|
Making money on the stock market seems like it should be easy—buy stocks when the price is low and sell them when the price goes up. Yet determining these two crucial moments is a question that has occupied financial analysts and investors since trading came into existence. The majority of financial experts still rely mainly on fundamental analysis. However, the advantages of technical analysis can no longer be denied in the face of recent cases of corporate malfeasance, such as falsification of balance sheets, and the bursting of the “speculation bubble". Nevertheless, technical analysis alone does not give all the answers. If it did, there wouldn't be so many different approaches and tools – and the investor wouldn't be left facing a confusing array of unsatisfactory investment strategies to choose from. There are more parameters that need to be analyzed in order to achieve long-term success. A combination of technical analysis and intelligent risk- portfolio-, and money management, applied in one trading system, can make all the difference.
The IC-Expert at www.investcoach.com is a self-learning system, based on a genetic algorithm. This mode of programming is founded on the evolutionary principle of survival of the fittest: virtual individuals equipped with the ability to adapt optimally to their environment. Through chance, combination and mutation new “populations", in this case trading strategies, are created. That means only the most successful trading strategies go on to create new strategies for the next trading day. Thus the IC-Expert system acquires more knowledge every day, making it the ideal investment tool. The IC-Expert gives clear trading recommendations based on advanced analysis functions, and can be used in any market to calculate strategies for future investments, at the lowest possible risk. It also embodies a quality assurance system in itself, saving time and eliminating the hassle of having to deal with software updates or data uploads, but above all it gives clear trading recommendations based on advanced analysis functions.
Methods
The IC-Expert is based on a powerful combination of four crucial factors that make profitable investment with minimal risk possible:
Technical Stock Analysis: By analyzing technical indicators, future trends can be determined. This is embedded in a genetic algorithm, ensuring that Investor's Coach technical analysis is always working at top performance.
Risk Management: The IC-Expert works with volatile trailing stops—sell-signals defined in relation to the stock price and which can account for market volatility. So the IC-Expert knows when to place the best kind of stop for every market situation, ensuring that sell-signals are given neither too early nor too late, and that profits achieved during a rise are secured.
Money Management: Investor's Coach is able to answer the key questions of “when" to invest, and “how much." Depending on the market situation, it is sometimes advisable to invest only part of available cash in stocks. Intelligent money management defines the optimal, rather than maximum, amount to invest, so that you won't be left with too little cash to profit from a future upturn in the market. Your profit is maximized and the risk of losing money is kept low.
Portfolio Management: Through diversification of a stock portfolio, the risk associated with individual stocks can be reduced. The IC-Expert analyzes the composition of the entire portfolio and consequently re-calculates which stocks to buy, and in what proportion, on a daily basis, thus minimizing the risk of the total portfolio.
Real-time Optimisation
The IC-Expert works with real-time optimization. The data used for calculations is constantly updated, allowing the IC-Expert to adjust itself to the current market situation. Each setting is optimized for a specific market at a specific time. Past experiences and decisions taken are stored in the system memory and passed on to future generations.
|
|
