John Ehlers and Ward Systems Group created the Cybernetic Analysis indicators as a companion to the indicators detailed in the book "Cybernetic Analysis for Stocks and Futures", published by John Wiley & Sons; (March 19, 2004), ISBN: 0471463078. This add-on also includes 12 example charts and 12 separate Trading Strategy templates.
NeuroShell Trader Professional and DayTrader users can further enhance Ehlers’ work by combining his indicators with the power of the NeuroShell Trader Professional’s optimizer to produce trading systems with a winning edge.
Ehlers’ book develops and demonstrates effective new trading tools through the application of modern digital signal processing techniques. "These tools have proven in real-time use to consistently provide traders with razor-sharp buy and sell signals in virtually any market--meeting or exceeding the performance of commercial systems which cost hundreds or even thousands of dollars," according to Ehlers
Modernizing popular trading procedures to take advantage of the incredible computing speed and power available to today’s trader, Ehlers introduces:
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The Fisher Transform--ensure that the density function of any indicator is Gaussian, creating sharper trading signals
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The Relative Vigor Index--a responsive oscillator in which movement is normalized to the trading range of each bar
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Improved Hilbert Transform--a more responsive method to accurately measure market cycles
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The Sinewave Indicator--a non-causal filter that gives entry and exit signals 1/16 of a cycle period in advance of the turning point
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The Laguerre Transform--a new tool to address the smoothing versus lag problem more effectively and create better smoothing filters
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Super Smoothing Filters--provide more smoothing with less lag
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Simple Moving Average Computations--two new ways to compute the simple moving average with unprecedented ease
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Advances made in computer technology in the past two decades have clearly outpaced advances in trading software and practice. "Cybernetic Analysis for Stocks and Futures" seeks to restore the balance between computational power and user proficiency. According to Ehlers, "Combining new indicators with tested systems for forecasting stock and futures markets with surgical precision; it will drive your systems to new levels of predictive accuracy, trading effectiveness, and overall profitability."
Note: The indicator names in the Cybernetic Analysis add-on reference the chapters in the book. For example, Cyber 3_ITrend refers to the ITrend indicator described in Chapter 3.
The indicator descriptions contained in the Help file briefly describe the indicator and the parameters that may be changed by the user or optimized in the NeuroShell Trader Professional. For a complete understanding of the indicators and their use, the reader is invited to refer to the book.
For more information on the book, visit www.amazon.com and look for "Cybernetic Analysis for Stocks and Futures" by John Ehlers.
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