Advanced Neural Network Software for Financial Forecasting and Stock Prediction

How many times have you wished you could just let your software scan a price series and let you know when it has found a particular pattern that you like? You have in your mind a special pattern of moves that you believe could precede a strong change in the market, but you'd like the software to just monitor the incoming bars looking for your pattern. Well now you can do just that with the Fuzzy Pattern Recognizer add-on for the NeuroShell Trader series! And you can do it using fuzzy logic!

Fuzzy logic was invented by Lofti Zadeh, and written about extensively in books by Bart Kosko. Fuzzy logic has been used successfully in machines and software around the world, even in "smart" household appliances. Now you can add this smart control to your trading, and it is easy to use because we've done the hard work for you!

The Fuzzy Pattern Recognizer is a fuzzy logic engine which lets you describe your pattern in "fuzzy" rules (approximate rules of thumb). It is really a series of indicators that show you, on a scale of 0 to 1, how closely the current price series matches your pattern. Turn on an alert in the DayTrader Professional and the Fuzzy Pattern Recognizer will scan your incoming bars looking for all of your favorite patterns. The alert will sound when the match is above .6, .8, or any value you select.

Fuzzy rules are rules that are general in nature, not exactly specified. We describe price or indicator curves with the following fuzzy (verb) rules:

rises sharply
rises
remains steady
drops
drops sharply

Here are some example rules written in English which can be specified in the Fuzzy Pattern Recognizer add-on:

The close rises sharply, then stays steady, then rises sharply again.
The RSI rises, then drops, then rises, then rises sharply.
The high remains steady, then drops, then rises, then remains steady, then drops, then drops sharply, then remains steady.
The close drops sharply.

Here are some additional highlights of the Fuzzy Pattern Recognizer:

If you don't have any favorite patterns, you can let the genetic algorithm find them for you if you own the NeuroShell Trader Professional, or DayTrader Professional.
You can specify that you want to look for two or more patterns, and then use the "Fuzzy OR" indicator to specify that any of your patterns are acceptable.
You can specify that you want to look for two or more patterns, and then use the "Fuzzy AND" indicator to specify that all of your patterns must be present.
"Fuzzy OR" and "Fuzzy AND" indicators can be combined for complex searches.
As you can see from the example rules, patterns can be found not only in a price stream, but in most indicators such as stochastics, moving averages, etc. as well.
You specify the number of bars in which a fuzzy verb such as "rises" applies. In other words, you determine that "rises" means over a duration of, say 10 minutes or ten days.
You can also set the maximum expected variation, i.e., what you consider the maximum "sharp rise" to be. In that way, you can specify fuzzy rules, and then later apply those same rules to less or more volatile issues without recoding the indicator. All you have to do is reset the maximum expected variation.
Although one use for Fuzzy Pattern Recognizer indicators is in Trading Strategy rules (conditions), you can also feed them into neural nets or other indicators.

There are 8 "fuzzy (verb) rule" indicators in the add-on, Fuzzy1, Fuzzy2, ... , Fuzzy8. Fuzzy1 handles "1 segment" rules such as "close rises" or "open drops sharply". Fuzzy2 handles "2 segment" rules such as "close rises, then drops sharply". Fuzzy3 is for "3 segment" rules such as "open rises, then drops, then remains steady", etc.

Example of the Fuzzy2 indicator output (bar chart at the bottom).
The search rule is “Close rises, then drops”, Segment Size=8 bars, and Max Change=7.

There are 3 FuzzyOR rules and 3 FuzzyAND rules: FuzzyOR2, FuzzyOR3, FuzzyOR4, FuzzyAND2, FuzzyAND3, FuzzyAND4. As previously mentioned, these combine rules. For example, suppose you are looking for either a pattern that rises sharply then drops sharply, or a pattern that rises sharply, then remains steady, and then drops sharply. Then you would use a FuzzyOR2 indicator which takes as arguments a Fuzzy2 indicator and a Fuzzy3 indicator, each specifying their respective rules.

FuzzyOR and FuzzyAND indicators may take other FuzzyOR and FuzzyAND indicators as arguments, as long as the lowest level indicators are "rule" indicators such as Fuzzy2.

There are also 8 FuzzyGA indicators, which allow the genetic optimizer to tune the fuzzy logic engine better.

We believe that Fuzzy Pattern Recognizer indicators open a whole new world of possibilities in trading with artificial intelligence. We think it will be our most popular add-on yet!

The Fuzzy Pattern Recognizer add-on requires release 3.2 or better of the NeuroShell Trader, NeuroShell Trader Professional, or NeuroShell DayTrader Professional. If you do not own one of the Pro versions, you can still use the Fuzzy Pattern Recognizer add-on to find patterns, but you will not be able to optimize the Fuzzy indicators.

For more details, please view the product manual for this add-on

Price: $299 for online delivery

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