We would like to introduce the PatternLab application, the module of AnalyticalPlatform.com. Current version offers testing of 66 price patterns on 3000 stock titles.
- The application brings detailed performance and risk statistics about the pattern behaviour.
- If deciding to trade according to the tested pattern, the application also provides email notifications.
- All these services are provided free of charge. Additional paid service is pattern testing with the inclusion of market/broker fees.inclusion.
Who is the PatternLab module for?
The module is for active traders using technical analysis and patterns recognition as entry/exit rules for their trades.
What is a “pattern”?
A pattern is a candlestick formation, usually consisting of 2 to 6 candlesticks. This formation has got precise rules which has to suit to be established as a specific pattern. Generally said, the pattern is a formation regularly and periodically appearing in asset price development through time. From another point of view a pattern can be considered as a “mistake” or an inefficiency in the price development. A price development is considered as a random (stochastic) process and a pattern occurrence disrupts this randomness. One candlestick represents the time period such as day, week or month.
Where can I find the list of the available patterns?
There is a list of available patterns in the “Patterns Recognition” section. Feel free to google random patterns to gain their intuition.
How can I use patterns for my trading?
The patterns are believed to be an entry or an exit signal for opening/closing position. It means that in the time the pattern occurs it is a signal for traders to open or close their position.
How can I exploit the PatternLab application?
The PL app is the tool for testing and verifying included patterns. The PL’s database includes 66 price patterns and 3000 assets (stocks at the moment) which can be tested for their predictability power. In general the more the pattern successful is the more the specific market is inefficient (and the specific pattern has got more predictability power). The PL application brings you detailed performance and risk statistics about the pattern behaviour. The patterns with a good predictability power (with good statistics) can be followed and you can be informed via notifications or emails about the occurence in the market. Using PatternLab application you can follow hundred of global financial assets and find some of 66 pre-defined patterns at daily, weekly or monthly candlestick formations.
Is there any rigorous proof why it could work?
The efficient market hypothesis is the answer. There are 3 types of market efficiency: strong, semi-strong and weak market efficiency. For the strong form of efficiency is believed that markets accommodate each public information and a price development performs jumps (without trends). The price development following the jumps is completely random (it is called diffusion). In practise, the strong market efficiency is very often disrupted through time and then trends and their persistency occur in the markets. Moreover, there can be a specific behavior of specific market participants which can cause “regular” and “periodical” market behaviour. E.g. large mutual fund rebalancing its EUROSTOXX50 portfolio every first monday in the month can cause “regular” and “periodical” market movements in those assets (This is only hypothetical case, not specific true story or advice). These “regular” and “periodical” market movements are basically the patterns.
How can I start?
You can use the video to get started.
- Choose a period (FROM the date and To the date) you wish to find patterns.
- Select stock(s) you would like to test.
- Select pattern(s).
- Click on “Add chart” button.
- Surf onto “BACKTEST-PATTERNS” card. (Now, you can see your preferences on the upper side of the site.)
- Set up the initial capital (your virtual amount of money).
- Choose the “Direction” option: both long & short, long only, short only.
- Set up your “Risk” per one trade.
- Set up you profit target and stop loss.
- Click on “Add patterns” button.
- Click on “Run strategies” button.
- On the right side you can surf through cards containing backtests results. The most interesting information are located in the “Performance metrics” card, e.g. Sharpe ratio is the first indicator you should take care about.
- The test and its set up you are satisfied with, you can save using “Save” button.
- Set up your notifications for desired patterns occurrences at desired assets. You can do that via “Alerts” card. Since now you receive email/notification every time the selected patterns appear.
How many assets I can scan?
The current stock universe includes 3000 stocks from Russell 3000 index.
The “opinio – product reviews” application provides a summary of reviews of real users from around the world.
The outputs represent the most discussed topics and features of selected products. For each feature, you can monitor positive and negative ratings, there are many options for visualization, sorting or filtering. Products can also be compared, sorted or filtered according to popularity. Statistical information is also provided – it is the discussion of brands and topics over time, as well as the sentiment related to each category statistic.
We have recently released the Smart Watch and Television categories. Both web and mobile applications can be used to select the right product based on reviews. The video shows how our applications works technically.
Naše společnost se zabývá vývojem software, datovou a textovou analýzou. Tvorba modelů a software postavených na principech umělé inteligence je však pouze prvním krokem komerčně úspěšných aplikací. (more…)
Since July 2019, our automatic trading system Momentum Formula, built on oil and gold, has been in full operation. You can find more information here.
Below we present the results in real operation, including the market fees:
|Trading start||17 JULY 2019|
|Number of trading days||144*|
|Number of Trades||23 (10 MGCM20.CMX, 13 QMM20.NYM)|
|Value of capital (17 JULY 2019)||198 745,23 CZK|
|Value of capital (11 MAY 2020)||217 955,90 CZK (219 447,23 CZK including Forex)|
|Performance||9,7 % (10,4 %, including Forex)|
|Performance Challenge (Alfa)||Alfa (MGC/QM) = 9,7 % – ((17,5 %+(-20,2 %))/2) = 29,9 %
Alfa (S&P 500) = 9,7 % – (-1,8 %) = 11,5 %
|Benchmark Start Price||2984,42|
|Benchmark End Price||2929,80|
|Benchmark Yield to Date||-1,83 %|
The expected profit is 20 % p.a. In September 2019, we realized a larger loss due to an error of the MKT order type. ATS placed a Market order and, due to a weekend attack in the UAE, there was no counterparty to trade at the expected price, after the market was opened. The system was subsequently shut down and an updated version was deployed in March 2020, also with a new LMT Market order.
Head of FRS Development, Michal Dufek.
CYRRUS ADVISORY, a.s. in cooperation with Mendel University in Brno and University of Economics in Prague developed Stock Picker, AI-powered data tool for smart decision-making process in the stock market, using „no-arbitrage condition violation“ to “beat the market”. The compound annual growth rate is 17.69 % while the maximum drawdown is -13.72 % during the 2008 – 2020 period. The application trades on US stocks SP100 / SP500. You can find more information in our Product Sheet.
See real-time results below (including market fees):
|Test start||22 APRIL 2020|
|Number of test days||14|
|Number of Trades||95|
|Value of capital (22 APRIL 2020)||9 642,5 USD|
|Value of capital (05 MAY 2020)||10 875 USD|
|Performance Challenge (Alfa)||Alfa = (12,8/1,54) – 2,01 = 6,30 %|
|Benchmark Start Price||1292,9|
|Benchmark End Price||1318,69|
|Benchmark Yield to Date||1318,69/1292,9 = +2,01 %|
Head of FRS Development, Michal Dufek.