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

EA Gann High Low Activator

The work of Gann is indeed very interesting it is the result of someone who has dedicated his entire life to the markets.

Howevever what we know about him today is not everything he has created. Some of his works never quited the manuscript stage.

I think that he was using everything he can, all the available technology of his day in order to read the markets. I think he was a visionary. Many can't understand but the simple bar charts of today were at the time something completely astonishing.

Yes today we have the summum of all the technical analysis available on internet, most of the readers here have gigabites of technical books and works in their hard - drives.

But on the other hand if Gann had an odge during his lifespan markets over the others the same is not true for us.

The market is something very specific, not all markets are the some and the markets evolve during time. I mean that the most computarized markets of today are fundamentally different from the markets in which Gann has practices his methods.



So there are two difficulties.

1. The Gann works and methods are incomplete (many of his works are not available).

2. Even if they were they were created for markets totally different from the market of today. That means that authomatic implementation is not going to work.



And yes, what can be done is to be fimiliriased with his methods and to have a creative approach.

Some even say that Gann was one of the first guys who actually used algorythmic approach. It is about the Gann high - low activator (now by the way entirely coded in mql and freely available to everybody, in its time that was the edge of the research).

Have a loot at: Krausz: W.D. Gann Treasure discovered



I made my own EA Gann High Low Activator. It is based on the indicator Gann High Low activator SSL from the code base.

You can download the indicator with the EA from here, just click on the download button. You need to install the indicator in order to make it work the EA.

And here the good news are over. Yes I made some testing but I did not find this EA strategy reliable on the recent market of Euro/Dollar. You can make your own tests and share.

Parameters:

The EA is based on the moving average generic EA, that means it shares the generic money management module. However in order to make it work I changed the trading rules a little bit (I do not pretend that I got it right).

So there is only one parameter and it comes from the High Low activator it is the Lb parameter and that is simply the number of bars you use for the computation of the indicator.

The rules can be interpreted as the basic single average system towards the price. Check the picture and you will understand.

If the Close is < the Gann High Low Activator indicator we Sell

If the Close is > the Gann High Low Activator indicator we Buy

DOWNLOAD the EA from here

A typical scam system

Here I will put some citations and codes from a scam system presentation. The idea of those presentations is to manipulate the way you feel about it and not at all to give any arguments or proofs. Even it selects people who actually deserve to be scamed. Why? Because it it stated that the system is being stolen. And they are offered a low price stolen system. No really I think I would have no particular compassion towards their $299. What really is dangerous is to actually trade this system.

But here it is the SYSTEM.

Omni system platinum

I will put an end to all the scams (Nice huh). It is time somebody who has the guts and the strength to tell you the truth.

I have a trading system that for nine consecutive years was profitable. (On the backtest of course).

I was a chief programmer for a hedge fund (believe me please). We were tasked for a mission that has never been accomplished before (lol). The owner of fund was Dr. Cameron Heinz.

This guy (the best guy) was a pioneer in the field of Heuristics and its application in indirecto Problem Solving (that sound great). He is extremely rich. He has built some truly amazing unbeatable system that can accureately predict the market.

Here is how it works:

Parallel hybrid heuristics and parallel optimization. (Anybody knows what is that lol)

At the heart of the system is a database of chart patterns encrypted within the system (who the fuck is going to encrypt pennants and triangles LOL). These patterns are guarded heavily (oh please).

You can get extremely safe trades (everybody says so ;) ). And you will use winning price patterns.

The man who created that is Jonas Kaiser (nice name), one of the worlds most successful day traders (a kind of trading batman). He created 39 specific videos but only his friends are allowed to watch them. The techniques siphon money from the market with almost no risk (nice metaphore nothing more).

We turned each video technique into an algorithm within the database that the system could read. Each algorithm was then encrypted with KG-245A Fifth – generation of encryption (now the newbies are impressed for sure).

The system is so advanced that it actually learns more and more about the market as it is used.

