Technology

Technology

The Algorithm is based on the finite state machine mathematical model of a Buy Limit and price motion around that price. We want to buy when there is a higher probability that the price will be moving up and going forward and then sell when the momentum stalls.

The finite state machine has four states that represent what an investor would do in the investing process as shown in this diagram.

The four states are:

WAIT – waiting for proper price movement and momentum.
BUY – time to act and buy.
HOLD – hold the position until sell conditions are met.
SELL – time to act and sell.
This process has been modeled and executed for every stock and ETF independently.

– Based on Fundamental Data Analysis and VTAM. A finite state machine VISIONS* Technical Analysis Model algorithm using a one year time frame.

A finite state machine (FSM) is a mathematical model of computation used to design both computer programs and sequential logic circuits. It is conceived as an abstract machine that can be in one of a finite number of states.

The machine is in only one state at a time; the state it is in at any given time is called the current state. It can change from one state to another when initiated by a triggering event or condition; this is called a transition.

The Algorithm FSM is defined by a list of its states, and the stock trading algorithm that triggers each transition.
F= .25 to .50
Optimization Range 10 to 52 weeks
Sell on Gain = 1% to 20%
Sell on Loss = 1% to 20%
Optimum Return Signal = 71 to 100

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