04-29-2015, 08:54 PM
Okay, Twice. Great question. How do I answer this such that it actually makes sense while not divulging too much of how this is done? What we have here is a 5-day trailing average on the DJIA (blue line). Then, the orange line is what the dreambot predicts will be the DJIA 5-day average, and it does this based solely on a handful of common dream words.
So, depending on how many hits each of the dream words has, the database takes those amounts and automatically calculates what 5-day DJIA average WILL BE as of tomorrow's close. The equation for this was built based on about 40 days of stats back in the Fall of 2014. I haven't tinkered at all with that original equation, and without keeping track of the lines, I diligently gathered daily closing prices for the DJIA. About a week ago, I decided to see what the correlation data was, fully expecting that the correlations would be basically zero. Boy was I wrong!
Correlation value between the predicted closes from the dreambot vs actual DJIA close is .909!! That is absolutely incredible, considering that I can still go back into the equations and fine tune it even more!Â
Just the tip of the iceberg, folks, and you get a front seat ticket!
So, depending on how many hits each of the dream words has, the database takes those amounts and automatically calculates what 5-day DJIA average WILL BE as of tomorrow's close. The equation for this was built based on about 40 days of stats back in the Fall of 2014. I haven't tinkered at all with that original equation, and without keeping track of the lines, I diligently gathered daily closing prices for the DJIA. About a week ago, I decided to see what the correlation data was, fully expecting that the correlations would be basically zero. Boy was I wrong!
Correlation value between the predicted closes from the dreambot vs actual DJIA close is .909!! That is absolutely incredible, considering that I can still go back into the equations and fine tune it even more!Â
Just the tip of the iceberg, folks, and you get a front seat ticket!