CISCO


   

CISCO Futures
1-303-306-1521 1-800 800 7227 Fax 1-303-306-1572
http://www.cisco-futures.com
dljones@cisco-futures.com





Advice Engine AE History Sample Data


CISCO Futures© 2001, 2006

Advice Engine (AE) History (Item 2 on the Advice Engine page) is available free to non-subscribers. Non-subscribers are limited to searches covering the last six months. The same job is available to subscribers as Item 4 (Drawdown (AE). Subscribers are permitted to search the entire database, from 2001 forward.

This sample illustrates one of the types of searches/drawdowns that one might do. The task is to pick a future (SP in this case) and search for all breakouts for the first six months of each year from 2001 through 2006. Consider that we are doing our search as of July 3, 2006 (the non-subscriber will have access to the first six months of 2006, only).

You will be asked to input the symbol (SP), the Delivery specification of "0000" to get all deliveries, the number of days in the Overlay (non-subscribers automatically get 10 days) and the date range (e.g. 020102,020630 for Jan - Jun 2002).

In the example we have collected six separate runs for the first six months of 2001 through 2006. Part 1 of the Advice Engine Report contains all the balances, whether they subsequently broke out (the next day) or not. This count is identified as NPT1. Part 2 of the report lists the (next day) breakouts. For 2001 there were 56 balances of which 22 broke out.

The data columns show symbol, delivery month and year (Mo Yr), number of days in the Overlay, the Overlay Octant Risk, breakout direction, Potential and date. The Potential is based on the extreme price reached after breakout. This is NOT a gain value, but it would be the gain obtained by a perfect trader. So the Potential is an unrechable ideal. Potential divided by Risk gives a 'Figure of Merit', the ideal reward to risk ratio.

The raw data (Raw Output Data) is the sort of display you will obtain. Note that for the time-frame listed there can be more than one balance for a day, when data is available for both the front month and deliveries further out.

The second data set (Modified Output Data), is the 'Raw' data from the program cleaned up by hand. Duplicate trading days are excised and totals of the Risks and Potentials are tallied.



           Date        # Balances  # Breakouts    Risk$  Potential$  Reward/Risk
       2001 Jan-Jun        56           22        1297       2419     1.86
       2002 Jan-Jun        58           23        1292       1892     1.46
       2003 Jan-Jun        42           20        1140       1638     1.44
       2004 Jan-Jun        66           26         673       1554     2.31
       2005 Jan-Jun        74           41         584       1012     1.73
       2006 Jan-Jun        16            7         504       1539     3.05

Commentary
1) A view of the data shows that 2001 and 2002 had mostly short trades (35 to 10). This followed the market's steep fall to bottom in mid - 2002.
2) Longs predominated in 2003 and 2004 as the market trended up (32 to 14).
3) The next two half years were more balanced.
4) Even in strong trend periods such as 2002 the market continued to run and pause.
5) From 2001 through the present, Octant risk fell by more than a factor of two.
6) Potential was not nearly so strongly affected.
7) Approximately half the balances (312) ended in breakouts (147). These are end of day results and do not account for an intra-day breakout that ended the day back in balance.

Conclusions
1) Breakouts from balance closely follows trends, as would be expected.
2) Risks may drop as a market grows quieter, but the figure of merit (FOM = R/R) remains fairly constant. We ignore the outlier of 2006 because of the small amount of data.
3) FOM can be misleading, since it does not come from a trading model. If the risk is small (implying a small trading stop), the volatility of the market may cause quick stop outs, causing an exit before the Potential is reached. This would apply to those very small risks seen in 2005 and 2006. A good FOM (1.0 or better) is seen as a necessary but not sufficient condition for successful model development. On the other hand, a small FOM (0.5 or less) simply means that there is inadequate Potential. So, FOM is strongly coupled to bad drawdown if FOM is small and implicitly coupled to positive drawdown (gain) if FOM is good and the Octant risk is not small. Small risk comes from markets balanced in a narrow trading range. Such markets generally do not have much trading movement.

