Website Menu
Home
|  Brought to you by Robert Hesler Neural Network Designer Email Robert |  Stock-Optimizer… Stock Market Allocation Short Term Stock Selector… Swing Trading The Weekly Stock Selector… Fundamental Picks Set Better Limit Orders... Stock Utility
4 Neural Network Powered Systems - 1 price
|
|---|
Utility Origination
This limit order utility is brought to you free of charge by Neural Net Trading Systems. Hopefully you'll take time to investigate other neural network driven stock market services which we provide.
Utility Basis
Given any particular limit order, the probability of a fill is dependent on three things:
1. The current bid and ask price... if you bid the asking price you are almost 100% certain to get at least a partial limit order fill. If you bid one half the asking price the chance of a filling your limit order by the end of the market session as almost zero.
2. The stock's short term volatility... a utility stock's daily price range usually varies a lot less than the latest hot story stock. Therefore to have a high probability of filling your limit order on a low volatility stock, like a utility, you need to set your limit order closer to the bid or ask than you would on a high volatility stock.
3. Time until market close... if there are 5 minutes left in the market session the range of possible price change is very low. On the other hand, at market open the range of possible price change is a lot wider. Therefore to maintain the same probability of a fill you need to move your limit order closer to the bid or ask as the market session ages.
Our proprietary neural network derived algorithm takes the above three factors into consideration when calculating the probabilities of filling the various limit orders.
Operational Modes
We currently have two operational modes:1. Automated Delayed... when the "Calculate" button is pushed the utility retrieves the current 20 minute delayed quote and bases the limit order probabilities on the "last price". The probabilities are less accurate under this mode of operation but it is fast and free.
2. Manual Real Time... when the "Calculate" button is pushed the utility bases the limit order probabilities on the current "bid and ask" price which the user inputs. If an accurate bid and ask are inputted accurate probabilities are calculated. This is a bit cumbersome but it is free. You can most likely get real time bid and ask prices through your on-line brokerage account.
Utility Limitations
When the market is closed most issues have no accurate "bid and ask" price. The utility therefore bases the limit order probabilities on the "last price" the issue closed at during the regular session. This isn't as accurate as basing them on the "bid and ask" price. Also, there may be a gap when the stock opens. Pre-market limit order probabilities do not take this into consideration.
The limit order probabilities are only accurate for the current market session or the next market session if the market is closed. In other words, the probabilities are not accurate if you are planning on entering a limit order and leaving it open for a period of time longer than one day.
Disclaimer © Neural Net Trading Systems 1996 - 2008
