AI for Level 2 analysis / Technical Analysis

[willlmanders]

Hello All.

I did an AI degree a while back and its just occured to me that although its a very small area of computing it could have some very powerful use in trading and i think would have great benefit in taking the edge of day traders and TA based traders to the next level if it can be harnessed properly.

I think the main areas it would be effetive would be
1. used to monitor Level 2 transactions and bid spread behavours by market makers etc - this information could be used to establish patterns in thier behaviour and help to identify some of the headfaking and other tricks that you hearabout.
1. Used to monitor Level 2 to help time trades with alert to price and volume sentiment changing.
2. to monitor TA variables and indicator patterns in order to help time trades or indeed be used in conjunction with TA to for stock selection purposes i.e flagging up stocks that are behaving in a way that you have identified to be of interest to your style of trading and entries?

If anyone is using anything based on these methods for these purposes i would be very interested to know how you are getting on. I have noticed a few on the web that claim to use sophisticaed Neural Network algorithms there were a few when i searched but this gives a good example of what I'm taking about .. this package on the web that has been designed by an american company and is called Vantageoint ... http://www.profittaker.com/vantagepoint_overview.asp

If any of the more experienced traders / computer scientists etc know if any of the stock pickers / scanners out there that are more popular that use this technology then it would be interesting to discuss peoples findings with them.

Are there any british companies doing this kind of work that anyone knows about?

cheers,

Billy

 

[houdani]

Hello All.

I did an AI degree a while back and its just occured to me that although its a very small area of computing it could have some very powerful use in trading and i think would have great benefit in taking the edge of day traders and TA based traders to the next level if it can be harnessed properly.

I think the main areas it would be effetive would be
1. used to monitor Level 2 transactions and bid spread behavours by market makers etc - this information could be used to establish patterns in thier behaviour and help to identify some of the headfaking and other tricks that you hearabout.
1. Used to monitor Level 2 to help time trades with alert to price and volume sentiment changing.
2. to monitor TA variables and indicator patterns in order to help time trades or indeed be used in conjunction with TA to for stock selection purposes i.e flagging up stocks that are behaving in a way that you have identified to be of interest to your style of trading and entries?

If anyone is using anything based on these methods for these purposes i would be very interested to know how you are getting on. I have noticed a few on the web that claim to use sophisticaed Neural Network algorithms there were a few when i searched but this gives a good example of what I'm taking about .. this package on the web that has been designed by an american company and is called Vantageoint ... http://www.profittaker.com/vantagepoint_overview.asp

If any of the more experienced traders / computer scientists etc know if any of the stock pickers / scanners out there that are more popular that use this technology then it would be interesting to discuss peoples findings with them.

Are there any british companies doing this kind of work that anyone knows about?

cheers,

Billy

do yourself a favour and dont even bother reading tha article on vantagepoint.very expensive with little if any use.

 

[willlmanders]

do yourself a favour and dont even bother reading tha article on vantagepoint.very expensive with little if any use.

have you used this software? If so was it very configurable? Is there something better out there that you use for the same purpose? It seems to have some good reviews from The Technical Analyst and Investor Chronicle, but not being a regular reader of either i dont know how much that counts.

 

[willlmanders]

old thread

Have just seen this ...

http://www.trade2win.com/boards/showthread.php?p=212950&mode=linear#post212950

 

[grantx]

Will,

Given your background and intests, why not

a) develop and write your own system

b) offer your services on a freelance basis?

I'm sure there would be a demand for b) from those of us who lack the expertise.

May I ask a question? Why can some data from a real-time feed be linked via dde into Excel while other data can't, eg DOM, Time and Sales?

Grant.

 

[dcraig1]

Just came across this thread. IMHO, using an ANN with book data preprocessed in some way as one one of the inputs to forecast a trading signal in stock index futures might have some merit, but there would be a lot of work in doing the research.

If one is competent in Java, there is a free ANN package at http://www.joone.org with probably all the basic tools needed to get started.

 

[blackcab]

Just came across this thread. IMHO, using an ANN with book data preprocessed in some way as one one of the inputs to forecast a trading signal in stock index futures might have some merit

If there's significant order/size faking in the book I'd guess that would scupper a NN.