Noxa Entropy Indicators (NEI)
Noxa Analytics, Inc.

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These add-ons are implemented in Vectorized C++ and assembly code for maximum speed. They integrate directly with Neuroshell Trader® version 5 and come with chart examples. To download our Hands-on tutorial on NEI, CLICK HERE

Have you ever heard of Claude Shannon’s entropy? Probably not but it may be just what you need to find profitable patterns in the market. The backbone of NEI add-ons (Noxa Entropy Indicators) is a powerful search engine for patterns that are resistant to entropy (the tendency of systems to disorder). That means you will be able to trade compelling pockets of order that arise in the market.

NEI Prediction-Days
Markets sometimes lock themselves into predictable futures. NEI Prediction-Days detects these events by searching for local histories with high predictability potential.

NEI Shannon Entropy
Shannon Entropy gives a measure of statistical regularity in price data, making it a good proxy for changes in market condition. It is particularly suited for use with neural-nets to make buy/sell decisions.

NEI Mutual Information/ Global Correlation
Mutual Information and Global Correlation measure the statistical dependence between two series by giving the amount of information one series carries about the other. You will be able to explore the market and select inputs that maximize their Mutual Information.

NEI Transfer Entropy
Transfer Entropy is a measure of information flow between two series. It takes into account the amount of additional information required to represent future events. In essence, Transfer Entropy tells us which input leads which.

Examples
Following is a screenshot illustrating “Mutual Information” as a fair representation of market forces:



You can see that some information flow between Oil service and Airlines stocks materialized in the form of islands whose tops happen to precede significant changes in trends (1997 1, 1999 2 and early 2003 3, 4).

Particularly successful trading strategy example; two neural-nets were built with NEI indicators as inputs to cope with changes in market conditions (out-of-sample backtest period in green):



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For further information, please contact:
Noxa Analytics, Inc
75 Spruce Meadows
Kanata, ON K2M2K4
(613) 599-7844

info@noxapredict.com
http://www.noxapredict.com

Advanced Neural Network Software for Financial Forecasting and Stock Prediction

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Phone : (301) 662-7950
Fax : (301) 663-9920
Email : sales@wardsystems.com

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