Greetings
from NeuroDimension!
The World Leader in Neural Network Software
This issue of the TradingSolutions newsletter
provides some useful insights on the setting of parameters for optimal signals,
as well as other information for users of TradingSolutions.
In this issue you’ll find:
What’s New
and News?
* Free Shipping on Bookstore
Orders!
* Selecting Parameters for an
Optimal Signal
Products
and Events of Interest
* TASC Traders’ Tips in Solution Library
* Neural 101 Website
Note: You are
receiving this newsletter because you requested to stay informed concerning
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stop receiving these newsletters, please see the bottom of this newsletter for
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From now through September 30th, we’re offering free
shipping on all orders over $59 from the TradingSolutions Financial
Bookstore. Plus, every order will receive The New Options Secret -
Volatility, a $65 value, FREE!
To take advantage of this special
offer, visit the TradingSolutions Financial Bookstore from our web site, or use
the link below.
While you’re there, be sure to check out our great bargains,
including the following:
* Profiting in Bull or Bear Markets - reg.
$29.95, now $19.95
* Inside Technology Stocks - reg.
$21.95, now $15.50
* Bollinger on Bollinger Bands - reg.
$49.95, now $34.95
* Core Trading Tactics with Oliver Velez
- reg. $99, now $75
* Plus many more!
Visit the
TradingSolutions Financial Bookstore now at:
http://www.invest-store.com/tradingsolutions/tl0916.html
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When generating any type of optimal signal, the two most
important parameters for an optimal signal are the Minimum Profit Per Trade and
the Number of Samples. In general, for each bar, TradingSolutions looks ahead
the specified number of samples to determine if the specified minimum profit
can be reached, either by entering long or by entering short. Exits are
generated if the price does not increase (or decrease) in the specified number
of samples.
A good general rule for setting these two parameters is that
the more signals or overall profit you generate, the harder the signal may be
to model. Here is a case-by-case description of how adjusting these parameters
affects the generated optimal signal.
Decreasing the Minimum Profit
Decreasing the minimum profit will increase the number of
signals since less profit is required to generate a trade. This will increase
the overall profit of the signal. However, the lower the value, the more likely
that any noise in the price will be included in the signal. This may make the
signal harder to model.
Increasing the Minimum Profit
Increasing the minimum profit will decrease the number of
signals since more profit is required to generate a trade. This will reduce the
overall profit of the signal, but may make the signal easier to model since
only highly profitable trades are highlighted.
Decreasing the Number of Samples
Decreasing the number of samples will decrease the number of
signals since less time is available to reach the minimum profit. This will
reduce the overall profit of the signal and concentrate more on quick price
changes.
Increasing the Number of Samples
Increasing the number of samples will increase the number of
signals since more time is available to reach the minimum profit. This will
increase the overall profit of the signal, but may make the signal harder to
model since it increases the likelihood that the minimum profit is reached due
to cycles that begin in the middle of the samples, rather than before the start.
Selecting the Trading Style
The converse of this general rule can be true of the Trading
Style parameter. Using a trading style with stops and limits may reduce the
number of signals and profit. However, since stops and limits increase the
complexity of the underlying rules associated with when to enter or exit, this
signal may be harder to model.
For more information on the optimal signal, see the
TradingSolutions help chapter “Creating and Analyzing Entry/Exit Signals” under
the topic “Generating an Optimal Signal”.
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Many TradingSolutions users read Technical Analysis of
Stocks and Commodities (TASC), the Traders’ Magazine. It’s a great way to
trade smarter with detailed information on trading strategies, charting
patterns, indicators, and computerized trading methods. As a free service to
our users, we arrange for the “Traders’ Tips” section of the magazine to include
tips and techniques for implementing many of the indicators found in the
magazine in TradingSolutions.
Each time a tip is included in the magazine, we also include
the implemented functions in the Solution Library on our web site. These
functions can be imported into either the full version or the evaluation
version of TradingSolutions and are completely free. Visit the Solution Library
now at: http://www.tradingsolutions.com/download/solution.html
If you aren’t familiar with Technical Analysis of Stocks
and Commodities, we encourage you to visit their web site at: http://www.traders.com
Neural 101
is a free educational web site on trading stock and futures markets with neural
networks. It includes message areas, links, trading indicators, systems and
scans. The message areas include special forums on building trading systems,
using neural networks, and even discussing tips, tricks, and ideas for using
TradingSolutions.
NeuroDimension
encourages the use of this free resource to foster discussions between people
interested in TradingSolutions. You can visit Neural 101 at http://www.neural101.com. The
TradingSolutions message forum can be located using the “Message Forums” link
from the left-hand menu.
Have an event or product you would like to announce? Contact
us at submissions@nd.com.
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We appreciate your feedback! Please send us your comments or
suggestions concerning this newsletter, our web site, or part of the
NeuroDimension product line. Write to us at: feedback@nd.com
Have questions about TradingSolutions? Send your questions
to: info@tradingsolutions.com
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