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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?


To: j g cordes who wrote (10390)6/19/1998 12:11:00 AM
From: LastShadow  Read Replies (1) | Respond to of 120523
 
Minos and Tobaccoman

I took time tonight to run some of your stocks through several nets. the Ones with the best annualized returns suggested the following trading moves:

PWAV - go long on 6/17
ADBE - go long on 6/15
DLJ - go long on 6/16
APCC - go long on 6/12
LTXX - short or exit on 6/17
CADE - short or exit on 6/12

The nature of this net is that the recommendation stays in place until it reverses - therefore, going long or exiting tomorrow would still be advised. Of the group of 28 stocks I ran under this specific net, the model averaged about 323% annualized return, and all but PWAV were in the 200% return range. PWAV had a 630% return for the leading indicators and prediction model used which means that PWAV is a definite Buy.

A neural net must be 'tuned' to a specific stock, or group of stocks with similar patterns. The better it predicts price, the higher the return based on the trading strategy I used. In using general models, the confidence level is reflected in the % return. Determining what data or indicators lead price changes and then accurately predicting price is only half the task - the other half is developing a trading strategy that is profitable.

So I guess what I am saying is that the net's recommendations are pretty good, but they aren't optimal for the specific ticker, with the exception of PWAV.

lastshadow