It would be reasonable to assume that stock prices are related to a company's earnings. Whilst earnings certainly play a significant role in establishing the market price of a stock, there are other factors which can have considerable impact or price development. Investor sentiment, sector rotation, trader commitment, fake news or analyst's research to name but a few. A typical example of price action defying the earnings development of a company was the trading activity in Gamestop in January 2021. This company, which displayed weak fundamentals and had been exposed to massive short selling by the hedge fund community. A short squeeze developed which forced short sellers to capitulate on their outstanding short positions at significantly higher prices than they had anticipated, thus generating massive losses.
The psychology behind trading is the decisive factor for moving the stock market. A stock chart is in principle nothing more than a picture of human emotions where fear, greed, expectations and euphoria are documented. By having the discipline to use a proven trading system you can take advantage of the psychological disorder which torments other market participants. Here are a few ways in which novice traders end up destroying their trading accounts:
You may have a great idea for a trading system, but do not have the programming knowledge to be able to backtest it in the real-world market environment. We have over 25 years experience not only as professional traders but also in the art of programming system strategies for the finance industry. We are well qualified to convert your trading strategy into a stable and functional trading system which will generate above average performance results. A reliable trading system must satisfy the following criteria:
High Probability Trading Systems
The Lucidity trading system is momentum based and takes advantage of deviation from the mean price. One could visualize the action of a rubber band being stretched and at the moment where the expansion loses momentum, a contraction takes place, forcing movement in the opposite direction. The Lucidity trading system opens a trade at the moment that deviation from the mean price loses momentum.
Suitable for weekly, daily and hourly periodicity.
The Compression system was built around the GMMA indicator, otherwise known as the Guppy Multiple Moving Average. It uses two sets of exponential moving averages with different time periods in order to identify breakouts, trend reversals and trading opportunities. The average trade length on profitable trades is 49 days and for unprofitable trades is 5 days. Generates above average returns on crypto currencies.
Suitable primarily for daily data periodicity
Do you have a trading concept which you would like to have transformed into a stable and reliable trading system which has been back-tested in different market environments, but lack the programming knowledge to realize it? We look back on over 25 years trading experience and system programming for major market participants and are your competent partners in this professional area.
Find out how we can assist you in realizing your trading concept.