Is Wave59 a Game Changer or Just Another Player?

In the dynamic world of trading software, new players often struggle to make a dent in the market dominated by giants like Bloomberg Terminal and TradeStation. Wave59, a relatively young contender, has been making waves with its ambitious desktop trading environment. But is it just noise, or does it offer something truly innovative? Let's dive into an in-depth analysis of Wave59 to find out.

What's the Buzz About?

Wave59 Technologies burst onto the scene with promises of a feature-rich trading platform that combines technical analysis tools, drawing tools, and even trading system development software. The Boulder, Colorado-based company aims to cater to both retail traders and professional institutions. With its innovative indicators and competitive pricing, Wave59 has sparked curiosity in the trading community.

Under the Hood: A Closer Look at Wave59

At its core, Wave59 is a robust desktop trading platform designed for Windows XP or later. It requires a suitably configured late-model PC with an Intel Quad-Core CPU and 2GB RAM (though 3GB is recommended). The software uses approximately 50MB of disk space and expects free internet data for its EOD plan, while PRO and PRIVATE plans include data at $90/month.

The platform comes in three pricing tiers:

- Wave59 EOD: $149/month lease or $2750 purchase - Wave59 PRO: $249/month lease ($5700 purchase) with $90/month data - Wave59 PRIVATE: $299/month lease ($7500 purchase) with $90/month data

The Pros: Wave59's Unique Selling Points

1. Innovative Indicators and Tools: Wave59 boasts some unique technical tools, such as its intriguing D indicators, which have drawn the attention of many traders.

2. Affordability: Compared to industry heavyweights like Bloomberg Terminal ($24/month per user) and TradeStation (around $100/month), Wave59's pricing is competitive, especially for smaller trading outfits or individual traders.

3. Customer Support: With a smaller customer base, Wave59 can offer more personalized support to its users.

The Cons: Room for Improvement

While Wave59 has many appealing features, it also faces several challenges:

1. Maturity and Usability: Some users might find the software less polished than competing products like TradeStation. For instance, referencing futures symbols redirects users to a separate PDF file instead of an integrated asset search feature.

2. Documentation and Support: While documentation is well-integrated, it may be limited in some areas. Wave59's user community, currently smaller compared to rivals like TradeStation, might not offer as extensive support or shared resources.

3. Data Offerings: Unlike popular trading desktops, Wave59 lacks tick level data and new bar types such as Kagi, Range, Renko, etc.

How Does Wave59 Stack Up Against the Competition?

To truly evaluate Wave59's performance, let's compare it with industry-leading trading desktops:

1. Bloomberg Terminal: While significantly more expensive, Bloomberg offers unparalleled market data coverage and advanced analytics tools. Its global reach makes it an industry standard for professional traders.

2. TradeStation: Known for its customizability and extensive user library, TradeStation is popular among quantitative traders. However, its pricing might be prohibitive for smaller trading outfits or individual traders.

In comparison, Wave59 stands out with its innovative tools at a competitive price point but falls short in terms of maturity, documentation, and data offerings compared to these industry giants.

Portfolio Implications: Considerations for Investors

Given Wave59's unique features and pricing, here are some portfolio implications for investors considering the platform:

Risks:

- Less Established Software: Wave59 is relatively new, which might pose risks in terms of reliability and long-term sustainability. - Limited Data Offerings: The lack of tick level data and certain bar types could hinder traders relying on specific data sets.

Opportunities:

- Innovative Indicators: Wave59's unique tools could provide traders with a competitive edge, especially those focusing on technical analysis. - Affordability: Competitive pricing makes the platform accessible to smaller trading outfits and individual traders.

Implementing Wave59 in Your Portfolio

If you're considering adding Wave59 to your trading toolkit, here are some practical implementation steps:

1. Assess Your Needs: Evaluate whether Wave59's unique features align with your trading style and requirements. 2. Consider Your Budget: Ensure that the chosen pricing tier fits within your budget while providing necessary functionalities. 3. Test Before Trading: Take advantage of Wave59's free trial to thoroughly test the software before committing to a purchase or lease.

Final Thoughts: Is Wave59 Worth a Try?

Wave59 is an ambitious attempt at disrupting the trading software market, offering innovative tools and competitive pricing. However, its relative immaturity and limited data offerings might pose challenges for some traders. Ultimately, whether Wave59 is worth trying depends on your specific needs, budget, and tolerance for risk.