DISFA Pattern Engine Signals 07-23-10 *Daily Newsletter

by DISFA on July 26, 2010

DISFA Pattern Engine Intraday Signals

  1. CF Industries Holdings, Inc.: 2.2% drop after signal*.
  2. ITT Educational Services, Inc.: 3.3% drop after signal.
  3. Align Technology, Inc.: 5.6% up after signal.
  4. Deckers Outdoor Corporation: 4.4% up after signal.

More than 12 million intraday sessions for ETFs, leveraged ETFs and stocks were analyzed before Elite Patterns were selected. Instead of analyzing traditional patterns, researchers used raw data, i.e. one-minute price and volume data, to discover highly profitable intraday patterns.

Educational software DISFA Coach includes:

  • 110 fully animated cases for practicing in Elite Patterns recognition
  • demos for each Elite Pattern with guidelines on how to identify patterns correctly
  • the ability to track success rate statistics
  • pdf version of the book “Elite patterns for ETFs and Stocks: Intraday Trading Strategies for High Profit”.

Play with our FREE online trial and try yourself at recognizing Elite Patterns: http://disfa.com/products/coach/trial. Only till July, 31 DISFA Coach has a special introductory price: $195. Order DISFA Coach now and add Elite Patterns to your trading arsenal! http://store.disfa.com/

Good Trading!

DISFA Team

*Signal means that the price is about to change direction.

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{ 13 comments… read them below or add one }

Punit July 28, 2010 at 8:02 pm

I think traders everywhere are sick of loud claims without proper and scientific statistics.

Reply

Ahmad July 28, 2010 at 10:02 pm

‘proper and scientific statistics’ will require lot of effort, they want super-easy advertisement for god-knows what :)

Reply

DISFA July 29, 2010 at 1:06 pm

The charts above are based on Elite pattern recognition. Average intraday potential profit is proved by 9 years of statistical record and ranges for:

strong trends group 3.3%
wave-based reversals 2.8%
exponential reversal group 3.1%

Detailed ‘proper and scientific statistics’ are represented in a book. You can download a free chapter: http://disfa.com/products/elite-patterns-for-etfs-and-stocks-intraday-trading-strategies-for-high-profit/free-chapter

Reply

Punit July 29, 2010 at 2:06 pm

As you may or may not be aware of, pro traders tend to posses common-sense.

You make a lengthy article that my finger gets tired of scrolling, which talk of nothing but your claims of success. This is nothing more than a advertisement. You should have posted this link on top, being aware that you are performing a commercial promotion.

As a honest advise, pro traders tend to have excellent analytic skills, so maybe you can generate interest by showcasing proper statistics and not ‘claims’.

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DISFA July 29, 2010 at 2:49 pm

As I already mentioned, detailed statistics are published in the book. Being a “pro” trader, you are supposed to know “Encyclopedia of Chart Patterns” by Thomas Bulkowski. The author has gathered detailed statistical information for each end-of-day pattern. It’s like a trader’s alphabet. We did the same for INTRADAY patterns.

Republishing the statistics means violating the copyright law.
More than 60 experts spent 9 years to gather statiscal data, analyze it and research highly profitable patterns. If you are interested, the link is mentioned above.

By the way, the charts above mention not only Elite patterns but also well-known ones. Using your “excellent analytical skills”, could you please name them?

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Punit July 29, 2010 at 3:07 pm

First and foremost, I did not claim ever in my life either in-person or publicly about being a pro-trader :p By the grace of God I do have acquaintance with some pro traders.
Secondly, I do not believe in the psychology ‘see the chart and tell me Johny, whats the name of pattern?’. David Aronson has done some very good academically accredited research on the subject.
My view upholds respectfully that the above article is nothing more than a advertisement.

Reply

Kokuyou October 3, 2010 at 6:23 am

Thanks Steve.

Reply

DISFA July 29, 2010 at 5:01 pm

Everyone who trades on the stock market has a simple goal: make money.

Pro traders spend thousands of dollars on 1-2 hour seminars just to get some useful tips. And it’s worth it. We provide a tool that teaches innovative strategies unknown before. To prove its effectiveness we show the charts from real market to make it visual. Statistical data is given in a book that is accessable on our website. Any trader can get a coach that will teach him Elite pattern recognition and will track his individual success. I’m not even talking about the stuff we’ve given away for free: W-long pattern free learning access, pdf book with detailed pattern description and statistics record, etc.

