PC-SIG Library 8

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The APEX Series The FIRST thing you should do is open an account with Warner Computer Systems, Inc. If you tell them that you are an APEX user, they will waive the $48 sign-up fee. After that, all you will pay for is the data that you download. If you do not download any data, there is no fee. Please feel free to make copies of this software to distribute to your friends. DISCLAIMER N-Squared Computing and/or G.Morris Corporation shall have no liability or responsibility to Purchaser or any other person or entity with respect to any liability or loss of anticipatory profits caused, or alleged to be caused, directly or indirectly, by use or operation of this software. Neither N-Squared Computing and/or G.Morris Corporation can be held responsible for any losses incurred while using this software, nor do we expect to share in any profits. Introduction The APEX Series of graphical analysis software for IBM and compatible computers is completely menu-driven. Numerous help screens are only one key away. If you are familiar with using menu-driven software and familiar with the basic DOS commands, you can probably set this documentation aside. Reviewing the Getting Started section still might be a good idea, though. If you are not that familiar with menu-driven software and DOS, please follow the instructions in the Getting Started section of this manual. Hardware Requirements IBM or Compatible computer 512K RAM One Floppy Drive or a Hard Disk DOS 3.0 or higher Modem 300/1200 baud (Hayes compatible) Graphics card and video monitor CGA, EGA, VGA, or Hercules Mono Phone Numbers Warner Computer Systems (800) 626-4634 Telenet Information (800) 336-0437 The APEX Series Currently there are five APEX programs covering almost all areas of financial data analysis. Each program works with its own data and should not be combined with other APEX programs. With each APEX Program you will receive a "Ticker Diskette" which can be accessed through the Access portion of the program. Also, on the Ticker Diskette, is a Sample Database representing the type of data to be used with the APEX program you have received. This way you can explore the powerful features of the APEX program immediately. If you received your APEX program on a 3 1/2" diskette; the APEX program, the Ticker information, and the Sample Database will all be on the same diskette. The N-Squared APEX Program Menu Each APEX program will have an identical Program Menu with the exception of an identifying description at the top showing which APEX program is in use. The three main subprograms can be selected from the APEX Program Menu by selecting: A for Access P for Plot E or X for EXport Additionally, the screen colors can also be changed from this menu by first selecting C and following the prompts. The Date and Time can also be changed from this menu by selecting D or T, respectively. APEX Financial/Market Data APEX F/M will allow you complete analysis of market indexes/averages, foreign exchange rates, interest rates, industry groups, and market breadth data. Warner Computer currently has over 330 items that can be downloaded and then updated daily. Most of the data goes back at least 10 years. Data is stored in files that can contain up to nine items. There is no restriction as to what can go in any file, just that there cannot be more than nine items in any one file. You may have as many files as necessary. APEX Stocks/Options APEX S/O will let you analyze any stocks or options using the popular high-low-close bar format with volume displayed below the price. If you have stock files, the data will be kept in individual files with high, low, close, and volume values for each day. If you have option files, open interest will also be stored in the file. APEX Futures/Commodities APEX F/C will let you analyze futures/commodities with open- high-low-close bar charts and volume and open interest. Futures files will keep the open, high, low, close, volume, and open interest values for each day in the data file. APEX Mutual Funds APEX MF will allow plotting and comparing any mutual funds. Mutual Fund files can contain up to nine different funds in each file. The file name can be anything you wish, but should represent what type of funds are in the file, such as the name of the fund family. Warner Computer currently has about 1600 Mutual Funds using standard ticker symbols. APEX Point & Figure APEX P&F will let you do complete point & figure analysis of any stocks. Stock files will contain the high, low, close, and volume for each day. IMPORTANT To view the latest changes/information about your APEX program, see the README file on your APEX program diskette. To print the contents of this file, at the DOS prompt, type: COPY README PRN <Enter>. Make sure that your printer is on. If you just want to view the contents on your screen, type: TYPE README <Enter>. To stop and start the scrolling, use Ctrl 'S'. Getting Started Copying Your APEX Disk Your APEX master disk is NOT copy protected. Please: copy your APEX master disk NOW and put it away for safe-keeping. Disks can be easily destroyed. If the following instructions do not make sense to you, please review the format, diskcopy, and copy commands in your DOS book. There are many good books on the subject available at most bookstores. To A Floppy Drive If you have a "floppy only" system, you should make an identical copy of the APEX master disk by using the "Diskcopy" command on your DOS diskette. This is done by inserting your DOS disk into a drive and typing: DISKCOPY A: B: <Enter>. This will start the diskcopy process and give you instructions on the screen referring to the drive configuration that you have. In this particular case, with two floppy drives, you would insert the APEX master in drive A and the new blank diskette in drive B. With only one floppy drive, just follow the prompts on the screen. NOTE: Because of the size of the APEX program, you cannot install DOS onto the working copy unless your diskettes are greater than 360K. Therefore you must always load DOS first and then run the APEX program by typing APEX <Enter>. To A Hard Disk You may copy APEX to its own subdirectory on your hard disk. To do this, go to the C>, put your APEX master disk in drive A: and type: C>md\apexfm Creates a new APEX subdirectory C>cd\apexfm Change to that new subdirectory C>copy a: *.