Here is an interesting link to open source code. Perhaps it can be useful for 
new release:
 http://code.google.com/p/efficient-java-matrix-library/


It has Kalman filter, but optimized for speed and I suspect much faster than 
the 
one we have. That may be useful if latency is an issue.

It also has Principal Component Analysis (PCA). This is a very interesting 
tool. 
Lets say we have many time-series of stock prices or indicators. Many, if not 
all, time-series may be somewhat or even strongly correlated and have redundant 
information. Using them all increases the risk of data mining 
but discarding most seems like a waste of good information. That is where PCA 
comes handy. It can take all those correlated time-series and transform them 
into a much smaller number of uncorrelated time series, while retaining nearly 
all of the contained information. PCA is often used to reduce the number of 
inputs to pattern recognition and neural net algorithms and, thus, reduce the 
risk of data mining. In the past, I have used PCA to aggregare 500 stocks in 
the 
S&P500 index into 8 buckets that tracked S&P500 but had uncorrelated to each 
other returns.

Perhaps there is some use for it in jBookTrader.



________________________________
From: nonlinear5 <[email protected]>
To: JBookTrader <[email protected]>
Sent: Fri, October 29, 2010 7:14:35 PM
Subject: [JBookTrader] JBookTrader release 7.10

Latest release download: 
http://jbooktrader.googlecode.com/files/JBookTrader-7.10.zip
Release Notes: http://code.google.com/p/jbooktrader/wiki/ReleaseNotes
User Manual: http://docs.google.com/View?id=dfzgvqp4_10gb63b8hg
Historical market data sample: 
http://jbooktrader.googlecode.com/files/ES-GLOBEX.zip
Historical market data (very large set, password-protected):
http://jbooktrader.googlecode.com/files/ES-June2009-Oct2010.7z

Changes in this release:

1. Added 3 new indicators, including the Kalman filter (thanks,
Astor).

2. Added the "settlement time" for better trading/backtesting/
optimization. The settlement time is the time interval during which
the indicators are allowed to "settle", i.e. reach some stable values.
This is relevant to, for example, exponential moving averages. The
default is set to 1 hour. This means that JBT would not open any new
positions unless there is a continuous market data stream for at least
one hour.

3. Both "brute force" and "divide-and-conquer" optimizers run about
1.3 to 2.0 times faster.

4. Improved the MovingWindow class: added an access method to retrieve
any of the most recently added N elements (thanks, Konstantin).

5. Fixed a minor problem with a unicode character in the output of the
NTP clock (thanks, Flo and Skunktrader).

As I indicated in the other thread, I am trading live, and JBT feels
solid and stable, so I don't anticipate any more JBT releases in the
immediate future. That is, of course, unless there are any problems,
which I would address promptly.

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