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Overview
What
is "ARM?"
ARM stands
for Adaptive Reasoning Model. In the Nirvana
Club, we have taken ARM several levels above
OmniTrader through the use of applied Artificial
Intelligence.
The History of ARM2
ARM2
Release 2 was our first version of ARM
Technology delivered to Club members, and was based on a
Genetic Algorithm process home brewed here at
Nirvana. ARM2 R2 was tunable by the user in
terms of desired signal accuracy vs. signal count -
a major advancement.
ARM2
Release 3 used a Neural Network to determine a
positive or negative score at any bar in a chart.
The network in ARM2 R3 determines a "likely up" or
"likely down" state for the chart at any bar. This
gave us a new capability, since ARM2 R3 can be
applied to ANY trading signal. ARM2 R3 was
released in 2000.**
In 2002 and
2003, we began experimenting with pattern
recognition concepts. ARM2 R4 is based on
these findings, which are an application of J.M.
Hurst's work on Valid Trend Lines. The
proprietary Nirvana Club VTL-B System is still being used to improve
performance in ARM3.
ARM3 -
The Next Generation
The latest
version of ARM Technology, which is called ARM3,
is literally 'heads and shoulders' above the prior
versions. Using recent advances in
Artificial Intelligence and taking advantage of
the faster processors available today, we re-built
our Neural Network and Genetic Algorithm
components from the ground up.
Members can now
build their own Knowledge Bases quickly and easily
by simply training our Networks or GAs on their
own symbol lists. Or, they can create their
own networks using knowledge they have about
Technical Analysis. And, in 2006, we
improved the Genetic Algorithm component further.
The Move to Equity Curves
Before 2007, we had been using a signal measurement
technique called Next Pivot Points,
to measure Signal Accuracy. This method told
us whether the Entry Signals on a Strategy were
improved, but did not yield strategies which could
be "mechanically" traded because there were no
actual Exits.
All that changed in
2006. Our Artificial Intelligence technology
is now powerful enough to apply real exits to our
strategies - producing Strategies that can be
traded mechanically.
Our focus now is on
improving performance in the Equity Curves until
we have reached our Ultimate
Trading Machine goal (see
About The Nirvana Club).
However, since we are delivering Strategies to
Members that show mechanical profitability over
long periods of time, many members are engaging
the market with these products now.
**
Is
ARM2 still being used? Members still have
access to ARM2 as a download from the Nirvana Club
web site, but most members have
moved on to ARM3 because the ARM3 Strategies are
more accurate and use actual Exits.
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