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SITE ANNOUNCEMENT:

 

 

I HAVE RELEASED A GREATLY IMPROVED NEW VERSION OF PLA WHICH IS SUPERIOR IN MANY WAYS

 

 

 

PLA DYNAMICAL GOLD

 

 

 

( BELOW IS NOW TO BE CONSIDERED AS "THE OLD VERSION" )

 

 

 

 

 

 Introducing the latest from Precision Trading systems, the Precision Lagless Average with ZERO overshoot

 

Breaking the sound barrier

The fastest moving average on the planet


PLA

 

Precision Lagless Average a world class low lag filter for trading


 

 

 

 

 

(Length 12) Averages chart

 

 

 

Comparison table   Speed Accuracy Smoothness  Rating
Precision Lagless average

 96

98 96 96.6
Hull average 95 79 93

89.0

Weighted average 78 100 91 89.6
Triangular average 71 100 98 89.6
Exponential average 65 100 99 88.0

 

 

(Length 40)  Averages chart

 

 


PLA

 

Precision Lagless Average

 

Zero overshoot

Intelligent algorithm

Very low lag
Superior data smoothing
Noise reduction
Better trade timing
Improve trend clarity
More profits

 

 


 

Moving averages smooth out the noise of price data streams at the expense of lag (delay)

 

In the old days you could have speed, at the expense of reduced smoothing

 

In the old days you could only have your smoothing at the expense of lag

 

Think how many hours you wasted trying to get your averages fast AND smooth

 

Remember how annoying it is to see increasing speed causes increased noise

 

Remember how you wished for low lag AND low noise

 

 

Tired of working out how to have your cake AND eat it?

 

 

Don't despair, now things have changed, you can have your cake and you can eat it

 

 

 

Precision Lagless average compared to other advanced filtering models

 

Of the basic industry standard averages (filters) the weighted moving average is faster than the exponential, but does not offer good smoothing, in contrast the exponential has excellent smoothing, but huge amounts of delay (Lag).

 

Modern "high tech" filters although improving on the old basic models, have inherent weaknesses. Some of which are observed in the Jurik JMA filter and the worst of these weaknesses is overshoot.

 

Jurik research openly admit to having "minimal overshoot" which tends to indicates some form of predictive algorithm working its code. Remember that filters are intended to observe what is happening now and in the past.

 

Predicting what will happen next is an illegal function in the Precision Trading Systems tool kit, the data is smoothed and de-lagged only.....

Or you could say, trends are followed precisely instead of told which way to go next, as is the case with these illegal type filter algorithms.

 

  • The Precision Lagless average does NOT try to predict the next price value.

 

The Hull average is claimed by many to be as fast and smooth as the JMA by Jurik research, it has good speed and low lag.

The problem with the formula used in the Hull average is that its very simplistic and leads to price distortions which have poor accuracy caused by weighting too heavily( x 2)  on the most recent data (Floor ( Length / 2 )) and  then subtracting the old data, which leads to severe overshooting issues which In some cases are many standard deviations away from actual values

 

  • The Precision Lagless average has ZERO overshoot.

 

 

The diagram below shows the immense speed difference on a 30 period PLA and 30 period Hull average. The PLA was four bars ahead of the Hull average on both major turning points indicated on the 5 minute chart of the FT-SE100 Future ( Which is a 14%+ difference in Lag).

 

If you traded the averages at their  turning points to go short on the closing price in this example, PLA was signalling at 3,977.5 and Hull was a trifle later at 3,937, just about 40.5 points or in monetary terms 405 per contract. 

 

The long signal on PLA was at 3936 compared to Hull's 3,956.5, which equals a cost saving of 205 per contract with the PLA signal.

 

 Is it a bird?..... Is it a plane? .....No its the Precision Lagless Average

 

 

 

Filters such as the VIDAYA average by Tuscar Chande, which use volatility to alter their lengths have a different kind of formula which change their length, but this process is not executed with any logic. Whilst they can work very well sometimes, this can also lead to a filter which can suffer both lag AND overshooting.

 

The time series average which is indeed a very fast average, could well be renamed the "overshooting average" this inaccuracy makes it un-useable for any serious assessment of data for trading use.

The Kalman filter frequently lags behind or overshoots price arrays due to its over zealous algorithms. 

Other filters factor in price momentum to try to predict what will happen in the next price interval, and this is also a flawed strategy, as they overshoot when high momentum readings reverse, leaving the filter high and dry and miles away from the actual price activity.

 

  •  The Precision Lagless average uses pure and simple logic to decide its next output value.

 

Many excellent mathematicians have tried and failed to create lag free averages, and generally the reason is their extreme maths intellect is not backed up by a high degree of commonsense logic. Precision Lagless average ( PLA ) is constructed of purely logical reason algorithms, which examine many different values which are stored in arrays and selects which value to send to output.

PLA's superior speed, smoothing and accuracy make it an excellent trading tool for stocks, futures, forex, bonds  etc.

 

And as with all products developed by Precision Trading systems the underlying theme is the same......

 

 written for  traders, BY A TRADER.

