Belgian researcher Marco Dorigo has created a mathematical model that scientifically describes the process of collective intelligence in an ant colony. He published it in his doctoral dissertation in 1992 and implemented it as an algorithm. Ant colony optimization (ACO) is a population-based stochastic search method for solving a wide range of combinatorial optimization problems. ACO is based on the concept of stigmergy. In 1959, Pierre-Paul Grasset invented ...
It is about the interesting tool that allows you to take a deeper look at the optimization results of any trading algorithm. It is even possible to improve the results of your real automated trading with a minimum of effort and cost. more...
Linear discriminant analysis (LDA) is a very common dimensionality reduction technique for classification problems. Like kohonen maps in prior article if you have high-dimensional data (i.e. with a large number of attributes or variables) from which you wish to classify observations, LDA will help you transform your data so as to make the classes as distinct as possible. LDA is very much like the techniques PCA, QDA, & ANOVA; and ...
Probably, every trader's dream is an indicator able to adapt to the current market situation, define flat and trend segments and consider relevant price changes. Conventional technical indicators use constant ratios when handling input signals. These ratios do not depend in any way on the characteristics of the input signal and its changes over time. Adaptive indicators are distinguished by the presence of feedback between the values of ...
In a previous article Development of a trading EA from scratch (Part 29), we have removed Chart Trade from the EA. Previously, we did the same to some other thinks, like Volume At Price and Times & Trade, to improve the EA performance and reliability. By removing Chart Trade from the EA, we are left with only the basic order system. Although this may seem insufficient to some users, the EA can actually do all the work. But there are people who like to enter and exit trades in the market, but they ...