TraderEx is an interactive computer simulation designed to provide participants with hands-on
experience in making tactical trading decisions, and implementing them in
different market environments. Continuous order driven and quote driven markets
are simulated, along with call auctions and hybrid combinations.
The simulation exercises are an invaluable tool for deepening understanding
of how the structure of trading influences actual trading behavior.
Robert A. Schwartz
and Bruce W. Weber
developed the simulation model for TraderEx. Gregory Sipress
wrote the software for the TraderEx version that is available on this website.
TraderEx is owned by Schwartz, Weber, and Sipress, and William H. Abrams.
The Learning Tool
(excerpted from Robert A. Schwartz, Reto Francioni and Bruce W. Weber, Chapter 1, Getting a Grip on Trading,
in The Equity Trader Course, John Wiley & Sons, 2006 and Decision Making in Equity Trading: Using Simulation to
Get a Grip, Journal of Trading, Volume 1, Number 1, Winter 2006)
Trading is all about converting an investment decision (either yours or your portfolio manager's)
into a desired portfolio position. You will want to do this at the least possible cost and in
the most timely fashion. Trading is also about finding pricing discrepancies in the market,
jumping on them, and realizing a profit.
When you act, you may take liquidity or supply it. Successful traders often choose to wait and then
become active. They will not alter their approach when losses arise, and they remain steady on the plow.
Decisions must be made effectively under a spectrum of conditions, including when the market is under stress,
as occurs when liquidity providing orders are cancelled and a rush of one-sided orders arrives, or at a daily
opening or closing when volume is high, volatility accentuated, and the clock is ticking.
TraderEx will enable you to experience
tangibly the dynamics of a marketplace. The simulation will accelerate your gaining proficiency as an equity trader.
TraderEx offers live visual feedback and analysis of your trading decisions and implementation.
In game analysis measures performance to date. Summary analysis and detailed price charts are now available for easy
analysis of trading performance. Identify good trades, bad trades.
For further discussion of markets and trading, see 'The Equity Trader Course', available from Wiley
& Sons. Chapter 1 of the book provides further additional
information on the structure and use of the simulation model.