4. For what types of financial instruments can strategies be developed?
To date, NeuroStrategy supports strategy development for
- Stocks,
- Currencies and
- Index certificates.
NeuroStrategy learns the strategy for trading with the respective financial
instrument on the basis of the historical data of this instrument. Hence,
for the formation of a promising strategy, it is essential to have a sufficient
amount of historical data available. In order to achieve best results, the
financial instrument should meet the following criteria.
- It should have been traded on the market for at least 2000 trading days.
Although it is also possible to learn strategies on the basis of data from
only 500 trading days, the chances of developing a robust and dependable
strategy model in this manner are rather slim. Financial instruments with
histories of less than 300 days are rejected on principle by the system.
- The financial instrument under investigation should be traded at the desired
trading center with sufficient liquidity. During training, NeuroStrategy
is unable to verify, whether it would have been possible to have actually
purchased, say, 500 units of a certain stock. Moreover, the user is well
advised to trade in securities, where the order placed by the user has no
noticeable effect on the immediate development of the security.
- Avoid highly speculative securities. Naturally, in the development of
such securities, NeuroStrategy will hardly be able to find any usable information,
on which a profitable trading strategy could be built. Trading with such
instruments also runs counter to the fundamental idea of the system, which
is designed to act defensively.
In principle, of course, you can analyze all of the above-mentioned financial
instruments, for which a sufficient history exists, with the help of NeuroStrategy.
The model thus developed will certainly provide the experienced trader with
important information regarding the current state of the security. This information
can assist you in making sound investment decisions.
