Quick-start Tutorials

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The tutorials in this section provide a quick introduction to using AME. They are intentionally kept brief so that you can start experimenting quickly.

 

Click to expand/collapseInserting an Expert Advisor to a chart

 

With a chart open, choose Insert > New Indicator:

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The Indicator Wizard opens. Scroll down the list until you see the Noxa entry. Click Next:

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A list of available indicators is given. Scroll down the list until you see Noxa AME-Expert. Click Next:

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The indicator property dialog opens. Click Finished:

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You now have successfully added an Expert Advisor to your chart:

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(see chart "AME #1 Inserting an Expert Advisor to your chart.cht").

 

Click to expand/collapseSetting the Output Flag

 

Noxa AME-Expert(Input series, Window, Output Flag, Negative Flag)

Input

Values

Description

Input Series

OHLC, Adjusted Close

Default = Close

Input series

Window

2 ~ 150 bars

Default = 50

Rolling time period for the Sharpe ratio calculation

Output Flag

0 or 1

Default = 1

Setting this flag will cause the Advisor to display either the buy/sell signals or the Equity Curve:

1: buy/sell signals

0: Equity Curve

Negative Flag

0 or 1

Default = 0

Setting this flag to 1 will cause the Advisor to trade the opposite rule. This is useful in a trading strategy for which the Advisor has been set to produce a down-trending Equity Curve:

0: signals are left unchanged

1: signals are inverted

 

Setting the Output Flag will cause the Expert Advisor to display either the buy/sell signals or the Equity Curve. By default, it is set to display the buy/sell signals. To display the Equity Curve, set the Output Flag to 0 as described below:

 

Double click on the title bar of the Expert Advisor:

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The properties dialog box opens. Set the Output Flag value to 0. Click Finished:

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The Equity Curve from the Expert Advisor is now displayed:

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(see chart "AME #2 Setting the Output Flag.cht").

 

Note on the Equity Curve

The Equity Curve provides a quick analysis of how an Expert Advisor has performed. It is a graphical representation of the cumulated profit realized at the current bar.

With AME, an Equity Curve with a consistently positive slope, or negative for that matter, indicates that the Expert Advisor is profitable. You can set the Negative Flag to accommodate for the sign of the Equity Curve.

 

Click to expand/collapseSetting the Window parameter

 

Noxa AME-Expert(Input series, Window, Output Flag, Negative Flag)

Input

Values

Description

Input Series

OHLC, Adjusted Close

Default = Close

Input series

Window

2 ~ 150 bars

Default = 50

Rolling time period for the Sharpe ratio calculation

Output Flag

0 or 1

Default = 1

Setting this flag will cause the Advisor to display either the buy/sell signals or the Equity Curve:

1: buy/sell signals

0: Equity Curve

Negative Flag

0 or 1

Default = 0

Setting this flag to 1 will cause the Advisor to trade the opposite rule. This is useful in a trading strategy for which the Advisor has been set to produce a down-trending Equity Curve:

0: signals are left unchanged

1: signals are inverted

 

The Window is a rolling time period that the Expert Algorithms use to calculate their Sharpe ratio from. The Equity Curve obtained by default is probably mediocre. The Window size needs to be set to a more optimal value:

 

Set the Output Flag to 0 to display the Equity Curve.

Double click on the title bar of the Expert Advisor:

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The properties dialog box opens. Set the Window to the value of your choice. Click Finished:

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Details on setting the Window parameter

An Equity Curve with a consistently positive or negative slope indicates that the Expert is profitable. Up or down-trending curves are equally valid.

 

A typical range for the Window size is 2 to 100 bars.

Set the Window size which produces the best up or down-trending Equity Curve as shown below:

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Case of an up-trending Equity Curve,

Window = 33

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Case of a down-trending Equity Curve,

Window = 30

(see chart "AME #3 Setting the Window parameter.cht").

