Our equity model produces a generic signal that can be applied to a broad range of individual market indexes. We generate short-term long/short signals to be applied to the index. Occasionally, we may generate a neutral signal. We anticipate above average volatility with these models.

The models are statistically based using only technical, not fundamental data. Thousands of trading rules are validated statistically which then compete with each other to obtain a single superior rule for each day. The signal—either long or short—is then implemented without deviation. While an independent signal is generated every market day, direction changes occur on the order of every 3rd day, resulting in approximately 80 to 150 trades per year.

The systems are adaptive—adjusting to changing market conditions. They are designed to allow additional rules to be added as we develop them. However, the new rules must compete with all other rules for significance, and therefore, each individual rule tends to have only incremental impact on the systems.