NeuroShell Trader Release 6 and Power User Highlights
NeuroShell Trader
Professional
Enables you to develop and test trading systems in a charting
interface; choose from over 800 indicators, neural networks for predictions, and
trading rules. It includes three different biologically inspired optimization
types for selecting the best trading rules and indicators. The Trader takes
advantage of multiple computer cores and hyper threading, resulting in
significantly faster optimization times. Also includes the ability to create
custom indicators. Works with end-of-day data.
NeuroShell
DayTrader Professional
Includes all of the features from the NeuroShell
Trader Professional package, plus real time performance. Works with both
end-of-day and intraday data for position and day trading.
NeuroShell Trader Power
User
NeuroShell DayTrader Power User
The Power User versions include everything in the Professional versions plus a
number of advanced features. Both Power User products can mix and match multiple
time frames in data streams, indicators, predictions, trading strategies, and
other instruments on a single chart. The NeuroShell Trader Power User mixes
daily, weekly, and monthly timeframes, while the NeuroShell DayTrader Power User
mixes intraday timeframes including range, volume, and tick bars as well.
If you don’t know how many shares to buy with each trade, you can
select from over 14 different sizing methods including optimal F and Kelly
formula. The pyramiding/scaling options add the ability to either enter or exit
trades with more than one order. If you’re uncertain which of the position
sizing or pyramiding methods to use, the Trader’s optimizer can assist in your
decision process. If you want to evaluate your model’s out-of-sample
performance on a trading strategy that is re-optimized regularly on newer data,
you can use the multiple optimization walkforward feature for trading
strategies. One of the most convenient features of the Power User products is
the ability to optimize and backtest multiple trading strategy templates on
multiple instruments in one continuous process.
Click the links below to open a short video clip related to the link topic. Links open to new windows.
Charts
Build a
model for a single instrument in a chart, or simply add chart pages with
additional instruments to automatically apply all of your trading strategies and
neural networks to the new instruments. You have the option of
saving the charts as templates for later use.
Indicators
Use the indicator wizard to quickly select and customize indicators (such as the
number of periods used to calculate the indicator) from the over 800 indicators
included with the program. Quickly build
custom indicators by combining
multiple indicators within the indicator wizard rather than using a programming
language or script.
Trading Strategies
Enter
custom rules for familiar systems that can easily be applied to instruments of
your choosing in the Trading Strategy Wizard. Let the optimizer choose the best
rules and parameters for each individual instrument or find a single model that
works for all of the instruments included in the chart. You can create your own
library of trading rules or strategies that you can save as
trading strategy
templates for new
models.
Neural Networks
Neural
networks learn to make predictions from patterns in past data. You select
indicators as “inputs” that you feel have the patterns that influence the
market. You tell the Prediction Wizard what you want to predict (such as the
percent change in the open, or any other data stream) and how far in the future
to make the prediction. The finished model will produce buy/sell signals, a
list of trading statistics, and a weighted ranking of the inputs (indicators and
other data streams) for the final model. You can trade these models using the
buy/sell signals or you can include them in Trading Strategies with other nets
or trading rules. You can save
prediction templates for use in other charts.
Optimization
Successful trading models begin with the selection of the “right” indicators and data streams that correctly model the instrument(s) you want to trade. With endless choices, you need either a team of experts running models all day long, or you can use the NeuroShell Trader’s built-in optimization methods to do the work for you. Choose optimization types such as Evolution Strategies, Swarm, or GeneHunter genetic algorithms, as well as brute force optimization.
The Trader allows you to select some model parameters for optimization while holding others fixed. Optimization may be used to:
Select trading rules or inputs to a neural network
Find the most favorable parameters including time series for trading rules or neural net inputs (such as the number of periods used to calculate an indicator)
Set the most favorable stop and limit prices.
All of the above simultaneously
There are 34 different optimization objectives that may be used in Trading Strategies and 39 different choices for optimizing a neural net.
The NeuroShell Trader Power User and NeuroShell DayTrader Power User versions can optimize how many shares/units to buy with each trade or pyramid/scale into and out of trades with more than one entry or exit order. See descriptions below for details.
Backtesting
Once you’ve set up your model, the Trader will apply that model to the historical data you’ve loaded into a chart and produce a number of different trading statistics. If you’ve selected optimization, the Trader will iterate through possible models in order to meet your optimization objective. You can stop optimization at any time to take a look at results. You may hold out a specified amount of the most recent data (an out-of-sample or testing set) that is not used to create the model. Once optimization is finished, the final model will be applied to the testing set so you can judge whether the model is useful in the future.
In order to assist and automate the judging of whether a model is useful in the future, NeuroShell uses an additional testing set you can select. I.e., we are automating “paper trading” for hundreds of possible models.
Distributed Processing
Release 6.0 can distribute trading strategy and neural network optimization processing across some or all cores on your multi-core computer. If the cores are hyperthreaded, then there are effectively twice as many cores among which processing is divided.
Build systems for trading entire portfolios using specialized indicators. For example, you can put all of the stocks in your portfolio on individual pages within the same chart. You can then use a chart page sum indicator to calculate the equity for all of the stocks in the chart. Another method is to use the chart page upper and lower rank indicators that grade stocks relative to an indicator such as RSI. That means you can trade three stocks with the highest or lowest RSI values compared to the others in the portfolio. The calculations will be updated with each new bar and the rankings will be revised.