*-------------------------- Data ------------------------------------------------
Raw Output Data
 
NPT1 =           56  2001 JAN-JUN
NPT2 =           22
                 Mo Yr ND      Risk $  Tde-Dir Potential$    Dte
  1           SP  3 01 10       2282      LONG   1950.     010119
  2           SP  3 01 10       2250      LONG    300.     010122
  3           SP  3 01 10       2282      LONG   2250.     010123
  4           SP  3 01 10       1063     SHORT   3000.     010207
  5           SP  3 01 10       1344     SHORT   2250.     010208
  6           SP  3 01 10       2063     SHORT   2875.     010214
  7           SP  3 01 10       1813     SHORT   3625.     010216
  8           SP  3 01 10       2032     SHORT   4750.     010220
  9           SP  3 01 10       2000     SHORT   1500.     010301
 10           SP  6 01 10       1344     SHORT   2000.     010320
 11           SP  6 01 10       1344      LONG    625.     010427
 12           SP  6 01 10       1469      LONG   3000.     010501
 13           SP  6 01 10       1844      LONG   1250.     010502
 14           SP  6 01 10       1000     SHORT    300.     010511
 15           SP  6 01 10       1032      LONG   3425.     010516
 16           SP  6 01 10       1032     SHORT    500.     010516
 17           SP  6 01 10       1063     SHORT   3375.     010612
 18           SP  9 01 10       1032     SHORT   3450.     010612
 19           SP  6 01 10       1094     SHORT   1625.     010613
 20           SP  9 01 10       1063     SHORT   1800.     010613
 21           SP  9 01 10       1407     SHORT   6250.     010614
 22           SP  9 01 10       1688     SHORT   3125.     010626


NPT1 =           58  2002 JAN-JUN
NPT2 =           24
                 Mo Yr ND      Risk $  Tde-Dir Potential$    Dte
  1           SP  3 02 10        813      LONG    725.     020103
  2           SP  3 02 10       1063      LONG    875.     020107
  3           SP  3 02 10       1125     SHORT    875.     020114
  4           SP  3 02 10       1188     SHORT    500.     020115
  5           SP  3 02 10       1219     SHORT   3325.     020116
  6           SP  3 02 10       1407     SHORT   1875.     020118
  7           SP  3 02 10       1594     SHORT   1800.     020122
  8           SP  3 02 10       1282     SHORT    625.     020123
  9           SP  3 02 10        969     SHORT   5075.     020129
 10           SP  3 02 10       1594     SHORT   1250.     020205
 11           SP  6 02 10        875      LONG    125.     020318
 12           SP  6 02 10        938     SHORT   3300.     020403
 13           SP  6 02 10       1250     SHORT    925.     020415
 14           SP  6 02 10        969     SHORT    675.     020423
 15           SP  6 02 10        938     SHORT   3475.     020506
 16           SP  6 02 10        938     SHORT   1725.     020528
 17           SP  6 02 10       1125     SHORT   1075.     020529
 18           SP  6 02 10       2032     SHORT   1375.     020606
 19           SP  6 02 10       2000     SHORT    975.     020611
 20           SP  9 02 10        750     SHORT   3500.     020611
 21           SP  6 02 10       2063     SHORT   2625.     020612
 22           SP  6 02 10       1938     SHORT    325.     020613
 23           SP  6 02 10       1657     SHORT   6500.     020614
 24           SP  9 02 10       1407     SHORT   6500.     020614


