Collective2

Money talks.

Many automated trading systems are simply optimized. What that means is that they take a look at the past, and build a system that would have worked. What's the key phrase here? in the past.

How is our system different?

Our system is different because we do not merely optimize on the past data. We use the latest proprietary Artificial Intelligence technology. We have built a system that would have performed well in the past, and then test it on data that the system has never seen before. This is known as walk-forward testing. This is a very important distinction to make. Since the system works on data that it has never seen before, there is a high probability that it will work in the future.

This is not a guarantee. There are no guarantees in life, and nearly every person who has made a transaction on a "sure thing" stock move has lived to regret it. What we are offering is a high probability that the system will continue working in the future. We cannot know the future, but we can create a system that is likely to succeed.

Show me the money!

Here are the results of a portfolio that the system would have traded, starting with $100,000. The duration is from February 2005 to April 2008, which is 3 years and 2 months. The average annual compound return is 30%. This means that the account would double approximately every 2 1/2 years. The maximum drawdown is 10%.

Smooth is good.

Notice that the graph above is a fairly smooth line, generally going up. The lowest drop is 10%. The technical term for this is smooth equity curve. The system has been designed to gradually go up, with no big drops? Why is this important? Because big drops cause massive pain and stress for traders and investors. When the Nasdaq tanked in 2000, millions of people lost most of their life savings because it went down so much. Our system is designed so that never happens.

Low risk.

Between 2/10/2006 to 10/10/2006, we had our largest drop of approximately 10%. This is a critical number because we know that if the system drops more than 10%, then something has changed. If my account went much below 10%, I would pull the plug. And if this system goes down 15%, I will pull the plug! That's why our system has much lower risk than any buy and hold strategy, and any index fund.

Low correlation with market.

This system trades stocks listed on the Nasdaq. The Nasdaq went down from 2,800 to 2,200 from 10/10/2007 to 4/10/2008. That is a drop of over 21%! However, our system went up by 11% over the same period! How would you feel if your portfolio is going up while everyone else is losing money?

Built-in protection: stop loss

We always use a stop loss to provides greater safety and more consistent returns. A stop loss ordered is entered with each new position, and updated daily.

Want more information? Go to www.OnlineInvestingAI.com