Overview of Key Concepts

Here is a quick overview of the key concepts that can be helpful to know when using TradingSolutions.

·      Use Fields To Perform Operations

"Fields" are used to store values in TradingSolutions. They include the Open, High, Low, and Close prices of data you import, as well as any values you calculate based on these prices. They include entry/exit signals that tell you when to trade and signal analyses that tell you how these signals have been performing. Any time you want to perform a new operation in TradingSolutions, it will usually start with creating a new field.

·      Neural Networks Learn By Example

The most powerful feature in TradingSolutions is its neural network technology. Neural networks are basically mathematical models that map the relationship between a group of data and a "desired" result. These relationships are "learned" by presenting the models with previous examples of the data. The relationship can then be used to calculate what the result should be based on the current data.

·      The Optimal Signal Is The Best That Could Have Been

The optimal signal is an important concept in TradingSolutions. Given a set of historical data, it determines when the best times to buy and sell would have been by looking into the future following each given day. Since we can’t look into the future for today, we can’t use this approach to directly for trading. However, we can use it as the desired result of a neural network, allowing us to "predict" the best action for today.

·      Let Signal Analysis Be Your Guide

You have probably heard the phrase "past performance is no guarantee of future results". While this is always true with trading instruments and strategies, past performance is also your best barometer of a strategy’s potential. If your goal is to make money, your first question should be "would this approach have made me money?" You can use the in-depth signal analysis of your trading signals to determine this, along with checking the consistency and robustness of the trades for a variety of conditions.

The introductory demos and step-by-step tutorials are an excellent way to learn more about these key concepts. You can start either of them from the Welcome Dialog.

In addition to the key concepts, it can also be helpful to know about some of the Common Pitfalls.