The calculation process and sending the signals, there are six stages that we go through:
1) Assets List – our decision on which assets to include in the list are influenced by two major factors, whether we can gather enough data on the particular asset, and whether these assets “react positively” to our perdition models.
The information that serve all our models is gathered form the markets. As a rule of thumb, it is easier to gather data from high-volume-trading assets which are also more “popular”.
During the time that the algorithms run with the prediction model, we discover the assets that are “easier” to predict their direction than others. We put all data through a mathematical sieve and sort out the assets that statistically are the best to predict.
2) Pre-opening data – based on our assets list we gather information from a big list of traders and companies, identifying their anticipation for the relevant asset. Again, we put it all through a mathematical algorithm, weighting all variables like the size of the trades, the trade volume and historical data.
By the end of this process, and before the New-York market opens, we already have expected trend for each asset and the probability of that trend.
3) Market opening – the first hour of trading is crucial for the models. During that time, we observe the traders, the contracts and see whether our preliminary expectations were correct, and adjust all in real time.
4) Proprietary Models – once we gathered the pre-opening and the first opening data (stages 2,3) we implement our own proprietary mathematical models. Again, this is done in real time, and today we run at least 4 models in this stage.
5) Sorting the strong signals – at this stage we have a double checked (at least) data, by which we sort our assets. We choose the assets with the most significant signals, and make sure that it is above a minimum statistical rank. We then forward the chosen ones to the site server.
6) Shooting the signals – while all the above stages where done on separate servers, this stage is done in UpDownSignals site. Within a minute of receiving the signals from the algo-trading server, we shoot the signals out to you.
The results are publicly kept and updated in “proven-results” page.