Pattern Search Software

[alexander]

... I suggest that you buy Michael harris literature (if you haven't done so yet) where everything is explained at lenght.
Eduardo

I also recommend the book 'Profitability and Systematic Trading' by Mr. Harris. It is an excellent book. I paid something like USD 75 for it but as I can see it is now offered as a bonus with the software. Rarely you see books about trading deriving a formula ground up and explaining concepts with such clarity. This is the best book about trading system development I have ever read.

Cheers -- Alex

 

[rsidivergence]

You won't get millionaire overnight trading with APS, but things must go really bad for you in order to lose money; I suggest that you buy Michael harris literature (if you haven't done so yet) where everything is explained at lenght.
Eduardo

Zeppo,, my turn to apologise for delayed reply. I bought the new book by Michael Harris. It is an excellent read I must say. I spent a lot of time testing the demo and I think I will go for it. I tried to get in contact with a few other users of APS but nobody seems willing to elaborate. Someone from Italy told me this is a "well kept secret", he has done exceptionally well trading MIB shares with this software. I will give it a shot.

 

[alexander]

.. I tried to get in contact with a few other users of APS but nobody seems willing to elaborate. .

rsidiv, if you are still around send me a pm. I am looking to put together a small group of APS users to exchange ideas and benefit from our experience. It will be a private group. I think we can use a voice chat room or something like that. there is a lot of potential in APS and I am sure everyone has different approach and ways to use it.

Alex

 

[The General]

Am I missing Something ??

rsidiv, if you are still around send me a pm. I am looking to put together a small group of APS users to exchange ideas and benefit from our experience. It will be a private group. I think we can use a voice chat room or something like that. there is a lot of potential in APS and I am sure everyone has different approach and ways to use it.

Alex

What am I missing here ? The product seems incredibly expensive for something quite simple which could be perfomed in excel (seems to take the 4 standard attributes of a days price (OHLC) and backtest them) quite easily....don't think that my summary has left anything out has it ??

:?:

 

[alexander]

What am I missing here ? The product seems incredibly expensive for something quite simple which could be perfomed in excel (seems to take the 4 standard attributes of a days price (OHLC) and backtest them) quite easily....don't think that my summary has left anything out has it ??

:?:

Not that simple

Actually, I think it is under-priced for what it does.

Alex

 

[The General]

Interested to hear where my synopsis was incorrect then alexander ? It IS that simple, doesn't go back past 4 days, compares all 4 attributes for each day against every other for the other days, does a lookback for percentage success above and beyond a predetermined limit etc ??

I have tried the demo and all that seems to be missing from the above is the fact that it can spit out TS/Metastock code...

 

[alexander]

Interested to hear where my synopsis was incorrect then alexander ? It IS that simple, doesn't go back past 4 days, compares all 4 attributes for each day against every other for the other days, does a lookback for percentage success above and beyond a predetermined limit etc ??

I have tried the demo and all that seems to be missing from the above is the fact that it can spit out TS/Metastock code...

It can go back as far as 6 days. I complained about that when I first bought the program but then I tried myself back testing patterns with more bars and found out the increase did not produce any meaningful patterns.

I think that in theory you maybe correct but then theory and practice are two different things. Another example: Metastock. It IS simple, isn't it? It has a high-level language, a graphic interface, some other bells and whistles, and there you go. I'm a trader and the only think that matters to me is if it works. That is why I paid for it. I understand how it works. Essentially, it is a simple product but it does the job.

Alex

 

[rsidivergence]

It can go back as far as 6 days. I complained about that when I first bought the program but then I tried myself back testing patterns with more bars and found out the increase did not produce any meaningful patterns.

Alex

I purchased a license of the program recently and I got to be the first one to beta-test the new feature they added for the calculation of the number of shares. This is really neat. I think it is not officially released yet. Alex I think you are correct the patterns go back up to 6 bars.

 

[vladv]

Is there a free or shareware software for pattern recognition,especially for forex market?

 

[rsidivergence]

Is there a free or shareware software for pattern recognition,especially for forex market?

What kind of patterns are u looking for? People use the word pattern very loosely. Some people view of a SMA crossover as a pattern. Others use the word for conventional chart patterns like triangles, double bottoms, etc.

 

[vladv]

rsidivergence,I use this word especially for conventional chart patterns such as-triangles,double/triple tops,bottoms,etc.Can you tell me more about the software YOU are using for pattern recognition ?

 

[ZEPPO]

Patterns softwares

rsidivergence,I use this word especially for conventional chart patterns such as-triangles,double/triple tops,bottoms,etc.Can you tell me more about the software YOU are using for pattern recognition ?

From post #17:
http://thepatternsite.com
From post #1:
www.tradingpatterns.com
I would suggest that you visit the sites; in the case of www.tradingpatterns.com there are some articles which tell you everything you need to know about the theory on which the software was built.

Eduardo.

 

[rsidivergence]

rsidivergence,I use this word especially for conventional chart patterns such as-triangles,double/triple tops,bottoms,etc.Can you tell me more about the software YOU are using for pattern recognition ?

No matter how hard I tried in the past I couldn't make any money by analyzing charts and looking for patterns. If a chart pattern fails to confirm a reversal in prices technical analysts turn around and call it a continuation pattern. This is unacceptable IMO. If you wait for confirmation most of the times it's too late and you are caught up in a correction against you.

