The national and world news is full of unrest.  There are so many different stories from around the world the news coverage can't decide which story deserves the top focus.  This constantly shifting focus should carry over to your trading models.  Which model should you currently be using?  Which model should you have in your tool box to immediately run when the markets change.  (The batch mode of the Trader Power User versions is a great way to quickly run through your model options with the most recent data.) 

This need for a quick change might even affect how you structure your model.  For example, you can use the Adaptive TurboProp2 add-on neural net for predictions and take advantage of it's ability to retrain itself every so many bars.  The same may be said for Adaptive Net Indicators, which can use the optimizer to determine the optimal training set size and the number of ahead bars to predict.  (This also means that the oldest bars in the dataset are dropped off as new bars are added and the model is retrained with each new bar.)  Adaptive Net Indicators include a set of indicators designed for classification signals, such as buy/sell/hold.  These nets give you a probability that the current input/output pattern matches one from the training data so you can have more confidence in the classification.

Click here for more information on adaptive neural nets from Ward Systems Group.

Partner Add-ons

The MESA 91 indicators from John Ehlers include Adaptive versions of the RSI, CCI, and Stochastic indicators, another way to keep up with changing markets.  Bowfort Technologies Adaptive Indicators add-on includes more than 20 adaptive indicators, some traditional and others unique to this add-on.  

Click here for more details on adaptive indicators from John Ehlers and Bowfort Technologies.

Instead of using adaptive indicators, another approach is to change the bars used in the indicator calculations.  See the InterChart Tools Renko Bars article below for some additional information on this approach.

One key to trading success is to keep your models flexible so they can handle changing market conditions.  Another solution is to have a variety of models that you can call on as the market shifts. NeuroShell Trader gives you plenty of flexibility to do both.