eurosoft has been their intraday software and the
evolution of their Sharetech end of day program. Since moving into the public arena they
have only taken on a small amount of clients but all the research I conducted
suggests that those clients have been well looked after. I spoke with nine
former trading colleagues, only 3 had any knowledge on Eurosoft's Sharetech Program but all three
were active users and strong supporters. That peaked my interest, so I investigated further.
The public release I referred to
is for a unique EOD trading system they developed called Sharetech. It’s a boutique product
and available only on a limited release. When speaking with Eurosoft they said
“it is designed for everyday private investors and offers them an opportunity to
utilise commercial spec trading software that has been formatted to be a very
user friendly trading device, allowing them to trade like a professional.” Or in
lay terms, it does a bunch of number crunching and tells complete rookies what
to buy and when to sell. They’ve recorded their results, I checked them out and
they look fairly impressive. Given the amount of analysis the program is doing
and the restrictions on trade size it’s not surprising the program works, but
keep in mind it won’t be able to handle portfolios much larger than
100k.
Still, with small portfolios investors could easily generate 6k to 8k per month with the Sharetech system.
They also offer an intraday
‘Eurosoft Day Trading System’ which is an open-source software application that
provides tools for analysis of financial markets using technical analysis and
this program has a far higher cap.
Eurosoft DTS Pro provides
facilities for stock charting and futures charting, including price, volume, and
a wide range of technical analysis indicators. Eurosoft also allows automated
processing of market data — applying technical analysis indicators with
user-selected criteria to market data to automatically generate trading signals
—and can be used as the main component of a sophisticated trading
system.
Some of the features of Eurosoft
DTS Pro are:
·
Includes basic technical analysis
indicators, such as Simple Moving Average, Exponential Moving Average,
Stochastic, MACD, RSI, On Balance Volume, and
Momentum.
·
Includes more advanced indicators,
such as Standard Deviation, Slope of EMA of Volume, Slope of MACD Signal Line,
Bollinger Bands, and Parabolic SAR.
·
User can create new technical
analysis indicators, including complex indicators based on existing
indicators.
·
User can configure criteria for
automated trading-signal generation.
·
Creation of weekly, monthly,
quarterly, and yearly data from daily data.
·
Handles intraday
data.
·
Handles stock and futures
data.
·
Accepts input data from files,
from a database, or from the web.
·
Can be configured and run as a
server that provides services for several clients at a time running on remote
machines.
Because of the higher trade value,
this is the program I’m looking to start with. It’s got all the features I look
for but in one simple interface and has some bonus features that will help me
trade more efficiently. Eurosoft are definitely genuine and although
their methods might seem a little strange for the standard investor, remember,
up to 70% of trading volume is now consummated by computerised high frequency
trading systems. They are just taking the most popular trading methods and
giving them to the public in a very simple format.
John Lloyd - Financial Times
