Here is an output with we have had some success in our own trading. It was suggested to us in a class by David Holmes, of Lafayette Trust in Annapolis, Maryland. Predict the one day percent change in OPEN two days in advance.
Using this output is very logical. First of all, we use the open instead of the close since in an end of day trading system, you receive your signal after you download at night. You go to your online broker and place a market order. You will be entering the market at or near tomorrow’s open.
The soonest you can exit the market is the open on the day following your entry, hence the 2 day forward prediction. Therefore, this prediction is one of the shortest term predictions you can make entering the market tomorrow and exiting the next morning.
There is one shorter term position you can take in the Trader. You can trade from the open to the close of the same day if you enter a market order to get in at the open and a market close order to exit on the same day. Your exit conditions must be true before the market opens that day, however, just as your entry conditions must be true. They should perhaps even be the same to guarantee the exit. The Trader, being a day system, does not update its conditions during the day. To simulate this type of Trading in the Trader, you would predict the spread between the close and the open one day in advance.
Update for release 2.0: In release 2.0 when you predict the change or percent change in open, the program changes strategy a little bit and makes the prediction “from the next open”, unlike from the last open when predicting change in Close or percent change in Close. You can see the wording change on the Prediction Wizard where you choose your output. This means that to implement this tip in release 2.0, you simply choose the change or percent change in Open 1 day in advance instead of two.