SlideShare a Scribd company logo
Market Forecasting Algorithms
StockFusion Studio
www.stockfusion.net
Premium selection of algorithms
StockFusion Studio - Intelligent Trading Expert Adviser 2
• Self-optimizing ARIMA expert
• Finite Impulse Response Neural Network
• Finite State Markov Automation
• Stepwise Best Regression
• Square Root Regression
• Square Regression
• Logistic Regression
ARIMA for time series forecasting
StockFusion Studio - Intelligent Trading Expert Adviser 3
ARIMA models are, in theory, the most
general class of models for forecasting a
time series which can be made to be
“stationary” by differencing.
An ARIMA model can be viewed as a “filter”
that tries to separate the signal from the
noise, and the signal is then extrapolated into
the future to obtain forecasts.
Example of ARIMA forecast
StockFusion Studio - Intelligent Trading Expert Adviser 4
Self-optimizing ARIMA expert
StockFusion Studio - Intelligent Trading Expert Adviser 5
• Full ARIMA(p,d,q) implementation
• Unlimited order of mixed modeling
• Conditional error estimates
• Chi-square statistics on residuals
• Expert inference for optimal parameters
• Automatic trend adjustments
• Prediction on multiple future horizons
FIR Neural Network
StockFusion Studio - Intelligent Trading Expert Adviser 6
• Finite-Impulse-Response (FIR)
• Optimal selection of filter parameters
• Adaptive neural network training
• Temporal back-propagation algorithm
Finite State Markov Automation
StockFusion Studio - Intelligent Trading Expert Adviser 7
• Market data flow exploration
• Dynamically construct Markov models
• Building state transition graph
• Predict future market states
Stepwise Best Regression
StockFusion Studio - Intelligent Trading Expert Adviser 8
Stepwise Regression Algorithm
StockFusion Studio - Intelligent Trading Expert Adviser 9
• Enter and remove predictors, in a stepwise
manner, until there is no justifiable reason
to enter or remove more.
• At each step, enter or remove a predictor
based on partial F-tests.
• Stop when no more predictors can be
justifiably entered or removed from the
stepwise model.
Linear Regression
StockFusion Studio - Intelligent Trading Expert Adviser 10
Linear Regression Model
StockFusion Studio - Intelligent Trading Expert Adviser 11
• Simple linear regression
• Least squares estimator
• Single explanatory variable
iii εβXαY 
• Classics of technical analysis
• Useful as a reference for comparison
with nonlinear estimates
Linear versus Nonlinear Fit
StockFusion Studio - Intelligent Trading Expert Adviser 12
Linear fit does not give
random residuals
Nonlinear fit gives
random residuals

X
residuals
X
Y
X
residuals
Y
X
Square Root Regression
StockFusion Studio - Intelligent Trading Expert Adviser 13
• The square-root transformation
iii εXββY  110
• Used to
• overcome violations of the
homoscedasticity assumption
• fit a non-linear relationship
Square Root Transformation
StockFusion Studio - Intelligent Trading Expert Adviser 14
 Shape of original relationship
X
b1 > 0
b1 < 0
X
Y
Y
Y
Y
 Relationship when transformed
i1i10i εXββY i1i10i εXββY 
Quadratic Regression Model
StockFusion Studio - Intelligent Trading Expert Adviser 15
 where:
β0 = Y intercept
β1 = regression coefficient for linear effect of X on Y
β2 = regression coefficient for quadratic effect on Y
εi = random error in Y for observation i
Model form:
iiii εXβXββY  2
12110
Logistic Regression
StockFusion Studio - Intelligent Trading Expert Adviser 16
Log Transformation
StockFusion Studio - Intelligent Trading Expert Adviser 17
 Original multiplicative model  Transformed multiplicative model
The Multiplicative Model:
 Original multiplicative model  Transformed exponential model
The Exponential Model:
Forecast with average value
StockFusion Studio - Intelligent Trading Expert Adviser 18
• Simple moving average predictor
• Predicted value equal to moving
average over previous values
• Useful as a reference for comparison
with more complex algorithms
n
ppp
SMA
nMMM )1(1  


