ARM3R5 Release Notes

Overview

The ARM3R5 download is comprised of 3 strategies:

  • ARM3R5 Fibonaccifor EOD Stocks, designed on the S&P500 list.
  • ARM3R5 Gaps for EOD Stocks, designed on the S&P500 list.
  • ARM3R5 RT Futures for RT Futures in the 15-minute timeframe.

The new Chart Pattern Systems 3 plug-in is also included and available to Nirvana Club members.

Chart Pattern Systems 3

The Chart Pattern Systems 3 plug-in includes 8 pattern systems that generate signals based on CPRM3 (Chart Pattern Recognition Module 3):

  • Candles
  • Consolidations
  • Fibonacci Retracements
  • Gaps
  • Saucers
  • Support and Resistance
  • Trendlines
  • Volume

In CPS3, the pattern systems are fully configurable and the parameters that control the algorithms are editable.

Chart Option in OmniTrader showing the new CPS3 systems.

ARM3R5 EOD Strategies

The CPS3 systems provide very powerful signals to engage the market. Through the use of Neural Network technology, the ARM3R5 EOD strategies employNN Score blocks to filter out signals that are predicted to yield small profits. The charts shown below present long and short trades fired by the CPS3-based ARM3 strategies and corresponding to Fibonacci Retracement and Gap patterns.

Sample screenshot of ARM3R5 Fibonacci strategy on a chart of EBay.

Sample screenshot of ARM3R5 Gaps strategy on a chart of FedEx.

Combining long-term and short-term trades, the strategies are fullymechanical. Cluster neural networks are dynamically trained and provide reliable predictions in the past three years of diverse market conditions. The portfolio simulation shown below uses a 20% of Equity method and results in a 100% return on investment with a15% drawdown.

Equity results for the combined ARM3R5Beta EOD strategies, using a 20% of Equity simulation method.

ARM3R5 RT Futures

The ARM3R5RT strategy is designed to trade the following Futures contracts in the 15-minute timeframe:

  • E-Mini Russell 2000 Index
  • Cocoa
  • Crude Oil
  • Cotton
  • Heating Oil
  • Live Cattle
  • E-Mini S&P400 Index
  • Sugar

This strategy is also based on gap patterns - the signals being generated by an additional Gap Breakout system. This system was specifically researched and implemented for its application to Futures trading, along with the Wicks and Blocks systems used in the strategy for signal confirmation.

The equity simulation pictured below employs a Fixed $ Amount ($15000) resulting in maximum drawdowns lower than 5%. A higher final equity result can be achieved by making use of a more aggressive allocation method while maintaining manageable risk.

Equity results for the ARM3R5 RT strategy, using a Fixed $ Amount simulation method.

Strategy Maintenance

The Neural Networks in the ARM3R5 strategies are trained dynamically. Training the NN Score components to update the networks is recommended every quarter for the RT Futures strategy and every year for the EOD Stocks strategies.

Download

Members can now download ARM3R5 and obtain CPS3 product keys. Click here to go to the Research Project download page.