NPT1 =           42  2003 JAN-JUN
NPT2 =           20
                 Mo Yr ND      Risk $  Tde-Dir Potential$    Dte
  1           SP  3 03 10       1157      LONG    500.     030110
  2           SP  3 03 10       1032      LONG   1375.     030113
  3           SP  3 03 10        875     SHORT    875.     030204
  4           SP  3 03 10        938     SHORT   2000.     030206
  5           SP  3 03 10       1157     SHORT   1925.     030207
  6           SP  3 03 10       1157     SHORT   1250.     030210
  7           SP  3 03 10       1250     SHORT   1925.     030212
  8           SP  6 03 10       1344     SHORT   2050.     030331
  9           SP  6 03 10       1282      LONG     75.     030414
 10           SP  6 03 10        719      LONG   1950.     030415
 11           SP  6 03 10       1094      LONG   3425.     030422
 12           SP  6 03 10       1282      LONG   1175.     030429
 13           SP  6 03 10       1282      LONG    625.     030430
 14           SP  6 03 10       1063      LONG   2250.     030502
 15           SP  6 03 10       1157      LONG   1875.     030506
 16           SP  6 03 10       1094      LONG   2425.     030512
 17           SP  6 03 10       1032      LONG   1250.     030527
 18           SP  6 03 10       1063      LONG   2500.     030604
 19           SP  6 03 10       1594      LONG   1325.     030612
 20           SP  6 03 10       1219      LONG   2000.     030616



NPT1 =           66  2004 JAN-JUN
NPT2 =           26
                 Mo Yr ND      Risk $  Tde-Dir Potential$    Dte
  1           SP  3 04 10        719      LONG   1125.     040107
  2           SP  3 04 10        782      LONG    575.     040114
  3           SP  3 04 10        688      LONG   1200.     040116
  4           SP  3 04 10        782      LONG   2125.     040121
  5           SP  3 04 10       1000      LONG    250.     040123
  6           SP  3 04 10       1032      LONG   1500.     040126
  7           SP  3 04 10        844     SHORT    175.     040205
  8           SP  3 04 10        688      LONG     75.     040219
  9           SP  3 04 10        672     SHORT    950.     040224
 10           SP  6 04 10        375      LONG    700.     040304
 11           SP  3 04 10        672      LONG   1750.     040305
 12           SP  6 04 10        391      LONG    125.     040308
 13           SP  6 04 10        391     SHORT    750.     040308
 14           SP  3 04 10        704     SHORT   4500.     040310
 15           SP  6 04 10        719      LONG    550.     040319
 16           SP  6 04 10        719     SHORT   3625.     040322
 17           SP  6 04 10        938      LONG    125.     040413
 18           SP  6 04 10        844     SHORT   2125.     040420
 19           SP  6 04 10        750     SHORT    300.     040506
 20           SP  6 04 10        719     SHORT   2750.     040507
 21           SP  6 04 10        844      LONG    400.     040519
 22           SP  6 04 10        875      LONG   2175.     040525
 23           SP  6 04 10        532      LONG    625.     040604
 24           SP  6 04 10        563      LONG   3425.     040607
 25           SP  9 04 10        235      LONG   4050.     040607
 26           SP  9 04 10        547      LONG   1050.     040623


NPT1 =           74  2005 JAN-JUN
NPT2 =           41
                 Mo Yr ND      Risk $  Tde-Dir Potential$    Dte
  1           SP  3 05 10        719      LONG    675.     050103
  2           SP  3 05 10        719     SHORT   2250.     050104
  3           SP  3 05 10        407     SHORT   1550.     050112
  4           SP  3 05 10        469     SHORT   1125.     050113
  5           SP  6 05 10        188     SHORT   1750.     050113
  6           SP  3 05 10        563      LONG    375.     050118
  7           SP  3 05 10        594     SHORT    875.     050120
  8           SP  3 05 10        657     SHORT   2000.     050121
  9           SP  3 05 10        594     SHORT    450.     050128
 10           SP  3 05 10        469      LONG    175.     050131
 11           SP  6 05 10         63      LONG   1250.     050131
 12           SP  3 05 10        469      LONG   2250.     050201
 13           SP  3 05 10        594      LONG   1200.     050211
 14           SP  3 05 10        625     SHORT   2125.     050222
 15           SP  3 05 10        594      LONG   2375.     050304
 16           SP  3 05 10        907     SHORT    500.     050311
 17           SP  3 05 10        922     SHORT    425.     050315
 18           SP  3 05 10        969     SHORT   3100.     050316
 19           SP  6 05 10        938     SHORT   3250.     050316
 20           SP  6 05 10        782     SHORT   1550.     050329
 21           SP  6 05 10        907     SHORT     25.     050330
 22           SP  6 05 10        750      LONG    800.     050407
 23           SP  6 05 10        719     SHORT   2825.     050414
 24           SP  6 05 10        657      LONG    750.     050425
 25           SP  9 05 10        219      LONG    600.     050502
 26           SP  6 05 10        844      LONG    625.     050503
 27           SP  6 05 10        375      LONG    550.     050526
 28           SP  6 05 10        469      LONG   1575.     050601
 29           SP  6 05 10        594      LONG    200.     050603
 30           SP  6 05 10        563      LONG    925.     050607
 31           SP  6 05 10        438     SHORT    175.     050609
 32           SP  9 05 10        375     SHORT    675.     050609
 33           SP  9 05 10        407     SHORT    125.     050610
 34           SP  6 05 10        454      LONG    125.     050613
 35           SP  9 05 10        407      LONG    325.     050613
 36           SP  9 05 10        438      LONG    500.     050614
 37           SP  6 05 10        547      LONG    700.     050616
 38           SP  9 05 10        532      LONG    750.     050616
 39           SP  6 05 10        594      LONG   2920.     050617
 40           SP  9 05 10        594      LONG   2175.     050617
 41           SP  9 05 10        813      LONG    325.     050622
 

