Volume 1, Number 4 February 16, 2006 Archives
Volume 1, Number 4 February
16,
2006
Archives
|
Welcome to "BioComp
Investors & Traders" A newsletter / journal for financially interested customers and friends.
BioComp Dakota We added another video to our Video List: This time trading American Express (AXP) and Walgreen's (WAG). The results are nicely reproducible.
Please note that the above ticker/bot combinations are known to work together. Dakota's bots do not work for all securities, but these were found by users sharing results via Dakota's collaborative Knowledge Base feature. When you get Dakota license, you are not alone. You have access to our staff, the discussion group, and the Knowledge Base to help you. With these enhancements, Dakota's value remains solid...
After nearly 10 years of using BioComp Profit, most customers recognize that the Sponsor level is a good deal. Dakota orders can be placed on-line at:
http://www.biocompsystems.com/store/financial/index.htm Long time BioComp Customer? You may automatically receive a Silver (10%), Gold (15%) or Platinum (20%) Preferred Customer Discount when we process your order.
Tech Notes: Equity
Controller Equity Control... That phrase sounds strange, doesn't it? After all, how can you control your equity? Is such a thing possible? Yes. And not only that, it is one of the best algorithms for adapting trading system parameters. You see, the Equity Controller in BioComp Dakota is, in fact, a controller... an industrial controller, of a special breed. This algorithm, called PID (Proportional, Integral, Derivative), in it's common form, is used everywhere, every second of every day, to control industrial processes from nuclear reactors, to refineries, to cookie manufacturing. In Dakota's case, it "controls" equity. How?... The PID algorithm looks at how far way from the goal you are (proportional), the time and distance you've spent away from the goal (integral) and the rate you are approaching the goal (derivative) and with some fancy equations, determines the next control action to take to tak you right upon the goal the quickest possible without overshooting. Sounds good... and it is. It is proven in countless (millions? billions?) applications around the world. Remember that I said it was an industrial controller, of a special breed... so what makes this version so special? Two things... First, our PID algorithm does not need to be "tuned" or "fitted" to an application. Many engineers spend a lot of time "tuning" PID controllers for a particular manufacturing process. We had a simple revelation, did some coding and eliminated tuning for a majority of applications. This little revelation gives us a substantial technical advantage over many industrial process control vendors. Second, a "normal" controller tries to hold a variable to a target, like holding your house temperature to 68F regardless if the sun is shining or it's snowing. However, in many applications, including Dakota, we want to MAXIMIZE performance, not target it. Switching our PID Controller to a PID Optimizer was a trivial challenge using a modest dose of experience. The result is that we have an equity optimizer that is changing bot parameters to maximize equity performance using algorithms that are well established and stem from a solid foundation in science.
Customer Comments "First of all,
great program and concept. There is a lot of different trading
applications out there, but seldom have I seen a program so easy to use,
yet with endless opportunities." "I just
bought Dakota yesterday and wanted to share my first impressions. First of
all, Congrats to Carl and the Dakota team! This is a wonderfully executed
application. It’s clean, simple to use, and logical." Come join the swarm of Dakota users!http://www.biocompsystems.com/store/financial/index.htm (NOTE: We will be processing orders over the February 18/19 weekend so you likely can download and get going Friday night, Saturday or Sunday) P.S. Don't forget that qualified customers will automatically receive a Silver (10%), Gold (15%) or Platinum (20%) Preferred Customer Discount on their orders. It will be applied when your order is processed... yes, by a human who cares.
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.
This newsletter is brought to you by BioComp Systems, Inc. Please forward it to anyone who might be interested. They can also subscribe at: http://www.biocompsystems.com/cgi-bin/mojo.cgi?f=s&l=Profit
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. |