We let it start with an account of &10 000 And within 3 days it had turned that $10 000 into just under $17 000. (Anyway this does not look like extremely safe trades ;))

A HUGE success. (;) I think they have been telling the same for the kamikazes).

It was so successful for the Hedge fund that I was fired. The senior managers do not require the programmers who develop the system (bool shit). I felt cheated and used (now this addresses the personal feeling of the potential scammed buyers, they are good compassionate souls). Now I cannot find a similar job with the same pay grade.

So as I had the 39 secret videos …After six months we made a home based system trading smaller accounts. We call it OMNI.

It was consistently profiting by 20 – 50 pips each day. (Daytraders love those numbers).

I found the system to make $1000 than to travel to the close ATM to take the money. (Well my ATM is just next door).

Now you will get your own copy of OMNI.

I make no apologies it costs $2000 an annual license.

The system makes $5000 even $6000 each day so why not. (well what about the small account and the extremely safe trades, some inconsistency there).

I have 5 people using the system (extremely privileged circle of traders and even two high-profile Wall Street traders (what?!), the idea of this is there is a privileged circle).

Now I am offering a way to profit from the system (Oh I really want it badly now ;) )

I will extend the opportunity to take it to the next level (this is a clear nlp language inducing into hypnosis).

If you had been an owner of OMNI since 2002 you can turn $2000 into $130 000. (of course in the back test I can achieve that on daily basis with almost every free EA).

And $10 000 will end as 1.3 million dollars. (Now the millionaire dream comes into play).

You have seen the inarguable truth (what please say it again I really like it).

You would have done a 2, 3 hours amount of work (hahaha).

And you can remove the profits and play with the house money (a typical gambler’s dream).

Now let see the core components.

Make money without significant effort and time commitment!

We use the brand new parallel hybrid heuristics technology: capable to see the Immediate future with Uncanny accuracy.

You get 3 add-on computational cores:

You have database encryption computational core
Parallel hybrid heuristics computational core
Stringent Purifying computational core (I am truly amazed by the name)


The price is $2 470 for activation fee and the annual subscription is $1 997.
So it makes $4 467.
Now we eat the activation fee + unlimited license. (wow)
You are going to pay not even $1497
You are going to pay not even $997
You are going to pay not even $997
You are going to pay not even $497
You are going to pay not even $297

If you act today it is $197 (Come on give it for free)

The value if the HUGE BONUS PACKAGE is valued at $8637
(I wonder how he gets to those numbers).

Trading NLP

Trading NLP! Does it exist? Definitely trading nlp exists and there are even books dedicated to NLP and trading.

The first question is what is NLP? According to Wikipedia

Neuro-linguistic programming (NLP) is defined as an approach to communication, personal development, and psychotherapy created in the 1970s. The title refers to a stated connection between the neurological processes ("neuro"), language ("linguistic"), and behavioral patterns that have been learned through experience ("programming") and can be organized to achieve specific goals in life.

The leading book for trading application of NLP is "NLP for Traders and investors: Personal Strategies to Give You the Edge Over Those Using Just Fundamental and Technical Analysis" by Terry Carroll.

From historical perspective NLP come with several books having more scientific perspective. The Structure of Magic I: A Book About Language and Therapy v. 1 (Structure of Magic): A Book About Language and Therapy.

Later its creators opted for more pragmatic and commercial evolution. The NLP has been simplifed and dedicated towards to ordinary public.

I think that this was partially (or mainly) the reason for the critical attitude from the scientific community. As you can read the main Wikipedia article this is the main thing that comes "According to certain neuroscientists,[3] psychologists,[4][5] and linguists,[6][7]NLP is unsupported by current scientific evidence, and uses incorrect and misleading terms and concepts."

Even more "Criticisms go beyond the lack of empirical evidence for effectiveness; critics say that NLP exhibits pseudoscientific characteristics,[14] title,[3] concepts and terminology.[6][15] NLP is used as an example of pseudoscience for facilitating the teaching of scientific literacy at the professional and university level.[7][16][17] NLP also appears on peer reviewed expert-consensus based lists of discredited interventions."[5]

OK you can read here as "discredited interventions","pseudoscience" and my favorite "lack of empirical evidence for effectiveness".

