Omicron Research Institute

QuanTek Econometrics Software


Help File Articles

Introduction to QuanTek  (Revised March 11, 2013)  This article describes the background for the QuanTek program, with regard to the sciences of Econometrics and Signal Processing.  It discusses the concepts of Random Walk model, Efficient Market Hypothesis, and possibility of market inefficiencies. It also contains a discussion of Econometric time series as stochastic processes.

Overview and Main Features of QuanTek  (Revised January 10, 2014)  This article gives a rather detailed overview of the entire QuanTek program, how it works, and how best to utilize it for short-term trading.

Statistical Displays and Tests in QuanTek  (Revised August 26, 2006)  This article begins by discussing some of the various possible mechanisms for inefficiency in the financial markets as a source of correlation in the financial returns.  Then the basic design of the Linear Prediction filters used in QuanTek is described.  The article then goes on to describe the statistical tests and displays in QuanTek, and then the design of the technical indicators used by QuanTek.  As an example, a comparison with the standard MACD indicator is made.

Portfolio Optimization in QuanTek  (Revised January 30, 2014)  This article describes the mathematical theory behind the method of Portfolio Optimization used in QuanTek, which is a modified version of the Markowitz Model.

Mathematics of the Random Walk Model  (Revised April 12, 2004)  This article discusses the Random Walk Model and possible sources of inefficiency that could account for deviations from this model in real stock data.  Then a quantitative investigation of expected return and risk is made within the context of the Random Walk Model.  This investigation shows that even in the simplest possible scenario -- the Random Walk Model itself -- the mathematics can get extremely complex!

Magazine Articles

Making a Price Projection Using Linear Prediction Filters  (Revised September 28, 2006)  This is a short article discussing the QuanTek Linear Prediction filter and some other features of QuanTek.

Using the Savitzky-Golay Smoothing Filter  (Revised October 19, 2006)  This article explains how the Savitzky-Golay digital smoothing filter can be used to good advantage in Technical Analysis to construct new, more sophisticated technical indicators.