FOREX
FOREX settings make it easy to apply the Trader’s state-of-the-art artificial intelligence technology to Forex trading. You can view trading statistics and profits and set costs in pips. If you choose to automatically send trades to your broker, you have the option to send those trades in dollars or in your home money denomination rather than in shares or lots. You can also send trades in the quote money denomination that you’re trading.
The Trader’s scanning tool lets you examine a number of ticker symbols based on single or multiple rules and/or indicators. The rules and indicators can be very complex if you wish. For example, you can select a number of symbols and scan for those stocks where the RSI indicator is greater than 80 or the ADX indicator is greater than 40 but less than 70. The scan will display the results for each indicator. You can then choose the instruments you want to load into a chart.
The Trader lets you save your favorite indicators, neural network predictions and trading strategies as templates for use in new charts. For example, you can build a custom indicator that subtracts the percent change in the low from the percent change in the high. You can specify the number of periods, e.g., 4, used to calculate the percent change, and then save the indicator. When you insert the saved indicator on a new chart, it will automatically use a 4 period percent change for the high and low rather than the default value of 5. The same is true for the parameter values and data streams used in predictions and trading strategies. If you have a preferred chart setup that includes your favorite indicators, predictions, or trading strategies, you can save the entire chart as a template.
Pair Trading
NeuroShell Trader lets you use a single chart to pair trade two instruments. The chart will produce a simultaneous buy signal for one instrument and a sell signal for the other instrument based on your rules. If you want to build a lot of pair trading models, you may want to purchase the Advanced Indicator Set 3 add-on for the Trader to take advantage of indicators specifically designed for pair trading.
Adding Data Feed and Brokerage Interfaces.
If you’re an experienced programmer or employ one, toolkits are available to help you program your own interface to either a data feed or a brokerage.
Data Frequency and Bar Construction
The NeuroShell Trader Professional and NeuroShell Trader Power User let you build models with daily, weekly, and monthly bars. The NeuroShell DayTrader Professional and NeuroShell DayTrader Power User can work with daily, weekly, and monthly bars as well as range, volume, tick, second, minute and hourly bars. The Power User versions have the option to mix and match multiple time frame data, indicators, predictions and Trading Strategies within the same chart.
You can add sound or screen warnings based on conditions you specify for any open chart in the Alerts and Orders window. If you are actively trading an open chart that includes a Trading Strategy with a broker, the window will include a summary of current trading activity.
Building Models to Trade during Certain Hours
NeuroShell DayTrader and DayTrader Power users can build models customized to a trading range of the user’s choosing, e.g. from 11 AM to 2 PM, without the use of time rules. There is also a time range data filter, useful for excluding off-hours trades from data.
NeuroShell Trader Power User Versions
Ward Systems Group Inc. has added premium features to its award winning software with the introduction of two new products: NeuroShell Trader Professional Power User and NeuroShell DayTrader Professional Power User.
Your charts can mix and match multiple time frames in data streams, indicators, predictions, and trading strategies as well as other instrument data. The NeuroShell Trader Power User mixes daily, weekly, and monthly timeframes, while the NeuroShell DayTrader Power User can include multiple intraday timeframes as well.
If you don’t know how many shares or units to buy with each trade, you can select from over 14 different sizing methods including:
Fixed Size
Fixed Dollar
Percent of Account
Fixed Leverage
Fixed Fractional
Kelly formula
Optimal f
Secure f
Profit Risk
Volatility Risk
Fixed Ratio
Margin + Drawdown Sizing
Fixed Dollar Amount per Unit
Fixed Dollar Risk
Pyramiding/Scaling Positions
The pyramiding/scaling options add the ability to either enter or exit trades
with more than one order. If you’re uncertain which of the position sizing or
pyramiding methods to use, the Trader’s optimizer can assist in your decision
process.
If you want to evaluate your model’s performance on a Trading Strategy that is re-optimized regularly on newer data, and then applied to out-of-sample data, you can use the Walkforward Optimization feature. For example, you can backtest reoptimizing a Trading Strategy every week for the past 10 weeks. After each reoptimization, the Trading Strategy is applied to data for the following week. The NeuroShell Trader Power User will perform 11 total optimizations in this case, each shifted by one week. Ten of those optimizations will show the “actual” trading results had you traded the reoptimized model for the week following the optimization period. The final optimization is optimized up to the very last date so you can go forward into the future trading a model that has been optimized on the very latest data in the same manner as the prior 10 simulated optimizations. This feature can also be applied to intraday bars if you own the NeuroShell DayTrader Power User version.
Multiple Template Optimization and Backtesting
The Power User versions include a “batch” mode of reoptimizing and backtesting models you’ve created previously. Simply save the model as a chart template. Save templates for ALL of the models you wish to incorporate in this batch process. To begin the bath process, simply select all of the templates you wish to include in the batch on the first page of the Trading Strategy wizard. You’ll have the option to modify the dates, costs, and optimization parameters that you wish to use during optimization of all of the templates. You DO NOT have to rebuild each model. After the models are backtested and you have analyzed the results, you can check the templates you wish to see displayed in a chart.
Notes
Release 6.0 requires a live internet connection at startup, when charts are loaded, or when optimization begins.
You may install NeuroShell on multiple computers you own as long as only one is running NeuroShell at any given time.
For more detailed information, click here to view all of the program videos.