TradingSolutions Glossary

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Backpropagation

When training a neural network, using the difference between the current neural network output and the desired output to adjust the weights that produced that output.

&  For an overview of how neural networks work, see What is a Neural Network?

Backtesting

Applying a trading strategy to historical data to determine its effectiveness against previous market conditions.

&  For help analyzing signals, see Creating and Analyzing Entry/Exit Signals.

Bar

One unit of data. For daily data, a bar represents the data for a single trading day. This is also referred to as one sample of data.

Batch Weight Update

An update of the training weights based on the cumulative information of the entire training set. Batch weight updates are more stable than online weight updates, but are more subject to settling on a global average solution.

&  For help with neural network settings, see the Advanced Topology Settings Dialog help.

Bear Market

A long term trend in the market in which the prices generally decrease.

Bearish

An indication or belief that the prices in the market will decrease.

Benchmark

A value used for comparison. Typically, this is a broad market index, such as the performance of the Dow Jones Industrial Average or the S&P 500. In TradingSolutions, benchmarks can be set as part of a trading style.

&  For help with trading styles, see Using Trading Styles.

Beta

The amount an investment changes relative to the entire market. Typically, this is a comparison to the performance of the Dow Jones Industrial Average or the S&P 500.

&  For help with signal analysis values, see the Modify Field Dialog: Signal Analysis page help.

Bias Axon

A component in a neural network that linearly adjusts all of the values that pass through it by a bias, or multiplier.

&  For help with neural network components, see the Advanced Topology Settings Dialog help.

Bid-Ask Spread

The difference between the bid and ask prices.

Bid Price

The highest price an investor will to pay to buy a stock.

Blank Cell

See Empty Cell.

Bond

A debt that is taken over a period of more than a year. Buying a bond is technically lending money to the seller of the bond for the period of time specified.

Breadth

The number of stocks that are participating in the movement of the general market.

Bull Market

A long term trend in the market in which the prices generally increase.

Bullish

An indication or belief that the prices in the market will increase.

Buy/Hold

The value that an investment would have if a security was bought at the beginning of an analysis period and not sold during that period.

Buy/Sell Signal

An indication of the best time to buy or sell a stock based on one or more factors in the market. In TradingSolutions, these are referred to as Entry/Exit Signals to include other types of market trading.

&  For help with entry/exit signals, see Creating and Analyzing Entry/Exit Signals.