“Why is it so hard to predict stock prices?”
“Why does volatility infect nearly every portfolio on the planet?”
We investigated these questions using methods that originate from the job, in aerospace engineering (secret clearance). Our primary tools are digital signal processing and Fourier methods.
We found the problem is related to “noise.” The solution is implemented by using a well-known basis function (applied in a non-traditional way). The procedure is a “black box” process.
Also, prediction accuracy depends on Significant Figures: our computer is university-level, research-grade. We use the Multiprecision Computing Toolbox for Matlab.
We believe that every hedge fund on the planet can have steady returns, regardless of market dynamics.