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by chad_strategic 3879 days ago
This is a pretty good question... Not sure if it will be solved here.

I used to be a value investor around 2000-2008. A value investor would be something like Buffet or Peter Lynch. However I did make a lot money in Sept. 08 because I determined the market was over valued.

What I didn't forsee, was how much the dollars the Federal reserve would print and inflate the economy.

Regardless, after that I built my own algorithm, because I no longer believe in the structure of the market. I would rater trust numbers. Meaning there are to many analyst pumping stocks, federal reserve, insider trading, spoofing trades, ETFs, deratives, and financial warfare it's hard to make a true value investment. Yes, I have read the buffet / Grahm books, but those are over ~60 old.

I think it is Virtu (electronic trading / hedge fund) that hasn't had a day where they lost money since early 2009? I know Goldman and JP Morgan 90% of the time trade every day for a profit. So a lot of the market is already trading electronically. I think zerohedge.com has estimated the 70% of the market trades on electronically and that article was few years ago.

It's funny, because I have devised methods using social media / programming to manipulate the price of stocks. If I can think of ways to do that I'm sure sure Wall St. already is doing it.

Anyways here my algorithm it tracks over 500 stocks: http://www.strategic-options.com/trade/

1 comments

Your site charges $600/year. That's 6% of a $10,000 portfolio. Do you think it can make a 6% gain in a year after taxes and inflation to cover its costs for that size portfolio? 6% gain is about the long term average of the S&P500, after inflation, so you're proposing doubling the market gain.
Good question.

Let's not forget that S&P was down ~40% in 2008. So you are correct that long term average is ~6%, but then you have years like that, kind of makes the long term average meaningless. Don't forget your financial adviser took a cut on your losses in 08 as well.

At $600 a year is pretty cheap in comparison to what other trading tools. (news letters, chat rooms). This isn't necessarily for people looking a retirement fund.

I'm also marketing something cheaper http://www.strategic-options.com/trade/alerts but this is for people who trade semi-regularly. I'm not sure if you fit in that marketing demographic. However, you can see from the website some stocks like Amazon have return far greater amount than the $600 initial cost.

This new ETF / index strategy is nice, I working on a portfolio that would only trade ETFs. That would charge only 1.25% of AUM. But that's still in the works...

So you're not really sure it could make up its cost?
The particular service that I'm offering, the membership. It could surely make up your cost... But it is more oriented towards do it yourself traders, it's not necessarily geared for Buy and Hold. For example on 1/28/15 the algorithm produced a buy signal on Amazon. If you followed that tip on 1/28 or 1/29, then you would have received ~100% return your investment. http://www.strategic-options.com/trade/stock/amazoncom-inc

So your $10,000 dollar invest would now be worth $20,000. That would surly cover you membership cost of $600. You can find other winners here: http://www.strategic-options.com/trade/open/market_analysis/... (click the winners tab)

I also have a Wiki/FAQ here: http://www.strategic-options.com/trade/open/wiki

If you have any other question feel free to email here chad (at) strategic-option.com