History Prophet
StockFusion Studio - Intelligent Trading Expert Adviser 19
• Dummy predictor for strategy testing
• Predicts every point with its future value
• Imitates a “prophet” knowing the future
• Delivers 100% of profitable trades
• Explicitly uses forward info
• Not suitable for practical trading
• Analog of “Maximum Profit System”
Maximum Profit Simulation
StockFusion Studio - Intelligent Trading Expert Adviser 20
Extensible algorithmic API
StockFusion Studio - Intelligent Trading Expert Adviser 21
• Modular algorithmic server
• Extendable calculation engine
• Real-time C++ core framework
• Open standard development API
• Universal DLL interface
• Compatibility with development tools
• Multiple sample models
About StockFusion
StockFusion Studio - Intelligent Trading Expert Adviser 22
Copyright © 2014 StockFusion Technologies. All rights reserved. No part of
the materials including graphics or logos, available in this Web site may be
copied, reproduced, translated or reduced to any electronic medium or
machine-readable form, in whole or in part without written permission.
The product names used in this document are for identification purposes
only. All trademarks and registered trademarks are the property of their
respective owners.
Trading futures and options involves the risk of loss. You should consider
carefully whether futures or options are appropriate to your financial
situation. You must review the customer account agreement and risk
disclosure prior to establishing an account. Only risk capital should be used
when trading futures or options. Investors could lose more than their initial
investment.
Past results are not necessarily indicative of futures results. The risk of loss in
trading futures or options can be substantial, carefully consider the inherent
risks of such an investment in light of your financial condition. Information
contained, viewed, sent or attached is considered a solicitation for
business.

More Related Content

What's hot

how we wok
how we wokhow we wok
EXANTE Algorithmic Trading: Practical Aspects
EXANTE Algorithmic Trading: Practical AspectsEXANTE Algorithmic Trading: Practical Aspects
EXANTE Algorithmic Trading: Practical Aspects
EXANTE
 
Front Arena Market Making Fs
Front Arena Market Making FsFront Arena Market Making Fs
Front Arena Market Making Fs
guestb61c8a
 
Quant trading with artificial intelligence
Quant trading with artificial intelligenceQuant trading with artificial intelligence
Quant trading with artificial intelligence
Roger Lee, CFA
 
CIS115 CIS 115 CIS/115 You have been contracted by a local antique store to ...
CIS115 CIS 115 CIS/115  You have been contracted by a local antique store to ...CIS115 CIS 115 CIS/115  You have been contracted by a local antique store to ...
CIS115 CIS 115 CIS/115 You have been contracted by a local antique store to ...
Nghệ Sĩ Coding
 
Algorithmic Trading Latest Trends & Developments Lecture By Dr. Lipa Roitman
Algorithmic Trading Latest Trends & Developments Lecture By Dr. Lipa RoitmanAlgorithmic Trading Latest Trends & Developments Lecture By Dr. Lipa Roitman
Algorithmic Trading Latest Trends & Developments Lecture By Dr. Lipa Roitman
I Know First: Daily Market Forecast
 
Traders Cockpit Product Details
Traders Cockpit Product DetailsTraders Cockpit Product Details
Traders Cockpit Product Details
Traders Cockpit
 
Algorithmic Trading: an Overview
Algorithmic Trading: an Overview Algorithmic Trading: an Overview
Algorithmic Trading: an Overview
EXANTE
 
Automated Selection and Robustness for Systematic Trading Strategies by Dr. T...
Automated Selection and Robustness for Systematic Trading Strategies by Dr. T...Automated Selection and Robustness for Systematic Trading Strategies by Dr. T...
Automated Selection and Robustness for Systematic Trading Strategies by Dr. T...
Quantopian
 
A Guided Tour of Machine Learning for Traders by Tucker Balch at QuantCon 2016
A Guided Tour of Machine Learning for Traders by Tucker Balch at QuantCon 2016A Guided Tour of Machine Learning for Traders by Tucker Balch at QuantCon 2016
A Guided Tour of Machine Learning for Traders by Tucker Balch at QuantCon 2016
Quantopian
 
Samurai Suite for NinjaTrader
Samurai Suite for NinjaTraderSamurai Suite for NinjaTrader
Samurai Suite for NinjaTrader
bzinchenko
 

What's hot (11)

how we wok
how we wokhow we wok
how we wok
 
EXANTE Algorithmic Trading: Practical Aspects
EXANTE Algorithmic Trading: Practical AspectsEXANTE Algorithmic Trading: Practical Aspects
EXANTE Algorithmic Trading: Practical Aspects
 
Front Arena Market Making Fs
Front Arena Market Making FsFront Arena Market Making Fs
Front Arena Market Making Fs
 
Quant trading with artificial intelligence
Quant trading with artificial intelligenceQuant trading with artificial intelligence
Quant trading with artificial intelligence
 
CIS115 CIS 115 CIS/115 You have been contracted by a local antique store to ...
CIS115 CIS 115 CIS/115  You have been contracted by a local antique store to ...CIS115 CIS 115 CIS/115  You have been contracted by a local antique store to ...
CIS115 CIS 115 CIS/115 You have been contracted by a local antique store to ...
 
