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Sunday, August 30, 2009

Secret Artificial Intelligence Trading Algorithm Discovered

By Tim Stevens

I don't just use stock charts for my analysis. I'm going to spill those proverbial beans and show you how I find the incredible stocks for a very popular stock blog.

This secret algorithm I'm about to reveal beats the pants off just using technical analysis to read stock charts.

I'm part of an exclusive stock club that gave me this algorithm. Make no mistake, this algorithm is very powerful and can produce annual returns in excess of 1,000%!

This ground breaking algorithm gives any computer an almost spooky ability to analyze a stock better than a technical analyst reading a stock chart! Many years ago, software programs used statistics and models for returning buy and sell signals. But this secret algorithm is way more advanced. It's like have 50 analysts inside your computer giving you their opinions on any stock you want!

I have used this to make a lot of money and now I'm going to tell you exactly what the algorithm is.

I'm giving you this for free because I'm hoping you make a lot of money from this and become a regular reader of my articles. I think that's fair.

We need to examine the trend. Get the 10 day MA, the 20 day MA, and the 50 day MA. The formula is: 10 day MA greater than 20 day MA greater than 50 day MA. So the 10 day MA should be above the 20 day MA. The 20 day MA should be above the 50 day MA. If this criteria is met, move on to the next step. If not, toss out the stock and start over.

The next step in this secret formula is to examine the last hour of trading on the previous day. If it has closed above the 5 hour MA, move to the next step. It is hasn't toss the stock out and pick a better one.

Now in this next step, we need to see if the stock is trading at its 3 day high. If it is, read the next step below. If not, you know how this goes, get rid of the stock and find another one and start all over again.

The next step is to determine of the last price of the stock was above its 20 day MA. If it is, move on.

In this step, we need to look at the previous week of trading and then 2 weeks before that. If the stock hit a 3 week high in the last week of trading, that is excellent, keep reading. If not, say goodbye to the stock and start over again with another stock.

In this step we need to determine if the stock traded at a 3 month high during the previous month of trading. If it has, fantastic! If not, lose the stock and start over again with a new stock. - 23199

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