Meta-Trader - The Face of Watson

Welcome back Meta-Traders.

Last week's jubliation regarding events in the Middle East gave way to fascination over IBM's Watson computer.

In case you missed the story, IBM's computer system nicknamed Watson - (after one of the IBM founders) took on human champions in the game show called Jeopardy this past week on national TV in the US.

The Jeopardy game requires broad, encylopedic knowledge of history, literature, music, film, popular culture, etc. It also requires deep language processing packed with puns, nuance and double-meaning. Needless to say, Watson crushed the humans. It could easily be argued that Watson was "curve fitted" or heavily trained on the Jeopardy game having been fed every Jeopardy game clue and answer for the 27 seasons the show has been on TV.

That said, I think IBM made the point that there's more information available then any human can access and process. Load that information into a massive search engine filled with every available information source, then tack on deep language processing, its easy to make the case that the Watson is the smartest machine on earth!

What does this have to do with Forex Trading? Nothing of course, but I was once a computer scientists in pursuit of machine intelligence. But my capitalist side won out. Makes you wonder what IBM could do in the Forex market if they brought their computing and intellectual resources to bear. Anyway, let's do the numbers.

Equities continue on an upward tear with the SP-500 closing higher in 12 out of the last 10 weeks. The SP-500 has now doubled from its low made back in March of 2009. My portfolio had a pretty good week, but ended off the highs with selloffs in AAPL, NFLX and AMZN. Offseting these sell off's somewhat was a monster breakout in Heath Care payment manager HMS Systems HMSY.

On the Forex side, I had a pretty good week as well. The week's winner was Atinalla #3 which picked up 183 pips or 2.61% for the week. What's more, it went into the weekend with 117 pips in open profit. This puts Atinalla #3 up 8.33% since starting it back on 1/11/2011.

Next up was Atinalla #1 which picked up about 32 pips on the week with a winner and a loser. Even better, it went into the weekend with 76 pips in open profits. This portfolio is up a spectacular +26.98% for the year.

Next up was Megadroid Live which did not trade due to DLL issues.

Next up was FX-Regression Live which had a pretty typical week winning on 8 out of 10 trades and picked up 45 pips on the week. Even so, it's down just over 1% for the year. I'm have to believe I can do better than this since it's results seem very close to a coin flip. If nothing else, I will learn something from the process - and i'll let you know what it is once I find out!

Atinalla #4 slowed its downward slide and lost 31 pips or -0.76% for the week. On the bright side, it has about 75 pips in open profit. I'm still not sure this account is performing properly, so we'll keep an eye on it going forward.

Megadroid Live didn't trade due to DLL problems. Atinalla FE Live did not trade this past week. Sapaq demo gained about 1.48% for the week.

Finally, Atipaq Full Portfolio has passed the demo test with flying colors and I will start trading this portfolio live next week with my remaining $2100 which has been sitting idle over at Forex.com.

Also, this Monday i'll be heading to Trader's Expo at the Marriot Marquis in New York City on Monday. Drop me a line if anyone else will be attending.

That's all, have a great week!