Algorithmic Trading Latest Trends & Developments Lecture By Dr. Lipa Roitman
Algorithmic Trading Latest Trends & Developments Lecture By Dr. Lipa RoitmanAlgorithmic Trading Latest Trends & Developments Lecture By Dr. Lipa Roitman
Algorithmic Trading Latest Trends & Developments Lecture By Dr. Lipa Roitman
 
Traders Cockpit Product Details
Traders Cockpit Product DetailsTraders Cockpit Product Details
Traders Cockpit Product Details
 
Algorithmic Trading: an Overview
Algorithmic Trading: an Overview Algorithmic Trading: an Overview
Algorithmic Trading: an Overview
 
Automated Selection and Robustness for Systematic Trading Strategies by Dr. T...
Automated Selection and Robustness for Systematic Trading Strategies by Dr. T...Automated Selection and Robustness for Systematic Trading Strategies by Dr. T...
Automated Selection and Robustness for Systematic Trading Strategies by Dr. T...
 
A Guided Tour of Machine Learning for Traders by Tucker Balch at QuantCon 2016
A Guided Tour of Machine Learning for Traders by Tucker Balch at QuantCon 2016A Guided Tour of Machine Learning for Traders by Tucker Balch at QuantCon 2016
A Guided Tour of Machine Learning for Traders by Tucker Balch at QuantCon 2016
 
Samurai Suite for NinjaTrader
Samurai Suite for NinjaTraderSamurai Suite for NinjaTrader
Samurai Suite for NinjaTrader
 

Similar to Stock Fusion Algorithms

Deep learning in algorithmic trading
Deep learning in algorithmic tradingDeep learning in algorithmic trading
Deep learning in algorithmic trading
Vienna Data Science Group
 
BlitzTrader_PPT
BlitzTrader_PPTBlitzTrader_PPT
BlitzTrader_PPT
Vikas Khatri
 
UNRAVELING THE POWER OF QUANTOPIAN ALGORITHMS IN FINANCIAL MARKETS
UNRAVELING THE POWER OF QUANTOPIAN ALGORITHMS IN FINANCIAL MARKETSUNRAVELING THE POWER OF QUANTOPIAN ALGORITHMS IN FINANCIAL MARKETS
UNRAVELING THE POWER OF QUANTOPIAN ALGORITHMS IN FINANCIAL MARKETS
Riya Sen
 
Modeling at scale in systematic trading
Modeling at scale in systematic tradingModeling at scale in systematic trading
Modeling at scale in systematic trading
SigOpt
 
PointNine_Company_Overview.v1.9
PointNine_Company_Overview.v1.9PointNine_Company_Overview.v1.9
PointNine_Company_Overview.v1.9
Andreas Roussos
 
Stock Fusion Basics
Stock Fusion BasicsStock Fusion Basics
Stock Fusion Basics
bzinchenko
 
PointNine_Company_Overview.v1.9
PointNine_Company_Overview.v1.9PointNine_Company_Overview.v1.9
PointNine_Company_Overview.v1.9
Andreas Roussos
 
Engage with...Romax | Driving the Electric Revolution Webinar
Engage with...Romax | Driving the Electric Revolution WebinarEngage with...Romax | Driving the Electric Revolution Webinar
Engage with...Romax | Driving the Electric Revolution Webinar
KTN
 
Dances with bits - industrial data analytics made easy!
Dances with bits - industrial data analytics made easy!Dances with bits - industrial data analytics made easy!
Dances with bits - industrial data analytics made easy!
Julian Feinauer
 
Algorithmic Trading
Algorithmic TradingAlgorithmic Trading
Algorithmic Trading
Prashant Maharshi
 
GMS Company and Products Presentation (2014)
GMS Company and Products Presentation (2014)GMS Company and Products Presentation (2014)
GMS Company and Products Presentation (2014)
Patrice Touraine
 
Tuning for Systematic Trading: Talk 1
Tuning for Systematic Trading: Talk 1Tuning for Systematic Trading: Talk 1
Tuning for Systematic Trading: Talk 1
SigOpt
 
Quant Trader Expert
Quant Trader ExpertQuant Trader Expert
Quant Trader Expert
bzinchenko
 
Capital Cube- Contextual Treasury fueled by Composable NextGen Tech
Capital Cube- Contextual Treasury fueled by Composable NextGen TechCapital Cube- Contextual Treasury fueled by Composable NextGen Tech
Capital Cube- Contextual Treasury fueled by Composable NextGen Tech
Intellect Design Arena .
 
