How Does It Work ?

How Does It Work ? (TradeProphet under the hood)

TradeProphet is a stock rating engine ,running an asset (stock,bond,ETF,...) trough a rigorous filter chain in order to detect previous profitable price patterns.
Once a pattern is recognized, the system alerts the user about the profitable pattern as they are about to fire once again.

The system looks for a number of different filters based on fundamental,quantitative and technical thresholds issuing four types of alerts:

• Long - Open a long position
• Short - Open a short position
• Close Long - Close a long position
• Close Short - Close a short position

The final report of a normal rating cycle, may look like the example below:

Ticker	Position	Profit/Loss Ratio	Max. Draw Down	Sharpe	Std. Deviation	Alpha	Beta	Order Date
BWLD	Close Long	9.52	12.66%	14.16	0.16	47.13%	-8.69	01/05/2014
IMAX	Close Long	6.43	17.84%	13.17	0.23	65.20%	36.95	01/05/2014
LOCK	Long	8.24	2.47%	10.89	0.17	36.90%	-8.55	01/05/2014
OLED	Close Long	6.87	15.64%	15.74	0.14	43.61%	9.66	01/05/2014
PEGA	Long	7.02	10.83%	17.47	0.11	35.67%	2.05	01/05/2014
SAVE	Long	7.33	11.56%	11.40	0.14	30.49%	0.22	01/05/2014
XRS	Long	5.45	4.92%	8.04	0.21	31.96%	-1.03	01/05/2014

TradeProphet Final Report

Ticker - The symbol generating the alert.

Position - The recommended position to open,with the following ratings:

• Profit/Loss Ratio - the ratio between the profit ,for the specific alert, and the loss ,for the same specific alert.The higher the better.
• Max. Draw Down - The maximum lose ,ever incurred,for the specific alert.
• Sharpe - The sharpe ratio for the specific alert.
• Std. Deviation - The standard deviation for the specific alert.
• Order Date - The date the alert was fired.
• Beta - The Beta calculated for the specific alert.
• Alpha - The Beta calculated for the specific alert.

Happy Trading,
The TradeProphet team.