* Copies all files to new subdirectory The name of the subdirectory should reflect which APEX program(s) you have. In the above example "apexfm" represented the APEX Financial/Market Data program. APEX will now be in its own subdirectory. You can go to that subdirectory at any time by typing: C>cd\apexfm Starting the APEX program Once you have loaded DOS, insert the APEX working copy into drive A or change to the APEX(FM) subdirectory if using a hard disk and then type: apex <Enter> Database diskettes/subdirectories All data used with the APEX program should be kept on separate disks or subdirectories from the APEX program. All you will need to start with is a formatted diskette if you have a floppy system or you can create a subdirectory if you have a hard disk. If you have a hard disk, it is recommended that your data subdirectories be subdirectories of the APEX program subdirectory. You can make data subdirectories by first typing: C>cd\apexfm Changes to the APEX subdirectory C>md\stocks Creates a subdirectory called stocks. The name of your data subdirectories can be anything you desire as long as they are DOS compatible names. It is also recommended that you think of each subdirectory like a separate diskette. If you have a diskette for stocks, then you have a subdirectory for stocks, if you have a diskette for mutual funds, then you have a subdirectory for mutual funds. These are just suggestions for basic "bookkeeping" for your various data. Warner password Before you can download any data from Warner Computer, you will need to call them at 1-800-626-4634, tell them which APEX program(s) you have and they will issue you an account number and password which can be inserted into the Access portion of the APEX program (discussed later). APEX Help Screens and Prompts Each APEX program has its own built-in Help Screens. You can tell if a Help Screen is available by the prompts information displayed at the bottom of the screen. It might look like this: Press Key (1-8) or <Esc> for Menu or <?> for Help By pushing "?," you will see a detailed explanation of all the features and options available to you on that screen. Pushing the spacebar will return you to the screen you were on when you pushed the "?." You should be able to navigate around the program just by reading the screen prompts. Almost every screen is displaying some type of information that tells you what your choices are. If you reach a screen and you are not sure what to do next, be sure to scan the screen thoroughly for some type of prompting information. If nothing is displayed, select <Esc>. Quick Start The following is a brief summary of the steps required to become fully operational with the APEX software. 1. Make backup copies of all APEX diskettes. 2. Install APEX program on hard disk (if applicable). 3. Call Warner at (800) 626-4634 to open an account. 4. Start APEX program by typing 'apex <Enter>' at prompt. 5. Select Access for database maintenance. 6. Select "*" to view the Ticker file (if applicable). 7. Create file(s) for the Tickers you want to download. 8. Select '1' to download data from Warner. 9. Enter appropriate information in program settings. 10. Follow prompts to download data from Warner. 11. After downloading data, return to APEX Program Menu. 12. Select Plot to graphically analyze the new data. 13. Use Trading Strategies to see the magic of moving averages. 14. Enjoy limitless onscreen analysis in beautiful color. Access Description The Access program will let you download, update, and manage your data files. This is accomplished through a menu-driven process that will enable you to do any and all database management operations quickly and easily. To enter the Access program, merely type "A" from the APEX Program menu. The Access Program Menu has nine items for numerous database management functions. There are three primary areas of database management; file management, individual records management, and downloading of data from Warner Computer. Access Program Menu <1> Access/Download Data <2> Edit/Update Files <3> Create New Files <4> Delete Data Files <5> Modify Files OR Change File Name <6> Transfer Files <7> Truncate Files <8> Sort Data Files <9> Create a Database <*> View Ticker File NOTE: The discussion of each item on this menu will not be in the order of the items on the menu. The order of discussion is more representative of the order in which you will first use the features being discussed. Create a Database (9) The FIRST order of business, if you are just starting to use the program, is to create a database of TICKERS for downloading from Warner Computer. This is accomplished by first selecting item "(9) Create a Database" from the Access Program Menu. You will be asked to provide the drive letter and path to your database location. If you are using a floppy drive only system, put a formatted diskette into drive B and type the drive letter (B) followed by <Enter>. If you are using a hard disk system, select the drive (normally C:) and then type the pathname for the database location. If you have not created a subdirectory, one will be created for you. Create New Files (3) Once a database has been created you will need to create the data files containing the TICKERS you wish to download. This is easily accomplished by selecting item "(3) Create New Files" from the Access Program Menu. From there you will be prompted to again give the database location and, depending upon the APEX program(s) you have, a request to input the file name for the data. File Names Financial/Market Data If you are using APEX Financial/Market Data or APEX Mutual Funds, the File Name can be any DOS-compatible name you wish. The File Name should reflect the type of data you are going to put into that file. Up to nine different TICKERS can be kept in any single file. For example, if you have the APEX Financial/Market Data program and wish to follow foreign exchange rates, the File Name might be called EXCHG#1. Subsequent files of foreign exchange rates could be called EXCHG#2, EXCHG#3, etc., depending upon how many foreign exchange rate TICKERS you are going to keep. Mutual Funds If you are using APEX Mutual Funds, the File Name could be the name of the fund family (FIDELITY) or some form of alphabetical notation (A-EGROUP). Once you decide upon a file name, you will then be polled by the program to input the TICKER symbols for the data you wish to follow. Stocks/Options Futures/Commodities Point & Figure If you are using APEX Stocks/Options, APEX Futures/Commodities, or APEX Point & Figure, the File Name IS the TICKER symbol. All you will need to do is follow the prompts and select the correct option, depending upon the type of data you want. Check with Warner Computer for any tickers that are not on the ticker files or any tickers that you do not know. Database Limitations Floppy disks can contain up to 55 data files. Hard disk subdirectories can contain up to 255 data files. Each individual data file can contain up to 1600 records of data. Of course, you can overcome these limitations by using additional diskettes or by creating additional subdirectories. View Ticker File (*) The ticker symbols can be viewed by selecting (*) from the Access Program Menu. When you select (*), you will be asked to input the drive letter and pathname (hard disk) for your Ticker Diskette. If you wish, you