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Subject: Detecting trend....

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droskill
Posts:21

01-06-2007 9:04 PM Alert 
Came across this post and it's something I've been thinking a lot about.

I also came across a company called Trading System Lab - they are founded by Mike Barna and focused on the area of Genetic Programming. Now, despite what the demos show you, their software is not for sale. What I was interested in, however, were some of his methods for determining whether a market is a trending or non-trending market.

On this page:
http://www.tradingsystemlab.com/flashdemo.aspx

Take a look at demo #1 (first one on the page). At the end of the demo (after he brings up a Tradestation screen), he discusses using three indicators for determining trend:

- Discrete Fourier Transform (DFT)
- Serial Correlation - look at tendency of the market to have stable trend by looking at 1 and 2 days back and then at the current day to see if there was price persistence.
- Random Trend - based on a random walk analysis.

Would love to know what people think of this - I'm also curious as to opinions on Genetic Programming.

Thanks,

/d/
wizardybiz
Posts:1

02-25-2007 3:52 PM Alert 

Cant help very much but you might like to check out John Ehlers work who Mike has worked closely with. He was also part of a CTA but I cant remeber the name I'm pretty sure that it wasnt Aaron Asset Management  so mabe theyve closed but I cant help with that one. Anyway I would see how Aaron much they manage and what their stats are before you spend too much time on research. Johns work as you are probably aware includes mesa etc. Good luck but like the simple stuff.

Here's a link for MB

http://www.futuresexaminer.com/vendors.php

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