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Strategies & Market Trends : Neural Nets - A tool for the 90's -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (291)	11/19/1998 11:45:00 AM
From: Optim	Read Replies (1) \| Respond to of 871

Patrick, Sorry for the slow response. I tore a ligament in my ankle and haven't been able to spend much time on the computer lately. About COT data, it is all dependant on your timeframe. I find that in itself COT data is useless for shortterm trades. When used in conjunction with some good predictive technical indicators, it has always increased the profitability and robustness of my models. The trick with open interest, volume and COT data for that matter, is to make sure that you are not providing your models with data that you wouldn't have had in the past. I use lags of volume and OI to ensure that they are available when the model makes a prediction. I also delay my COT data by at least a week. I also preprocess it using Steve Briese's COT Index. The DMAKER util can create this index for you automatically so it is simple enough. I am finding that it is much easier to find a model that will forecast the general direction of the market as opposed to catching each days moves. Profitability is lower but the models are more robust. Hope everything is sorted out with your computer troubles. Profit really is a great tool and I hope that by sharing peoples experiences with it we can all achieve better models. Take care, Optim