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.

Notice:
  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.
 
 
 
 
 
 
 
 
 

Important Notice

   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

Q.
   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?

A.
   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.

Q.
    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?

A.
   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.)

Q.
   How can I get the new proportional back adjustments in Unfair Advantage?

A.
   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 or higher.

Q.
   How does UA handle corrections to discovered errors in my master database?

A.
   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 objectives.

Q.
   How can I download new Commodity Database files (CDBs) for UA's master data archives?

A.
   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 refreshed database.