Algo trading(Minor Project) strategy EMA with Ipython
Algo trading(Minor Project) strategy EMA with IpythonAlgo trading(Minor Project) strategy EMA with Ipython
Algo trading(Minor Project) strategy EMA with Ipython
Deb prakash ganguly
 
Production model lifecycle management 2016 09
Production model lifecycle management 2016 09Production model lifecycle management 2016 09
Production model lifecycle management 2016 09
Greg Makowski
 
ISC Frankfurt 2015: Good, bad and ugly of accelerators and a complementary path
ISC Frankfurt 2015: Good, bad and ugly of accelerators and a complementary pathISC Frankfurt 2015: Good, bad and ugly of accelerators and a complementary path
ISC Frankfurt 2015: Good, bad and ugly of accelerators and a complementary path
John Holden
 
When Should I use Simulation?
When Should I use Simulation?When Should I use Simulation?
When Should I use Simulation?
SIMUL8 Corporation
 
sMART Store of Cypher-Annotated Microservices
sMART Store of Cypher-Annotated MicroservicessMART Store of Cypher-Annotated Microservices
sMART Store of Cypher-Annotated Microservices
Stefan Ianta
 
Armanino's High Tech Solution for Microsoft Dynamics 365 ERP
Armanino's High Tech Solution for Microsoft Dynamics 365 ERPArmanino's High Tech Solution for Microsoft Dynamics 365 ERP
Armanino's High Tech Solution for Microsoft Dynamics 365 ERP
Armanino LLP
 

Similar to Stock Fusion Algorithms (20)

Deep learning in algorithmic trading
Deep learning in algorithmic tradingDeep learning in algorithmic trading
Deep learning in algorithmic trading
 
BlitzTrader_PPT
BlitzTrader_PPTBlitzTrader_PPT
BlitzTrader_PPT
 
UNRAVELING THE POWER OF QUANTOPIAN ALGORITHMS IN FINANCIAL MARKETS
UNRAVELING THE POWER OF QUANTOPIAN ALGORITHMS IN FINANCIAL MARKETSUNRAVELING THE POWER OF QUANTOPIAN ALGORITHMS IN FINANCIAL MARKETS
UNRAVELING THE POWER OF QUANTOPIAN ALGORITHMS IN FINANCIAL MARKETS
 
Modeling at scale in systematic trading
Modeling at scale in systematic tradingModeling at scale in systematic trading
Modeling at scale in systematic trading
 
PointNine_Company_Overview.v1.9
PointNine_Company_Overview.v1.9PointNine_Company_Overview.v1.9
PointNine_Company_Overview.v1.9
 
Stock Fusion Basics
Stock Fusion BasicsStock Fusion Basics
Stock Fusion Basics
 
PointNine_Company_Overview.v1.9
PointNine_Company_Overview.v1.9PointNine_Company_Overview.v1.9
PointNine_Company_Overview.v1.9
 
Engage with...Romax | Driving the Electric Revolution Webinar
Engage with...Romax | Driving the Electric Revolution WebinarEngage with...Romax | Driving the Electric Revolution Webinar
Engage with...Romax | Driving the Electric Revolution Webinar
 
Dances with bits - industrial data analytics made easy!
Dances with bits - industrial data analytics made easy!Dances with bits - industrial data analytics made easy!
Dances with bits - industrial data analytics made easy!
 
Algorithmic Trading
Algorithmic TradingAlgorithmic Trading
Algorithmic Trading
 
GMS Company and Products Presentation (2014)
GMS Company and Products Presentation (2014)GMS Company and Products Presentation (2014)
GMS Company and Products Presentation (2014)
 
Tuning for Systematic Trading: Talk 1
Tuning for Systematic Trading: Talk 1Tuning for Systematic Trading: Talk 1
Tuning for Systematic Trading: Talk 1
 
Quant Trader Expert
Quant Trader ExpertQuant Trader Expert
Quant Trader Expert
 
Capital Cube- Contextual Treasury fueled by Composable NextGen Tech
Capital Cube- Contextual Treasury fueled by Composable NextGen TechCapital Cube- Contextual Treasury fueled by Composable NextGen Tech
Capital Cube- Contextual Treasury fueled by Composable NextGen Tech
 
