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at open model, when tested over the three order types, was poorer on the in-sample data than the long model. Out-of-sample, the results deteriorated significantly and losses occurred. Unlike the long model, this one did not hold up. It should be noted, however, that if both the long and short models had been traded together on out-ofsample data, the profits from the long side would have vastly outweighed the losses from the short side; i.e., the complete system would have been profitable. The pattern of longs trading better than shorts is a theme that has been recurrent throughout the tests in this book. Perhaps the pattern is caused by the presence of a few markets in the standard portfolio that have been in extreme bullish mode for a long time. The way commodities markets respond to excess supply, as contrasted to the way they respond to shortages, may also help explain the tendency.



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A skew transform can be useful for creating the illusion of threedimensional depth in a two-dimensional object The default value is 0 Positive value results in the counterclockwise skew Negative value results in the clockwise skew Defines the distance to translate along the x axis (in pixels) The default value is 0 Positive value moves the object to the right and negative moves it to the left Defines the distance to translate (move) an object along the y axis (in pixels) The default value is 0 Positive value moves the object down and negative moves it up..

ber 2000, the first new top-level domains, seven in all, were approved by ICANN. They are .aero, for the aviation industry; .biz, for businesses; .coop, for business cooperatives; .info, for general use; .museum, for (you guessed it); .name, for individuals; and .pro, for professionals.





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Table 12-4 contains the market-by-market results for the best evolved entry-atopen models, both long and short, tested on the optimization and verification samples using each of the three entry orders. Given the small number of trades taken, many of the empty cells in this table simply reflect the absence of trades. The SYM column represents the market being studied. The center and rightmost columns (CO(/NT) contain the number of profitable tests for a given market. The numbers in the first row represent test identifiers: 01, 02, and 03 represent tests with entry at open, on limit, and on stop, respectively, for the long side; 04, 05, and 06 represent corresponding tests for the short side. The last row (COtrAV ) contains the number of markets on which a given model was profitable. The data in this table provides relatively detailed information about which markets are and are not profitable when traded by each of the models: One dash (-) indicates a moderate loss per trade, i.e., $2,000 to $4,000; two dashes (--) represent a large loss per trade, i.e., $4,000 or more; one plus sign (+) means a moderate profit per trade, i.e., $1,000 to $2,ooO; two pluses (+ +) indicate a large gain per trade, i.e., $2,000 or more; and a blank cell means that the loss was between $0 and $1,999 or the profit was between $0 and $1,000 per trade. (For information about the various markets and their symbols, see Table II-1 in the Introduction to Part II.)

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TCP/IP has been around for a long time, and while we often tend to think of it as a single protocol that governs the Internet, it is in reality a fairly exhaustive collection of protocols that cover the functions of numerous layers of the protocol stack. And while OSI, discussed in an earlier chapter, has seven layers of protocol functionality, TCP/IP has only four, as shown in Figure 7-35. We will explore each layer in moderate detail in the sections that follow. For purposes of comparison, however, OSI and TCP/IP compare functionally as shown in Table 7-1.

TCP/IP was created for the Internet with the concept in mind that the Internet would not be a particularly well-behaved network. In other words, designers of the protocol made the assumption that the Internet would become precisely what it has become a network of networks, using a plethora of unrelated and often conflicting protocols, transporting traffic with widely varying QoS requirements. The fundamental

If you rewrite the previous example using the CompositeTransform, the code will be concise, as shown here, and provide the same transformation as shown in Figure 9-14.

Tests 1 through 3: Long-Emiy-at-Open Model Tested on Entry at Open, on Limit, and on Stop. Table 12-4 indicates that, in-sample, the model was strongly profitable

TCP/IP Protocol Stack Network Interface Layer Internet Layer Transport Layer Application Services Layer

OSI Reference Model Physical and Data Link Layers (L1-2) Network Layer (L3) Transport Layer (L4) Session, Presentation, and Application Layers (L5-7)

for the NYFE (but not the S&P X0), the British Pound, the Deutschemark, the Japanese Yen, Palladium, most of the Wheats, Kansas Wheat, Cocoa, and Lumber, and Light Crude (if entry at open is omitted). Out-of-sample, the NYFE had no trades, the British Pound and the Deutschemark continued to be strongly profitable across all three order types, and many of the other markets in which strong in-sample profitability was observed had no trades. Out-of-sample, some markets that had not traded in-sample traded profitably (especially Unleaded Gasoline, Silver, and Coffee), which indicates that the model continued to perform well, not merely in a different time period, but on a different set of markets.

Downloaded from Digital Engineering Library @ McGraw-Hill (www.digitalengineeringlibrary.com) Copyright 2004 The McGraw-Hill Companies. All rights reserved. Any use is subject to the Terms of Use as given at the website.

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