“For every action, there is an equal and opposite re-action”
Sir Isaac Newton, one of the most influential physicists of all time, stated that “for every action, there is an equal and opposite re-action.”What does all this talk about physics have to do with the stock market, you may ask? Well, the laws of physics, which apply in the physical world, also apply to the stock market. In simple words for every effect there is a cause , what we saw in financial market is the effect and if we can identify the cause of these effects we can easily predict the trend of any financial market. and astrology is the only divine science which can predicts the cause as well as the effects months & years in advance.
Date : 04-01-2018, Time : 12:34:27
Mathematics behind the worlds most successful hedge fund
The world’s most successful hedge fund in history isn’t located on Wall Street. In fact, you won’t find any stereotypical “Wall Streeters” working there. Instead, the fund is based in the Setaukets, a rural community on Long Island. It’s there, far from the hustle and bustle of Manhattan, for one simple reason: proximity to Stony Brook University. This secretive financial fund’s billionaire founder, Jim Simons, began his career in academia. After earning a PhD in mathematics, he went on to teach math at MIT, Harvard, and Stony Brook. Eventually, he founded Renaissance Technologies, a hedge fund manager that uses mathematical and statistical principles to wring money out of the market. Unlike Goldman Sachs or Morgan Stanley, Renaissance doesn’t hire business school MBAs to research stocks. Instead, the firm’s 50-acre campus on East Setauket is jam-packed with mathematicians, statisticians, computer scientists and physicists. About a third of the firm’s 300 employees have doctorates. Any ties to Wall Street are downplayed. The firm has been called “the best physics and mathematics department in the world.” It’s a strategy that was – and still is – totally unlike anything any other hedge funds are doing. Instead of the cutthroat work-till-you-drop culture that many other hedge funds are known for, Renaissance is known for having a university-like atmosphere and promoting intellectual curiosity to find profit opportunities in the markets. It’s a model that works. Renaissance’s Medallion fund has retuned more than 35% each year over a 20-year span. It’s been so successful that most of the firm’s $65 billion in assets under management belong to employees of the firm, not outside investors. (The fund stopped taking new money from outside investors in 1993.) And, in the process, Dr. Simons has become one of the wealthiest men in America, with a fortune estimated by Forbes at $18 billion. But you’ve probably never even heard of him or Renaissance before. That’s because the strategies Renaissance uses are a closely-guarded secret. “Of course I’m not going to tell you the various predictive signals — Unless… No, I’m definitely not,” he joked at a speech he recently gave at MIT. Here’s what Bloomberg Markets got out of him in a story written about ten years ago… “What kind of instruments does [Renaissance] trade? Everything.” “How many strategies does it use? A lot.” Simons has admitted that Renaissance’s researchers have explored whether sunspots and lunar phases influenced the financial markets – but he wouldn’t say what they found. But all those non-answers actually do reveal one critically important takeaway about Renaissance Technologies’ approach to the markets… Renaissance let the data speak for themselves. “At just about any other big financial firm, the idea of pitching sunspots as a potentially viable factor in the market would get you laughed out of the room – but not at Renaissance,” our own quant Jonas Elmerraji explains. That’s a much bigger deal than it sounds. “It’s shocking how much bias and superstition play a role in how everyone (professionals and amateurs alike) interacts with the financial markets,” Jonas continues. Former Wall Street trader turned author Turney Duff gave a great example in a recent CNBC article: “When I was at the Galleon Group, we always closely watched the 2-3 p.m. trading hour. If the market sold off in that time, it usually meant that the market would close on a positive note. We would be buying stocks at 3 p.m. for a stronger close. There was no statistical evidence to support this — it worked until it didn’t.” That’s not uncommon. Wall Street was built on superstition and anecdotal evidence, after all. Until now, the types of quantitative, research-driven strategies that have made Renaissance Technologies successful have been off-limits to anyone who couldn’t afford to invest in a hedge fund or didn’t have a graduate-level statistics or math background. “That’s why, about five years ago, I set out to bring that sort of scientific rigor to Agora Financial with a project I’ve been working on in secret,” Jonas continues. “After millions of simulations and substantial development costs, it’s finally ready for prime-time.” It all boils down to a trading signal called a K-Sign. If you’ve been following along at home for the past several weeks, you already know how our real-time beta test of this new indicator has worked out: We’ve booked gains on every closed trade so far during the 2017 test period.
Date : 04-01-2018, Time : 12:36:13
WD GANN “The greatest trader ever”
WD Gann was a legendary US trader who traded in 1910-1956. He invented more than 40 methods. He had left all the traders far beyond any comparison could be done. He was so successful that people were buying his courses $5,000, which was cost of an average home in America at that time. It is said that WD Gann traveled to Egypt and India and learning from these countries formed the basis of his core methodologies. He successfully predicted many turns in stock markets in advance. He was also known for his strict trading rules. WD-Gann WD Gann did not publicly disclose his methods but after his death it was found that he was using astrology and astronomy. His method of using astrology was very different from the traditional astrology which we know. In the old interviews he answered that his methods were too precious to be disclosed for he had invested many years of research in discovering these methods and general public is not at a stage to accept these methods. It is said that he died without telling his secrets to anyone. But it is also believed that the course he was selling at $5000 was a correspondence courses and if someone could have written him back to understand the underlying reason of his analysis, he would reply them with explanation. WD Gann, before few year of his death sold his business to Lambert Company. Lambert-Gann Publishing Company began May 23, 1951 and was owned and operated by Ed Lambert. The company, including all of Mr. Gann’s personal trading materials, was purchased from Mr. Ed Lambert, Mr. Gann’s last partner. Here is the link for that website: http://www.wdgann.com He had a Accuracy levels of above 90%. In 1908, Ticker Digest recorded his trades live and confirmed his accuracy levels around to be 93%. He use to invest small capitals in his trading account and converted them into huge sums. He also owned many Airplanes for surveying various crops all across US in lesser time. Books Written by Gann It is said that, if you want to learn the Gann Secrets read his original books. Gann Wrote many Books, some of them are: Fact Facts America, Looking Ahead to 1950 45 Years in Wall Street New Stock Trend Detector How to Make Profits in Commodities How to Make Profits Trading in Puts and Calls Magic Word New Stock Trend Detector Scientific Stock Forecasting Truth of the Stock Tape Wall Street Stock Selector Tunnel Thru the Air Wall Street Stock Selector Ganns discovered more than 100 methods and tools and some of them are: Square of Nine (multiple versions) Square of 52 Square of 320 Square of 12 Square of 24 Square 144 Gann Hexagon Gann Wheel of 24 Gann Emblem Gann Swing Trading Gann Angles Gann Price Time Square (multiple versions) Timing with Planetary Aspects Timing with Planetary Ingress Planetary Lines Gann Waves and Cycles
Date : 04-01-2018, Time : 12:37:07