can copy the ticker files onto your hard disk along with the program files. The ticker file for Futures/Commodities only shows the ticker and not the expiration month and year. For example, Comex Gold is shown only as GC, but to download an actual Gold contract, you would need to follow the ticker with the month and year, such as: GC1288. The exception to the futures/commodities tickers, is the cash values, the complete ticker is included in the ticker file (GCCASH). Delete Data Files (4) This selection "(4) Delete Data Files" will ask for the database location, then it will display the list of files on that database and ask you to select the one for deletion. You will be given a couple of chances to change your mind. NOTE: This is the ONLY method of deleting data files you should ever use. If you try to delete data files using any DOS commands, you will cause a problem that cannot be recovered. Modify Files OR Change File Name (5) If you have APEX Financial/Market Data or APEX Mutual Funds, selection "(5) Modify Files" will let you change the File Name, change the TICKER symbol, or delete a TICKER symbol within a File. If you have one or more of the other three APEX programs, selection "(5) Change File Name" will only let you change the File Name, which IS the TICKER symbol. Transfer Files (6) Selection "(6) Transfer Files" will let you move individual files from floppy disk to floppy disk or to a hard disk. Truncate Files (7) Selection "(7) Truncate Files" will let you remove old data from any or all data files. All data files are limited to 1600 records of data. When your files begin to reach 1600 days of data you will need to truncate them. Sort Data Files (8) Selection "(8) Sort Data Files" will rearrange the files on your database in alphabetical order. Access/Download Data (1) This selection will let you download data into new files that you have created or update files that already exist by using your modem and an account with Warner Computer Systems. If you have not yet opened an account with Warner, you should do so immediately by calling 1-800-626-4634. The first screen you will see after selecting "(1) Access/Download Data" will be the Program Settings menu where you enter various information about your system and Warner accounts. The entries should be self-explanatory. Selection "<H> Use Telenet (Y/N):" will alternate the highlighted area between either selection <A> or . Normally, selection <A> should be highlighted. Selection " Wait Limit" tells the software when to disconnect the modem in the event of line problems (recommend 45). If you are unsuccessful at connecting to Warner, try a different Comm port setting. As with all other settings menus, selecting "S" to save will write the changes to disk and that is the way they will stay until you change them. Normally, the settings on this screen will not change after they are initially set. If you are downloading new data, you will be asked whether you want daily or weekly data. Then you will be asked to input the date that you want the data to begin with (YYMMDD). Finally, you will be asked what date to end the downloading. Do not ask for data on the current date unless it is after about 8:00pm Eastern time. Check with Warner for availability times. Logon Sequence When using Telenet to call Warner, you will see something very similar to the following on your screen while the APEX program logs onto Warner's system. ATV1Q0E1DXXX-XXXX The XXX-XXXX is your Telenet number. CONNECT TELENET XXX 2B The XXX will be your area code. TERMINAL= @C20168 This will be 20167 if using 300 baud. 201 68 CONNECTED warner computer systems 18:12 OCT 19, '87 user#F line#98 logon please: 1SQUARE, #S0XXXX, XXXXXX This information will vary considerably. T 37,0 On at 18:12 OCT 19, '87 From this point on the sequence depends upon the APEX program you are using. Please note that you may not see everything exactly as shown above, but it will be very similar. IMPORTANT: Monitor the logon sequence to ensure it is operating properly. There are many things that can interrupt the sequence, such as: call forwarding, thunderstorms, line problems, etc. If you suspect anything wrong during the logon sequence, just push "ESC" and the process will be aborted. If you see a message that says: 'A603 no such program' or 'who?,' you should also abort the logon because there has been a problem. Normally, all you will need to do is just try again. If you are dialing Warner direct, the first part of the logon sequence will not appear. After the phone number has been dialed, you will see the warner computer name next. Edit/Update Files (2) This is the section of database management that lets you work on individual records (days) of data. Once you have answered the database location prompt you will see another menu called the File Edit/Update Menu. At the top of the screen you will see the name of the file you have selected, the number of records in the file, the starting date of the file, and the ending date of the file. Edit/Update Menu <1> List Records <2> Enter Records <3> Adjust Records <4> Change Records <5> Delete Records <6> Print Records <7> Sort Records <8> Search Records <9> WRITE to Disk List Records (1) You can view all of your data by listing it to the screen. You will be asked to input a starting record number or starting date to begin the listing. The scrolling of data can be stopped and started with the spacebar. Once you have stopped the listing you can return to the Edit/Update Menu by pushing <Esc>. Enter Records (2) The ability to enter data manually has been provided. The date must be entered in the YYMMDD format. The values of the last record in the file are displayed for reference. In case of an erroneous entry, continue entering the remainder of the data for that record, then respond "N" for NO to the OK? prompt and enter the correct data by following the prompts. Adjust Records (3) This selection will let you adjust any data for splits, dividends, distributions, etc. You will be asked to input the starting record and ending record for the adjustment period along with the amount of the adjustment. For example, to adjust a stock file for a 2 for 1 split you could enter a 2 for the adjustment factor. Then you would divide all of the price data by 2 and multiply the volume by 2. Since the changes are not written to disk until you select that option, experimentation with this feature will help in understanding all of its capabilities. Basically, you can perform any arithmetical computation to any or all of the data over any time period. Change Records (4) This will let to make changes to any record in your data file. Most errors in data become quite obvious when the data is displayed graphically. Delete Records (5) With this selection, you can delete a single data record, any number of records from the beginning of the file, or any number records from the