Principal

The system we have developed tries to quantify market emotion.

Every market is simple in that it is a give and take between buyers and sellers. Their collective actions dictate if a market goes up or goes down. Every market behaves as the sum total of all the actions of its participants. Each participant is for the most part acting on emotion, unless a computer is doing the trading, even then you could argue that the computer program reflects anti-emotion.

So markets or auctions are actually very inefficient, they overshoot the mark of true value and true value is always moving. Our system tries to determine where value is and if the market has overshot or not. And since markets move on emotion they can at times turn on a dime and seem entirely irrational. This is why news can make markets move in any direction depending on the mood of the market.

Our system will produce a market call once a day. This call will occur 20 minutes before market close. We need as much trading information from the current day as possible to set up for the following day, while leaving enough time to get the trade done. The time is there to get the trade done, as long as our personal emotions do not cause us to procrastinate.