So you can ask WHY BOTHER with nlp.

I can structure my opinion as follows:


-I think that when NLP was created it was ahead of its time. As NLP is multidisciplinary (and scientists hate the multidisciplinary approach because that makes them work much harder). I think that pose a real problem of fair statistical evaluation. The reason is that it is too complex and a lot of bias can be achieved mainly by not understanding it.

-The second thing is that NLP is not science, it was developped as a technology. And NLP is technology. So NLP is not a unified scientific hypothesis as for example the Standard model in physics and if you disprove one part of the model the whole thing collapses. NLP is a set of techniques (I prefer the term psycho technology).

So my opinion is that NLP can and should be used pragmatically. That means to focus on a specific technique and approach and to see if it works or not and not to bother with the whole thing (being mostly not proved and criticisezed).

The NLP modelling

The NLP modelling for traders is probably the most central implications in practice. The reason is that trading is difficult and very psychologically demanding. And that may crack psychically even the most brilliant minds.

The ideas is to select the appropriate mind programs used by traders, to analyse them, to copy them and finally to use them.


That is the NLP perspective, in other words the most deep thaughts spoken by the masters are just words, unless you have the knowledge to implement that in practice.'

I really I am not sure but it is completely normal not to understand me for the moment.

The ideas is how to protect your self and to have a clear methodology for that.

That is why I am mostly interested in the modelling and the use of internal ressources part of NLP. The use of anchors and anchoring and conditionning is a valid scientific and psychological process. (Here again I am concerned about the most immediate scientific support and not the scientific validity of NLP in general).


Example of NLP modelling target strategy

So I would give an immediate example, otherwize it may remain totally unclear.

I was asking one trader what is his psychological attitude towards the EA optimization.

His answers is that for him that is a way to compute an optimum strategy. In that strategy the losses are a part of the strategy.

And here comes immediately a psychological strategy for dealing with the losses.

The next question was how he considers psychologically the losses?

The losses are a part of the strategy they are computed in the strategy and they are inevitable.

(So here this is not about reasonning it is about how psychologically you deal with the situation).



The next psychological test is if the losses are within the risk limits of the strategy or not and that need to be computed beforehands.



Then using the NLP you could program to follow that strategy using the typical methods that may be unique for every human being.

So here that is not the truth, that is just a technology to deal with the stress that comes from trading a EA. With the tools of NLP it is possible to incorporate that strategy without the NLP technology those are just words.

Performance booster for Metatrader

http://www.iobit.com/gamebooster.html

I was thinking if I can boost the performance of my Metatrader during optimization of trading strategies.

I found an interesting program for boosting PC performance for enhanced gaming experience. So why not.

Look at this screen shot it looks like there is 42 % increased performance after shutting down unnecessary services.

There is a paid program too by avgm that allows to do such kind of things. It looks like a lot can be achieved just by shutting down unnecessary services.

In the shot I just added the metatrader as a game in order to boost the performance when it is launched.

AVG PC tune up versus Game Booster

The game booster is a free software and it boosts the Windows only when the application is launched. When you close the application the Windows gets back to normal, and that is the feature I like.

AVG PC tune up is a paid service.

My friends who tried it recognized a noticeable performance change.

Sample Code to Export C# DLL to Metatrader

C# developers who want to get their DLL to link to Metatrader now have a means to that end. Using Robert Giesecke's Unmanaged C# DLL Exports template, it is possible to create a DLL that may be referenced from non-Com enabled languages, like Metatrader's MQL4 or other scripting languages available in many trading packages, such as EasyLanguage (TradeStation).

Sample code and a downloadable sample project are available here.

