26.10.2012 г.

Entropy Scalper EA with AI

You can download the Entropy scalper with chaotic kernel.

The download is available only for registered and logged users.

The performance can be compared.

The idea:

The idea is to detect as for the fractal spcalper a pocket of predictability. Within this pocket of predictability we are taking a directionnal signal based on the current volatility.

So there are thre main components:

a. The pocket of predictability.

The pocket of predictability is a situation when we have an increased predictability. We do not know why this occurs, we are interested in the fact. And this pocket can be discovered using different tools. In metatrader we have fractal dimension indicators family: FDI,FGDI, iVAR, Hurst exponent, and the fractal scalpers are using then.

Here the entropy scalper is using an entropy indicator. The entropy is another way to measure those mystical pockets of predictability. Here we look for a drop of entropy below certain levels. The default levels are 0.6.

b. Directionnal signal

The directionnal signal is using a special set of indicators. The indicator used is the Entropy math indicator. The Entropy math indicator is a whole story by itsels. This is not a traditional indicator but and it comes from the work of John Conover, you can visit his site for more details. The entropy math is a Metatrader version of his work, the article is called quantitative analysis of high entropy systems.

However we use a set of four Entropymath indicators as inputs and we use a Chaotic kernel in order to optimize the values with the genetic optimizer. Se keeping it simple the Entropy math is an input that is used by a "neural network" (The chaotic kernel with the genetic algorythms is different but let keep it simple.)

c. Market State:

The market state is used trough the stop loss, take profit and live hours settings.

It is obvious that this is a critical component. We use the genetic algorythm to find those values. However it si advised to use your own view of the market and additional tools as the Lyapunov exponent.

And of course take care of the news releases.



Installation:

In the archive there is an EA files and two indicators. If you do not have those indicators you need to install them in order to run the EA

Some idea:

As you can see there are many parameters that are common among all the fractal scalper indicators.

You can check the fractal scalper description.

One of the most important parameters concern the stop loss the take profit and the live hours parameters.

Those parameters are specific for the current market conditions. As I recommend that you use open prices only for optimization (otherwise it will takes a lot of time), you can't use stops below 15 pips.

There are the paprameters if the two chaotic kernels.

You can optimize both or one of them.

x from 0 to 1 with step size 0.01, 0.001 or 0.0001

limit map from 1 to 1000 with step size 1

r from 1 to 4 with step size 0.01, 0.001


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