Forex patterns

Discussion in 'Forex' started by ronblack, Apr 7, 2008.

  1. ronblack

    ronblack

    Anyone using this program to trade forex?

    http://www.tradingpatterns.com/Software/APS/forex/forex.html

    The program -- apparently a data miner -- can find good numbers of patterns in daily and intraday forex data but I need to figure out a way of selecting those with the best potential to stay profitable.

    Does anyone know of a suitable statistical test I can use?

    Thanks, Ron
     
  2. hcour

    hcour Guest

    I don't understand why someone would need a program to search for patterns in fx. How many pairs are there that you actually trade? 10, 20, 30? You can't do a simple visual scan of those few instruments?

    Harold
     
  3. ronblack

    ronblack

    Hi Harrold, the answer to your question is the following: you need such a program for analysis and automation purposes. You can use a data miner to find the patterns, analyze their historical performance and get the programming code to automate buy/sell signals.

    There are only two software programs in the market, as far as I know, that are "white boxes", meaning that they find patterns and generate code you can use with programs like Tradestation:

    1. Trading System Lab. www.tradingsystemlab.com
    priced at $60K plus a maintenance fee of $20K/yr. This
    is a program based on genetic programming. Kind of expensive!

    2. APS Automatic Pattern Search. www.tradingpatterns.com
    price at $1295/5 yrs and based on data mining

    Both programs find patterns in historical data based on user criteria and generate programming code you can cut/paste into the system tester of programs like Tradestation.

    In this way you can automate both the pattern search and the trade execution. This is the way to go.

    Ron
     
  4. way to go - You need to trade independently. Then it is possible to go forward.

    regards
    FxManager.info
     
  5. Trade independently as opposed to what?
     
  6. ronblack

    ronblack

    As opposed to having a black box make the decisions for you, I guess.

    Ron
     
  7. Sounds expensive for a system that is basically built around a commercial program called Discipulus:

    http://www.rmltech.com/traders.htm

    The thing is that discipulus sells for only $195 and up to the 60K level there should be a tremendous added value. Maybe so, I don't know since I haven't tried trading system lab as it's too expensive for my trading budget. Maybe it worths the 60k price tag.

    Alex
     
  8. There are other costs and restrictions:

    "Platforms are priced at $60,000. A maintenance fee of $20,000 per year after the first 2 years is required for continued operation. The TSL license requires the signed acceptance of restrictions regarding external use of TSL generated systems or signals. "

    http://www.tradingsystemlab.com/howtoorder.aspx

    Sounds like a law firm with a software development department:)

    Bill
     
  9. Do you think you can make money in the forex market using patterns from software anyone can afford?

    You cannot beat a zero-sum game with a few hundred dollar investment IMO.

    Bill
     
    #10     Apr 30, 2008