Remember, all decisions are made on the basis of models. … The heart of the matter is your relative degree of confidence in each of these models.

Jay W. Forrester

I-System comprises a dual neural network of mathematical algorithms that codify a body of knowledge in market analysis and trading.

I-System’s algorithms are driven by some 70 different calculation parameters, enabling us to formulate, test and implement a large variety of intelligent trading strategies.

What I-System strategies do

For every trading day and any given market, I-System strategies calculate a numerically exact measure of trend and generate buy or sell signals.

Each strategy’s objective is to capture value from price trends while limiting losses from adverse fluctuations. Once implemented, the strategies perform their function autonomously, reducing the complex work of daily market analysis to its final product: simple, actionable decisions. This provides investors vital decision support to navigate the market cycles profitably, with confidence and peace of mind. To explain I-System strategies further, the following document provides a description of a typical I-System strategy. The description applies to all I-System strategies, except that each uses a different combination of calculatino parameters:

I-System: description of a typical strategyI-SYSTEM STRATEGY: A DESCRIPTION

Strategies differ in two principal ways:

(1) Trend cycle: accommodating long-, medium-, and short-term trends

I-System strategies can focus on long-term, medium-term, or short-term trends. These cycles aren’t defined around any fixed time horizon but are always determined around trend following behaviors that are shown to generate best trading results. The following charts exemplify long, medium and short term trends:

Long-term trend

Crude Oil price chart and an I-System strategy with a long-term trend. The red curve in the sub-chart shows the strategy’s trading performance.

MEDIUm-term trend

Crude Oil price chart with a medium-term trend definition.

short-term trend

Crude Oil price chart with a short-term trend cycle.

While either kind of a strategy can prove effective, our experience has shown that strategies with a long-term trend definitions tend to be most reliable performers over time. However, that also means that they’ll tend to be more volatile as they’ll be relatively late to recognize trend reversals when they take place.

(2) Time in the market

Furthermore, we can formulate I-System strategies either to be always in the market, or to trade more selectively, passing more time waiting for the right signals. Experience has shown that strategies that tend to be always or nearly always in the market tend to perform more reliably as they are less likely to miss significant favorable price moves.

Quality

The most important aspect of I-System is its quality. By “quality” in this sense, we don’t mean that I-System strategies trade profitably every day, but that that the model is supremely stable and consistent at doing what it’s meant to do. To read more on this important subject, follow this link…