Each month in this
Journal, our technical support staff addresses issues of interest to many CSI
subscribers in a question-and-answer format. This month, they present questions
about Unfair Advantage(UA), focusing primarily on premium services.
The views and information expressed
in this document reflect the opinions and experience of the author Robert C.
Pelletier. Neither CSI nor the author undertake or intend to provide tax
advice or trading advice in any market or endorse any outside individual or
firm. All recommendations are provided for their informational value
only. Readers should consult competent financial advisors or outside
counsel before making any software purchase or investment decision. CSI
does not stand behind or endorse the products of any outside firms.
Copyright (c) 1998 Commodity Systems Inc.
(CSI). All rights are reserved.
Information from CSI's Customer
UA's Uninstall function should only
be used if UA is stored in its own directory (probably C:\UA). Do not use
Uninstall if the software is in your root directory (probably C:\).
Always back up your hard
drive before using any Uninstall program!
Questions and Answers
I have been experimenting with
Unfair Advantage's Seasonal Index on back-adjusted data. Most files chart fine,
but a few are always distorted. How can I correct this?
You are probably trying to create a
Seasonal Index with negative price values. This will not work! To avoid
this problem, do not attempt to run a seasonal index where any part of the
input time series holds negative prices. Seasonal calculations can be
improved when run against detrended data. Another alternative would be to
use proportional back-adjusted input, or Perpetual Contract data.
The trading algorithm I have
worked out using back-adjusted data looks very rosy. It is so good, in
fact, that I am suspicious of my results. How can I be sure my trading
system is not biased?
All users should be cautioned that
the employment of back-adjusted series can result in questionable distortions
caused by the additive process in the contract splicing. Profits earned
from inflation are not necessarily real profits, in an economic sense, because
part of the investment returns represent interest earnings that you might
consider discounting after the fact. (Note: the IRS believes otherwise because
they tax inflationary interest earnings, nevertheless.)
How can I get the new proportional
back adjustments in Unfair Advantage?
Current UA subscribers can download
it from our UA website on the Internet at
http://pcweb.csidata.com/ua/uax.htm Please look for version number 1.70.2
How does UA handle corrections to
discovered errors in my master database?
Every error reported by CSI
customers or detected by CSI staff members is corrected in CSI master data
archives and is corrected in the CSI master data archives and is remotely
corrected on every customer's master database. This maintains a virtually
duplicate copy of the database on every customer's computer. Corrections can
address any date for any commodity, up to and including the last day
transmitted. A typical daily update includes error corrections,
yesterday's data, and the new data reported for the current day. This
policy was in force with UA from the day it was first released, but problems
with the software reduced the effectiveness of this design feature. Now, with
recent design changes, the product satisfies most of the initial design
How can I download new Commodity
Database files (CDBs) for UA's master data archives?
Version 1.70.2 has a history
refresh option that permits you to download automatically the full history for
any or all the items present in your defined portfolios. You simply click on
the history refresh option and you will be greeted with a list of all markets
with your personal portfolio items highlighted. Delete those not wanted
and add any others to your list by clicking on the exception items, then press
the download button. In a few minutes, you will be in business with a new or