In This Issue
August 1998

Journal Index
Pg. 1

Tech Talk
Pg. 2

Market Statistics 
Update &  IPO's
Pg. 3 


  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.

Technical Journal Index (Part II)
Reviewing the contents of prior Technical Journals


   This is the second of a two-part index of feature articles published over the last few years in the CSI Technical Journal. It includes the date of issue and a brief description of the content. Back issues are available from CSI for $5 each.


"To Stop or Not to Stop? A Question Every Trader Must Answer"
  Discusses using stops to protect assets, rather than pre-arrange the extent of your next loss. (An encore presentation originally printed 12/94)

"Out-of-Range Settlement Prices - Our Answer to an Overlooked Problem"
  Describes the CSI database as the only source offering the option of viewing actual market prices, which may include out-of-range settlement prices. This article discusses the problem and explains CSI's logical solution.

"How to Avoid Paying Referral Fees"
  Exposes the common practice of kicking back money to third-party software vendors.

"Time Series Transformations - Converting Raw Data into Profit Opportunities"
  Draws on Bob Pelletier's military experience with sonar signal processing to apply similar theories to market projection. Techniques include transforming raw data into stationary data, transforming and enhancing stationary data through differential smoothing, and transforming differential data into trading signals. (An encore presentation, originally published 3/93)

"Customizing Computed Contracts with Unfair Advantage"
  Overviews the continuous contract capabilities of UA. Options include Gann, nearest future, open interested weighted, back adjusted and Perpetual Contract Data series.

"The Consequences of the Federal Reserve's Decisions on the U.S. Economy"
  (Part II of II) Addresses the unbridled power of the Fed's 12-member Federal Open Market Committee (FOMC) in shaping the course of the U.S. economy. It also explores how the Fed impacts our money supply, our "free market" economy and the lives of all Americans. (An encore presentation originally printed 7/95.)

"Unfair Advantage: On Your Mark, Get Set, Go!"
  Details the long-awaited release of Unfair Advantage.

"The Impact and Influence of the Federal Reserve System on the U.S. Economy"
  (Part I of II) Explains of the basic purpose and functionality of the Federal Reserve System. Discusses Fiscal Theory and the Monetary Theory and demonstrates the enormous power placed in the hands of the Fed to control the U.S. economy as a whole. (An encore presentation originally printed 6/95.)

"Revolutionary New Software is Almost Here!"
  Discusses Unfair Advantage's scope and capabilities. Features such as extensive format support, automatic error correction, unique data banking methods and more are discussed.

"Getting Connected"
  A partial listing of Internet Service providers suggested for UA subscribers.

"Training, Testing, Assessment and Certification of your Market Trading System (An Official Guide to Trading System Design - Part III)"
  The final edition of a three-part series on creating a viable trading system, this article recommends synthesizing market movement with a constant time series. It explains why synthesis should be followed by extensive training, and then a distinct testing period. The Monte Carlo testing approach is recommended. (An encore presentation originally printed 11/94.)

"An Official Guide to Trading System Design - Part II (Promising Trading Tools and Methods)"
  This second of a three-part series focuses on the selection or design of a trading system. Tools such as breakout systems, the Kalman Filter, counter-trend analysis and neural networks are discussed. (An encore presentation originally printed 10/94.)

"An Official Guide to Trading System Design (Part I) A Practical Procedure for Mining Market Profits"
  Discusses the importance of the planning process, the broker tax, investment vehicles and asset allocation in designing a trading system. (An encore presentation originally printed 9/94.)

"How the CBT's "Project A" Affects Your Data"
  Differentiates between pit-session data and combined-session (pit plus Project A) data. Shows CSI numbers for these respective contracts for the soybean complex, corn, wheat, oats and rough rice.

"The Fundamental Value of Seasonal Data"
  Defines seasonal markets and explains how CSI's Seasonal Index data is constructed and interpreted (includes charts).

"CBT Wheat's Wild Ride - Definitely NOT an Error"
  Discloses that an unusual trading series caused the 49% price increase in a CBT Wheat contract. Although our phones were jammed with people reporting a possible error, the spike is correct.

"More Fixed Portfolios on the Way - Suggestions Wanted!"   QuickTrieve users are asked to contribute their own suggestions for replacements for fixed portfolios that have been eliminated.

"Choosing Causal Inputs to Feed Your Trading Model"
  Looks at the many kinds and flavors of input that are candidates for introduction into your trading system.

"Information Power that Fuels Markets and Trading Systems"
  Reports on the general direction of the data business and offers a peek at upcoming milestones. It also includes a historical retrospective of the data industry, including CSI.

"Introducing Fundamentals to CSI's MARSTAT Database*"
  Gives a listing of reports to be delivered by CSI. They offer insight into the importance of the dollar in the world economy, tracking the costs of goods, employment and retail sales, etc. Includes a list of useful government and business reports that are not necessarily available from CSI.

"Fundamental Intermarket Relationships that Spell Success"
  Expands on the basic premise that fundamentalists act when the markets are priced  lower or higher than the expected norms. It offers examples of fundamentalists' successes and failures, stressing that even the technician can benefit from looking at fundamental aspects of a market.

"A Brief Message About Who We Are"
  Explains the scope of CSI's products and services.

"The Care and Feeding of a Market Trading Model"
  Explores model building approaches using preprocessed time series data. Time, frequency and domain models are discussed, as are parametric control, and relevant model input.

"The Missing Analysis Step Novices Ignore: Pre-conditioning Input"
  Considers the many questions a trader asks while proceeding down the path of investing. It points out that many doubts and questions can be avoided if your underlying notion is carefully and prudently tested before implementation.

"Technical Journal Index"
  An index of the previous five years of CSI News Journals (now the CSI Technical Journal)

"The Consequences of the Federal Reserve's Decisions on the U.S. Economy, An Essay - Part II"
  Reveals the Federal Open Market Committee's unbridled control over the economy and the inevitable time lag between the raw information presented to the FOMC and the results of their actions. The political connection and a computerized alternative are discussed.

"AUDITRACK Revisited"
  Discusses a unique pseudo-brokerage service that provides audited trading results for paper trades made without investment capital. It allows the analyst to adjust to unforeseen market conditions without risk or to certify a proposed trading system.

"The Impact and Influence of the Federal Reserve System on the U.S. Economy, An Essay - Part I"
  Gives a historical perspective on the Federal Reserve and explains the purpose and functionality of the system. Discusses Fiscal and Monetary theories and demonstrates the enormous power placed in the hands of the Fed.

* Indicates proposed services that are not currently available from CSI.