#### MattATM

##### Member

**VIP**

It would be crazy difficult to find the derivative for every move of every ticker going back to 2008 it would take a team, machine learning, and serious funding!@MattATM Thanks a lot!! I was able to understand the basic math behind Newton's model. So for the model would f{x] be a trading signal, ie CCI crosses above 100, with the output being the a stat like expectancy or P/L over a certain time period? How would you find the derivative for that? I understand that you should change the weights depending on VOL. But to find the initial values for the weighting do we derive them from the Newton model?

My experience with signal weighting is some real basic Fuzzy Logic I did by hand.

I mentioned python because I use it and AlphaVantage's free API to backtest strategies. Also its a lot easier to work with data in python than in excel.

But not to worry! The Slope of the Line is ALWAYS the derivative ALWAYS ALWAYS ALWAYS!!!! So don't worry the derivative is already handed to us... But we need to minimize the unknowns before we start guessing or I will have a grey beard before it gives the answer...

So you want to standardize around volatility?

Minimize Loss ::: 2ndGuessWeight=1stGuessWeight+([email protected]/[email protected])

then 3rd Guess Weight = ....

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100,000,000thGuessWeight=...

Looks difficult but it will solve overnight... What is impossible for a man is easy for a computer. Like when I drove a crane for the Army funny story, I started moving concrete supports by segments by hand. I didn't know I had a 50 ft crane... That could be remote operated.

What program in Python???