Buy and Sell Decisions for Securities Trading

Data Mining tools with Discovery Capabilities (such as DECISION FORCE) offer to the traders, the possibility of discovering new trading rules that are highly effective, as proved by their performance on large data sets in the past.

The trading analyst must insert past data from a commodity or other product. Each of the past data items can be described by technical and/or fundamental indicators as well as its final performance (increase/decrease/no change etc.).  The Tool can combine the above indicators and discover trading rules that lead to effective and efficient trading decisions.

A Presentation of a Trading Rule, is provided below:

A  trading model for a product is a set of such trading rules.These rules can apply in any circumstances, in order to predict the expected outcome given the particular circumstances (i.e. technical and/or fundamental indicators).

The trading rules of a good Discovery Tool should not be a result  of a coincidental curve fitting which is not likely to be replicated in the future. This can be ensured if the tool has advanced testing mechanisms that accompany the trading rule discovery.

From time to time, trading analysts can run the modeling algorithms and update the trading rules with the most recent data and/or further technical and fundamental indicators.