Advanced trading software: technical analysis and neural networks

The article by Barbara Star in this issue, “Trade Breakouts And Retracements With TMV”, has demonstrated how to combine trend, momentum, volatility, and volume indicators to cut through the market noise. Since Tradecision does not support bar highlighting functionality, we developed a trading strategy to visualize the TMV technique that includes ADX and Moving Average movements.

Using Tradecision’s Indicator Builder, one needs to create the following indicators:

KELTNER indicator:

input
Length:"Number of Periods:", 13,2,500;
end_input

var
Keltner:=0;
end_var

Keltner:= Mov((H+L+C)/3,Length,S);

return Keltner;

KELTNER Top:

input
Length:"Number of Periods:", 13,2,500;
end_input

var
Keltner:=0;
end_var

Keltner:= Mov((H+L+C)/3,Length,S)+ 
Mov((H-L),Length,S) ;

return Keltner;

KELTNER Bottom:

input
Length:"Number of Periods:", 13,2,500;
end_input

var
Keltner:=0;
end_var

Keltner:= Mov((H+L+C)/3,Length,S) - 
Mov((H-L),Length,S) ;

return Keltner;

Volume Oscillator:

return iff(OSCV(1,20,S,PERCENT)>50,1,0);

Using Tradecision’s Strategy Builder, one needs to create the TMV strategy:

Entry Long

return ADX(10)>ADX(10)\1\ AND C>Mov(C,8,S);

Exit Long

return ADX(10)>ADX(10)\1\ AND C>Mov(C,8,S);

Entry Short

return ADX(10)>ADX(10)\1\ AND C>Mov(C,8,S);

Exit Short

return C<=Mov(C,8,S);