Published on Friday September 9th 2005
Written by John Clayburg
Most of the programs that I employ to develop systems and indicators use, in one way or another, a unique programming approach that allows them to better keep pace with the ever changing landscape of today’s markets.
This article is intended to give the reader a brief explanation of this approach to system design.
A “Self-Adaptive System” is quite simply one that has the internal ability to dynamically alter its analytical equations in real time to more closely adapt the system to ever changing market conditions. The systems accomplish this task by the diligent application of parallel functions.
Recall the old college days, just after that chemistry exam when you realized you should have spent more time reviewing the section on oxidation and reduction and less time on electron shell configuration? Or after the English exam when you found the test emphasis on sentence construction rather than proper pronoun usage, which you had spent all night studying?
How about that last trade, when just waiting a few more minutes for your entry or exit would have turned the result into a profitable experience rather than another one of those annoying losses?
Obviously, it’s not possible to turn the clock back and alter previous decisions. However, we have all, hopefully, over the years, learned from our previous experiences and have become better traders as the result of this learning process.
Parallel Function Technology operates in much the same fashion as our own learning process. While there is no computer in existence, or even on the horizon, which can come close to the analytical capability of the human mind, we can, with our Parallel Function Technology, enable our trading systems to learn from their past experiences and become more effective as a result.
The ultimate objective of all trading is to buy the low and sell the high. As you know this is much easier said that done. In fact it is, in all likelihood, altogether impossible. It is possible however to buy and sell in areas where price action determines that the trade has a higher probability of being profitable rather than losing…
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