My research began back in 2005 which stemmed from an idea I saw when looking over stocks on the NYSE and NASDAQ markets. My brother (a database computer programmer) custom built a program to test out this idea.

The results certified to us, that stock market direction (from the opening price to the closing price of the day) could be predicted with high probabilities, incorporating this method.

The results also prove “Random walk theory” is wrong.

All trades back tested were, buying at the market open, setting a 4% stop loss, and selling on market close. No trades were ever held overnight.

Here are the results tested from January 1st 2002 – 27th February 2009.

Results:

2009: 45.75% return (33 days traded), (Probability of profitable days: 72.72%)

2008: 233.63% return (232 days traded), (Probability of profitable days: 67.24%)

2007: 96.29% return (208 days traded), (Probability of profitable days: 62.98%)

2006: 116.87% return (199 days traded), (Probability of profitable days: 68.84%)

2005: 121.14% return (205 days traded), (Probability of profitable days: 74.14%)

2004: 87.92% return (202 days traded), (Probability of profitable days: 65.32%)

2003: 159.21% return (209 days traded), (Probability of profitable days: 69.37%)

2002: 65.28% return (155 days traded), (Probability of profitable days: 52.25%)

Total return: 926.1% over 7 years and 2 months.

The results above are all long trades, when testing the system live, we were getting slippage on the short trades at market open, but when buying (long), we were guaranteed the opening days price. (When shorting stocks on market open, U.S markets requires a long trade before a short), that is why we were not getting filled at the market open price on short trades.

All stocks within the system trade 1-7 million in average volume per day and all trade on U.S exchanges.

Our method goes beyond being a high probability trading system with great returns, it proves random walk theory wrong, and certifies predicting stock market direction.

We contacted Google finance last week with a proposal, to prove our research, and are waiting for a reply.

Any feedback would be much appreciated on how to go about marketing our research and analysis,

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