end of the data file. Print Records (6) This will print the data file on your printer using the instructions that you give it. If it says it requires more than 80 columns, you will need to set your printer to condensed mode, unless you have a wide carriage printer. Sort Records (7) This will ensure that all the data records are in chronological order. Search Records (8) This option allows you to locate any data value for any component of the data file. It will initially display the minimum and maximum values for each TICKER or data component in the file. You will be able to select exact values, greater than, and less than. You can also input a tolerance if not searching for exact values. *** IMPORTANT *** With the exception of List, Print, and Search, the results of any of these operations are only stored in the computer's memory. None of the operations are stored permanently on your database disk (subdirectory) until selection "(9) WRITE to Disk" has been chosen. Therefore, you can always experiment with the various features as long as you do not select "(9) WRITE to Disk." On the other hand, if you wish changes to be made, you MUST select "(9) WRITE to Disk" or all changes will be lost when you <Esc> from the Edit/Update Menu. Note that as each option is selected and actually used, a flag flashes to remind you of the operations used and that the changes have not yet been written to disk. Plot The APEX Plot program consists of two separate but related modules; the graphical analysis module and the analyze trading strategies module. The graphical analysis module will be covered first, then a complete description of the strategies module will be discussed. Graphical Analysis Description The Plot program will let you display any of your data graphically and allow you to do further analysis once the data is on the screen. The APEX Plot Program is available by selecting P from the APEX Program Menu. The first thing you will be asked for is the location (path) of your database. Type the drive letter and path (hard disk) and you will then see a listing of the files in that database. If you are using APEX Financial/Market Data or APEX Mutual Funds, you will be asked to select one or two files for analysis. If you want only one file, enter a zero for the number of the second file. If you have not opened an account with Warner and downloaded any data, use the sample database that is on the Ticker Diskette. You will next be asked to select the number of records to be plotted. Once you select the number of records for plotting, the prompt will automatically show the starting record for the data you have selected. If you want the most recent data, just push <Enter> and the most recent data will be loaded for the number of records you have selected. If you wish to look at earlier data, you must type an earlier record number; typing 1 will load the first part of the data file. If you are using APEX Financial/Market Data or APEX Mutual Funds, after the files are loaded into the computer's memory, you will be asked to select two TICKERS for analysis. Select any two from the list of TICKERS displayed on the screen, by typing the number(s) that precede the TICKER. Next you will be shown the APEX Plot Menu. APEX Financial/Market Data APEX Mutual Funds <1> On-Screen Graphic Analysis <2> Analyze Trading Strategies <3> List / Print Data <4> List / Print Statistics <5> Change Graphics Mode <6> Change Graphics Colors <7> Select New Tickers <8> Select New File(s) If you are using APEX Stocks/Options or APEX Futures/Commodities you will not have item "<7> Select New Tickers" because each TICKER is an individual file. The menu for these two programs is as follows: APEX Stocks/Options APEX Futures/Commodities <1> On-Screen Graphic Analysis <2> Analyze Trading Strategies <3> List / Print Data <4> List / Print Statistics <5> Change Graphics Mode <6> Change Graphics Colors <7> Select New File If you are using APEX Point & Figure, the Plot program menu will be as follows: APEX Point & Figure <1> Plot / Analyze Data <2> List / Print Data <3> List / Print P&F Data <4> Select a New Chart Type <5> Select a New File <6> Select Graphics Mode <7> Select Graphics Colors On-Screen Graphic Analysis When "(1) On-Screen Graphic Analysis" (or Plot/Analyze Data for Point & Figure) is selected you will be shown the plot settings menu which determines how the data is going to be plotted. The Change Settings menus are different for each APEX program and are discussed individually below. APEX Financial/Market Data APEX Mutual Funds If you have APEX Financial/Market Data or APEX Mutual Funds, the Change Settings menu will look like this: <A> Charts: (1) or (2) Plots = 2 Plot Overlap: (0 to 100)% = 25 <C> Plot 2: Line (1) or Bar (2) = 1 Selection A will let you display the first TICKER loaded or both TICKERS. Selection B will determine the amount (%) of overlap of the two graphs if you have selected two plots. If you select A equal to 1, selection B will automatically change to 100. You can experiment with this to get the display you like. Selection C will let you display plot 2 as a line or bar (histogram) plot. APEX Stocks/Options APEX Futures/Commodities If you have APEX Stocks/Options or APEX Futures/Commodities, the Change Settings menu will look like this: <A> Screen: Full(1) or Split(2) = 2 Plot 1: (25-100)% Full Screen = 60 <C> Plot 1: Line(1) or Bar(2) = 2 <D> Plot 2: Line(1) or Bar(2) = 2 <E> Scale 1: Linear(0), Log(1) = 0 <F> Open Interest Plot: Off(0), On(1) = 1 Selection A will let you display only the price data (Full) or the price data with the Volume data (Split). Selection B will determine the relative size of the two plots, if A is equal to 2. When you enter a percentage between 25 and 100, plot 2 will fill up the remainder of the screen. If selection A is 1, selection B will automatically be set to 100. Selection C will determine whether the price data is displayed as a bar (high-low-close) chart or as just a line plot of the close price. Selection D will display the volume as a line plot or as a more typical volume histogram. Selection E will let you display the price data with a linear price scale or a log price scale. Selection F will determine whether Open Interest is overlayed over the volume plot. If Open Interest is not in the database (common stocks), this selection has no affect on the plot. APEX Point & Figure If you have APEX Point & Figure the Change Settings menu will look like this: <A> Box Size: (0.25,0.5,1,2,3,...) = 1 Boxes per Reversal: (1,2,3,...) = 3 <C> Box Height in Pixels: (3 to 10) = 5 <D> Box Width in Pixels: (3 to 10) = 5 The Box size refers to the number of points a stock must move to have a box displayed on the screen. The number of boxes per reversal refers to when the display will change direction based upon stock movement. Many good books are available on Point & Figure analysis. It is not the