Stock Market Trading and Investing

New Stock Market Prediction Software SMFT-2 Released

Addaptron Software announced the release of Stock Market Forecast Tools SMFT-2. It is a new integrated system, the next generation of the software that intended to replace older SMFT-1 version. As a result of a few recent development projects, the new version is based on new advanced methods, provides more accurate prediction, and is easier to use.

Prediction modules is built with back-test calculation to estimate the accuracy of forecast within the recent performance periods. Additionally, the back-testing computations is important if more than one method is used. It allows estimating the weight of each method in a composed result; the weights that are proportional to the ability of the methods to predict the price.

SMFT-2 currently includes five major modules:

• TA Predictor prediction for day or week period based on technical analysis, pattern recognition and Neural Networks (generates composite result). Back-analysis models optimization and batch calculation for comparative analysis included.
• Waves Elliott Wave model: back-test optimization, up to 10 waves forecast.

• Cycles prediction based on cycle analysis.
• Week day search for maximum performance using price behavior depending on week day. It allows discovering the best entry/exit days of week; batch calculation included.
• Month day search for maximum performance using price behavior depending on month day. It allows discovering the best entry/exit days of month; batch calculation included.

The implemented methods are statistically proven and widely used. All modules share the same EOD (end-of-day) input data. The software is provided with a free Downloader that allows downloading EOD historical quotes files from the Internet for free. A fully-functional software SMFT-2 is free during initial 30-day period. The software and associated documentation are delivered via download links over the Internet. For technical requirements, installation instruction, and download link, visit SMFT-2 download page.

How to Use One-day Candle Prediction

Addaptron Software provides prices prediction of major ETFs for the next day. This article describes one of the simplest algorithms to use prediction data. The algorithm consists of four simple rules:

1. Buy Limit order with predicted Low price is placed before market open.
2. The order is canceled if it is not completed during the first half of the market day.
3. Once order is completed, Sell Limit order is placed with predicted High price.
4. If Sell order is not completed until almost closing market, it is canceled and Sell Market order is executed just before closing stock market.

The following charts and tables demonstrate one of the practical examples of described above approach.

Predicted and actual prices chart (dark green and red filled candles – predicted, light green and red line candles – actual):