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If you want to get to the top of the Stock market "food chain" you have
come to the right place.
In our quest to find the most profitable and at the same time for a
"small" trader feasible trading system we have tested and analysed many
different trading strategies. The strategies that we have tested were
ranging from simple combinations of TA indicators to more complex
trading systems that were utilizing support/resistance levels, pivot
points, chart patterns etc... However in order to reduce the number of
systems that were later scrutinized more closely, we have developed our
own system selection criteria. Basically the system that we were after
had to have following properties: Simplicity, Efficiency and
Consistency.
As we all know stock trading strategies are becoming more and more
complex and sophisticated. What does it mean for our average
independent trader? It means that our simplicity factor when developing
a trading strategy gains in importance.
What usage could an average person make from a strategy that requires
or presumes a profound knowledge in mathematics at a PhD level and a
computing power beyond that of the newest personal home computer? A
type of highly complex strategies commonly used by investment companies
are neural networks. A neural network is, in short, a model of
interconnected neurons (also known as nodes) that was inspired by the
logical neurons in human nerve system. Like the human brain a neural
network can acquire, store and utilize experiential knowledge in order
to improve its performance day by day. Regrettably, to consistently use
a strategy based on neural networks one requires the complex knowledge
of how to feed a neural network with history data as well as
excessively high computing power not affordable to our average stock
trader.
Therefore we have set ourselves with a goal of finding a trading
strategy that is comparable in its profit potential to the most complex
professional trading system and at the same time is feasible and
understandable to our average trader.
http://stockmarketjluw.docspages.com/home.htm
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Top of the Stock market food chain