 

Click to expand/collapseSetting the Negative Flag

 

Noxa AME-Expert(Input series, Window, Output Flag, Negative Flag)

Input

Values

Description

Input Series

OHLC, Adjusted Close

Default = Close

Input series

Window

2 ~ 150 bars

Default = 50

Rolling time period for the Sharpe ratio calculation

Output Flag

0 or 1

Default = 1

Setting this flag will cause the Advisor to display either the buy/sell signals or the Equity Curve:

1: buy/sell signals

0: Equity Curve

Negative Flag

0 or 1

Default = 0

Setting this flag to 1 will cause the Advisor to trade the opposite rule. This is useful in a trading strategy for which the Advisor has been set to produce a down-trending Equity Curve:

0: signals are left unchanged

1: signals are inverted

 

This flag can be set to invert the buy/sell signals. This is particularly useful in a trading strategy for which the Expert Advisor has been set to produce a down-trending Equity Curve. In this case you can let NeuroShell Trader set the Negative Flag for you. You can read more here on how it is done.

 

 

You can also set the Negative Flag manually as shown below:

 

Double click on the title bar of the Expert Advisor:

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The properties dialog box opens. Set the Negative Flag value to 1. Click Finished:

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The Equity Curve for the Expert is now shown inverted:

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(see chart "AME #4 Setting the Negative Flag.cht").

 

Click to expand/collapseBuilding a Trading Strategy from scratch

 

Insert an Expert Advisor and set the parameters as described in the previous sections. In the example below (iPath S&P 500 VIX ST Futures ETN (VXX End Of Day)), the Equity Curve of the expert happens to be down-trending:

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Select Insert> New Trading Strategy… The Trading Strategy Wizard opens with a list of Templates available for use,

Select (No Template) located at the top of the list, click Next:

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Select the Long Entry tab to specify the rule for when to buy,

Press the Add Condition(s) button:

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The Long Entry condition(s) dialog box opens,

Press the Indicator... button:

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The Indicator Category dialog box opens,

Scroll down the list until you see Crossover & Breakout Identification. Click Next:

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A full list of available indicators is given.

Scroll down the list to the Crossover Above indicator. Click Next:

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The wizard for the Crossover Above indicator opens,

Select (double click) the Time Series #1 entry:

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The Edit Parameter dialog box opens,

Scroll down the list of data series available until you see the Expert Advisor that was inserted in the chart, Click OK:

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You are back to the wizard for the Crossover Above indicator,

Select (double click) the second input Time Series #2:

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Enter the numeric value 0, Click OK:

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The long Entry is now set; a buy long order will be placed each time the signal from the Expert Advisor crosses over above the zero line. Click Finished.

Make sure you set the Output Flag to 1 so that the Expert displays the buy/sell signals,

Set the lock icons located to the left of the inputs so that only the Negative Flag is optimized:

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You don’t want to set a Long Exit in this trading strategy. The Long Exit signals will be automatically triggered by the short entries. So, uncheck the "Generate a sell long" check box for the Long Exit as shown below:

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Repeat the previous steps to set the Short Entry conditions (Short Entry tab). This time, choose and set the Crossover Below indicator in order to place a sell short order each time the signal from the Expert Advisor crosses over below the zero line,

Make sure you set the Output Flag to 1 and let only the Negative Flag to be optimized,

Click Next:

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The trading strategy is now added to your chart:

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The "Close" is not needed anymore. To hide it, select Format> Hide/Unhide Data...

Unselect the sub-graph corresponding to the Close and click OK:

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You can now add the system Equity to your chart; Go to Insert Menu> new indicator,

In the Indicator Wizard, select the Trading Strategy, System Information category, click Next:

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A list of available indicators is given. Choose the first indicator in the list, System Equity (All trades), click Next:

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The property dialog box opens. Click Finished:

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You now have successfully built a trading strategy:

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(see chart "AME #5 Building a Trading Strategy from scratch.cht").

 

 


 

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