Professional Version 2.0
by John Sweeney
TERANET IA INC.
1615 Bowen Road
Nanaimo, BC V9S 1G5
Phone: 604 754-4223 or *800 663-8611
Product: Proprietary numerical modeling and forecasting software.
Equipment: IBM compatible with 640K RAM; EGA/VGA graphics; Dos 3.1 or better; math
coprocessor; 3 MB hard disk space.
Why would we want to imitate the human brain? Sure, we've all read numerous reassuring stories
about the brain's storied capabilities—"It's so much more powerful than the best computer" and all that. However, have the results of all humanity's brainwork, applied to trading, been so great? Academicians
are only recently finding evidence of extraordinary returns generated by human brainpower. Nevertheless, the siren call of science ("We have a model that can do things better than you, nyah nyah")
constantly returns. ModelWare is of that genus.
ModelWare trains on historical data like a neural net or artificial intelligence product but uses its own
proprietary "universal process modeling" algorithm. Needless to say, if you've read ads in trading
magazines, this model was developed in a suitably high-tech environment, where it is now safely
protecting us all from nuclear destruction.
Since we don't, as usual in the blackbox business, know how the model has come to its conclusions, we
must judge by the results. These, in turn, rely on the data you select to feed the model, whether you
actually succeed in getting the data into the model, the model's success in formulation and your success in
interpretation. This is more work than the average trader will bear, frankly.