Steady Stock Portfolio Growth
Prediction Expertise in Aerospace, Government, and Industry for 46 Years
Steady Stock Portfolio Growth
Prediction Expertise in Aerospace, Government, and Industry for 46 Years
Data Visualization Using the Fourier Transform
What We Do
Insight Inc. is a startup developing a prediction algorithm to eliminate noise in stock prices so that upcoming short-term movements are easy to anticipate mathematically. Most people in asset management believe that prediction is impossible. Also, systematic research reveals that most day traders lose money.
Stock markets, futures, and indexes are in the realm of non-linear dynamics (markets are not efficient or rational).
UC Berkeley Study: Most Day Traders Lose
Three theorems have touched upon the human causes of unstable market dynamics:
Also, in 1963 and 1972, Edward N Lorenz showed that the number of significant figures is important for accurate prediction in non-linear systems.
In addition, one must distinguish between random noise and dynamic effects, such as turbulence or exponential changes.
Both of these ideas apply to stock market data analysis and modeling.
The life insurance companies have a mostly steady track record because they manage their risk scientifically.
The stock market could become much more steady with a scientific algorithm.
The Fourier spectra help clarify "nonlinear." The aircraft has two vibration modes plus random energy (a candidate for the Kalman filter).
The stock market has one narrow spike (corresponding to the "energy of daytime trading") plus random energy, ... but it also has information buried in the spectrum at "human frequencies." The Gallery shows some examples of this effect, and the Fourier slide deck shows some examples.
Growth Comparison
Organized
Volatile
Dynamic Energy Comparison
Mechanical System
People System
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