intent or purpose of this software to explain methods of analysis. However, a box size of one and a reversal of 3 boxes is usually considered a standard. The Box Height and Width refer to the physical size of the boxes on your screen. You can experiment with them until you find the size you like. Saving Changes Once you have made changes to the Change Settings menu(s), you can write them to disk by selecting "S" for Save and this is the way the plots will always be displayed until you change them. If you make any changes to the Change Settings menu without saving them, they will stay in effect until you exit the program or you change them again. If you do not wish to make any changes to the Change Settings menu, just select <Enter> and the data will be plotted according to the Graphics Modes and Colors that you have selected from the Plot Menu (discussed later in this section). The Graphics Screen(s) Once the data is displayed on the screen you have a large number of analysis features that are available to you. These can all be reviewed by continual pushing of the "?" key and reading the features list at the bottom of the screen. Onscreen Analysis Features <M> for Menu. Returns you to the APEX Plot Menu. for Information. This information will depend upon the data you have plotted, but is normally the high-low-close for the data plotted, the mean, standard deviation, and file name(s). <A> for Arithmetic moving average. Same as a simple average. Once you select A, you will be asked whether it is for plot 1 or 2 (if two plots are on the screen), then you will be able to input any period for the average. Lastly, you will be asked if you wish to shift the average to the left and by how many periods. If you do not want to shift the average, just push <Enter>. <S> for Smooth. Same as an exponential moving average. Smooth works the same as Average except that you cannot shift the smooth to the left. <%> for Trading Bands. Percentage bands. Once you have an Average or a Smooth on the screen you can put percentage trading bands around it by selecting %, then you will be asked to input the percentage. The bands can only be used with the last Average/Smooth that was put on the screen. for Print. Prints the screen on your dot matrix printer. Works with most IBM/Epson compatible printers. <Ctrl> for alternate dot matrix printout. <Ctrl><L>, then 1, 2, or 3 for small, medium, or large laser printer support. Works with Laserjet compatibles. <N> for Next. Displays the next set of onscreen options. Continue to push "N" to see all of the options. <?> for Help. Displays the meaning of each onscreen feature. Continue to push "?" to see all of the features. <D> for Date. Puts meaningful date lines across the screen. The date lines have been preset depending upon the amount of data you have plotted. Use the Cursor Read feature to identify exact dates. <*> for Title. Allows you to input a title of your choice. You will be prompted to enter a title that will be displayed at the top of the graph. If you try to enter a title that is too long you must start over. <^> for Form Feed. Form feeds your printer. <+> for Line Feed. Line feeds your printer. <C> for Cursor. Displays a full-function vertical cursor. The cursor can be moved a period at a time with the left and right arrow keys or it can be moved 10 periods at a time with the Tab and Shift Tab key. <R> for Read. Displays information about the data under the cursor. This information will normally be the date, the price data values, volume, and open interest. If the Open Interest is "off" in the Plot Change Settings menu, the value of the last Average/Smooth put on the screen will be displayed. <L> for Lines. Puts you into the onscreen line drawing mode. Trendlines can be drawn anywhere on the graphics screen. Trendlines can be drawn by first moving the small tick mark on the cursor to the left end of the line you wish to draw. This tick can be moved in any direction with the four arrow keys. Once you have the tick where you want it, push the "M" key to Mark that point, then move the tick (arrow keys) to the second point and push the "M" key again. A line will be drawn from the left point through the second point and to the right margin of the plot. Any number of trendlines can be drawn on any plot. <E> for Parallel Lines. Draw parallel line(s) to last trendline. Once you have any trendline on the screen, a parallel line can be drawn by placing the small ticker at the point you want the line to begin and then pushing the "E" key. Any number of parallel lines can be drawn this way. Think of the "E" as Equal. "P" could not be used for parallel because "P" is for Print. If you have APEX Point & Figure, you will not have many of the above mentioned features because they are not relevant to point & figure analysis. APEX Point & Figure has two unique onscreen features: (/) for Upward trendlines and (\) for downward trendlines. Once these trendlines are invoked, you may move them anywhere on the graphics screen by using the four arrow keys on your keyboard. They may be increased in length by using the '+' key and decreased in length by the '-' key. When you want the trendlines to remain on the screen, use the 'F' key to 'Fix' them to the graphics screen. Pushing "ESC" will take you out of the trendline mode. Change Graphics Mode This feature will let you keep your APEX software current with the video capabilities of your computer system, both now and in the future. Of course, if you select a mode that is not available with your system, the results are unpredictable. If you are not sure what graphics capability you have, select any mode, return to the Plot menu and select number one to plot the data. Select <Enter> at the Change Settings menu and you should see the plot appear on your screen. If the screen goes blank, select "M" for menu and try the process over again by selecting a different graphics mode. The most common mode is "C" for normal CGA graphics. If you have a monochrome screen, the mode "I"(Hercules) is probably the correct mode. Change Graphics Colors If you have a color video system and have selected a color graphics mode, you can select a wide variety of color combinations for your graphics display. The overlay colors refer to the numerous moving averages and exponential smoothings that can be on a graphics plot. Once you have the colors you like, you have the option to Save them to disk. They can always be changed at any time. List / Print Data This will let you view on the screen or print on your printer the data that you have loaded. If scrolling on the screen, the spacebar will stop and start the scrolling. List / Print Statistics This feature will display on your screen or print on your printer various statistics about the data you have loaded. The data statistics are: Number of records, Maximum value, Minimum value, Mean, and Sigma. Select New