Predict2

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Predict2 has 2 inputs and makes a prediction of the Actual value Lookahead bars into the future. It makes the prediction by examining the most recent Lookback bars for which there is a known Actual value Lookahead bars forward. These Lookback bars are called the training set. The inputs of the current bar are compared to the inputs of the bars in the training set. An output signal (prediction) is generated as a very sophisticated weighted average of the Actual values of bars in the training set which have inputs similar to the current bar.

 

This Net has the following parameters:

 

Lookback - the number of bars in the training set. The training set contains the known patterns in the inputs. The training set starts at the current bar (the bar on which the indicator will be plotted) and goes back the number of bars specified in the Lookback parameter minus 1. If Lookback is 100, there will be a total of 100 known patterns in the training set. Remember that this Lookback window moves forward with the indicator output. The neural net is essentially "retraining" with each new bar.

 

Lookahead - the number of bars ahead to make the prediction. If Lookahead is 2, then the Actual value two bars ahead of the current bar will be the value the Net is trained to predict. Suppose the Actual value is the momentum of the close. Then we are telling the net to predict the momentum of the close 2 days ahead. The prediction of the momentum will show up as the output of the indicator on the current bar.

 

Actual - this is the time series you want the Net to learn to predict, e.g., momentum of the close.

 

Input1, Input2 - each of these inputs is a series you want to feed the Net as an input to its prediction. The known patterns are found in the inputs. The known pattern for a particular bar consists of the values in the inputs at that particular bar.

 

Contrib1, Contrib2 - these are the contribution values for the inputs with the corresponding number. Contrib1 is the weighting you want the net to assign to input 1. The contribution is a single real number (not a time series) from zero (meaning ignore this input) to 100 (which means this input is very, very important.) Numbers greater than 100 may be used, but will probably have little more effect than 100. You can use numbers less than 1, like .6, if you want.