Neuroshell vs ProTA

To start off my trading research, I have just recently downloaded Neuroshell Trader Professional for a whopping $1,495. For the past year, I’ve been using ProTA Gold, a charting and optimization software designed specifically for Macs.

ProTA Gold was great for a beginner like myself: It offered all the basic charting capabilities and allowed me to insert a number of pre-defined indicators such as moving averages, RSIs, parabolic SARs, average true ranges, and the like. It had an easy to use interface, but what I really liked about it was it’s optimization capabilities. The Gold version allowed me to create my own customized system tests (though it took me about a week to understand the programming syntax). I could then run those tests on any number of tickers, check out equity lines, PnL, Profit to Drawdown ratios, and more.

What I didn’t like about ProTA was that it was hard to test for out-of-sample data. I had to manually input the dates I wanted to test for, and even then it was hard to compare between the in-sample and out-of-sample data. Also, when I ran optimizations for my system tests, I usually had to sort through hundreds of tests, usually by plugging the parameters into Excel and visually analyzing for the most robust parameters. This had the advantage of letting me observe all scenarios, but the disadvantage of not being very systematic and possibly allowing for bias. An extensive review of ProTA Gold would take me an entire day, so I’ll stop here.

Neuroshell, being 5 times the price of ProTA, is certainly a more powerful tool. It offers the same capabilities as ProTA, including the ability to create custom indicators and run optimizations. It also allows me to easily test for out-of-sample data: I just simply optimize according to in-sample data, change the date to include out-of-sample periods, and the system shows me how it would have performed in the test period, complete with an equity curve that shows performance as if I had started trading from scratch. Pretty neat. Its optimization capabilities are also far more powerful, allowing me to run tests for multiple-parameter systems much faster than ProTA does.

Neuroshell’s most powerful feature, however, is its predictive algorithm software. Using artificial intelligence, Neuroshell claims to be able to use the computer equivalent of human trial-and-error to try and predict the performance of a market the next day. Obviously, it’s not perfect: a perfectly predictive system would be too good to be true. But given the right inputs and parameters, it performed fairly well, even in out-of-sample data. My dad also found that it seemed to work better in shorter time periods. More time is needed for me to adequately assess its capabilities, but it’s certainly an exciting new toy to play with 🙂

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One response to “Neuroshell vs ProTA

  1. Does Neuroshell run on the Mac?

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