 

PLA  Length 14 and 50 on E-Mini Nasdaq future

 

The latest upgrade for 2009 is a new  ANTI-REVERSE feature.

Comparisons of PLA other Moving averages

Comparison screenshots of PLA v JMA from Jurikes research

See sample ELA Code and how to use PLA in Tradestation and Multicharts with screenshots.

  • When a moving average is in rising trend and enters a low volatility trading range, often it will reverse its direction without any substantial price movement triggering it. The anti-reverse feature can be user defined to filter out these unwanted reversals until the specified percentage threshold has been breached. These are fully adjustable for user preferences. 

  • Reduces "over trading" commission costs for systems

  • Together with its superior smoothing and fast reaction speed this new feature makes it the most advanced moving average available.

This product is now available from this site for $297

For Tradestation and Multicharts.

You will receive a user function in protected ELA code and the indicator.

You can use PLA for writing system signals, smoothing indicators and custom made indicators see tutorial examples

Click here to buy

 Contact 

Scroll down for FAQ

 

 

 

 

 

 

 

 

Example  is 35 day Precision Lagless average (PLA) red line versus  35 day JMA from Jurikes research.

 

 

 

FAQ

 

Does the  PLA change length?      

Yes, good question, the PLA algorithm changes length in a way that is beyond the scope of most length adjusting functions. This part of the code was absolutely the most important part to get right.

 

Can your PLA be used for systems and constructing indicators in Easy Language code?

 

Yes of course, there are lots of sample code and screenshots in the PLA Tutorial page

 

Does it use the Goertzel algorithm?

No, nothing like it but a good guess.

 

Does the PLA formula use Eigen values from linear algebra?

Not exactly the same, there are no formulas from your college science books used in the Precision Lagless Average. I believe JMA by Jurikes research uses Eigen values from Linear algebra though.

I found that this approach leads to overshooting problems in volatile markets greater than 1 standard deviation situations. This problem gets compounded as volatility increases, hence no Eigen values used.

As most people relish trading a volatile market, I figured this overshooting problem in times when you really need high levels of accuracy just cant be acceptable. PLA has no overshoot.

 

If I don't like the product can I get a refund?

Precision trading systems has a 30 day money back guarantee on all products. See conditions below.

 

Refunds will be given for the following reasons.

  1. If you  find a filter which outperforms PLA in a large array of tests (includes JMA)

 

  2. If a bug is found that cannot be fixed within 7 working days of a report being sent to Precision trading      systems. (The 7 working day limit, does not apply if we are on vacation )

Please note:

Screenshots need to be provided for initial response and by remote pc access for the proof if it is required. 

And a thorough description of what happened when you experience the error.

 

Gaussian filters or Linear phase? 

No, you are getting colder, that is a very old technology.

 

Does PLA work with Multicharts?

Yes and Tradestation

 

Most moving averages over trade when the market is not trending (during times of congestion), does your anti-reverse help cure this problem

Yes exactly, the anti-reverse function improves an already superior product. You can set the percentage tolerance for PLA to reverse at, but generally its so clean that this is not required.

 

Is a Fourier transformer used in the formula?

No colder still....and older!

 

Can I get the formula ELA code?

No, you will receive a password protected ELA code for the $297, I occasionally sell the open code by special agreement but usually only to people who have bought some of my other products first. A lot of spent on getting it right so the cost of the open code is $495.

 

Did any of Albert Einstein's work influence the formula used?

Not in any shape or form, but I got inspiration from some of his proverbs below, particularly the last.

 

If we knew what we were doing, it wouldn't be called research would it?

 

Genius is one percent inspiration and ninety-nine percent perspiration

 

I have no particular talent. I am merely inquisitive.

 

Do not worry about your problems with mathematics, I assure you mine are far greater

 

-- Albert Einstein

 

Is the PLA honestly better than the highly regarded industry no1 average the JMA filter?

Its not professionally ethical or business like to say anything bad about JMA so I prefer to give the short answer

Please see the Comparison screenshots with JMA  also see my refunds policy for a hint.

 

It does look a lot better, but is the PLA the best filter currently available?

Smoothing filters used by the military are a closely guarded secret costing millions of dollars,  some of those may outperform PLA, but I have not seen a better filter than PLA.

If you find one, I would be pleased to see it.

If you remember the scene from The hunt for Red October where Jones the sonar operator hears a strange noise and then speeds it up 50 times and informs the captain "That just has to be man-made"

The captain asks him "Are you telling me you are in disagreement  with a $40 million US Navy computer that reports it as seismic activity?" 

Jones replies "yes captain, when it hears something new, it runs home to mama and reports it as seismic"

The noise turned out to be the Red October submarine, and Jones was able to track it undetected.

 

Is your PLA better than a triangular moving average?

Please see the comparison screenshots with other averages

 
This product is now available from this site for $297

For Tradestation and Multicharts.

You will receive a user function in protected ELA code and the indicator.

You can use PLA for writing system signals

Click here to buy Precision Lagless average   Contact      Home 

 Contact 

 

Precision trading systems wishes to thank MIT labs for providing some of these screenshots.