EA performance and fundamental analysis

Is there a relationship betwen the EA performance and the fundamental analysis?

http://www.zerohedge.com/news/ecbs-balance-sheet-hits-new-record-highs-fair-eurusd-value-900-pips-lower

As you can see there is a very interesting correlation Fed/ECB and EUR/USD.

The author says make your bets.

I was thinking if it is possible to do something else. I will write more on that later. For the moment I am making some assumptions.

The idea is that there is a relationship between a fundamental situation and EA. The best example was the EUR/CHF system by vgc.

Here on this correlation there may lie another relationship between a fundamental situation and EA.

We see that there is a big disbalance between a fundamental relationship and the current market situation.

We could hypothetize that we have a disbalance between a fundamentals and the market.

So whenever the market goes back to balance, it will make it in a movement that would be related with volatility. And even more we can hypothetize that we could have a particular market state that has at least short term predictability.

If you follow me, the idea is that whenever we see a special break - out we can turn our EAs on and they will deal with the situation. As the movement would have at least short term predictability and high volatility we can use EA systems that do work in those kind of situations:

-Spinal implant

-Brain Trend

-Asctrend EA

They would work very good in those market conditions when the market goes with a strong movement towards its fundamental balance.



So to summarize:

1.Fundamental disbalance

2. Looking for a shift of the market towards the balance

3. We swith on the impulse following EAs hypothetizing that the movement would be more or less predictable.

4. We swith of the EA when the market gets into balance again (or at least lower the market exposure).

Shark 7.0 EA review

This is a review by a trader of the Shark 7.0 EA.

Pros:

+ Though I didn’t figure out what activates the logic, I like the idea behind. As it places orders only when the market moves quickly, there is a great probability given that either a sell or a buy order will close in profit.

(It is not possible to figure out the logic if it uses Artificial intelligence algorythms)

+ It uses pending orders only. I consider it to be an advantage, as it decreases slippage greatly.

(That is not necessary some brokers still have slippage on pending orders.)

+ trades two currency pairs.

+ It does not open more than one trade at a time.

                                               Cons:



- As SL is placed very close to the market price, dishonest brokers may play dirty games.

(That is important as it is about very close orders to the price. Choose carefully the broker and always always monitor the execution. That is why you need to backtest with your broker tic by tic.)

(And of course you can't have something for nothing everything has its cost, here as thestrategy seeks for the tightest stop loss, that necessarily comes with costs: extra care and control over the execution).



- I am certain that Shark 7.0 will not work with market makers, and results will vary from broker to broker.

(I agree on this, but I would add some market makers not all market makers, I think if you play with 0.01 lots as basic lot instead of 0.1 lot you may have less problems in the first time)



- The final version input parameters are limited to money management settings only. Other parameters are not accessible by the user and can’t be changed. To my mind that’s a bad thing for experienced traders as they don’t have much “space” to maneuver with their settings. Who knows, maybe they change that after seeing this post.

- The user manual does not include any information regarding broker and VPS requirements. That’s not a big deal for experienced traders but clearly, a disadvantage for newbies.



That EA has potential but extreme care need to be used when implemented.

I would add that the quality of the code is guaranteed as the EA is done by experienced traders and programmers.



We would negotiate for EA Shark 7.0 discount coupons for our members even one evaluation copy may be available to one of the most serious contributors on www.beathespread.com.

It is recommended to buy this EA (is someone is interested) and not to search free copies because of the support. The support is a critical feature and without support do not even think to let it trade for you. (Personnal opinion).

PNN for metatrader using Parzen window classification version 2 with kernel smoothing of inputs

This is the PNN using Parzen window classification version 2 with kernel smoothing of inputs. You need to have the PFE indicator.

Here you will file the standard PNN called version 2. And the PNN with money management and kernel smoothing of inputs.

Nevertheless this is a beta version, because I am not sure that the integration of the kernel smoothing with the PNN code is correctly executed.

So this is what we have for now. Anyway the idea is interesting.

In the normal PNN Eric we have as input the difference between:


b[bar]= Close[bar]-Open[bar+AmoutOfForecastBars-1])

The idea was to replace this piece of code with something else and to see how it would affect the EA.

