A Real time Stock Trading Robot!...The Wonder of the 21st Century !!
- Date: 2007-10-22 - Word Count: 674
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What I am about to share with you, is a very unusual story.
Unusual...because it is about 2 "geeks", named Michael and Carl. Who developed the first commercially available stock picking "robot". Michael (the programmer) named the robot "Marl".
"Marl" came about after Michael developed the famous "Global Alpha" computer stock trading model, while contracted to Goldman Sachs.
A piece of software which most years is responsible for...$4,000,000,000+ Annual Trading Profit!
With this software project completed, Michael looked for a new way to line his pockets. Unfortunately he had signed a Non Compete and NDA agreement with Goldman Sachs, forbidding him to create software which trades derivatives and similar financial instruments (like Global Alpha).
After 3 weeks of being temporarily unemployed, Michael who was very wealthy and very bored...Decided to start a new project.
You' see Goldman Sachs and most other large investment funds are at a major disadvantage. They often manage portfolios of up to $10,000,000,000 (ten billion dollars) - and because of this when they invest in stocks their scope is limited to just a few of the worlds largest firms (Coca-Cola, Google).
This problem is widespread amongst fund managers whom manage large amounts of capital. In fact Warren Buffet (Whom manages $53 billion) has the exact same problem.
Michael knew he could take advantage of this. By developing software which can run on any home computer, and manage funds between $100 and $500,000.
With managing such a small comparative amount, Michael's software could yield much higher returns. In fact it is designed to trade in the volatile penny stock market where stocks can increase 400% in a matter of minutes.
Michael worked with fund manager Carl Williamson to create the bot. "Marl" works by analysing each stock using "technical analysis". Which means analysing a stocks past price movements to predict the stocks future direction.
Developing what professional traders call a "sixth sense". A sort of "feel" for how the stock will behave in any given situation.
While monitoring hundreds of stocks in the watch list..."Marl" may notice that a stock has been hitting resistance at $0.50 all week (not being able to rise above 50 cents a share). And if the stock breaks that level (meaning there is a good chance it will "breakout" and run much higher) the bot will start analyzing the stock in more detail...looking at its longer term weekly trading pattern and applying its vast range of criteria.
Any stocks that reach this stage have been under close scrutiny and passed a variety of complex tests. Marl will then analyze the charts looking for the best entry point (to buy the stock at) with the lowest risk to potential reward.
The average professional stock trader can analyze one stock chart around every 8-10 seconds...when looking for an opportunity. On the other hand "Marl" can analyze 7 charts every second.
"Why Does That Matter?"
It means that Marl can be extremely selective, waiting until all the correct criteria line up until a trade recommendation is made.
Often Marl will disregard profitable trades...In favour of a potentially more profitable trade occurring at the same time.
After creating Marl to version 1.0...The two input a trading capital of $1000 and set it running. Marl spent 13 hours analysing over 6,000 small capitalisation firms. After those 13 hours Marl made his first ever stock recommendation...
"LPTC.OB Trading at $0.74 Per Share!"
Carl placed the trade in his online brokerage account with $1000 invested, as the market closed for the night. The following morning (a Tuesday) the stock climbed to $1.05 within the first 3 hours (a 42% increase).
Something ‘magical' had just happened. In Carl Williamson's dark, damp basement the first ever profitable stock robot was created.
Carl Williamson was vital to Marl's success and so on that day. The 16th of January 2007. Michael and Carl signed a legally binding contract. Both swore themselves to "secrecy". No one would know about Marl. Not Carl's trading partners...Not Michael's old Global Alpha colleagues...Not anyone.
"Carl & Michael Were Set For Riches!"
...You Can Read More or Try Michael's Newsletter "Doubling Stocks", Absolutely FREE For 8 Weeks! - Visit Them Today: http://shurl.net/5yl
Good Luck,
Dan A.
Related Tags: stock, market, invest, mutual, broker, american, best, funds, trade, buy, tip, canadian, global, pick, share, european, pips, penny, nasdaq, hot recommendation, semina
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