Model Training Update

from the Training tool, with Stop, Target, Energy and Cyclical analysis

 

The model needs training. The training tools have been deeply revised. In the beginning the training was done by hand (!). Then a  simple tool interfaced the operations, still giving space to errors and inaccuracies. Now the training tool has become a complete “position manager”. I have in mind to call it R.Virgeel, but its just data and code, in the end.

The training phase is when the knowledge is transferred to the model and the process is nicely complex and plenty of traps, but undergoes one simple rule: “garbage in, garbage out“.

Having to organise the positions, my approach was to search for the basic ultimate tool, the one and only that you need to manage your position and it came out that it is the Stop. It is a very traditional and well known trading tool, with a lot of variants, and if correctly used, a stop can really embed an almost complete trading system.

If you pair it with the Target, you already have an almost complete position manager. The target is where the current position is heading to, and it has been doubled now, two slightly different calculation to mark the area of probable inversion.

from the Training tool, with Stop (red dots), Target (green dots) and Energy analysis (coloured bars)

Then, if we calculate the potential energy that flows through the positions, we have the possibility to argue where in the current move we are. It is the Stamina indicator, nothing graphic, just two percentage numbers, separated positive and negative positions: stamina is 100% at position beginning and 0% at position end, and it degrades as the position is going on.

Finally, the Position indicator is the feedback, with graphic signals at the extremes. It has totally absorbed the Signal indicator, so the latest has been removed.

All these indicators are neurally calculated, based on close data, each day.

 

 

 

r.Virgeel