Eureqa (pronounced "eureka") is a software tool for detecting equations and hidden mathematical relationships in your data. Its goal is to identify the simplest mathematical formulas which could describe the underlying mechanisms that produced the data. Eureqa is free to download and use.
This software essentially does the same job as the commercial chaos hunter application however the commercial application also transfers the generated mathematical formulas to the trading plateforms.
Here you need to figure out how to do that on your own.
Anyway the simplest thing that can be done is to model the current trend for example.
Here I would suggest for reading two interesting articles:
What will cause the Singularity? : this is very interesting article it appears that Eureka is an oustanding genetic programming software: “That’s a pretty big deal in the world of evolutionary algorithms”
Product review of Chaos hunter from traders.com : this a basic article about the practical use of the genetic programming software in trading strategies: two methods the definition of a treshold or boolean strategy.
Let me summarize in a simple way the neural nets can do the same job as the genetic programming. However the Neural nets will store their solution as a data set of weights that has no meaning for a human. The genetic software forces that the solution is described by mathematical formulas that a human can understand. And that is why so much hype is there in the scientific community.
This is genetic programming, the algorithm evolve basic equations in order to achieve the best fit. As a result we have equations that we can understand and not weights.
In that way you can understand the results. For example if you do the same thing with a neural net you will get weights and if you run the model you will get predictions but you will never know the idea behind even if basically the prediction is the current close ;).
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