ProfitGenerator - Profitable Trading Strategy [1]
Researching data for my last series has inspired me to construct an very profitable trading strategy. I already has this in my mind couple years ago, but somehow always forgot to research this, but now I am doing it.
I am talking about scientifically analyzing assets performance and putting together an artificial portfolio, or as I call it a ProfitGenerator Index whereas if one is to long/short those instruments would make X% returns over time.
I am in the process of conducting this research, been doing this heavily yesterday and today, and so far I have a model that makes 39744.23% ROI since 1990, a pretty impressive finding so far, but I am not done yet.
This is the prototype I have so far, with the following properties:
From Sep 1990 to Sep 2016, with26 years of Data(longer data is not needed since market correlating shifts over long periods)39744.23% ROI since 1990, 1526% profit yearly, or x15 yearly multiply of your moneyNatural Variance: 1.47
Natural Variance: Since different assets have different price ranges, the normal measurement of Standard Deviation and Variance is not a good benchmark to measure volatility. So I invented the Natural Variance, which is the LN distance from the mean instead of the naked distance, so this way, the distance is standardized, and we can measure the real variance not skewed by different price rangings.
Of course this formula is statistically useless, but it's good as an unbiased estimator of variance for us, when working with financial markets. The lower the variance the better, and I am looking for even lower variance models.
Technically it's impossible to eliminate variance entirely, since markets are somewhat random, but we should strive for a lowest variance as possible together with high profits. So I have different benchmarking tools that I use to determine a good model.
And it's not easy, because each asset you introduce, creates variance in one part while shrinks it on another one, so it's really a puzzle with millions of pieces that I am constructing here, and considering that in 2 days I have found a model this good, makes me wonder how much better can I find with a few more days of work.
It makes pretty good returns since 2009, and even before the financial crises. We want our model to be recession/depression proof so I carefully select every component of it.
My research continues for better models. I will publish here my research progress, but I won't reveal my model for free.
Instead I will sell it to people who are interested in earning big bucks. It won't be cheap, but hey it's 39744.23% Profitwith relatively low market risk, do you expect that to be cheap?
NOTE: Cryptocurrencies and crypto markets are not included in the model, this model is for legacy financial markets only: indices, commodities, currencies, ETF, bonds, etc...
So this model could even be used by hedgefunds and big players to make money, so I await the offers. It will be very exciting!
My other series will halt for now, especially the STEEM/BTC forecasting, I am using my computers to calculate these models now, so that series will be on halt for now. There is much more money to be made here, so stay tuned!
Small typo (or big one), it is actually 39744.23% profit, or x397.44 multiply of your money. I forgot to multiply it by x100 when talking about percentages.
So it's huge profit, mounting to x15 multiply yearly!
I had a blog for many years. Once you develop your readership on your blog, and you can put something out there or direct traffic or get attention - it's like a super power.