DCG Financial Blog

MEAT creates an external variable, that is a set of price patterns in a set of other financial instruments, that might be the cause of change in the Great British Pound. This allows me to direct MEAT to any Metatrader data price feed for any financial instrument and discover the of patterns in that instrument to outcomes in the Pound. The success of these tests tells us two things: MEAT is robust, the world is becoming more patterned.

MEAT can be used to successfully identify any short term patterned relationship between two financial instruments.

All of these trading studies show increased efficacy in the last several months. This may mean that all of the below independent variables used as patterned price data to feed the MEAT system are becoming more related to the Great British Pound. I would assume this means they are also becoming more correlated with each other as well. This would imply that the Pound is somehow involved in a shifting of wealth to a greater extent now than in the recent past.

Gold changes cause changes in the Great British Pound.

http://www.dcgfinancial.com/GOLDMEAT.htm

NASDAQ changes causes changes in the Great British Pound.

http://www.dcgfinancial.com/NASDAQMEAT.htm

SP500 changes causes changes in the Great British Pound.

http://www.dcgfinancial.com/SP500MEAT.htm

CITIGROUP changes causes changes in the Great British Pound.

http://www.dcgfinancial.com/CITIGROUPMEAT.htm

The funny part of this set of studies is that it has brought to light no new information. We know from previous studies that equities function on a plane unrelated to currency. GOLD, OIL and Currencies are the most related and these relationships although they may change they will persist.

MEAT will persistently identify and trade on these relationships as the relationships unfold in time.

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually 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 profits or losses similar to those shown.

Some of you know my theories on the relationship between the price of crude sweet oil and the value of the dollar. Those of you who have read my blog today may have noticed that I recently found a way to make the MEAT algorithm function for day trading. In ten hours I was able to use the MEAT algorithm to investigate the cross talk between Oil and the all mighty Dollar. I only have oil price data for six months but this study has shown that the additional information found here is very powerful.

Although anything that comes from six months of data should be understood with a grain of salt the simplicity and effectiveness of this application of MEAT to an entirely different dataset in just a few hours of keyboard work is a testament to the power of the MEAT algorithm and Metatrader. Unfortunately I will not be able to begin trading with this crude oil MEAT trading system, because the only brokerages that offer live Oil and Currency Prices feeds are outside of the United States. In particular North Finance and Alpari are online brokerages that provide this kind of data in the form that would allow me to plug and play this strategy. The problem is that there are several rumors and legal facts implicate that North Finance is some kind of island of Cypress money laundering entity. The Russians at Alpari do not allow good old fashioned USA residents to trade on their platform.

The way that Metatrader’s brokerage side options enabled this easy method of market crosstalk trading to be executed, it is also such that I will not be able to do this on the United States Metatrader platforms. It is simply turned off. The datasets given to the client are chosen by the administrator of Metatrader on the server side. I heard that one of the US soil brokerages was going to carry oil soon, I will have to make a round of calls to find out if there is a patriot among us who can make this happen. I guess I will have to trade it live with a notification text message to my cellular phone in the mean time.

http://www.dcgfinancial.com/CRUDEMEAT.htm

MEAT is an adaptive trading system. MEAT creates technical indicators out of recent price action and then identifies and trades on the indicators it has generated. MEAT can be expanded to explain market cross talk and other phenomena. It is very processor intensive and contains sixteen interacting functions for chart reading, pattern matching and execution. In theory it could be used on large datasets to identify hidden long term micro patterns, but my personal computer doesn’t have the power to conduct these kind of studies using this tool. In its current form it will use patterns that have formed in the past 48 hours and compare them to the most recent six hours. In this comparison it will determine if a pattern that preceded up turns in the last 48 hours is similar to what has happened most recently in the past 6 hours. Like the other systems it performs with a profit ratio of less than 2/1 which means that one can not compound trades on this system. The strength of this system is that it trades on a different pattern every time it trades. This spurious logic engine is not an artificial intelligence in the strictest sense of the term but it is obviously an intelligent fully automatic trading program.

http://www.dcgfinancial.com/MEATts.htm

http://www.dcgfinancial.com/MEAT120.htm

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually 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 profits or losses similar to those shown.