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Strategies & Market Trends : Trading For A Living -- Ignore unavailable to you. Want to Upgrade?

To: Eric P who wrote (590)	6/27/1998 11:44:00 PM
From: Dave O.	Read Replies (1) \| Respond to of 1729

Eric, I did a lot of AI/Expert System work for about 10 years in my last real job. Did you use formal knowledge acquisition techniques? How did you pick your expert(s)? Did you use multiple experts? If so, did you have any rules that conflicted amongst experts? How did you resolve these? Is your system a pure day trading system or do you get into multi-day trades as well? I think many day traders are still into momentum plays. I'd expect a system like yours might produce a wider range of candidate trades? Last, does your system work for both long and short plays? PS My AI development days were big into LISP. Dave

To: Eric P who wrote (590)	6/28/1998 1:14:00 AM
From: CountofMoneyCristo	Read Replies (3) \| Respond to of 1729

If you implied that I trade on "instinct" or "gut feel" you are correct in that the psychological ebb and flow of trading can not ALWAYS be defined in neat and tidy technical or "programmed" fashion. However, I rely heavily on technical analysis - I use Trade Station and Option Station with (of course) a live feed. As a replacement for the trader (and at one point I believe that is what some here were envisioning: a fully automated, decision-making entity unto itself, i.e., leave the computers on and head for Paris), I personally would not take the inescapable risk of a system failure. However, I would be interested in a system that would eliminate the time-consuming and costly rigamarole of clicking price data, volume and "buy" (I use MB Trading). If I could hit a single button for buy or sell and the system could then take over, canceling and changing as necessary, according to very specific criteria, in split seconds, I would be very interested, but only if I could disable the system at any time, instantly. Of course I am sure a disable feature would be a fairly simple matter. I did not mean to dismiss your idea out of hand; I merely wanted to set the record straight, that no system could ever replace the human factor, and I believe some here were expecting just that, or at a minimum something approaching that, hence the "Holy Grail." Please keep us posted. And I do greatly admire your adventurous and creative spirit. Good luck!

To: Eric P who wrote (590)	6/28/1998 2:43:00 AM
From: Darren	Read Replies (1) \| Respond to of 1729

Expert Systems There is no doubt that you could successfully program my trading patterns into an expert system and you would probably have more success that I do because the computer doesn't have to spend the time to reason whether this is a good trade or not. And if you could program stop losses of 1/16th or 1/8th, there is no doubt that a computer would be a more efficient trader than any human, or certainly this human. The negative is that MM computer systems can be beat, and so could any expert system programmed. They could be faked out to produce false positives, much like what happens when TA is relied upon as a trading system. MM's run the stock up a 1/4 at the end of the day to help a margin call, or mess with a resistance point, etc. They see too much volume over the last 30 minutes, and they tank the stock... But if the system were personalized, there would be no way to fake out all possible day-traders...