<s>
Altreva	B-Application
Adaptive	I-Application
Modeler	I-Application
is	O
a	O
software	O
application	O
for	O
creating	O
agent-based	O
financial	O
market	O
simulation	O
models	O
for	O
the	O
purpose	O
of	O
forecasting	O
prices	O
of	O
real	O
world	O
market	O
traded	O
stocks	O
or	O
other	O
securities	O
.	O
</s>
<s>
Altreva	B-Application
's	O
Adaptive	B-Application
Modeler	I-Application
and	O
other	O
agent-based	O
models	O
are	O
used	O
to	O
simulate	O
financial	O
markets	O
to	O
capture	O
the	O
complex	O
dynamics	O
of	O
a	O
large	O
diversity	O
of	O
investors	O
and	O
traders	O
with	O
different	O
strategies	O
,	O
different	O
trading	O
time	O
frames	O
,	O
and	O
different	O
investment	O
goals	O
.	O
</s>
<s>
Meanwhile	O
,	O
the	O
trading	O
rules	O
evolve	O
through	O
a	O
special	O
adaptive	O
form	O
of	O
genetic	B-Algorithm
programming	I-Algorithm
.	O
</s>
<s>
To	O
avoid	O
overfitting	B-Error_Name
(	O
or	O
curve-fitting	B-Algorithm
)	O
to	O
historical	O
data	O
-	O
and	O
unlike	O
many	O
other	O
techniques	O
used	O
in	O
trading	O
software	O
such	O
as	O
optimizing	O
of	O
trading	O
rules	O
by	O
repeated	O
backtesting	O
,	O
genetic	B-Algorithm
algorithms	I-Algorithm
and	O
neural	B-Architecture
networks	I-Architecture
-	O
Adaptive	B-Application
Modeler	I-Application
does	O
not	O
optimize	O
trading	O
rules	O
on	O
historical	O
data	O
.	O
</s>
<s>
In	O
an	O
example	O
model	O
for	O
the	O
S&P	O
500	O
index	O
,	O
Adaptive	B-Application
Modeler	I-Application
demonstrates	O
significant	O
risk-adjusted	O
excess	O
returns	O
after	O
transaction	O
costs	O
.	O
</s>
<s>
Adaptive	B-Application
Modeler	I-Application
was	O
used	O
in	O
a	O
study	O
to	O
demonstrate	O
increased	O
complexity	O
of	O
trading	O
rules	O
in	O
an	O
evolutionary	O
forecasting	O
model	O
during	O
a	O
critical	O
period	O
of	O
a	O
company	O
's	O
history	O
.	O
</s>
<s>
In	O
a	O
study	O
of	O
profitability	O
of	O
technical	O
trading	O
in	O
the	O
foreign	O
exchange	O
markets	O
,	O
researchers	O
using	O
Adaptive	B-Application
Modeler	I-Application
found	O
economically	O
and	O
statistically	O
significant	O
out-of-sample	O
excess	O
returns	O
(	O
after	O
transaction	O
costs	O
)	O
for	O
the	O
six	O
most	O
traded	O
currency	O
pairs	O
.	O
</s>
<s>
Adaptive	B-Application
Modeler	I-Application
was	O
also	O
used	O
to	O
study	O
the	O
impact	O
of	O
different	O
levels	O
of	O
trader	O
rationality	O
on	O
market	O
properties	O
and	O
efficiency	O
.	O
</s>
<s>
As	O
an	O
example	O
of	O
virtual	O
intelligent	O
life	O
in	O
a	O
complex	O
system	O
(	O
such	O
as	O
a	O
stock	O
market	O
)	O
,	O
Adaptive	B-Application
Modeler	I-Application
was	O
used	O
as	O
an	O
illustration	O
of	O
simple	O
agents	O
interacting	O
in	O
a	O
complex	O
(	O
nonlinear	O
)	O
way	O
to	O
forecast	O
stock	O
prices	O
.	O
</s>
