In this issue:

• Movie Time:  Yahoo!   A very straight equity curve for walking-forward, purely out-of-sample

• Dakota 1.5 New Feature:  "Deep Scanning"

• Dakota Price Increase Scheduled for May 22

• Featured Customer / Partner Web Site:  Prescient Analytics

• Honesty and Integrity

Movie Time:   Yahoo!
This system was found using the new "Deep Scanning" feature now available in Dakota 1.5.  In this video, we hypothetically trade YHOO using a swarm of "Double-Smoothed Stochastic" trading bots.  Even during a strong uptrend we beat buy-and-hold while invested in the security only about 1/2 the time.  The equity curve is very straight.  It is so straight it almost looks like a system that is highly "back-fit" with "old school" trading package [wink].

So grab a beverage of your choice, turn up the volume and watch YHOO:
http://www.biocompsystems.com/products/Dakota/videos/index.htm

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Deep Scanning
Dakota version 1.5 now has a new feature I call "Deep Scanning".  This feature runs a multiple tickers on a particular swarm configuration (bot, equity settings, stops, etc.) and if the ticker/swarm combination generates an equity curve that smoother than a specified smoothness measure, Dakota pops-up a Microsoft Word report and then moves on to the next ticker.  This "data mining" method is regarded as a screening process to find systems that work well when you are exploring new opportunities.

I ran it on about 300 tickers using two bots: the Swing Trader (included with Dakota) and the Double Smoothed Stochastic bot (free download for Dakota users).  Of the reports I received back, I saved about 100 reasonably performing systems to investigate further.  Next, I use Dakota's "Run N times" feature to have Dakota repeat those systems with slightly different conditions (a "Monte Carlo" test) and export the trading statistics for analysis.  If they are consistent performers and up to my expectations, then I've got something useable.  For example, one result was the Yahoo! (YHOO) system featured in the video above.  Nice.  About as nice as you can get without back-fitting (over fitting), like most trading system tools do.

Later, we'll implement "Deep Scanning" Phase II, the ability to run all bots on a ticker.  That'll be good for finding if and which of the existing trading bots work well for your securities of particular interest or will guide you towards a general class or family of trading bots that tend to work well.

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Dakota Price Increase
As you know, we've been upping the price of Dakota over time as we add features.  The last user survey indicated that Dakota was substantially undervalued, positioned right at the "Too Cheap" level and the standard license should be about $800.  Some people ask, "How can a product be too cheap?"  Here is an example: A caller the other day said Dakota Express seemed so cheap that it must not be worth the time, but he knew otherwise... His friend is a Dakota user who's happily making gains on e-minis with standard bots and thus Dakota Express is all that he needed.  This paradox caused the caller to not buy, but to go check with his friend once more.  We both lost out, but just for the moment, as I'm sure he'll be back.  But what if there wasn't a friend to back up his decision?  To avoid problems like this, we recently increased Dakota's standard valuation to $699 to get us most of the way to where the users say we should be.  This next increase will put Dakota at the value determined by the users, as of last month.  We continue to add to its capabilities, so the new value won't be written in stone, either.

The Dakota users have spoken...

Effective MAY 22, 11:59 PM, Central Time, USA, Dakota's Price will Increase about 15%

If you are interested, we suggest that you invest at this time!
http://www.biocompsystems.com/store/financial/index.htm

As always, our valued long-term customers automatically receive a Silver (10%), Gold (15%) or Platinum (25%) Preferred Customer Discount.  Not sure what level you receive?  Send an email to sales@biocompsystems.com and we'll let you know.

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Featured Customer / Partner Web Site:

Prescient Analytics    www.PrescientAnalytics.com

Over the years, we build bonds, associations and partnerships with customers and other vendors.  In this edition, we feature Prescient Analytics, just newly created by Bob Anderton, a BioComp Profit and Dakota customer and now solution provider.  Prescient Analytics is dedicated to the development of add-ins and indicators to expand the capabilities of software for financial market analysis.  Currently, they offer indicator add-ins for BioComp Profit and ScriptBots for BioComp Dakota.

