Ehlers J.F. Rocket Science for Traders. Digital Signal Processing Applications

John Wiley, 2001. — 265 p.The advances made in computer technology during the past two decades have been dramatic. The computer power to which we have access today is far greater and more powerful than that which was available to the entire national defense system just 30 years ago. Software for traders, however, has not kept pace. Most of the trading tools available today are neither different nor more complex than the simple pencil-and-paper calculations that can be achieved through the use of mechanical adding machines. True, these calculations are now made with blinding speed and presented in colorful and eye-grabbing displays, but the power and usefulness of these procedures have not changed. If anything, the relative power of the calculations has diminished because the increased speed of information exchange and increased market capitalization have caused fundamental shifts in the technical character of the market. These shifts include increased volatility and shorter periods for the market swings.
Rocket Science for Traders promises to revolutionize the art of trading by introducing modern digital signal processing to the playing field. The application of digital signal processing offers the advantage of viewing old problems from a new perspective. The new perspective gained by digital signal processing has led to the birth and development of some profoundly effective new trading tools. The advances in new trading tools, along with the continuing advancements in hardware capabilities, virtually ensure the continued application of digital signal processing in the future. The trader who masters the fundamental concepts of digital signal processing, therefore, will find great advantage when approaching the volatile market of the twenty-first century.Introduction to the Science of Digital Signal
Market Modes
Moving
Momentum Functions
Complex
Hilbert Transforms
Measuring Cycle Periods
Signal-to-Noise Ratio
The Sinewave Indicator
The Instantaneous Trendline
Identifying Market Modes
Designing a Profitable Trading System
Transform Arithmetic
Finite Impulse Response Filters
Infinite Impulse Response Filters
Removing Lag
MAMA-The Mother of Adaptive Moving Averages
Ehlers Filters
Measuring Market Spectra
Optimum Predictive Filters
What You See Is What You Get
Making Standard Indicators Adaptive