louis mendelsohn

How to design an artificial neural network

Unlike technical trading systems popular in the 1980s, artificial neural trading systems use an iterative “training” process to forecast prices and trading signals without rule-based “optimization” of system parameters or technical indicators. Instead, neural systems “learn” the hidden relationships within selected technical and fundamental data that are predictive of a […]

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Avoid costly pitfalls using trading software

Note: Originally written in 1988 Over the past several years there has been a proliferation of software programs which allow futures traders to develop trading models and perform simulated historical testing to find the best model to use for each Market. This testing process is widely known as “historical optimization.” […]

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Designing and testing mechanical trading systems

WITH THE ADVENT OF MICROCOMPUTERS A DECADE AGO, the window of opportunity opened for individual futures traders to design and test technical trading systems. Initially, only those traders who were also proficient programmers could do so, since the early trading software was neither very elegant nor user-friendly. At first, two […]

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