NPT1 =           16  2006 JAN-JUN
NPT2 =            7
                 Mo Yr ND      Risk $  Tde-Dir Potential$    Dte
  1           SP  3 06 10        688     SHORT   3550.     060120
  2           SP  3 06 10       1063     SHORT    875.     060125
  3           SP  6 06 10        157     SHORT   1000.     060213
  4           SP  3 06 10        625      LONG   1075.     060214
  5           SP  6 06 10        157      LONG   2750.     060214
  6           SP  6 06 10        157     SHORT    375.     060214
  7           SP  3 06 10        719      LONG   1050.     060215

Modified Output Data Duplicates Removed
 
NPT1 =           56  2001 JAN-JUN
NPT2 =           22
                 Mo Yr ND      Risk $  Tde-Dir Potential$    Dte
  1           SP  3 01 10       2282      LONG   1950.     010119
  2           SP  3 01 10       2250      LONG    300.     010122
  3           SP  3 01 10       2282      LONG   2250.     010123  4500
  4           SP  3 01 10       1063     SHORT   3000.     010207
  5           SP  3 01 10       1344     SHORT   2250.     010208
  6           SP  3 01 10       2063     SHORT   2875.     010214
  7           SP  3 01 10       1813     SHORT   3625.     010216
  8           SP  3 01 10       2032     SHORT   4750.     010220
  9           SP  3 01 10       2000     SHORT   1500.     010301
 10           SP  6 01 10       1344     SHORT   2000.     010320 20000
 11           SP  6 01 10       1344      LONG    625.     010427
 12           SP  6 01 10       1469      LONG   3000.     010501
 13           SP  6 01 10       1844      LONG   1250.     010502  4875
 14           SP  6 01 10       1000     SHORT    300.     010511   300
 15           SP  6 01 10       1032      LONG   3425.     010516  3425
 16           SP  6 01 10       1032     SHORT    500.     010516
 17           SP  6 01 10       1063     SHORT   3375.     010612
 18           SP  9 01 10       1032     SHORT   3450.     010612
 19           SP  6 01 10       1094     SHORT   1625.     010613
 20           SP  9 01 10       1063     SHORT   1800.     010613
 21           SP  9 01 10       1407     SHORT   6250.     010614
 22           SP  9 01 10       1688     SHORT   3125.     010626 20125
                             AVE 1297                         AVE  2419    