Algo trading(Minor Project) strategy EMA with Ipython
Algo trading(Minor Project) strategy EMA with IpythonAlgo trading(Minor Project) strategy EMA with Ipython
Algo trading(Minor Project) strategy EMA with Ipython
 
Production model lifecycle management 2016 09
Production model lifecycle management 2016 09Production model lifecycle management 2016 09
Production model lifecycle management 2016 09
 
ISC Frankfurt 2015: Good, bad and ugly of accelerators and a complementary path
ISC Frankfurt 2015: Good, bad and ugly of accelerators and a complementary pathISC Frankfurt 2015: Good, bad and ugly of accelerators and a complementary path
ISC Frankfurt 2015: Good, bad and ugly of accelerators and a complementary path
 
When Should I use Simulation?
When Should I use Simulation?When Should I use Simulation?
When Should I use Simulation?
 
sMART Store of Cypher-Annotated Microservices
sMART Store of Cypher-Annotated MicroservicessMART Store of Cypher-Annotated Microservices
sMART Store of Cypher-Annotated Microservices
 
Armanino's High Tech Solution for Microsoft Dynamics 365 ERP
Armanino's High Tech Solution for Microsoft Dynamics 365 ERPArmanino's High Tech Solution for Microsoft Dynamics 365 ERP
Armanino's High Tech Solution for Microsoft Dynamics 365 ERP
 

More from bzinchenko

Chaos Complete Webinar
Chaos Complete WebinarChaos Complete Webinar
Chaos Complete Webinar
bzinchenko
 
StockFusion Login
StockFusion LoginStockFusion Login
StockFusion Login
bzinchenko
 
The Simple Truth Behind Managed Futures
The Simple Truth Behind Managed FuturesThe Simple Truth Behind Managed Futures
The Simple Truth Behind Managed Futures
bzinchenko
 
Managed Futures
Managed FuturesManaged Futures
Managed Futures
bzinchenko
 
Managed Futures - Chaos Cruncher
Managed Futures - Chaos CruncherManaged Futures - Chaos Cruncher
Managed Futures - Chaos Cruncher
bzinchenko
 
Quant Trader Dealing
Quant Trader DealingQuant Trader Dealing
Quant Trader Dealing
bzinchenko
 
Quant Trader Chart
Quant Trader ChartQuant Trader Chart
Quant Trader Chart
bzinchenko
 
Quant Trader Data
Quant Trader DataQuant Trader Data
Quant Trader Data
bzinchenko
 
Quant Trader Login
Quant Trader LoginQuant Trader Login
Quant Trader Login
bzinchenko
 
Quant Trader Basics
Quant Trader BasicsQuant Trader Basics
Quant Trader Basics
bzinchenko
 
Precision Oscillator Suite for Bloomberg Professional
Precision Oscillator Suite for Bloomberg ProfessionalPrecision Oscillator Suite for Bloomberg Professional
Precision Oscillator Suite for Bloomberg Professional
bzinchenko
 
Fractal Suite Trading Indicators for Bloomberg Professional
Fractal Suite Trading Indicators for Bloomberg ProfessionalFractal Suite Trading Indicators for Bloomberg Professional
Fractal Suite Trading Indicators for Bloomberg Professional
bzinchenko
 
Backtesting Engine for Trading Strategies
Backtesting Engine for Trading StrategiesBacktesting Engine for Trading Strategies
Backtesting Engine for Trading Strategies
bzinchenko
 
Fractal Forecasting of Financial Markets with Fraclet Algorithm
Fractal Forecasting of Financial Markets with Fraclet AlgorithmFractal Forecasting of Financial Markets with Fraclet Algorithm
Fractal Forecasting of Financial Markets with Fraclet Algorithm
bzinchenko
 
Fractal Trading Strategies for Bloomberg Professional
Fractal Trading Strategies for Bloomberg ProfessionalFractal Trading Strategies for Bloomberg Professional
Fractal Trading Strategies for Bloomberg Professional
bzinchenko
 
BPM-Xchange™ – Solution Overview
BPM-Xchange™ – Solution OverviewBPM-Xchange™ – Solution Overview
BPM-Xchange™ – Solution Overview
bzinchenko
 
ForeStock Trading Advisor
ForeStock Trading AdvisorForeStock Trading Advisor
ForeStock Trading Advisor
bzinchenko
 
StockFusion Studio Trading Advisor Expert System
StockFusion StudioTrading Advisor Expert SystemStockFusion StudioTrading Advisor Expert System
StockFusion Studio Trading Advisor Expert System
bzinchenko
 
