Building addons is so easy with the NeuroShell Trader Professional that everyone who is a programmer should try it. If you're not a programmer we try to provide our addons at the reasonable price of only $249 and we've now got another great one no serious trader should be without! This one, like some of our others, is based on how the human brain might classify the market, but it isn't even a neural network (although neural net enthusiasts will see this as a Kohonen Self Organizing Map, trained by genetic algorithm!)

Think about this. Suppose you have two good inputs. Now suppose you made a scatter plot of a bunch of recent bars worth of these inputs. (For the math minded, all recent bars are plotted with one input on the Y axis and the other on the X axis.) Now suppose the inputs are good, as defined by the fact that their patterns foretell an uptrend or a downtrend in the price. Then wouldn't the bars that precede an uptrend look somewhat similar, at least after they were "normalized"? Wouldn't those that precede a downtrend look similar too? In other words, wouldn't the buy bars cluster together and the sell bars cluster together?

Our new Cluster Indicators tell you how far the current bar is from the cluster center of the recent "buy" bars or "sell" bars. You can use a Cluster indicator as a buy rule, buying when the current bar is "close" to the cluster center of recent "buy" bars. Sell when the current bar is "close" to the "sell" cluster center.

The genetic algorithm optimizer in the Trader Pro or DayTrader Pro finds the cluster centers that optimize the profit.

The Cluster indicators also make dynamite inputs to a neural network. (For the neural net enthusiasts, this creates a paradigm much like the popular classic Radial Basis Function neural nets, except in the Trader Pro, your clusters don't have to all be based on the same inputs, and in fact can be optimized! There was also a paradigm called Counter-propagation that was similar to feeding our Cluster indicators into a neural net.)

Now expand the concept to as many as 16 inputs. Those can't be plotted because you'd need a 16 dimensional scatter plot. But you can still measure how close the current bar is to a 16 dimensional cluster center! There are 16 Cluster Indicators.

Let's carry the concept a little further. Suppose some of the inputs are less effective than others in determining whether there is a buy or sell situation. You wouldn't want to consider these inputs as much when determining clusters and "closeness". No problem, we have 8 Cluster "contribution" indicators, each of which has contribution factors which reduce or increase the impact of an indicator. You can set these contribution factors yourself or you can let the genetic algorithm do it for you. Either way, you now have a more powerful clustering indicator.

Be the first on your block to get the Cluster Indicators addon. Although it will not be shipping for a week or two, we will take back-orders now so that you can take advantage of the Thanksgiving sale to purchase it.