The TECTO MAKET VI has been tweaked and renamed to The GRTS Market Investor. Click here – “motherboard” – for the overview and orientation to the fundamental properties.
This “motherboard” has been in the making for 18 months. It looks crude and overwhelming, and perhaps too complex or not “traditional” enough for most analytical investors – yet, the functionality is pivotal in maintaining profitable trades – both with equity baskets and options; that equate into wealth building for the discretionary investor.
It may seem like taking the long way to find the Return On Investment, but validation in a highly complex, computer driven trading Wall Street demands this type of revised and explicit agenda to be addressed if one wants to be profitable as a self-directed discretionary investor.
What is presented in the 23 min video:
The statistical core formula set that I have created is fundamentally based on two core formulas: Implied Volatility and Price Formation.
The excel spreadsheet motherboard has 16 nodal inputs for referencing – operating like microprocessors – circuited into 6 modules or condensers.
Input filters for scanning are, specific price range, specific volume, specific Volatility Index settings and Historical Volatility ranges, calibrated to the formula sets.
I take the top 60 equities and transfer this data into the Excel “motherboard”. Then they are culled into subsets of 10 per basket that are run through the “condenser mode.”
These are culled out for either a portfolio and/or option trade if they meed certain statistical criteria interfaced with current index market performance.
These 6 modules identify which equities are the most robust for profitability within a specific time horizon based on the these formula sets:
- Asset Intraday Liquidity compared to On Balance Volume for Offset analysis
- Price formation sets – Intraday, Day Average, Forecast, Ask/Bid Spread
- Net Shares versus Net Orders
- A coded algorithm to determine Long or Short execution based on “P” and “Q” formulas (Conditional Probabilities)
- Fuzzy Logic integrated with “GEEKS” (Greeks – Alpha, Beta, Gamma, Sigma, Lambda, Phi, Omega and the “e” count) calibrated to the Lambda Mean
- Normal Distribution Density of Price, Standard Deviation, Log Normal, Exponential and Fisher Transformation formulas
It is both linear and non-linear; akin to the Statistical Exponential Random Graph Model (SERGM), that ties specific properties to specific processes that provides singularity in the outcome; thus the “networking” nodal or modular configuration.
What is not used is historical data and/or data mining. It is absolutely fluid “in the moment” analysis, projecting forward price formation targets that culminate into robust profitability.
I will be posting a video showing my Option Trading “motherboard” soon, as well, being signal based.
DAL: Long Call @ 38 Strike, x2 contracts with a target price at 2.71 (31 days to Exp Friday.)
More trades to come.