“Study the past if you would divine the future.”
This chapter demonstrates how to use the methodology explained in this book. It shows how to create two trading systems; one based on technical variables, and one based on fundamental variables, using the techniques shown in the previous chapters. The software tools used during this process are Wealth-Lab, Neuro-Lab, Monte Carlo Lab and SPSS (for statistics).
The approach recommended is to always look to add a neural network to a trading system to solve some specific problem. For this reason, you should start with a set of pre-defined entry and exit rules which you are happy to trade. Then we identify specific problems with these ...