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“Gunner! I had a breakthrough last night!”
That’s the short message I received from my friend, Agora Financial’s quantitative analyst Jonas Elmerraji early one morning a few months ago.
Jonas had been keeping me posted on his research on the “Kinetic” strategy – the very same strategy that I’ve been filling you in on for the last three days.
By the time Jonas sent me that message, he’d already developed an algorithm that was uncannily spotting a hidden rhythm in the market. It was crunching the data on decades of price action in individual stocks to identify “Kinetic Windows” up to a year in advance.
It all boils down to an easy-to-spot signal called a K-Sign.
Basically, when you slap the proprietary indicator Jonas created on a chart of a stock’s long-term price trend, it forms a pattern that looks like the letter “K” tipped over on its back. That’s the start of the Kinetic Window. It means you should buy.
Then, the sell sign always looks like a “K” that’s fallen forward. That’s the end of the Kinetic Window.
Here’s a real-world example of a K-Sign showing up on a stock chart at the start of this year:
The problem was that there are thousands of stocks on the market – and each of them have their own windows.
That’s a lot more trading than most people can handle. So, how do you sort through that mountain of potential trades and figure out which ones are the strongest signals?
In other words, how do you turn a revolutionary stock indicator into a powerful trading system?
That’s the breakthrough Jonas messaged me about on that morning…
His algorithm had identified a single metric that filters out only the very best K-Signs – and ramps up the win-rate on Kinetic Windows to an unprecedented 93.5% in his backtests.
“The win rate was so high, I had to run the data twice! I’ve never seen anything like this before. I didn’t believe the data the first time. But it was right,” Jonas told me.
Of course, that amazing win-rate might be less shocking to you. After all, you saw first-hand how the K-Sign recommendations I shared with you yielded a 100% win-rate in real-world market conditions this year.
Let’s put all the pieces together.
This system shows you specific time periods when a stock is most likely to rally – with up to a year’s worth of advance notice.
It nails down this time period to the day.
And it’s been data-proven 93.5% effective over a long-term backtest.
Since it’s 100% computer-driven, there’s no guesswork. The computer simply triggers an alert when a K-Sign shows up on a stock chart…
Like this one in NovaGold Resources earlier this year:
NovaGold worked out to 1,110% returns simply by buying when the K-Sign said to buy, and selling when the K-Sign said to sell.
You don’t even need to scour the charts for the K-Signs – the algorithm does all of that so there’s no human element …read more
Source:: Daily Reckoning feed
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