Few will disagree that the year 2000 was very different from the heyday of one of the longest bull markets this country has known. Yet, it is still unclear what will replace that time. Some markets are up while others have failed to recover. So maybe it’s time to turn to “fuzzy” methods to navigate unknown territory.

The Fuzzy Pattern Recognizer Add-On for NeuroShell Trader offers traders the same methods used by the Japanese to simulate global air pollution, predict earthquakes, control appliances, and model plant growth.

How many times have you wished you could just let your software scan a price series and let you know when it has found a particular pattern that you like? You have in your mind a special pattern of moves that you believe could precede a strong change in the market, but you'd like the software to just monitor the incoming bars looking for your pattern.

The Fuzzy Pattern Recognizer is a fuzzy logic engine which lets you describe your pattern in "fuzzy" rules (approximate rules of thumb). It is really a series of indicators that show you, on a scale of 0 to 1, how closely the current price series matches your pattern. Turn on an alert in the DayTrader Professional and the Fuzzy Pattern Recognizer will scan your incoming bars looking for all of your favorite patterns. The alert will sound when the match is above .6, .8, or any value you select.

Fuzzy rules are rules that are general in nature, not exactly specified. We describe price or indicator curves with the following fuzzy (verb) rules:

1. rises sharply
2. rises
3. remains steady
4. drops
5. drops sharply

Here are some example rules written in English which can be specified in the Fuzzy Pattern Recognizer add-on:

1. The close rises sharply, then stays steady, then rises sharply again.
2. The RSI rises, then drops, then rises, then rises sharply.
3. The high remains steady, then drops, then rises, then remains steady, then drops, then drops sharply, then remains steady.
4. The close drops sharply.

If you don't have any favorite patterns, you can let the genetic algorithm find them for you if you own the NeuroShell Trader Professional, or DayTrader Professional.

The NeuroShell Trader is trading software that will revolutionize the way you build your market strategies. You choose from traditional analysis techniques and state-of-the-art artificial intelligence technology (fast neural network software for predictions and efficient genetic algorithm software for optimizing trading rules and indicators). Use the NeuroShell Trader to build your model, then backtest your trading system prior to entering the market.

For more information, visit www.neuroshell.com or call Ward Systems Group at (301) 662-7950.