Automatic Pattern Search

This is a discussion on Automatic Pattern Search within the Trading Software forums, part of the Commercial category; hi, can someone please tell me if this software can be set up to alert and scan for a certain ...

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Old Jun 17, 2008, 7:43pm   #121
Joined Feb 2004
hi, can someone please tell me if this software can be set up to alert and scan for a certain divergence pattern?, or does it not work like this?


many thanks
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Old Jun 17, 2008, 8:50pm   #122
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Originally Posted by jayjay121 View Post
hi, can someone please tell me if this software can be set up to alert and scan for a certain divergence pattern?, or does it not work like this?


many thanks
hmmm, if im not mistaken this software creates code for metastock or tradestation and then you use it there...
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Old Jun 18, 2008, 9:37am   #123
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Originally Posted by ronblack View Post
The OR method is too simplistic and rarely works. I cannot go into details and reveal my own method but you need to use confirmation and that can be accomplished with AND. For example:

if((longcondition1==true AND longcondition2 == true) or .........) then open long position

This may change your way of looking at APS and patterns. I'm sorry I can't reveal more details but you should be getting the idea now and good luck to you.

Ron
Thanks Ron will experiment with the AND method and see if I can get better results.
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Old Jun 18, 2008, 9:41am   #124
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Originally Posted by alexander View Post
Confirming signals is essential and using AND is a way of doing it. It reduces the number of available signals but it increases success rate significantly. I use the same method.

I agree with Ron that using just OR is a very simple approach. One must go beyond simple and obvious ways of doing things. There are too many smart kids out there with powerful computers and fancy algorithms ready to take your money.

Alex
Alex, thanks for the feedback. Do you look for a certain number of signals on the same bar such as number >= 3 for example, or wait a few bars for a signal in the same direction?
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Old Jun 18, 2008, 2:58pm   #125
 
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Originally Posted by mballagan View Post
Thanks Ron will experiment with the AND method and see if I can get better results.
The general idea is based on using a number of patterns to indicate market direction only and then some other patterns to establish positions. This always increases profit potential. When using AND the first condition can can be shifted a few bars backwards to relate to a past signal while the second condition refers to a current signal.

I think you should now have a general idea of how this might work. You must also try to understand why your method is very simple and does not take advantage of the tremendous power of APS to find patterns.

I'm currently investigating the possibility of using a genetic algorithm with the operators AND, OR to automatically design systems for me using as input the APS patterns.

Ron
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Thanks! The following members like this post: trader3cnd
Old Jun 20, 2008, 1:08am   #126
 
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Originally Posted by ronblack View Post
The general idea is based on using a number of patterns to indicate market direction only and then some other patterns to establish positions. This always increases profit potential. When using AND the first condition can can be shifted a few bars backwards to relate to a past signal while the second condition refers to a current signal.

I think you should now have a general idea of how this might work. You must also try to understand why your method is very simple and does not take advantage of the tremendous power of APS to find patterns.

I'm currently investigating the possibility of using a genetic algorithm with the operators AND, OR to automatically design systems for me using as input the APS patterns.

Ron
Ron,

Regarding "AND"ing patterns, are you essentially talking about "Split" patterns (from Harris' books) or something more general that allows bar spacing between patterns?

I'll understand if you don't want to get more specific but from reading this thread a few times both you and Alex seem to be experienced trading pattern systems. Comments from you guys are appreciated.

Thanks,

futz
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Old Jun 22, 2008, 5:45pm   #127
 
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Originally Posted by futz_trader View Post
Ron,

Regarding "AND"ing patterns, are you essentially talking about "Split" patterns (from Harris' books) or something more general that allows bar spacing between patterns?

I'll understand if you don't want to get more specific but from reading this thread a few times both you and Alex seem to be experienced trading pattern systems. Comments from you guys are appreciated.

Thanks,

futz
I guess "split patterns" are just one kind that could involve ANDing. I think Ron was very generous indeed to even mention ANDing and I wouldn't expect him doing so, neither I would ask him going into more detail about his methods.

Here's is an example: you have a tool that calculates moving averages of all kinds. But there a zillions ways of using MAs. Some are too obvious and naive but others are very sophisticated and often successful.

In a similar way, APS can find many profitable patterns for you. Using the patterns in a profitable way depends on the specific strategy that employs them.

I guess confusion arises from the fact that each pattern code is generated by APS in the form of a complete strategy. I take that to be useful only for the purpose of backtesting the pattern codes in another platform rather than using them to trade as is.

Alex
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Old Jun 23, 2008, 10:06pm   #128
 
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I guess "split patterns" are just one kind that could involve ANDing. I think Ron was very generous indeed to even mention ANDing and I wouldn't expect him doing so, neither I would ask him going into more detail about his methods.

Here's is an example: you have a tool that calculates moving averages of all kinds. But there a zillions ways of using MAs. Some are too obvious and naive but others are very sophisticated and often successful.

In a similar way, APS can find many profitable patterns for you. Using the patterns in a profitable way depends on the specific strategy that employs them.

I guess confusion arises from the fact that each pattern code is generated by APS in the form of a complete strategy. I take that to be useful only for the purpose of backtesting the pattern codes in another platform rather than using them to trade as is.

Alex
Alex,

Thanks for the response and your comments on specific/complete strategy makes sense.

After re-reading the thread, there are a few things I'll add to my list of pattern-related stuff to look in to. I'm just getting started with mechanical systems development. As a frustrated discretionary trader, any tidbits are useful to a beginner like me and in that regard this thread has been useful.

Thanks,

futz
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