NPT1 =           58  2002 JAN-JUN
NPT2 =           23
                 Mo Yr ND      Risk $  Tde-Dir Potential$    Dte
  1           SP  3 02 10        813      LONG    725.     020103
  2           SP  3 02 10       1063      LONG    875.     020107  1600
  3           SP  3 02 10       1125     SHORT    875.     020114
  4           SP  3 02 10       1188     SHORT    500.     020115
  5           SP  3 02 10       1219     SHORT   3325.     020116
  6           SP  3 02 10       1407     SHORT   1875.     020118
  7           SP  3 02 10       1594     SHORT   1800.     020122
  8           SP  3 02 10       1282     SHORT    625.     020123
  9           SP  3 02 10        969     SHORT   5075.     020129
 10           SP  3 02 10       1594     SHORT   1250.     020205 15325
 11           SP  6 02 10        875      LONG    125.     020318   125
 12           SP  6 02 10        938     SHORT   3300.     020403
 13           SP  6 02 10       1250     SHORT    925.     020415
 14           SP  6 02 10        969     SHORT    675.     020423
 15           SP  6 02 10        938     SHORT   3475.     020506
 16           SP  6 02 10        938     SHORT   1725.     020528
 17           SP  6 02 10       1125     SHORT   1075.     020529
 18           SP  6 02 10       2032     SHORT   1375.     020606
 19           SP  6 02 10       2000     SHORT    975.     020611
 20           SP  9 02 10        750     SHORT   3500.     020611
 21           SP  6 02 10       2063     SHORT   2625.     020612
 22           SP  6 02 10       1938     SHORT    325.     020613
 23           SP  6 02 10       1657     SHORT   6500.     020614 26475
                             AVE 1292                         AVE  1892


NPT1 =           42  2003 JAN-JUN
NPT2 =           20
                 Mo Yr ND      Risk $  Tde-Dir Potential$    Dte
  1           SP  3 03 10       1157      LONG    500.     030110
  2           SP  3 03 10       1032      LONG   1375.     030113 1875
  3           SP  3 03 10        875     SHORT    875.     030204
  4           SP  3 03 10        938     SHORT   2000.     030206
  5           SP  3 03 10       1157     SHORT   1925.     030207
  6           SP  3 03 10       1157     SHORT   1250.     030210
  7           SP  3 03 10       1250     SHORT   1925.     030212
  8           SP  6 03 10       1344     SHORT   2050.     030331 10025
  9           SP  6 03 10       1282      LONG     75.     030414
 10           SP  6 03 10        719      LONG   1950.     030415
 11           SP  6 03 10       1094      LONG   3425.     030422
 12           SP  6 03 10       1282      LONG   1175.     030429
 13           SP  6 03 10       1282      LONG    625.     030430
 14           SP  6 03 10       1063      LONG   2250.     030502
 15           SP  6 03 10       1157      LONG   1875.     030506
 16           SP  6 03 10       1094      LONG   2425.     030512
 17           SP  6 03 10       1032      LONG   1250.     030527
 18           SP  6 03 10       1063      LONG   2500.     030604
 19           SP  6 03 10       1594      LONG   1325.     030612
 20           SP  6 03 10       1219      LONG   2000.     030616 20875
                             AVE 1140                         AVE  1638



NPT1 =           66  2004 JAN-JUN
NPT2 =           26
                 Mo Yr ND      Risk $  Tde-Dir Potential$    Dte
  1           SP  3 04 10        719      LONG   1125.     040107
  2           SP  3 04 10        782      LONG    575.     040114
  3           SP  3 04 10        688      LONG   1200.     040116
  4           SP  3 04 10        782      LONG   2125.     040121
  5           SP  3 04 10       1000      LONG    250.     040123
  6           SP  3 04 10       1032      LONG   1500.     040126  6775
  7           SP  3 04 10        844     SHORT    175.     040205   175
  8           SP  3 04 10        688      LONG     75.     040219    75
  9           SP  3 04 10        672     SHORT    950.     040224   950
 10           SP  6 04 10        375      LONG    700.     040304
 11           SP  3 04 10        672      LONG   1750.     040305
 12           SP  6 04 10        391      LONG    125.     040308  2575
 13           SP  6 04 10        391     SHORT    750.     040308
 14           SP  3 04 10        704     SHORT   4500.     040310  5250
 15           SP  6 04 10        719      LONG    550.     040319   550
 16           SP  6 04 10        719     SHORT   3625.     040322  3625
 17           SP  6 04 10        938      LONG    125.     040413   125
 18           SP  6 04 10        844     SHORT   2125.     040420
 19           SP  6 04 10        750     SHORT    300.     040506
 20           SP  6 04 10        719     SHORT   2750.     040507  5175
 21           SP  6 04 10        844      LONG    400.     040519
 22           SP  6 04 10        875      LONG   2175.     040525
 23           SP  6 04 10        532      LONG    625.     040604
 24           SP  6 04 10        563      LONG   3425.     040607
 25           SP  9 04 10        235      LONG   4050.     040607
 26           SP  9 04 10        547      LONG   1050.     040623 15150
                             AVE  673                         AVE  1554


