Intelligent Algorithmic Trading Systems
Algorithmic trading systems use mathematical models to analyze financial markets to determine when to buy and sell, as well as to execute and manage orders once they have been placed. Such systems can be manually operated by human traders, partially automated by human traders and algorithms, or fully automated through the use of algorithms in a form of artificial intelligence. A traditional analytical approach employs technical analysis, which seeks to determine what a security is worth at a given point in time. Such an approach uses historical prices and indicators to identify zones of supply and demand where buyers and sellers are likely to change the price of the financial product. A complementary technique, known as quantitative analysis, uses mathematical and probabilistic models to make predictions about future movements of a market.
The Variable Changing Price Momentum Indicator: VCPMI
The Variable Changing Price Momentum Indicator (VCPMI) is an intelligent automated algorithmic trading system developed over a decade by analyst, trader and Equity Management Academy CEO Patrick MontesDeOca. The primary driver of the VCPMI is the principle of the reversion to the mean combined with a range of analytical tools including fundamental logic, wave counts, Fibonacci ratios, Gann principles, supply and demand levels, pivot points, moving averages, and momentum indicators. The science of Vedic Mathematics is used to combine these various elements into a comprehensive, accurate and highly predictive trading system. The complex, multifaceted system is completely automated and is available from the TradeStation Technologies app store.
Outline of the VC Price Momentum Indicator
The VC Price Momentum Indicator currently analyzes five futures contracts: gold, silver, soybeans, E-Mini S&P 500 and crude oil. The short-term day-trading program is applied to 15-minute charts, but it can also be applied in other time frames (intermediate or long-term) depending on the product. The program on any given day can be in one of four states: Wait, Neutral, Long or Short. At the end of the trading session, the program transitions between states. The states and allowable transitions are shown below: The program usually starts in the Wait state. When the daily price action from the previous close to today’s close crosses the N-day VC code (a set price point in the market), it transitions from the Wait to the Neutral state. The N-day VC code is referred to as the Pivot. N varies by the product.
If you have any questions or would like to learn more about the VC Price Momentum Indicator, please call 805-418-1744.