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Since C is the turning point of market mood, trade opportunity occurring at point C is so rare that it has little influence on profits. In this trading model, we need high frequent price data of the first 20 days to train this model, getting the optimal combination of parameters, n and P.
They will be used to calculate the proper place of entry point A for the next day (See Figure 2). For training model, we select all combinations of n and P within their effective range and calculating profits of each combination as approach mentioned in Part 2. All these results gathered, we draw them in one 3 dimension draft to look for the highest point in the direction of profits.