The article contains advertisement. Yes, I also noticed it. What if your friend told you about the product? You would consider it an advice. No, it’s also advertising, just another type of it – word of mouth. Introducing something new is always advertising and it always faces resistance. I don’t mind you state it’s nothing more than advertising.
I do mind you state it loud claims without proper and scientific statistics. The purpose of the article is to let the community know about Elite patterns and see examples of its performance in real market conditions.

Reply

Punit July 29, 2010 at 5:22 pm

Have a look here: http://www.cxoadvisory.com/investing-demons/

That’s the difference- advertising without any value whatsoever is useless and cheap. Even the cola ads offer some entertainment value :D but your advertisement offers absolutely nothing more that plain charts.
And even for the cola ads, people quickly change the tv channel when they do not see appealing attractive celebrity.

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DISFA July 29, 2010 at 5:41 pm

To Punit:
I guess you have already created enterntainment value for the article posted. I understand your finger was so tired to scroll to the end of the article to read the ad and check the links on free educational resources.
Advanced trading tools are not for everybody. Advanced trading tools don’t need pitches targeted to soda consumers.

This article as well as this forum is destined for traders to share money making tips.
As for you, there are tons of enterntaining resources on the web where you can spend your time while traders are making money.

Reply

Punit July 29, 2010 at 7:09 pm

You assumed that :shock:
1. I’m not a pro trader because I do not claim so.
2. Users go through your length of advertisement just to visit another site
3. I’m a soda customer because I talk about statistics, david aronson, and CXO investing demons

I assume that DISFA made a terrible and irrevocable mistake by hiring YOU.

Reply

Annonymous July 29, 2010 at 7:56 pm

I have browsed the DISFA site (http://disfa.com/), including the article “A.I. System for Automatic Synthesis of Trading Technologies and Portfolios for Investment Funds” (http://disfa.com/downloads/Technical%20paper_ICAI08.pdf). My principal reaction is that the compute-intensive, multi-pass optimization approach described may incorporate data snooping bias (http://en.wikipedia.org/wiki/Data-snooping_bias) to a degree that invalidates claims of reliable profitability.

For example:

From the “Vision” page (http://disfa.com/main/vision): [DIFSA] “automatically creates millions of trading strategies and portfolios…”

From the referenced article: “So far Alimp generated more than 3.7×106 profitable TS [trading strategies] for different portfolios based on most liquid ETFs: QQQQ, SPY, IWM and SMH. Best trading systems (as of April 24, 2008) show more than 100% of annual return on diversified portfolio of seventeen ETFs.”

The more intense the retrospection (number of rules or patterns tested), the more likely past winning strategies are the result of luck rather than persistent anomaly. There are techniques for correcting for luck in backtesting. See the summary of Chapter 6 in “Evidence-Based Technical Analysis: Applying the Scientific Method and Statistical Inference to Trading Signals (Chapter-by-Chapter Review)” (http://www.cxoadvisory.com/technical-trading/evidence-based-technical-analysis-applying-the-scientific-method-and-statistical-inference-to-trading-signals-chapter-by-chapter-review/). It is not clear whether or how effectively the offerors correct for data snooping bias.

Given the complexity and intensiveness of the backtesting in this case, I would ask for results of convincingly out-of-sample, real-time tests of profitability before buying.

For a relevant academic presentation, see “Stock Picking in a ‘Fruit Fly Lab’” (http://www.cxoadvisory.com/investing-expertise/stock-picking-in-a-fruit-fly-lab/).

From Steve, CXO Advisory Group LLC

Reply

Thinker August 1, 2010 at 1:23 pm

To DISFA:

Long before my time it was said that “When the master is ready, the pupil will appear.”

It is easy to be desirous of showcasing one’s products, but there are certain hazardous shoals one must navigate. The foremost component of such process should be one’s willingness to learn from the feedback. Pro Traders tend to be cynical and hard-assed, but that’s simply a complimentary attribute pertaining to the fact they rise above the rest 90% losers, and worse, a number of dork scammers.

The gist is that if you are posting ‘educational’ stuff in the hope of direct financial gains, the sooner you fold over your tent and start with a completely new theme, the more productive it will be. The reason being the ‘educational stuff’ no longer remains ‘educational’ when delivered by such hope.

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