Sunday, April 24, 2005

Letter to the Editor

Stocks, Futures & Options is a good magazine that covers alot of topics related to professional investing with depth. They often score surprising interviews with industry leaders. I'm touting the magazine for the moment because they published a letter to the editor I wrote.

It was in response to an article about using electronic trading systems to provide an investor with an edge. The article and I are in agreement with same premise: that technology can be a huge (and perhaps the only) source of leverage to even the playing field with much more capitalized players in the markets. This is even more true for investors with shorter trading time intervals.

It should be obvious to all that choosing stocks based solely on fundamental data requires a time horizon of years. Shorter periods of time fall victim to the manipulations of the momentum players and market makers. Technology (and specifically a pre-trade tool like Trade-Ideas) can help avoid risky pitfalls and find strong trends. This approach has been supported by the fact fundamental data often does not contribute to a move until well after the fact. As George Soros once said, “Economic history is a never-ending series of episodes based on falsehoods and lies, not truths. It represents the path to big money. The object is to recognize the trend whose premise is false, ride that trend, and step off before it is discredited.”

Here is the letter:
Letter to the Editor - SFO Magazine

Tuesday, April 19, 2005

Algorithmic Trade Selection- TI "Black Box" system has improved

We took our black box system off line to adjust it so that it better reacts to volatility. After the adjustments the system has been performing very well. Here is a link to past performance.

We are moving ever closer to launching this product as a premium service. Will keep all posted.