I use APS by tradingpatterns.com to search for price patterns which are very different from chart patterns. One stock I swing trade for some time now is KR (Kroger Company: NYSE). I got a signal from APS on March 19 for next open and purchased 500 shares for $27.25 per share. I sold all 500 shares yesterday at $28.90 for a $825 profit before commissions. I did not even bother to check what price pattern generated the signal. This is the point. If you start analyzing the signals the game is lost.

For those that have APS, for the KR pattern search I used 1.75 for target and 2 for stop loss with a minimum profitability of 87% and at least 30 historical trades. The price pattern I got was classified as Index 6 with 88.57% profitability and 35 trades. I used a data file with 2500 daily bars generated by Metastock.

Rsidiv

 

[alexander]

No matter how hard I tried in the past I couldn't make any money by analyzing charts and looking for patterns. If a chart pattern fails to confirm a reversal in prices technical analysts turn around and call it a continuation pattern. This is unacceptable IMO. If you wait for confirmation most of the times it's too late and you are caught up in a correction against you.

I use APS by tradingpatterns.com to search for price patterns which are very different from chart patterns. One stock I swing trade for some time now is KR (Kroger Company: NYSE). I got a signal from APS on March 19 for next open and purchased 500 shares for $27.25 per share. I sold all 500 shares yesterday at $28.90 for a $825 profit before commissions. I did not even bother to check what price pattern generated the signal. This is the point. If you start analyzing the signals the game is lost.

For those that have APS, for the KR pattern search I used 1.75 for target and 2 for stop loss with a minimum profitability of 87% and at least 30 historical trades. The price pattern I got was classified as Index 6 with 88.57% profitability and 35 trades. I used a data file with 2500 daily bars generated by Metastock.

Rsidiv

Nice trade rsidiv! I added KR to my list of traded stocks, got a signal by APS the other day and the position is making money as of yesterday's close.

I am trying to fine tune stock selection and have APS generate 3 - 4 signals like that every week and that is all need to make substantial gains.

Alex

 

[Trdr]

rsidivergence, since you're using MS, why don't you use the Sytem Tester and Explorer, also
such add-ons as Trade Oracle etc ?

What others programs have you tried and rejected prior to APS ?

 

[rsidivergence]

rsidivergence, since you're using MS, why don't you use the Sytem Tester and Explorer, also
such add-ons as Trade Oracle etc ?

What others programs have you tried and rejected prior to APS ?

Trdr, MS is my favourite charting and TA program by far. I don't think any other program comes close to MS for that particular use and purpose. I have the eSignal feed and I love the multiple layout capabilities.

Now, APS is something completely different. This program can find price patterns in historical data based on your own performance criteria (% success rate, historical trades, consecutive losers, profit target/stop loss, etc.) It can generate code for MS you can cut & paste in the tester and get more detailed back testing results (see this link for details). I did this extensively in the beginning just to confirm the performance statistics of APS but now I just use MS to generate historical data files and monitor the market. I get my signals from the APS signal tracking because this is faster and easier to do.

I also have TS2000i and used it in the past to test APS generated Easylanguage code. I plan to use TS to develop more complex strategies using the APS price patterns.

I have tried Amibroker and Wealth-Lab in the past. Both seem good programs but I prefer using MS. The thing is that I can test the price patterns much faster in MS just by setting a few parameters in the tester.

I don't know anything about Trade Oracle.

Rsidiv

 

[Mets]

Well, I'm a totally newbie to stocks and I just started trading stock patterns and it seems to be going well, I'm up about 5% for the past two weeks. I'm in the process of reading both Murphy and Bulkowski's books.

For charting I use QuoteTracker, which is a nice free charting program. I also use Voodoo's software and Bulkowski's Patternz program which is great for learning more about patterns. I wrote a little script that downloads the latest csv files from Yahoo, and the search feature that Patternz has is great for learning.

If you are looking at prices, you might want to check with your broker. I use TDA, and they actually give you a pretty thorough back testing program that seems to be able to do what you are looking for (though I haven't used it). I know Fidelity and many others have this too.

 

[johnpaterson]

I also have TS2000i and used it in the past to test APS generated Easylanguage code. I plan to use TS to develop more complex strategies using the APS price patterns.

Rsidiv

Rsidiv, I worked with the aps demo and I like what I see. I will get the program next week finally and I'm interested in developing EL code based on the aps patterns as described in the program help file under tips for advanced users. Specifically, I'm interested in consecutive price pattern signals for trend following as explained in the article by Mr. Harris:

http://personal.fidelity.com/myfidelity/atn/archives/august2003.html

I think the method is very powerful and I would like to work with other traders to develop parts of the code. If you're interested in such project let me know. Two or three brains is better than one!

John

 

[Pat494]

Give trade oracle a miss imo - on the system tester I ran thru about 100 different TO programs . Not one made a profit on the major indices !

 

[johnpaterson]

Give trade oracle a miss imo - on the system tester I ran thru about 100 different TO programs . Not one made a profit on the major indices !

Pat, are you still using APS Automatic Pattern Search? What do you think of this program? Have you had any luck with it?

John