StockFusion for Ninja Trader
StockFusion for Ninja TraderStockFusion for Ninja Trader
StockFusion for Ninja Trader
bzinchenko
 

More from bzinchenko (19)

Chaos Complete Webinar
Chaos Complete WebinarChaos Complete Webinar
Chaos Complete Webinar
 
StockFusion Login
StockFusion LoginStockFusion Login
StockFusion Login
 
The Simple Truth Behind Managed Futures
The Simple Truth Behind Managed FuturesThe Simple Truth Behind Managed Futures
The Simple Truth Behind Managed Futures
 
Managed Futures
Managed FuturesManaged Futures
Managed Futures
 
Managed Futures - Chaos Cruncher
Managed Futures - Chaos CruncherManaged Futures - Chaos Cruncher
Managed Futures - Chaos Cruncher
 
Quant Trader Dealing
Quant Trader DealingQuant Trader Dealing
Quant Trader Dealing
 
Quant Trader Chart
Quant Trader ChartQuant Trader Chart
Quant Trader Chart
 
Quant Trader Data
Quant Trader DataQuant Trader Data
Quant Trader Data
 
Quant Trader Login
Quant Trader LoginQuant Trader Login
Quant Trader Login
 
Quant Trader Basics
Quant Trader BasicsQuant Trader Basics
Quant Trader Basics
 
Precision Oscillator Suite for Bloomberg Professional
Precision Oscillator Suite for Bloomberg ProfessionalPrecision Oscillator Suite for Bloomberg Professional
Precision Oscillator Suite for Bloomberg Professional
 
Fractal Suite Trading Indicators for Bloomberg Professional
Fractal Suite Trading Indicators for Bloomberg ProfessionalFractal Suite Trading Indicators for Bloomberg Professional
Fractal Suite Trading Indicators for Bloomberg Professional
 
Backtesting Engine for Trading Strategies
Backtesting Engine for Trading StrategiesBacktesting Engine for Trading Strategies
Backtesting Engine for Trading Strategies
 
Fractal Forecasting of Financial Markets with Fraclet Algorithm
Fractal Forecasting of Financial Markets with Fraclet AlgorithmFractal Forecasting of Financial Markets with Fraclet Algorithm
Fractal Forecasting of Financial Markets with Fraclet Algorithm
 
Fractal Trading Strategies for Bloomberg Professional
Fractal Trading Strategies for Bloomberg ProfessionalFractal Trading Strategies for Bloomberg Professional
Fractal Trading Strategies for Bloomberg Professional
 
BPM-Xchange™ – Solution Overview
BPM-Xchange™ – Solution OverviewBPM-Xchange™ – Solution Overview
BPM-Xchange™ – Solution Overview
 
ForeStock Trading Advisor
ForeStock Trading AdvisorForeStock Trading Advisor
ForeStock Trading Advisor
 
StockFusion Studio Trading Advisor Expert System
StockFusion StudioTrading Advisor Expert SystemStockFusion StudioTrading Advisor Expert System
StockFusion Studio Trading Advisor Expert System
 
StockFusion for Ninja Trader
StockFusion for Ninja TraderStockFusion for Ninja Trader
StockFusion for Ninja Trader
 

Recently uploaded

How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
Lacey Max
 
The Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb PlatformThe Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb Platform
SabaaSudozai
 
Pitch Deck Teardown: Kinnect's $250k Angel deck
Pitch Deck Teardown: Kinnect's $250k Angel deckPitch Deck Teardown: Kinnect's $250k Angel deck
Pitch Deck Teardown: Kinnect's $250k Angel deck
HajeJanKamps
 
Call8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessingCall8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessing
➑➌➋➑➒➎➑➑➊➍
 
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
my Pandit
 
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
my Pandit
 
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
bosssp10
 
The latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from NewentideThe latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from Newentide
JoeYangGreatMachiner
 
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Kalyan Satta Matka Guessing Matka Result Main Bazar chart
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
➒➌➎➏➑➐➋➑➐➐Dpboss Matka Guessing Satta Matka Kalyan Chart Indian Matka
 
How to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM SoftwareHow to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM Software
SalesTown
 
Income Tax exemption for Start up : Section 80 IAC
Income Tax  exemption for Start up : Section 80 IACIncome Tax  exemption for Start up : Section 80 IAC
Income Tax exemption for Start up : Section 80 IAC
CA Dr. Prithvi Ranjan Parhi
 
