Pavel HálaPavel Hála

Update of our AI trading model

Published April 4, 2020

Today, we have deployed a new version of our model. The preprocessing pipeline has been completely reworked. Moreover, I developed a smarter normalization of the input features that better represent the useful information in the market data.

 

These changes had two goals:

 

  • make the model more selective
  •  

  • reduce the noise of the signals

 

These two things are not necessarily better. If you push any model in a certain direction, you have to sacrifice something. In this case, the model will be more demanding in the signal selection, which would inevitably mean some signals will fail to pass the selection threshold. However, less is sometimes more. Although there won’t be as many signals as it used to be, the remaining ones will be of higher quality and less noisy.

Additionally, it will be harder for the signal to reach the 1.0 threshold and become valid. This, however, won’t be felt equally for all commodities, as I explained in the introductory article.

Finally, I’d like to remind you that signals alert you about trading opportunities that need further analysis. Especially in these times, you have to keep in mind that commodities are subject to panic selloffs and euphoric rallies for reasons unrelated to the commodity markets themselves, which therefore can’t be predicted. For example, the recent sale of basically everything due to the liquidity crisis or political games between USA/Russia/SA and their unpredictable impact on the crude oil market. Nevertheless, these external factors create historically the best opportunities if you can interpret the market correctly. We offer exactly these insights about top opportunities in our premium Research. For example, this is a great environment for our crude oil strategy.

 

To get access to the signals and our premium Research, subscribe in the app, or on our website if you don’t use the app yet.

 

 

 

 

Trading signals are generated by a complex machine learning model and are not intended for actual trading. Trading signals are intended for educational purposes only. SpreadCharts s.r.o. (the company) or its representatives bear no responsibility for actions taken under influence of the trading signals or any other information published anywhere on this website or its sub-domains. There is a risk of substantial loss in futures trading.

CFTC Rule 4.41: Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs, in general, are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown. All information on this website is for educational purposes only and is not intended to provide financial advice. Any statements about profits or income expressed or implied, do not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold SpreadCharts s.r.o. (the company) and any authorized distributors of this information harmless in any and all ways.

Posted in Announcements
Pavel HálaPavel Hála

Pavel is the founder and CEO of SpreadCharts.

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