About ARM3
What is ARM3?
We have seen many technological
advances since ARM2 was created in 1996-98. Computers
dramatically increased in both speed and memory.
With the introduction of Trade Plans in OmniTrader
2004, we were able to create strategies from building blocks.
We rewrote our A.I. engine, creating components
which are collectively called "ARM3."
This new Signal technology dramatically outperforms
all prior versions of ARM2.
Two
Powerful New Technologies
Make it Happen..
NN Score
The new
NN Score component uses a Neural Network to score
signals from any system or vote combination,
essentially replacing the Advisor Rating. The
PRIMARY input to the NN Score component is a Signal
Line within an OmniTrader Strategy - that is, a line
populated with trading signals. The SECONDARY
inputs, which are used for training, can be any
trading system(s) and any indicator or difference
between indicator or price values, such as
Close(Today) - Close(Yesterday).
The
component takes the inputs at points the given
Signals occur, and creates a Neural Network to
optimize a given target, such as "Profit 5 bars in
the future." A Score is generated based
on "fitness" of the inputs to the given target.
Within the component, the Score can be set to a
threshold, so that only the best signals are sent on
to the next step in the Strategy (typically Orders,
as shown above).
Click here for more information on NN
Score.
GA Signals
GA
Signals is similar to NN Score, in that it uses
internal inputs defined from technical measurements
and trading systems. However, GA Signals does
not score an existing signal line - it CREATES
signals from the inputs. GA Signals is useful
in situations where you are not sure which system to
use to generate a signal, but have an idea that
several systems and measurements, when combined,
could create a good entry.
That is,
by combining 3 Systems and 3 Indicators (for
example), some combination thereof would generate a
signal - you just don't know what that combination
is. GA Signals iterates on the problem space
using a Genetic Algorithm process, until it has
converged on numerous "rules" which are then added
to a Knowledge Base, such as "Long Signal when MAC-M
fires a signal and Volatility is between 2.5 and 3.5
and Close is more than 5% above the 21 period Moving
Average."
Click here for more information on GA Signal.
Advantages of the new technology:
- Much higher
accuracy and profitability. We are
seeing Networks and Knowledge Bases with over
80% accuracy and high profit-per-trade numbers.
We have also generated several mechanical
strategies which use mechanical exits, creating
100% mechanical systems.
- Improve the
Scores and Performance of any existing system.
If you have a system you really like in
OmniTrader, the NN Score component is likely to
make it better. By using the "canned" settings
in the component, you can turn it loose in a
strategy on virtually any system and get higher
Hit Rates and APRs from the same system.
- Users can
Train or Re-Train Networks and Knowledge Bases.
If you have a list of stocks or futures you
would like to "tune" ARM3 to, just activate the
ToDo List and specify "ReTrain" in a
profile that has ARM3 Strategies. The
Knowledge Bases or Networks will be retrained on YOUR data.
- Members can
experiment with their own theories. It
takes minutes to define the measurements and
inputs for a Neural Network or Genetic Algorithm
Knowledge Base inside the NN Score or GA Signals
components. If you have an idea about a
combination of systems and measurements
(indicators) that you believe would predict the
market well together, set up an experiment,
build a Knowledge Base and test it out.
You have the power.
ARM3 is a part of a total approach to winning in
the markets. If you review the
testimonials, you
will see that we strive to provide education so
that our Club members are empowered to the
greatest extent possible, through seminars,
articles, and other media. In addition, members
may interact with each other to share ideas,
trading systems and strategies,
adding even more value.
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