Business storytelling: key ingredients to a story
Business storytelling: key ingredients to a storyBusiness storytelling: key ingredients to a story
Business storytelling: key ingredients to a story
Alexandra Fulford
 
Best Competitive Marble Pricing in Dubai - ☎ 9928909666
Best Competitive Marble Pricing in Dubai - ☎ 9928909666Best Competitive Marble Pricing in Dubai - ☎ 9928909666
Best Competitive Marble Pricing in Dubai - ☎ 9928909666
Stone Art Hub
 
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...
Neil Horowitz
 
Easily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYCEasily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYC
Any kyc Account
 
Building Your Employer Brand with Social Media
Building Your Employer Brand with Social MediaBuilding Your Employer Brand with Social Media
Building Your Employer Brand with Social Media
LuanWise
 
3 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 20243 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 2024
SEOSMMEARTH
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
techboxsqauremedia
 
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
APCO
 

Recently uploaded (20)

How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....
 
The Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb PlatformThe Genesis of BriansClub.cm Famous Dark WEb Platform
The Genesis of BriansClub.cm Famous Dark WEb Platform
 
Pitch Deck Teardown: Kinnect's $250k Angel deck
Pitch Deck Teardown: Kinnect's $250k Angel deckPitch Deck Teardown: Kinnect's $250k Angel deck
Pitch Deck Teardown: Kinnect's $250k Angel deck
 
Call8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessingCall8328958814 satta matka Kalyan result satta guessing
Call8328958814 satta matka Kalyan result satta guessing
 
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...
 
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...
 
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
 
The latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from NewentideThe latest Heat Pump Manual from Newentide
The latest Heat Pump Manual from Newentide
 
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
❼❷⓿❺❻❷❽❷❼❽ Dpboss Matka Result Satta Matka Guessing Satta Fix jodi Kalyan Fin...
 
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta MatkaDpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
Dpboss Matka Guessing Satta Matta Matka Kalyan Chart Satta Matka
 
How to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM SoftwareHow to Implement a Real Estate CRM Software
How to Implement a Real Estate CRM Software
 
Income Tax exemption for Start up : Section 80 IAC
Income Tax  exemption for Start up : Section 80 IACIncome Tax  exemption for Start up : Section 80 IAC
Income Tax exemption for Start up : Section 80 IAC
 
Business storytelling: key ingredients to a story
Business storytelling: key ingredients to a storyBusiness storytelling: key ingredients to a story
Business storytelling: key ingredients to a story
 
Best Competitive Marble Pricing in Dubai - ☎ 9928909666
Best Competitive Marble Pricing in Dubai - ☎ 9928909666Best Competitive Marble Pricing in Dubai - ☎ 9928909666
Best Competitive Marble Pricing in Dubai - ☎ 9928909666
 
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...
Brian Fitzsimmons on the Business Strategy and Content Flywheel of Barstool S...
 
Easily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYCEasily Verify Compliance and Security with Binance KYC
Easily Verify Compliance and Security with Binance KYC
 
Building Your Employer Brand with Social Media
Building Your Employer Brand with Social MediaBuilding Your Employer Brand with Social Media
Building Your Employer Brand with Social Media
 
3 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 20243 Simple Steps To Buy Verified Payoneer Account In 2024
3 Simple Steps To Buy Verified Payoneer Account In 2024
 
Creative Web Design Company in Singapore
Creative Web Design Company in SingaporeCreative Web Design Company in Singapore
Creative Web Design Company in Singapore
 
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...
 