File(s) This will let you load new data files for further analysis. If you have APEX Financial/Market Data or APEX Mutual Funds, you can select one or two files. The other APEX programs will let you choose only one file at a time. Select New Tickers This menu selection is only available on APEX Financial/Market Data and APEX Mutual Funds. It will display the TICKERS in the data file(s) that you have already loaded and then let you choose two more TICKERS to analyze using the same plotting periods as before. Analyze Trading Strategies General Concepts and Definitions A thorough discussion of trading systems and methods will not be included in this manual. There are numerous good books on the subject that may be referred to for more information. A trading system is a set of rules that are used to generate signals. Most trading systems have more than one parameter. Parameters are values that can be assigned in a system to affect the timing of trading signals. Each parameter can usually be incrementally tested by itself or in combination with other parameters. A problem exists with trading systems that have too many parameters; that is the ability or difficulty in testing more than a small selection of the parameters. If each parameter can have 10 values, there would be 1000 possible combinations if there were just 3 parameters. Six parameters with only 10 values would yield One Million combinations. Therefore a system that includes the important parameters, yet keeps the testing relatively simple, is likely to produce results that are more than reasonable. The APEX system is designed to be used as multiple parameter system with only two parameters that can be incrementally tested. These two parameters are the Price and a Single Moving Average or Two Moving Averages. The other parameters that can be used with either of these techniques are a time-delay (duration) and the execution price (today or tomorrow). Optimization refers to the process of finding the best performing combination of parameters for a given market. The underlying premise of optimization is that parameter combinations that worked best in the past have a greater probability of good performance in the future. Program Operation Selection [2] from the Plot Program Menu will take you to a new menu called: "Analyze Trading Strategies." Immediately below the title you will see the name of the ticker you have loaded for analysis. Note the <?> at the bottom of the screen showing you that a help screen is available for this menu. <1> Select Trading Strategy Parameters <2> Display Single Moving Average Trades <3> Display Double Moving Average Trades <4> Calculate Optimum Single Moving Average Period <5> Calculate Optimum Double Moving Average Periods <6> Display Optimization Results The following discussion will cover each item in this menu. Included in the operational discussion will be the theory and logic behind the optimization of moving averages. More information can also be found at the end of this section in the Summary. Select Trading Strategy Parameters Upon selecting <1> you will be shown a parameter setting screen from which you can change up to seven different trading parameters. Note that there is also a help screen available. The "Select Trading Strategy Parameters" screen looks like this: PARAMETER SETTING <A> Buy Long and Sell to Close: (0)No or (1)Yes = 1 Sell Short and Buy to Close: (0)No or (1)Yes = 1 <C> Crossover Duration: (>0 Periods) = 1 <D> Start Record: = 1 <E> End Record: = 240 <F> Trade at Close: (0)Today or (1)Tomorrow = 0 <G> Ignore First Trade: (0)No or (1)Yes = 1 Any of these parameters can be changed by first typing the letter for the parameter you wish to change and then entering the new setting. The prompts at the bottom of the screen will step you through the process. Parameters <A> and refer to the "long" and "short" side of the market. In other words, if you wish to trade both sides of the market, these parameters should both be set to (1). The "Long" or BUY side of the market refers to buying a security and a profit is realized if the price of that security goes up. This is the most common method of security investing and in some markets (mutual funds) is the only method of investing. The "Short" or SELL side of the market refers to the act of short selling or put buying (options). This means that you make a profit if the price of the security goes down. If you are only interested in the BUY side of the market, you should set parameter to 0. There are numerous other vehicles and methods available, but that is not the purpose of this manual. As an example, if you invest in a mutual fund, you will buy the mutual fund and hope to sell it at a later time at a higher price. When you sell the mutual fund you will probably put your money into cash or a money market fund for safety. In other words, you are out of the market and waiting for another opportunity to invest in the mutual fund. To set up the parameters for this type of strategy, you would set <A> to 1 and to 0. Some traders will want to maintain exposure to the market by being active on the long side and the short side. This means that when a sell signal is given, they will sell and sell short and when a buy signal is given, they will cover their shorts and buy. Most commodity/futures speculators trade this way. The terminology used here doesn't always apply to futures, but should be understood by all. To set up for this strategy, both <A> and should be set to 1. The crossover duration <C> allows you to experiment with delays in the timing of the trading signals. A duration of 1 period means that the signal was executed immediately based upon the parameter setting for <F> (explained later). In other words, if a buy signal was generated by the moving average(s), a delay of so many days would occur before the actual purchase or sale was made. This feature will help eliminate the dreaded "whipsaw" that hampers so many trading techniques. Remember, though, eliminating whipsaws also dampens timing. Selections <D> and <E> allow you to optimize and test only certain portions of the loaded data file. This is good for optimizing the averages over the first portion of the data and then trading the results over the latter portion to see if similar results are obtained. The values are always defaulted to the beginning record (1) and the ending record (based upon how much data was loaded). Selection <F> allows you to test a strategy based upon the time of actual execution of the trade. Executing at the close today is somewhat theoretical because the close today was needed to obtain the trading signal. You could, however, enter a value for the close in the database during midday and work under the assumption that if the actual close is near that value, then you could still get an execution just prior to the close of the market. By selecting the close tomorrow you will