Volume 1, Number 5        March 3, 2006                    Archives

Welcome to "BioComp Investors & Traders"
A newsletter / journal for financially interested customers and friends.

 
CONTENTS

  • New Dakota Video: Sirius Satellite (SIRI)

  • Avoid the Price Increase: Order Dakota Today

  • Tech Corner: ScriptStops

  • Customer Comments

BioComp Dakota

New Dakota Video
We added another video to our Video List:  This time making some SIRI-ous profits on Sirius Satellite (SIRI).  The results are nicely reproducible.

  • Sirius Satellite
    The video shows how BioComp Dakota earns a hypothetical 30 $/share over 5 years on a stock valued today at about $5.  In this case, we use a Momentum Oscillator bot that does "Flocking" to adapt trading parameters.  It's not only interesting to watch the flock swarm around, but profitable too.

Please note that the above ticker/bot combination is 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.

Back to top

Price Increase Coming
In line with the value we are adding we will be once again increasing Dakota's price early next week.  If you are interested in getting involved, I suggestion you do so now.  We will be processing orders over this weekend so you can take advantage of this opportunity.

  • Standard                  $549
    Get version 1.x, pay for upgrades to versions 2, 3, etc. as you go, if you choose.
     
  • Product Sponsor      $1,320
    Receive all Dakota product updates for the life of the product
    Receive all future BioComp-authored bots at no charge

After nearly 10 years, many 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
(NOTE: We will be processing orders over the March 4/5 weekend so you will be able to download and get going Friday night, Saturday or Sunday)

Long time BioComp Customer?  You may automatically receive a Silver (10%), Gold (15%) or Platinum (25%) Preferred Customer Discount when we process your order.  Read more about our Preferred Customer Program.  We honor and respect our customers and the value we've shared together over the years.

Tech Notes: ScriptStops
BioComp Dakota now has "ScriptStops": stops that you can download and use, or write yourself in VBScript.  Dakota's stops enable vast flexibility in managing equity and trade execution.

Signal Management
In Dakota, the base signals are created by the trading bots.  These signals are combined at a swarm level by using one of three methods: Simple Averaging, The Best Bot, or The Top N% Equity Performers (other methods will be implemented in the future, as well).  The resulting signal, along with the imported data and equity curve, is then passed to a collection of user selected stops.  Each stop performs its calculations using the provided information and if any one stop commands an exit, the final traded signal is set to zero (0) to force any open positions to be closed.

Unique Stops
Dakota is starting with some interesting types of stops rather than just the traditional stops.  The first stop implemented was an Equity Decline stop that uses a moving average of a system's change in equity and if that moving average falls below a criterion, the stop fires.  The second type of stop implemented was an Equity Variance stop.  All trading systems have a "normal" variation in equity as they go forward.  You don't necessarily want to exit trades just because equity is varying.  You want the mechanical system to do its work.  So, in this case, this stop looks at the history of the equity curve for some specified number of bars back and calculates mean and the standard deviation of equity and if there is a statistically significant drop in equity, it "fires" and you exit your position.  Both of these are quite useful and give advantages over and with "traditional" stops.

Unique Control for Your Particular Needs
Dakota supplies the user's full imported data set to the stops.  Why?  Because then you can control trading using external sources.  You can have a column of data that performs trading control, directing Dakota to stop-out when you want.  But there's more, because Dakota's stops not only support "StayPat" (let the signal run) and "GOOUT" (exit positions) but it also supports "GOLONG" and "GOSHORT" too.  This gives you full control over the system if you so desire.

Using Stops
Stops can be used in a wide variety of ways.  With very "tight" stops, they become an integral part of the trading system itself, and offer excellent gains potential.  In one example, a 3 period moving average of equity performance was used and if the equity just starts to decline, the trade was exited.  The gains were substantial.  In other cases, you might want longer term equity protection, and in that situation you might use a long term moving average of equity, say 225 bars (~1 year).  In many cases that works very nicely to protect your gains.

Just today, in our private Dakota discussion group, one user reported about a 40% increase in equity gains using the Equity Variance stop on one of his successful S&P 500 Swarms.

Customer Comments
Here are some comments we recently received from some Dakota users:

"Impressive!" (referring to using the new "Equity Variance" stop in Dakota to make more gains)
David F.,    Texas       3 March 2006 (today!)

"...Dakota IS that hybrid, people are already using its ability to use more than one record per date.  It is wonderful.  This program was destined to appeal to all investors and traders." (referring to using the end-of-day Dakota with intraday data, in preparation for Dakota R/T, the intraday version coming soon)
Steve E.,    Michigan   
1 March 2006

Come join the swarm of Dakota users! and avoid the price increase
http://www.biocompsystems.com/store/financial/index.htm

(NOTE: We will be processing orders over the March 4/5 weekend so you 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 (25%) 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.

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.