For BioComp Profit, Prescient Analytics offers a wide array of very interesting and useful indicator add-ins, including:

• Jurik DMX Wrapper
• Jurik WAV Wrapper
• Jurik DDR Wrapper
• CFB Adaptive Stochastic
• CFB Adaptive RSX
• CFB Adaptive VEL
• CFB Adaptive JMA
• Homodyne Indicator
• Homodyne based Sinewave Indicator
• Cycle Period Indicator
• Cycle Period based Sinewave Indicator
• Sinewave Indicator Front End
• MAMA-FAMA
• Reversed Stochastic

You can read what each of those impressive sounding indicators do here:
http://www.prescientanalytics.com/products.htm

Each of the above go for an affordable $25 each, but you can get the whole lot for $100 if you join up as a Prescient Analytics Sponsor.  In that case you will receive all the indicator add-ins shown above as well as all indicator add-ins and ScriptBots created by Prescient Analytics in the future.  A good value for only $100.  You might act on that one right away before Bob realizes the value he's providing.

For BioComp Dakota, Bob immediately earned himself honor within the Dakota community for contributing the Double Smoothed Stochastic (DSS) ScriptBot downloadable by Dakota users our web site.  The DSS is putting returns into the pockets of Dakota users on many securities including the S&P e-mini, the NASDAQ 100, EuroUSD forex and more.  Thank you, Bob!

On his Prescient Analytics web site, he has just started getting into Dakota "bots" and has three openly available:

• Double Smoothed Stochastic
• Double Smoothed Stochastic Relative
• JMA Crossover

Dakota users can get those here:
http://www.prescientanalytics.com/archive.htm

Go grab 'em!

In the next edition, we will feature "Trend Indicators", created by James Slack-Smith.

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Honesty and Integrity
I thank those who have recently complimented us about our honesty and integrity.  Those are principles that are important to us and important for surviving as a business.  That's one reason I'm still here tapping on the keyboard almost 15 years after forming BioComp.  Honesty and integrity enable us to sleep soundly at night, too.

People from time to time send us emails about their feelings.  In the last day or two we received these...

•  "I liked and still do the plain speaking and upfront feeling off honest fair and square."
• "You've done the "right thing"

We appreciate that and I'm sure you do to.  We put that honesty to practice each day, not only in how we treat you, but also in the products themselves and how they are presented.  No hype.  No B.S.  Some vendors scream at you, making wild claims.  We calmly tell you the way it is, as we see it.  In our products, Dakota is purely out-of-sample.  Profit shows you held back out-of-sample performance.  If it is beautiful, great.  If it is ugly, you MUST know.  Honesty and Integrity are to the benefit of both of us.

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Closure
If you find this newsletter interesting, please stay subscribed.  If you think others might like getting it, forward this email to them or post a link to our website in your favorite trading discussion group.  That helps us grow.  We'd appreciate it.  If you have suggestions, please email me at cmcook@biocompsystems.com.

These documents are provided for informational purposes only. The information contained in this document represents the current view of BioComp Systems on the material discussed as of the date of publication.  Materials written should not be interpreted to be a commitment on the part of BioComp and BioComp cannot guarantee the accuracy of any information presented after the date of publication.   INFORMATION PROVIDED IN THIS DOCUMENT IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND FREEDOM FROM INFRINGEMENT. Statements of equity performance are hypothetical and have not been substantiated by records of actual trading.  Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading.  Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity.  Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those mentioned.

The user assumes the entire risk as to the accuracy and the use of this document. This document may be copied and distributed subject to the following conditions: 1) The entire document must be copied without modification; 2) All copies must contain BioComp's copyright notice and any other notices provided therein; and 3) This document may not be distributed for profit.  All trademarks acknowledged.  (C) Copyright BioComp Systems, Inc. 2006.