Isn’t that headline something else? Who wouldn’t click on that?!
The new and novel way to make big money fast comes from a system that is based on the technology premise behind Renaissance Technologies. Renaissance is a computer trading platform that is owned by its employees, and who does not accept clients.
They trade their own dough, and no, you can’t open an account with them.
But what if I told you there was an alternative system to Renaissance that was just as effective, though not yet live?
And what if I told you this system is proprietary to Midas Letter and its shareholders? I bet you’d want to know more.
Welp! Today’s is your lucky day.
Here’s the cool thing about Renaissance Technologies and its system:
Essentially, this company develops models that are derived from analysis of historic trading data, with a focus on identifying repeating patterns that deliver wins in high percentage of circumstances when they occur.
For example: A stock that has been going up on volume that falls within the range of 90 percent or greater than its trailing one year average daily trading volume, and whose Relative Strength indicator is between 80 and 100, and whose trading occurs outside of the Bollinger Bands in a high percentage of trades, is likely to continue doing just that for the next 5 minutes.
Do to initiate a trade where a position is bought, and then sold as soon as there is a down candle in the one minute window, will deliver a profit with roughly 87% reliability.
Now multiply that trade by several hundred thousand per minute on an automated system, with additional algorithmically triggered stop loss conditions, and you have, in its most rudimentary form, the basis of Renaissance Technology’s success.
This is not something that I am stating unequivocally.
This is conjecture, based on a study of Renaissance Technologies and its founder, Jim Simons.
Jim Simons was a codebreaker for the United States and then a math teacher. He quit his teaching job in his 40’s and started developing trading models based on math that initially caused him and his partners a great deal of financial pain.
However, over the years, the team grew to include some of the most talented mathematicians and computer scientists on the planet, and the analytical processes became sufficiently fine tuned that Simons and his team have turned in the best absolute returns in history over a 30 year period, averaging 35%.
According to Wikipedia,
“The Medallion fund is considered to be one of the most successful hedge funds ever. It has averaged a 71.8% annual return, before fees, from 1994 through mid-2014. The fund has been closed to outside investors since 1993 and is available only to current and past employees and their families.”
Midas Letter is in development on the Velocity Trading System, an automated stealth trading system that used high frequency trading running strategies derived from regressive statistical analysis of winning patterns in data.
The great thing about our new system is that it is now incorporating higher volumes of, and a wider range of data and data types, running at higher speeds thanks to advances in computing. This will be offered to Midas Letter subscribers beginning in 2021.
Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.
Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.
Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.