Recent years have witnessed dramatic advances in our understanding of how " information flow" moves markets . This new perspective has led us to develop profoundly effective new add-on tools for the Neuroshell Trader ® Product line.
Noxa NEI add-ons are particularly powerful indicators in that they look at a security's price ability to remember the information disclosed which is pertinent to it. By applying Shannon Entropy concept, it is now possible to gauge the information content in price series.
NEI Prediction Days
Markets sometimes lock themselves into predictable futures. NEI Prediction Days helps you unravel these foretelling events by searching for local histories with high predictability potential.
NEI Shannon Entropy
Entropy is used to determine how the degree of randomness (or uncertainty) of price data changes as capital is being allocated. You'll be able to detect subtle variations in price action regime that could precede trend reversals.
NEI Mutual Information/ Global Correlation
Select the best inputs and lags for your neural-nets by maximizing their "Mutual Information". As opposed to more traditional correlation tools, NEI Mutual Information gives a measure of statistical regularity that is sensitive to any functional relationship. It is particularly useful in capturing nonlinear dependencies in financial returns.
NEI Transfer Entropy
Pick market-leading and sensitive inputs. Adding information from inputs that are independent may actually result in a worsening of your prediction. NEI Transfer Entropy helps in selecting relevant inputs that, by exchanging information among each other, make your neural-nets generalize better.
Transfer Entropy shares some of the desired properties of Mutual Information but its construction is inherently 'predictive' and takes the dynamics of information transfer into account.
* Neuroshell Trader ® is a registered trademark of Ward Systems Group, Inc. You can build Neural-nets
for your predictions and let the Genetic Algorithm tune our indicators to optimize your profit.