NeuroStrategy FAQ

10. What inputs do the strategy models use?

NeuroStrategy uses the historical data provided and breaks it down into numerous time series. Only a few of these transformations correspond to the so-called indicators, as they are familiar from technical analysis (moving averages, RSI and the like).

All transformations have a common feature in that they represent their respective histories in a form that allows for a direct comparison with another security.

The following graphs contain the curves of the closing prices of two securities.

To compare these two data series is not as simple a task as one might expect at first glance. The securities move, to mention only one problem, in completely different price regions. A suitable algorithm, however, is able to convert these two data series into a form that makes a direct comparison possible. The two following graphs show such transformations from the price developments represented above.

Now the values of the time series move within a defined region and can be compared directly. NeuroStrategy works with a large number of such transformations of the original time series. Each transformation aims to emphasize certain informational components such as cyclical behavior or the strength of an upward or downward movement.

For every strategic model, NeuroStrategy operates with 18 of the available transformed time series. It is up to the system to chose the transformations, from which it is most likely to obtain useful information.

Under a nondisclosure agreement, Ivorix is able to reveal the inputs used to clients. They are not generally publicized, however.