get a precise execution, but a full day's activity will have gone by before you act upon a trading signal. Ignoring the first trade (selection G) is necessary for fine-tuning the strategy. It is recommended, but not required, that this parameter be set to (1)Yes. This is due to the nature of arithmetic moving averages. If you have a 25 day average, the first actual calculated value for the moving average is 25 days (periods) after the start of the actual data. If the price is above the average at that point, then that day is considered the day of the first buy signal. Likewise, if the price is below the average on that day, it is considered the first sell signal. By ignoring the first trade, you will get an actual crossing of average and price or crossing of two moving averages for the first actual trade signal. Pressing <Esc> will return you to the "Analyze Trading Strategies" Menu from where you can begin the optimization process or calculating actual trade histories based upon single or double moving averages. Single and Double Moving Averages At this point an explanation of single and double moving average theory would be appropriate. Using a single moving average for a trading technique is quite simple. If the moving average rises above the price, then a sell signal is generated, and when the moving average goes below the price a buy signal is given. This, of course, is the simple case. The Trading Strategy Parameters discussed earlier will alter the actual timing and results of this, but the general concept is the same. The technique of using two (double) moving averages eliminates the use of the actual price and substitutes another moving average. Normally, this is referred to as the Short Term Average. This is a moving average that smooths the actual price so that there are fewer "whipsaws" in the trading system. The other moving average (Long Term Average) serves the same purpose as the moving average in the single trading system; that is, to provide crossover signals for the Short Term Average. Calculate Optimum Single Moving Average Periods Selection <4> from the "Analyze Trading Strategies" Menu will take you to a three item selection menu designed to set the testing range for the Short Term Average. When using the single moving average strategy, the average is referred to as the Short Term Average. <A> Short Term Average Low Value: = 6 Short Term Average High Value: = 44 <C> Short Term Average Increment (>0): = 2 Here you will set the beginning value for optimizing the single moving average system (6 in this example). This means that the optimization routine will start with a moving average value of 6. Selection is where you will set the high value for the optimization routine. Selection <C> is where you can set the incremental value or step value as the optimization routing makes its calculations. In the above example the low value is at 6, the high value is at 44, and the increment is at 2. This means that the first average will be 6, the second one will be 8, the third will be 10, and so on, up to 44. At the top of the screen, below the title, you will see the number of different trials that will be calculated based upon the parameters you set in A, B, and C. Obviously, the more trials, the longer it will take to finish. The time will also be dependent upon the computer you are using. There is one limitation here, and that is a limit of 1600 trials. Once you have entered the low, high, and increment values for the Short Term Average, pressing <Enter> will let you review the current trading strategy parameters you entered earlier and then begin the optimization calculations. Upon answering 'Y' at the prompt you will be given the opportunity to send the results to your printer. If you answer 'N' to the printer prompt, the results will be shown on the screen as they are being calculated. Once the calculations are finished, you will be returned to the "Analyze Trading Strategies" Menu. Display Optimization Results To see the results of the optimization run in a logical order, select <6> from the 'Analyze Trading Strategies' Menu. You will see a prompt at the bottom asking if you wish to sort the results. If you answer 'N', the results will be displayed in the order that they were calculated. Of course, you will be given the opportunity to send the results to either your printer or to the computer screen. A better method is to sort the results by answering the "Sort Results (Y/N)" prompt with a 'Y'. Here you will see a new screen of items that have been calculated for each of the optimization trials. Sort Results High to Low <0> Trial <1> Buys <2> Sells <3> Trades <4> Gain <5> AvgGain <6> B-Draw <7> S-Draw <8> Avg#1 <9> Avg#2 (Double Average only) First determine whether you want the results sorted high to low or low to high. Pushing the spacebar will change the order. Next select the item you wish to sort on by entering the number preceding it. For example, if you have it sort from high to low and then sort on the Gain, the same information you saw in the unsorted display will be rearranged in order of highest Gain to lowest Gain. The following discussion will define each of the items that are calculated in the optimization routine. TRIAL - this is merely a numerical reference to the order in which the calculations were performed. BUYS - this is the number of BUY trades generated by the specific strategy you have selected. SELLS - this is the number of SELL trades generated by the specific strategy. TRADES - this is the total of BUYS and SELLS. GAIN - this is the total gain from the optimized trading strategy. AVGGAIN - this is the GAIN divided by the TRADES. B-DRAW - this is the amount of points that the price went against (DOWN) you during a long position. In other words, it represents the quality of the timing signal and how much staying power you would need to follow this specific strategy. Drawdown is a term used almost exclusively with futures and commodity trading. However, when evaluating a trading strategy, it is necessary to assess the risk factor. S-DRAW - this is the amount of points that the price went against (UP) you during a sell signal. AVG#1 - this is the value of the Short Term Average. AVG#2 - this is the value of the Long Term Average (if using the double average optimization routine). At the bottom of the listing will be a repeat of important information about the optimization routine, such as: the TICKER name, the required Duration, etc. Once you have the information sorted to your liking, take note of the value of AVG#1 and return to the 'Analyze Trading Strategies' Menu (press spacebar). From here you can select <2> to analyze the specific trading history of the moving average that had the most appealing features. Note that Gain is not always the most important feature, B-Draw and S-Draw and AvgGain are also noteworthy items to consider. Display Single