April 25, 2018

IN THIS ISSUE

WALKING THE VOLATILITY TIGHTROPE WITH THE RIGHT TOOLS
GLOBAL DATAFEEDS COVERS MARKETS IN INDIA
CHAT WITH FELLOW TRADERS ON THE FORUM

WALKING THE VOLATILITY TIGHTROPE WITH THE RIGHT TOOLS
Use ChaosHunter to Evolve Custom Indicators
by Marge Sherald, President

Market volatility at the end of March gives us another indication that 2018 is not going to be the smooth ride of the past three years.  While volatility is good for short term trading, you need to have the right tools so you end up on the correct side of the trade.
We’ve written before that combining three profitable models can increase the probability that your trading signals will be pointing in the right direction.  (To learn more about why that works, visit Ensemble Estimators on our tech support web site nstsupport.wardsystemsgroup.com.)
NeuroShell Trader lets you build and backtest traditional rule based systems.  If you don’t know the rules the neural net can find patterns in indicators and other data streams to generate trading signals.  A third approach is to use ChaosHunter which builds readable formulas from your data.
ChaosHunter is software that can crunch away using natural selection techniques to evolve unique, profitable trading models using building blocks of basic, simple functions from arithmetic, algebra, trigonometry, neurons, logic, and technical indicators.  Evolution selects which building blocks are used and how they should fit together to form equations that produce buy/sell signals.  ChaosHunter evolves its own technical indicators.  To learn more, visit www.ChaosHunter.com.
Here’s an example of a ChaosHunter formula that combines three different volume indicators from NeuroShell Trader and arithmetic functions:
Predicted = (8.544567 + MFI(Open,High,Low,Close,Volume,5)) * ((Sub(NegVolIndex(Close,Volume,5),PosVolIndex(Close,Volume,5)) * 7.21306) / 0.4295939)
———————————-
At next bar Open:
Buy Long if Predicted >= 1.733907

Sell Short if Predicted <= -2.539889

You can add ChaosHunter models to NeuroShell Trader using built-in indicators. The ChaosHunter signal indicator tells you whether you should enter or exit a long or short position (see the purple indicator at the bottom of the chart below). The formula and threshold are integrated into the signal indicator.
The NeuroShell Trader chart displays a Trading Strategy built with traditional rules on the top and the ChaosHunter model on the bottom.
Add a third model with a neural net prediction or another set of trading rules or a different ChaosHunter model, and you’re on your way to conquering volatility.
Click here to download the chart.  You need to own ChaosHunter in order to view this chart.  Copy the ChaosHunter model file, gbp a0-fx alpha.md, to your c:\NeuroShell Trader 7\template directory before opening the chart.
__________________________________________________________________________________________________________
NEW DATAFEED FOR NEUROSHELL TRADER COVERS MARKETS IN INDIA
Global Datafeeds (GFDL) provides Streaming Realtime Data (L1 – updating every second) of Indian Stocks Exchanges. Along with real time data, GFDL also provides history in intraday and EOD format for all supported stock exchanges.
Exchanges Covered : National Stock Exchange of India (NSE, NFO, and CDS), Multi Commodities Exchange of India (MCX).
Contact :
Global Financial Datafeeds LLP