So I replaced this by the kernel smoothing of PFE.


b[bar] = kernel()

So this is the idea. However the number of bars of parameters is still an important parameter because it affects the initial period for training:


TrainingStartTime = Time[0] + Period()*60*AmoutOfForecastBars

Of course we can replace this piece of code by Numbars_for_Training as a parameter, but I chose not to touch this for the moment.


TrainingStartTime = Time[0] + Period()*Numbars_for_Training

Any wise look in the code would be welcome as there is not many native mql code for neural implementations.

DOWNLOAD from here

Linear regression technical analysis

http://www.fao.org/docrep/W5449E/w5449e04.htm

As for me the main model of the technical analysis is the linear regression. The oscillators are not intended to measurecycles, they are intended to measure the deviation from the central line of the linear regression. and yes, when you deviate from those center line there is an increase probability that you will reverse to the center line of the linear regression.

That is the true reason why oscillator tend to work (of course according to the theory).

That theory is completely different from the Ehlers theory of trend mode and cycle mode.



I am not sure that I am really clear, that is why I am giving to the introduction to the video of linear regression.

And yes that is the basic model. Imagine: trend lines, Andrew's Pitchfork theories (look here it is very revelative how he defines the linear regression manually).

The second important model is the heteroscedasticity of the volatility. All the patterns of the technical anlysis are driven by this phenomenon, it is related also with the market state analysis.
Definition of 'Heteroskedasticity'

In statistics, when the standard deviations of a variable, monitored over a specific amount of time, are non-constant. Heteroskedasticity often arises in two forms, conditional and unconditional. Conditional heteroskedasticity identifies non-constant volatility when future periods of high and low volatility cannot be identified. Unconditional heteroskedasticity is used when futures periods of high and low volatility can be identified.

Read more: http://www.investopedia.com/terms/h/heteroskedasticity.asp#ixzz1swlH5Cfh


Investopedia explains 'Heteroskedasticity'

In finance, conditional heteroskedasticity often is seen in the prices of stocks and bonds. The level of volatility of these equities cannot be predicted over any period of time. Unconditional heteroskedasticity can be used when discussing variables that have identifiable seasonal variability, such as electricity usage.

Read more: http://www.investopedia.com/terms/h/heteroskedasticity.asp#ixzz1swlOdQge



The Third important thing is coming from the chaos thoery by measuring the fundamental properties of the price time series. Fractal dimension and Lyapunov exponent.

Those measurements matters because imagine the third window when you are using a limit order. Knowing the fractal dimension will save you to prevent your stop to be hit when the limit order is activated.



So here we are. We can explain most of the common technical analysis by some mathematical models.

By this theory it is clear that the oscillators may be adapted according to the volatility arround the central tendancy.

Do you see really what they are doing ? They measure how far we are going away from the central tendancy. If the central tendacly is going up we are saying up trend, if the central tendancy is going down (down trand), and if it is horizontal we say (range).



Those posts are a little bit long but they are related to the general theories underlying the technical analysis.

We are looking for a kinf of unifiying theory. Why those efforts? Well that is because we see how the linerar regression together with the volatility models are expaining so much of the technical analysis.

We ask ourself what the creators of this or that technical method really see. What is the mathematical underlying reality of what the technical authors really see.

To this we can add the psychology we have seen how the psychology is creating an accumulation of orders at specific places. Then in turn those places act as attraction points and are activated.

All this is forming a very complex soup.

We can observe this but our knowledge as a speculative knowledge is limited.

Nonetheless, speculative knowledge is not perfect knowledge of the phenomenon under inquiry, on the contrary, speculative knowledge is precisely imperfect, partial, fragmentary, as such a knowledge is rooted in the necessity of contingency, which implies the knowledge that perfect knowledge is illusory (not in an epistemological sense but in an ontological one).
Read more: http://fractalfinance.blogspot.de/2011/04/possibility-of-cognition.html