Algorithmic Pattern Recognition

Pattern Recognition & Mapping

1. A learning system most often

using supervised training data &
data mining

2. Pattern Recognition seeks

“most probable & best solution”
for all input(s)

3. Pattern Matching or Mapping

seeks to find exact match(es) of
the input(s) with pre-existing
patterns
Pattern Mapping Applications

Pattern Mapping Algorithms

1. Used by Algorithmic and High

Frequency Trading (HFT) systems

2. Provide fastest Price Action

Pattern Mapping Entry solutions

3. Common Applications: Deep

Thinking (Chess, Medicine), DNA
Sequencing, Biometrics, Threat
Scenarios, Data Mining, Voice
Pattern Mapping In Trend Trades

Pattern Mapping in Trading

1. Input Chart = Chart being

evaluated by the Algorithm(s)

2. Mapped Matrix = Pattern Match

the Input Chart with its Heiken
Ashi (HA) Chart (> 60 Price Bars)

3. Heiken Ashi Price Action (a)

average of 75% HA Price Action →
Momentum Trend Run (Up follows
Up; Down follows Down)
Set Charts To > 60 Bars

Trend Hack → Time

Frames

Input Chart > 60 Price Bars

Monthly 5 Years

Weekly 1 Year (14 mos)

Daily 3 Months

H4 2 Weeks

H1 3 Days
Pattern Mapping Using Heiken-Ashi

Heiken Ashi Input Chart → (“Average Pace”)

StockCharts.com → Excellent Heiken Ashi Reference
Power Of Heiken Ashi
On H1 Example

Heiken Ashi Input Chart

→ Example H1 (3 Days)

1. Momentum Trend Run

2. Up Follows Up
3. Dn Follows Dn

Example H1 Chart:

Heiken Ashi on H1 =

73% Trend Efficiency

Power Of Heiken Ashi
On H4 Example

Heiken Ashi Input Chart

→ Example H4 (2 Wks)

1. Momentum Trend Run

2. Up Follows Up
3. Dn Follows Dn

Example H4 Chart:

Heiken Ashi on H4 =

76% Trend Efficiency

Power Of Heiken Ashi
On Daily Example

Heiken Ashi Input Chart

→ Example Dly (3 Mos)

1. Momentum Trend Run

2. Up Follows Up
3. Dn Follows Dn

Example Dly Chart:

Heiken Ashi on Dly =

78% Trend Efficiency

Trend Hack Homework = Create
Strong Belief!

Select 3-5 Different Underlyings

Use Heiken Ashi Charts With > 60 Bars

Select 3 Different Time Frames

PROVE For Yourself That The Heiken

Ashi Trend Efficiency Is > 70%!
 Trend Hack What Is Next
To Do?
Heiken Ashi Applications & Ideas

Attack Pullback Setups Using Fibs

Attack Double Tops/Bottoms

Trend Reversals Using Divergences

Apply Betting Schedules To Exploit

The > 70% Trend Efficiency Bias