Stock Fusion Algorithms

  • 1. Market Forecasting Algorithms StockFusion Studio www.stockfusion.net
  • 2. Premium selection of algorithms StockFusion Studio - Intelligent Trading Expert Adviser 2 • Self-optimizing ARIMA expert • Finite Impulse Response Neural Network • Finite State Markov Automation • Stepwise Best Regression • Square Root Regression • Square Regression • Logistic Regression
  • 3. ARIMA for time series forecasting StockFusion Studio - Intelligent Trading Expert Adviser 3 ARIMA models are, in theory, the most general class of models for forecasting a time series which can be made to be “stationary” by differencing. An ARIMA model can be viewed as a “filter” that tries to separate the signal from the noise, and the signal is then extrapolated into the future to obtain forecasts.
  • 4. Example of ARIMA forecast StockFusion Studio - Intelligent Trading Expert Adviser 4
  • 5. Self-optimizing ARIMA expert StockFusion Studio - Intelligent Trading Expert Adviser 5 • Full ARIMA(p,d,q) implementation • Unlimited order of mixed modeling • Conditional error estimates • Chi-square statistics on residuals • Expert inference for optimal parameters • Automatic trend adjustments • Prediction on multiple future horizons
  • 6. FIR Neural Network StockFusion Studio - Intelligent Trading Expert Adviser 6 • Finite-Impulse-Response (FIR) • Optimal selection of filter parameters • Adaptive neural network training • Temporal back-propagation algorithm
  • 7. Finite State Markov Automation StockFusion Studio - Intelligent Trading Expert Adviser 7 • Market data flow exploration • Dynamically construct Markov models • Building state transition graph • Predict future market states
  • 8. Stepwise Best Regression StockFusion Studio - Intelligent Trading Expert Adviser 8
  • 9. Stepwise Regression Algorithm StockFusion Studio - Intelligent Trading Expert Adviser 9 • Enter and remove predictors, in a stepwise manner, until there is no justifiable reason to enter or remove more. • At each step, enter or remove a predictor based on partial F-tests. • Stop when no more predictors can be justifiably entered or removed from the stepwise model.
  • 10. Linear Regression StockFusion Studio - Intelligent Trading Expert Adviser 10
  • 11. Linear Regression Model StockFusion Studio - Intelligent Trading Expert Adviser 11 • Simple linear regression • Least squares estimator • Single explanatory variable iii εβXαY  • Classics of technical analysis • Useful as a reference for comparison with nonlinear estimates
  • 12. Linear versus Nonlinear Fit StockFusion Studio - Intelligent Trading Expert Adviser 12 Linear fit does not give random residuals Nonlinear fit gives random residuals  X residuals X Y X residuals Y X
  • 13. Square Root Regression StockFusion Studio - Intelligent Trading Expert Adviser 13 • The square-root transformation iii εXββY  110 • Used to • overcome violations of the homoscedasticity assumption • fit a non-linear relationship
  • 14. Square Root Transformation StockFusion Studio - Intelligent Trading Expert Adviser 14  Shape of original relationship X b1 > 0 b1 < 0 X Y Y Y Y  Relationship when transformed i1i10i εXββY i1i10i εXββY 
  • 15. Quadratic Regression Model StockFusion Studio - Intelligent Trading Expert Adviser 15  where: β0 = Y intercept β1 = regression coefficient for linear effect of X on Y β2 = regression coefficient for quadratic effect on Y εi = random error in Y for observation i Model form: iiii εXβXββY  2 12110
  • 16. Logistic Regression StockFusion Studio - Intelligent Trading Expert Adviser 16
  • 17. Log Transformation StockFusion Studio - Intelligent Trading Expert Adviser 17  Original multiplicative model  Transformed multiplicative model The Multiplicative Model:  Original multiplicative model  Transformed exponential model The Exponential Model:
  • 18. Forecast with average value StockFusion Studio - Intelligent Trading Expert Adviser 18 • Simple moving average predictor • Predicted value equal to moving average over previous values • Useful as a reference for comparison with more complex algorithms n ppp SMA nMMM )1(1    
  • 19. History Prophet StockFusion Studio - Intelligent Trading Expert Adviser 19 • Dummy predictor for strategy testing • Predicts every point with its future value • Imitates a “prophet” knowing the future • Delivers 100% of profitable trades • Explicitly uses forward info • Not suitable for practical trading • Analog of “Maximum Profit System”
  • 20. Maximum Profit Simulation StockFusion Studio - Intelligent Trading Expert Adviser 20
  • 21. Extensible algorithmic API StockFusion Studio - Intelligent Trading Expert Adviser 21 • Modular algorithmic server • Extendable calculation engine • Real-time C++ core framework • Open standard development API • Universal DLL interface • Compatibility with development tools • Multiple sample models
  • 22. About StockFusion StockFusion Studio - Intelligent Trading Expert Adviser 22 Copyright © 2014 StockFusion Technologies. All rights reserved. No part of the materials including graphics or logos, available in this Web site may be copied, reproduced, translated or reduced to any electronic medium or machine-readable form, in whole or in part without written permission. The product names used in this document are for identification purposes only. All trademarks and registered trademarks are the property of their respective owners. Trading futures and options involves the risk of loss. You should consider carefully whether futures or options are appropriate to your financial situation. You must review the customer account agreement and risk disclosure prior to establishing an account. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of futures results. The risk of loss in trading futures or options can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition. Information contained, viewed, sent or attached is considered a solicitation for business.