April 2012 Newsletter – TASC Traders’ Tips

In this issue:

I. TASC Traders’ Tips by Marge Sherald, COO

II. ChaosHunter 2.4 released

III. ChaosHunter discount for Predictor users

IV. 20% discount on NeuroShell Trader upgrades and add-ons

V. One way to stop this newsletter

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I. TASC Traders’ Tips by Marge Sherald, COO

We are a regular contributor to the traders’ tips that are published monthly in Technical Analysis of Stocks and Commodities magazine. NeuroShell Trader owners can download the charts, including custom indicators that are developed for each month’s tip from www.ward.net. The tips serve as a free source of indicators to complement the more than 800 that are included in NeuroShell Trader.

When we write the tips, we attempt to create a NeuroShell Trader solution for the concepts described in the article. While some of the charts result in successful trading systems for the selected instrument, others do not. While we could create successful trading systems using different techniques, we believe it is more important that the tip follow the article because the concept may be successful with a different instrument or another time frame.

However, you may have noticed that in the past two TASC traders’ tips we colored outside of the lines. Instead of creating the heat maps described by John Ehlers to look for market trends, we took the same inputs and created an analytical system using a neural net. The neural networks in NeuroShell Trader are designed to evaluate more data streams than the mind can reliably track over a period of time and to filter out unnecessary inputs to generate profitable trading signals.

The neural net we used in our version of the tip produced specific trading signals that could be backtested and even monitored out-of-sample. If you have either of the NeuroShell Trader Power User versions, you could include inputs from different time frames in your analysis.

Like all neural network trading systems, be sure to examine the trading signals that are produced. Are the signals simply taking advantage of a few trends to make money, or are the signals regular winners? Because neural networks learn the data in the optimization period so well, look at some signals in the green trading period before making up your mind to trade the system.

II. ChaosHunter 2.4 Released

We have released ChaosHunter 2.4, which makes ChaosHunter compatible with computers with 8 or more cores for faster model optimization. ChaosHunter also works with computers that have multiple processors.

In addition, ChaosHunter 2.4 adds a feature to automatically save a temp model during optimization whenever a better formula is found. The temp model file has an extension .md$. This means that you have a back up plan if ChaosHunter has been optimizing for many hours and something happens to your computer. Simply load the file with the .md$ extension instead of the usual .md file when loading the model into ChaosHunter.

Anyone who owns ChaosHunter 2.1 or above may download ChaosHunter 2.4 for free from the ChaosHunter section of www.ward.net. If you have release 2.0, the cost is $95, and for any release below 2.0 the cost is $395. Order the updates from www.ChaosHunter.com.

III. ChaosHunter discount for Predictor users

In last month’s newsletter, Steve Ward recommended that anyone interested in building business and science models consider ChaosHunter, which he said “tries to make the simplest models it can, carefully selecting the fewest independent variables and avoiding those tight fits that, without great care, can cause overfitting and poor results out of sample.”

He offered owners of NeuroShell Predictor a discount of $395 towards the purchase of ChaosHunter, including AI Trilogy owners. This promotion will end at the end of April 2012. To receive the discount, simply enter Predictor Owner $395 discount in the comments box on the order form on www.chaoshunter.com.

IV. 20% discount on NeuroShell Trader upgrades and add-ons

Until April 30, we are also offering a 20% discount on NeuroShell Trader upgrades or on any of the Ward Systems Group add-ons. The discount applies on upgrades from NeuroShell Trader Professional to NeuroShell DayTrader Professional, or any upgrade to the Power User versions. Simply enter 20% April newsletter discount in the comments box on the order form. To order the add-ons, go to www.neuroshell.com. The Trader upgrades are available from www.ward.net/60.asp

V. One way to stop this newsletter

It is really easy. Just change your email address and don’t tell us.

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