News By Tag
Industry News
News By Place

Country(s)

Industry News

August 2024
ThWeTuMoSuSaFr
1514131211109

# High Probability Price Prediction for Trading and Investing

In the following, we analyze and portray the base of a high probability trading system and how it makes a difference compared to what is commonly known and used for trading or investing.
By: Nobel Living, LLC

FORT LAUDERDALE, Fla. - May 16, 2016 - PRLog -- Why is it so hard to predict the future price move of assets?

As it seems, the price development of an underlying asset cannot be determined by simple math, it underlies a dynamic process of exchange; however, pre-stages of a stronger price move can be measured and their outcome predicted in a Markov chain.

When a simple math does not do the job, what does?

Help was found in the chaos theory, where a disorder is detectable, producing a happening that can be measure and extrapolated by filtering and portraying an underlying pattern to describe the actual- and future happening and how to react.

Using this knowledge and combining it with filtering mechanisms of the signal transmission theory: Hamming distance and analogue digital conversion, NeverLossTrading was developed into a high probability trading system, where mathematical relations are used to predict the future by the happening of now.

This is where we most of the common trading systems fail, using moving average based indicators to relate the happening of the past and portray it into the future. Ask yourself, what does the price move from the last 50 and 200 days have to do with the price action of now? If trading or investing was manageable with such simple math: one moving average crossing over the other, giving an indication to go long or short in an asset; everybody would be rich already.

Why does signal theory help to determine future price moves?

Our easy answer: to filter signal from noise, determining instances that have the underlying pattern that might lead to a price action from those that do not produce a predictable future happening.

How to measure the action of now and predict the future?

NeverLossTrading is using a fractal based mathematic:

A fractal is a never-ending pattern with the following characteristics:

- Fractals are infinitely repeating patterns that are self-similar across different scales: various time frames, tick charts, range bars.
- They are created by repeating a simple process over and over in an ongoing feedback loop: an initiation of a price change causes a reaction.
- Driven by recursion, fractals portray dynamic systems and thus, give an ability to predict the future happening with a high probability.

Based on this knowledge, NeverLossTrading and TradeColors.com were developed and are shared as mentorship programs; working together one-on-one with experienced- and new traders over longer periods of time to ensure the learned is applied accordingly.

By their outline, there are four dimensions to measure and extrapolate a pre-price-move happening:

- Price Momentum Change measured as acceleration in the price move of the underlying.
-  Statistical Volatility Change: price moves per observed time frame.
-  Price Move Constellation over time.
-  Volume Momentum Change in the observed time frames, similar but measured differently to price momentum change.

In a simple summary: with the help of multiple algorithms, pre-stages of a change in supply and demand are detected and dissected that might lead to a directional price move; however, trades are not immediately accepted, other market participants have to confirm the new price direction and only when this is given, a trade or an investment is accepted.

Using real time data, their algorithms paint the happening with the help of modern vector graphics on your chart, helping you to easily spot and follow supply and demand patterns that repeat themselves based on the happening of NOW for all asset classes and all considerable time-, tick- or range-frames.

NeverLossTrading is not a promise that you never lose a trade, the brand name comes from teaching trade repair concepts: when a trade goes against you, you have the ability for a trade repair, with the potential that you can even turn a loser into a winner and Never Stop Loss Trading was a bit lengthy.