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Many investors study the movement of and the statistical properties of market prices and volumes and base their decisions upon such technical analysis.

A Typical Technical Analysis Investment System

• Enter a long order when the closing price of the stock is greater than the 30-day simple moving average of the closing price.
• Close a long order when the closing price of the stock falls below the 10-day

The genetic programming engine inside the Genetic System Search for Technical Analysis program uses several operations to arrive at a set of technical analysis trading rules.

Crossover

In one area of the program it selects two population members with good fitness and therefore, the potential to be even better. As an example, the following two signals might be selected to participate in a crossover:

1. The MACD is

Exhaustive Search Method

In the construction of technical analysis trading systems one might use a brute-force or exhaustive search for the optimized set of rules. You select a list of indicators and, for each indicator, the range of possible values. As an example, one indicator would be the simple moving average. There are versions of that average for the open, high, low, close and volume values at each trading bar… Continue reading

Some charting programs use a value for margin rates that may differ from your broker’s specification. For instance, your broker may require a 50% margin to enter a short position. In the Genetic System Search for Technical Analysis program Brokerage Configuration window and in older versions of Equis MetaStock, use the same value. In the Equis MetaStock Enhanced System Tester, you would enter 150%.

See the full explanation… Continue reading