Moving Average Trades When you select <2> you will be shown again the current strategy that you entered earlier and you will be prompted to enter the value of the Single (Short Term) Average that you liked from the optimization results. Type the number and press <Enter>, again the opportunity to send the results to the printer or not will be shown. The next display will show the Ticker, the value of the moving average you just entered, and the crossover duration at the top. Then you will see a trade by trade summary of the buy and sell signals generated with the average you have selected. The Gain is the gain on that specific trade and the Net Gain is the cumulative gain from beginning to end. The Buy Draw and Sell Draw are based on the amount the price went against you for each trade. A zero in the B-Draw or S-Draw column means that the timing was very good. Once you have viewed the tabular results, press the spacebar and you will be given the opportunity to plot the data with the selected average. The price data will be a line plot of the close price only. A dotted line will be overlayed on the price representing the average that you selected. At the bottom of the screen will be small up and down arrows denoted the buy and sell signals for this trading strategy. Refer to the Plot section for more details on the graphics screen analysis that is available to you here. It should be noted here that you do not need to calculate optimum moving averages before you can review a trading history. You could select <2> or <3> and pick a moving average value at random and then view the trading results as before. Calculate Optimum Double Moving Average Periods The previous discussion dealt with the single or short term moving average analysis. You have essentially the same capability with two moving averages, referred to as Double Moving Averages. This technique is also known as crossover analysis. Once you select <5> from the 'Analyze Trading Strategies' Menu, you will see a screen similar to the Single Average page, but has three additional settings. The first three (A-C) are the same as the values entered for the Single Moving Average optimization, but can be changed here if desired. The last three deal with the Long Term Average or second average. Keep in mind that the Double Moving Average is very similar to the Single Moving Average if the Short Term Average were equal to 1. This would then make the Short Term Average equal to the price and the results would be the same. As before, enter values for the low, high, and increment for both the short and long term averages. If you are using daily data, short term averages between 4 and 20 with an increment of 2 would be a good place to start. For the long term average, values between 25 and 80 with an increment of 5 would be adequate. You, of course, can choose any values you desire. See the summary discussion at the end of this section. IMPORTANT: You should not select a Long Term Average Low Value that is lower than the Short Term Average High Value. The software will ignore the overlap during calculation if you forget. Display Double Moving Average Trades As with the single average, you have the opportunity to display the results on your printer or screen and then you can select <6> to review the results in a sorted order. From the sorted order, depending upon your priorities, you can then select <3> to see a trade by trade history using the two moving averages that gave the results you liked. And, as before, you can plot the results and see the price, the short term average, the long term average, and the buy and sell arrows. Summary It should be noted that in a single or double moving average system, it is not necessary to test all possible combinations. For example, in the single moving average system in which you wish to test the performance for values from 5 to 60, it is not necessary to test every integer value in this range. A faster and more efficient method would be to test the system with an increment of 5 (5, 10, 15, etc.) and then to focus in on any areas that became of interest from the results. For instance, if the values of 25, 30, and 35 yield good results, you might run the optimization routine again with a range between 25 and 35 and an increment of 1. Another practical example would be with the double moving average system or crossover system. If you were interested in the performance of the system for parameter values 5-30 for the short term average, 20-100 for the long term average, and time- delay or duration from 1-15, there would be a total of about 29,940 combinations - impractical to test, let alone evaluate the results. You cannot reduce the range without damaging the basic intent of the testing. Therefore, a limited number of parameters can be tested by spacing the parameters or increasing the amount of the increment. This will provide a good approximation without hurting the overall performance of the trading system. It should be noted here, that the time-delay (duration) can be changed with each test run. It cannot be setup with a range and increment like the moving averages. Once you have reduced the number of trials (combinations), the results can be analyzed to find an area of interest and then another optimization run can be performed with a range of parameter values that fall around that area. The number of trials or combinations is calculated automatically whenever you change the range or increment. Therefore you should experiment to find a total number of trials that you are happy with. Remember that the limit is 1600 trials. One more point to keep in mind; any optimization results that end in substantial losses is more valuable than first impression. If some of the losses are greater than the best gains, then just do the opposite when a signal is generated. EXport Description The EXport program will let you export (transfer) any or all of your data into numerous other popular data formats for use with a wide variety of software programs. If you use this feature be sure to have a formatted diskette or a new subdirectory available for the data to exported to. If you are going to export data to the CompuTrac format, the destination must be a CompuTrac compatible database. The following conversions can be performed quickly and easily; just follow the prompts. First select the format and then you will need to give the drive letter and path (hard disk) to the APEX database that has the file(s) you wish to export. Once a file is selected you will then be asked for the drive letter and path for the exported file to be written to. FORMAT SUFFIX ASCII Comma-Delimited Format .ASC ASCII Space-Delimited Format .ASC DIF Data Interchange Format .DIF WKS Lotus 123 Format .WKS CT CompuTrac Format N/A Data can only be exported to these formats. More formats and data importing may be available with future updates to the APEX series.