System Functions

M1: F-Primary Filtering System. When the data is first fed into the System, it goes through this filter. When the System gets a new signal, either a signal to SELL or a signal to BUY, the signal goes to the adaptive primary filter. If the signal is intercepted, it is rejected and the System stays LONG or SHORT with the major trend.

M2: X.Algorithms Network. This network scans the data for over bought market conditions. Each Neuron is trained to look for a specific set of market conditions that historically signalled an over bought market.

M3: L.Algorithms Network. This network scans the data for over sold market conditions. Each Neuron is trained to look for a specific set of market conditions that historically signalled an over sold market.

M4: V.Filters or Adaptive Filtering System. This is one of the most important components of the System. When the System is in a LONG or SHORT trade, the trade is being constantly monitored by this network. If the System gets a new signal, the signal is fed to this filtering network for evaluation. If the signal fails a number of tests it is rejected and the System stays LONG or SHORT. This prevents a lot of whipsaws due to sudden and temporary price swings.

M5: TREND: This System monitors the Market Trend. If the market moves in the opposite direction to the present trade we get a signal to 'EXIT' the trade. When the 'EXIT' signal goes away you can resume the trade.

M6: The Money Management System.

M6.1: The Drawdown Parameter.
This parameter is the amount of money the System is loosing at the close on Friday.

M6.2: The Stoploss Parameter.
When the System first enters into a new LONG or SHORT trade it calculates a stoploss amount to be placed either below or above the market. This stoploss amount is saved to a file RSTP.REP, and this report should be checked every week after the System is run.

M6.3: The Trailing Stop Function.
This function works with regular trades only, i.e. trades that are not generated by the algorithms. The reason for this is simple. Algorithm trades are trades that get generated at or near market tops and bottoms. They will either succeed of fail right away. If they are successful the market will move in the direction of the trade very rapidly. If they fail they are stopped out, and will not have a chance to make enough profit for the trailing stop to start functioning. The trailing stop function starts raising the sell stop or lowering the buy stop, once a trade starts to make enough profit. This is a function of market volatility and speed.

Filters

F000000000000000009 - primary filter, default setting.
F000000000000000080 - primary filter, adjusted by the system.

This is the signal given on the Detail Report when the Adaptive Main filter of the System filters a trade. This filter adapts itself to the market. It changes in sideways markets and in the middle of a trade to prevent the system from being whipsawed a lot.
P000000000000000000 - special filter.
This is a special filter that gets activated when the System is trying to exit a losing trade. If the System is LONG and gets a signal to get out of the market, it checks to see if the market has moved higher. If the market moved higher the System stays LONG. Same thing if the System is trying to exit a SHORT trade. If the market moved lower the position is maintained. In other words this filter keeps the system with the trend. This filter works with the "Drawdown Parameter".
K000000000000000000 - special filter.
This too is a special filter that works with losing trades only. If the System is trying to exit from a losing trade, and the market is moving sideways and the loss is less than $250, the position is maintained.