Optimal Signal Advanced Settings Dialog

The Optimal Signal Advanced Settings Dialog allows you to view and modify additional settings associated with the optimal signal. These settings are not limited to advanced users, but are separated since they are not typically used when creating or modifying optimal signals.

Ä    Note: Fields that are currently being used by the Solution Service cannot be modified.

Advanced Settings for the Optimal Signal

The following advanced settings are available for the optimal signal.

¨    Optimal Signal Type

This value specifies the type of optimal signal to generate.

·      Analog Value Signal

This selection generates entry signals as soon as a profit can be realized. Exit signals are generated when no increase in profit is foreseen. Instead of discrete entry/exit signals, this selection generates an analog signal that includes strength information. This combines the benefits of the maximum profit signals and the thresholded signals. It may also be more predictable than the discrete signals since the signal is not as severely penalized for being just short of being profitable.

·      Thresholded Analog Signal

This selection generates entry signals as soon as a profit can be realized. Exit signals are generated when no increase in profit is foreseen. This is useful for identifying when a profit generating condition begins, as opposed to when it ends.

·      Maximum Profit Signal

This selection generates entry signals only at the points of highest and lowest profit. Exit signals are generated when no increase in profit is foreseen. This is useful for calculating the maximum amount of profit that could be generated. However, it may be the most difficult to predict since it delays entry in profitable situations until the highest profit can be achieved. It is also the most vulnerable to everyday noise in financial data.

·      (Version 3.0 Analog Signal)

This selection is included for compatibility with older versions of TradingSolutions. It is the same as the Analog Value Signal, except that the maximum drawdown calculation includes potential commissions. For small commissions, the effect is small. For large commissions, this may prevent the optimal signal from being able to enter before reaching its drawdown value.

·      (Version 1.0/1.1 Analog Signal)

This selection is included for compatibility with older versions of TradingSolutions. It is the same as the Analog Value Signal, except that the strength is set based on the raw amount by which the price exceeds the price needed to reach the minimum profit. The strength is now based on the percentage by which the profit was exceeded.

þ    Add random noise to signal.

This option indicates to add random noise to the signal. When predicting values with neural networks, it is often easier to model the values if they do not contain predominantly a constant value of zero. Since non-analog signals often contain mostly zero, this option adds small amounts of random noise to the optimal signal so that the values are not all zero.

Ä    Note: Values of 10% or less will add noise without changing the way non-analog signals are interpreted by TradingSolutions for entry/exit information. Values larger than this may cause hold signals to become exit signals or exit signals to become opposing entry signals.

What Do I Do Next?

When you are finished modifying the settings, press the OK button to save any changes. If you would like to exit this dialog without saving your changes, press the Cancel button.

How Did I Get Here?

The Optimal Signal Advanced Settings Dialog appears when you press the Advanced Settings… button on the Generate an Optimal Signal: Signal Parameters page or the Modify Field Dialog: Signal Parameters page.