Article Archive For
DEC1994
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A Personal Neural Net Trading System by James Stakelum
ARTICLE SYNOPSIS ...A Personal Neural Net Trading System
by James Stakelum
What goes through the mind of someone developing a neural network trading system? What are the steps
involved in putting together something that mimics the mystery of the human mind? Here are some clues.
Neural networks are a promising technology for quantifying the probabilities of rewards and risks in
trading the global financial markets today. Although excellent neural network software products are
abundant and available for the trader, I chose to design and program my own and then use my neural
network software as the foundation for ...
AUTHOR: James StakelumDATE: DEC1994
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Back To Basics In Trading Stocks by Gregory J. Kuhn
ARTICLE SYNOPSIS ...Back To Basics In Trading Stocks
by Gregory J. Kuhn
Identifying the once or twice a year that the market is ready to embark on a very profitable move is the
ultimate quest of anyone trading stocks. But in this day and age of artificial intelligence, with neural
networks and fuzzy logic, using something as low-tech as the basic technical tools to find such
opportunities may seem, well, backward. Gaining insight into the market's future direction doesn't have
to be that complex.
While many investors in late spring and early summer 1994 were perplexed over inflation worries,
higher interest rat...
AUTHOR: Gregory J. KuhnDATE: DEC1994
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Create A Hybrid Indicator by Jim Ritter
ARTICLE SYNOPSIS ...Create A Hybrid Indicator
by Jim Ritter
Interested in creating an indicator with a little bit of this from one kind of indicator and a little bit of that
from another? Well, you're in luck. This may be your solution.
Technical indicators are tools, and just like hammers, screwdrivers and pliers, everyone has about the
same basic selection to choose from. That having been said, have you ever found yourself in a situation in
which you need a unique tool that isn't in your toolbox? It's not a new situation, and it' s not limited to the
world of carpentry and construction; it can occur in techni...
AUTHOR: Jim RitterDATE: DEC1994
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Letters To S&C
ARTICLE SYNOPSIS ...LETTERS TO S&C
DOUBLE EXPONENTIAL MOVING AVERAGES
Editor,
In ""Smoothing data with faster moving averages""(January 1994 STOCKS & COMMODITIES), author Patrick
Mulloy refers to the steps used to calculate the 26-week one-parameter double exponential
moving averages (DEMA1). Figure 6 is titled ""Weekly NASDAQ, 26-week EMA and 26-week DEMA1"" and
its caption states the DEMA1 shows higher response to the changing prices than the single EMA.
Actually, the principal reason for this greater responsiveness is that the plot for the EMA1 ""equivalent""
moving average of 26 weeks is being compared to...
AUTHOR: Technical Analysis, Inc.DATE: DEC1994
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Peter Mauthe Of Core Asset Management by Thom Hartle
ARTICLE SYNOPSIS ...The Value Of Valuation
Peter Mauthe Of Core Asset Management
Money management is simply a process of identifying what to own and when. While there are a number
of ways to do so, one unique way is the work of Core Asset Management's Peter Mauthe. STOCKS &
COMMODITIE S Editor Thom Hartle interviewed Mauthe via telephone interview on September 22, 1994,
asking him, among other questions, about how he views the markets and what his management
techniques a re based on.
By using mutual funds, we can make very quick, very cost-effective moves in our portfolio. We can
move from large-cap stocks to ...
AUTHOR: Thom HartleDATE: DEC1994
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SIDEBAR: CANSLIM.
ARTICLE SYNOPSIS ...CANSLIM
CANSLIM is the acronym for the seven criteria that William O'Neil determined were the most important
in identifying winning stocks. These are the key characteristics that were present just prior to many of
history's best-performing stocks:
C Current quarterly earnings per share: Should be accelerating.
A Annual earnings increases: Look for meaningful growth.
NNew products, new management, new highs: Buy at the right time.
S Shares of common stock outstanding: Keep it small.
L Leader or laggard: Find an industry's leaders, not laggards.
I Institutional sponsorship: A little goes a...
AUTHOR: Technical Analysis, Inc.DATE: DEC1994
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Seasonal Tendencies For Range Expansion by K.D. Angle
ARTICLE SYNOPSIS ...Seasonal Tendencies For Range Expansion
by K.D. Angle
This STOCKS & COMMODITIES contributor identifies the seasonal tendency of the commodity markets on a
monthly basis and then compares the commodity market performance to a commodity fund manager's
performance index.
Is there any way to determine if there is an ideal time to start a trading program? The quick answer is
no. Chance plays a much greater role in the near term and is a much smaller factor in the long term. But
because it is impossible to predict what the markets will do in the future, it is also impossible to establish
a trading...
AUTHOR: K.D. AngleDATE: DEC1994
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Stress and Trading Success by Ari Kiev, M.D., J.D.
ARTICLE SYNOPSIS ...Stress and Trading Success
by Ari Kiev, M.D., J.D.
First-time STOCKS & COMMODITIES contributor Ari Kiev, who is president of the Social Psychiatry
Research Institute, discusses the role that stress plays in trading success and failure.
Stress is a natural response to an event with uncertain results. The response to stress increases alertness
to stimuli and enhances performance when associated with an increased flow of adrenaline. The stress
response prepares you physically and psychologically for trading by increasing the blood flow to the
brain and increasing your capacity for memory retrie...
AUTHOR: Ari Kiev, M.D.DATE: DEC1994
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The Price Oscillator by Bruce R. Faber
ARTICLE SYNOPSIS ...The Price Oscillator
by Bruce R. Faber
What is this indicator and how can it be used? For neophytes to learn and seasoned traders who want to
refresh their memories, check this out.
The price oscillator. Don't let the fancy name throw you. Simply, this tool is the difference
between two moving averages. The price oscillator can be constructed using either points difference or
percentage difference. You can use either simple or exponential moving averages. By plotting the graph
of the difference, you are observing the moving average with the longer duration as a straight line. The
movement of...
AUTHOR: Bruce R. FaberDATE: DEC1994
AUTHOR: Richard D. McCallDATE: DEC1994
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Three Market Timing Strategies by Daniel J. Traub
ARTICLE SYNOPSIS ...Three Market Timing Strategies
by Daniel J. Traub
Does market timing work? It depends on how you measure the results, according to this market timer.
Here are three simple market timing strategies to help you understand the basics of market timing.
Market timing may be the fastest-growing investment strategy of the 1990s. In 1993, Society of Asset
Allocators and Fund Timers (SAAFTI) members reported growth rates in managed assets ranging from
25% to more than 200%. Driving that growth has been increasing awareness and visibility of professional
market timers, a continuing assault on the effi...
AUTHOR: Daniel J. TraubDATE: DEC1994
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Trading Markets With Stochastics by Louis M. Lupo
ARTICLE SYNOPSIS ...Trading Markets With Stochastics
by Louis M. Lupo
There are many systems for trading these days, some of them good, some not. Here's a reliable pattern
for trading markets using stochastic.
Of the computerized trading systems and discretionary systems I have traded and developed, some
needed refinement, some needed reworking, and some were simply cannonfodder. However, one system
that has continued to perform in every hostile trading environment imaginable is the stochastic pattern
recognition system. Let me briefly discuss the theory behind the system and describe the parameters of
one part...
AUTHOR: Louis M. LupoDATE: DEC1994