It's been said that there are as many ways to trade in the market as there are people who trade in the markets. Today many people are talking about "waves" in the markets, "quantitative analysis", "absolute returns" and many other technical trading methods.

Projections or predictions from the "news obsessed" and the "catch phrase" traders is a problem, because of the completely unscientific emotional bias that comes with it. I love the catch phrase "The trend is your friend." Obviously the news and a fundamental approach have their place; however the problem with following recommendations from people who follow the news too closely is that the news does not move the markets nearly as much as the patterns move the markets. As crazy as this may sound it's true from a mathematical perspective. When the same type of news that seemingly moves the market one direction one day does the complete opposite on another day, then it's time to stop putting all (or a lot of) your faith in the news (fundamentals). If a specific set of conditions exist today in the market, chances are that those conditions are not "original" and have happened before many times. Artificial intelligence can forecast future events and the prices of securities with varying degrees of accuracy. It's not magic and it's never 100%. It is simply acting upon probabilities in a range from 50% or better. The trend is - in fact - your friend only 56% of the time.

The market forecasting software methodology is ideal for the absolute returns strategy. Small gains taken consistently from the volatility of the up and down movements in a market allow the compounding effect to work on your portfolio. Our case study began in February 2006; we combined our proprietary forecasts with a progressive cost-average hedge portfolio allocation, which generated over 9% per quarter since that time. This was audited by an independent auditing firm according to GIP standards. In other words, it's true that a prediction engine based upon the repeating patterns of the market can make above average returns. In fact because the gains are generally small increments over the duration of the time measured, you get other benefits such as an absolute valuation of your holdings and of course the compounding effect, (no additional risk to obtain).

While learning "quantitative analysis" is a vast undertaking much of the basics of it are covered here. Our prediction engine has been years in the making and has endured the marketplace through every type of market condition. In up markets and down markets the FMS forecasting engine takes (scalps) little gains on a daily or weekly basis.

Here is a prophecy that I predict for you: The investor who stops guessing or hoping the market will move in his direction and starts using mathematical insight, will always profit to a greater extent than others. Over time the mathematics will give you confidence, however, the real challenge is how to react to a forecast that is wrong. I address this issue in my book "Investment Catch-Phrase Fallacy: The New Risks of Traditional Investing" which is available for free download.

Lastly I will leave you with this final warning. Having accurate forecasts alone will not make you profit. Knowing how to act upon the forecast information in a way that locks in a profit is what will put your kids through college. Review SubjexFMS.com to learn more about the practical results of our methods.    <Previous Topic | Next Topic>