NPT1 =           74  2005 JAN-JUN
NPT2 =           41
                 Mo Yr ND      Risk $  Tde-Dir Potential$    Dte
  1           SP  3 05 10        719      LONG    675.     050103   675
  2           SP  3 05 10        719     SHORT   2250.     050104
  3           SP  3 05 10        407     SHORT   1550.     050112
  4           SP  3 05 10        469     SHORT   1125.     050113
  5           SP  6 05 10        188     SHORT   1750.     050113  4475
  6           SP  3 05 10        563      LONG    375.     050118   375
  7           SP  3 05 10        594     SHORT    875.     050120
  8           SP  3 05 10        657     SHORT   2000.     050121
  9           SP  3 05 10        594     SHORT    450.     050128  3325
 10           SP  3 05 10        469      LONG    175.     050131
 11           SP  6 05 10         63      LONG   1250.     050131
 12           SP  3 05 10        469      LONG   2250.     050201
 13           SP  3 05 10        594      LONG   1200.     050211  3875
 14           SP  3 05 10        625     SHORT   2125.     050222  2125
 15           SP  3 05 10        594      LONG   2375.     050304  2375
 16           SP  3 05 10        907     SHORT    500.     050311
 17           SP  3 05 10        922     SHORT    425.     050315
 18           SP  3 05 10        969     SHORT   3100.     050316
 19           SP  6 05 10        938     SHORT   3250.     050316
 20           SP  6 05 10        782     SHORT   1550.     050329
 21           SP  6 05 10        907     SHORT     25.     050330  8850
 22           SP  6 05 10        750      LONG    800.     050407   800
 23           SP  6 05 10        719     SHORT   2825.     050414  2825
 24           SP  6 05 10        657      LONG    750.     050425
 25           SP  9 05 10        219      LONG    600.     050502
 26           SP  6 05 10        844      LONG    625.     050503
 27           SP  6 05 10        375      LONG    550.     050526
 28           SP  6 05 10        469      LONG   1575.     050601
 29           SP  6 05 10        594      LONG    200.     050603
 30           SP  6 05 10        563      LONG    925.     050607  5425
 31           SP  6 05 10        438     SHORT    175.     050609
 32           SP  9 05 10        375     SHORT    675.     050609
 33           SP  9 05 10        407     SHORT    125.     050610   975
 34           SP  6 05 10        454      LONG    125.     050613
 35           SP  9 05 10        407      LONG    325.     050613
 36           SP  9 05 10        438      LONG    500.     050614
 37           SP  6 05 10        547      LONG    700.     050616
 38           SP  9 05 10        532      LONG    750.     050616
 39           SP  6 05 10        594      LONG   2920.     050617
 40           SP  9 05 10        594      LONG   2175.     050617
 41           SP  9 05 10        813      LONG    325.     050622  5420
                             AVE  584                         AVE  1012


NPT1 =           16  2006 JAN-JUN
NPT2 =            7
                 Mo Yr ND      Risk $  Tde-Dir Potential$    Dte
  1           SP  3 06 10        688     SHORT   3550.     060120
  2           SP  3 06 10       1063     SHORT    875.     060125
  3           SP  6 06 10        157     SHORT   1000.     060213  5425
  4           SP  3 06 10        625      LONG   1075.     060214
  5           SP  6 06 10        157      LONG   2750.     060214  3925
  6           SP  6 06 10        157     SHORT    375.     060214   375
  7           SP  3 06 10        719      LONG   1050.     060215  1050
                             AVE  504                         AVE  1539