Read this in "The Evaluation and Optimization of Trading Strategies" recently. Very thought-provoking: Where is the application that lets the strategist design, create, and apply her own custom genetic search algorithm to a Walk-Forward Analysis of a trading strategy that employs an autoregressive integrated moving average (ARIMA) forecasting model of volatility, a neural net that predicts the magnitude and direction of tomorrowâs close change, which auto-adapts to market conditions and has a genetic algorithm that balances oneâs portfolio automatically, strangling models trading stagnant markets with a strategy that is losing in the last year and feeds the strategies that are profiting unusually well and markets that are really moving? Why is this important? Yes, such a trading platform would be quite sophisticated. These technologies all exist now, however, and did so in the 1990s, too. The computer hardware is now up to the task. There are strategists who can design and create applications like these and even more sophisticated ones, at that. Yet, the trading strategy development application that would make such a thing possible does not yet exist (at least to my knowledge and I am always looking). One might ask, so what? That, however, would be a rather uninformed question. For the existence of such a trading strategy development application with the ability to integrate and apply such technologies at a usable speed would really be a development that would be at least somewhat in proportion to the vast explosion of computer hardware that we have seen over the last 15 years. You can count on the fact that if one of the large prop trading firms desires to apply a trading approach as complexâor vastly more soâas what has been mentioned, they have the resources to pull it all together to create and trade such a trading model. The point is that this capability should be available to the average trader and investor too. The capability is there. The leading trading strategy development software application vendors have been complacentâperhaps they just lack imaginationâin the extreme. Part of the problem here as always been that most of the developers of the trading strategy development applications do not have a trading background; as such, they are not as driven by trading profit as traders are to continuously seek out cutting edge technology that can provide the trader with an edge. And the trading community at large, primarily the individual trader and investor, has been willing to accept this sorry state of affairs. Perhaps they too lack imagination. . . ? Cheers, Dima