Nano-Trading systems will go through a lot of data to find Minor Price Events (MPE), which are graphically depicted below.
The colored markings below represent manifestations of tiny price movements that we have found interesting.
his approach was developed in order to go through the massive amounts of data that a back-testing platform can generate when it is developed to monitor every transaction as opposed to just the OHLC of a particular time based bar.
Graphical representation can be configured to so suit one's particular disposition.
The idea is to leverage software to do the heavy crunching and then display MPEs so that a Trading Strategy Architect can look for patterns in the data.
Once the patterns are discernible, algorithms can be written specifically for a particular pattern.
This algorithm can then be tested, tuned, and if profitable, launched into production.
Hope that you found this interesting.
Interesting, except I haven't a clue how to interpret the visual output? Any basics for dummies available?
Hi Angry Trader,
The graphic shown represents a small time frame.
The idea is to crunch a lot of data which represents a long time frame and to use the graphical representation of the data to find your own patterns.
Also, you can configure the display against any set of Minor Price Events that work for you.
In a nutshell, this approach is an easy way to break down and digest massive amounts of data.
Hope this helps.
Hi there, i am new here, and want to start by saying
this is a fasinating blog,
There,s nothing else like it out on the web
I'm new to the field, all the terms are new to me, but it helps when you explain the concepts, i can just about get my technical analysis thinking mind around ,
but on this page, could you explain what exactly are the colours representing?
what time frame is this ?
and how does this incoporate into the bigger picture into tradable purposes ?
thanks ben
Hi Ben,
The idea here is that you can readily develop a graphical representation of interesting Price and/or Volume movements (which is the underlying effort driving Technical Analysis) without having to plot Price.
The snapshot represents about an hour's worth of data...we string together 20,000 - 40,000 hours worth of data at a time.
This gives us a nice sampling with which to find recurring patterns.
Hope this helps.
C
Very interesting and unusual. I do not understand anything here, but see your approach as novel. There is money to be made with something different, just because it's different.
Can you elaborate on this theme please.
Hi Carl, this sounds a good approach. Could you give an more precise example of few of the MPE you are looking for ?
Thanks
Ludo
Hi Ludo,
We will be posting some in the near future....can't get to any today.
Thanks for reaching out.