Since only few instruments (Stocks, indexes etc.) have +50 years of historical data, we were limited in the choice. We decided quite early that the S&P500 would be representative. The SP500 also has the longest ETF tracker, the SPY. Note that you can not directly trade the raw index numbers. A trader needs to trade an index through an tracker, futures or options.

 

After the first working model were found, we needed to real life test trade. Since all signals were produced exclusively on the SP500 Index data, we executed them on the SPY tracker. Even though the SPY tracks the Index almost neatly, there are small differences.

 

The devil is in the detail, some say – we agree too. And of course the odds are against us. The small differences were great enough to reduce a average 13% yearly return on a SP500 index data, to a around 8% yearly return on the SPY tracker data.

 

Note the difference in ‘Signals’ and ‘Execution Signals’. No matter what you trade, you need first a signal to execute a trade. So there is always a delay.

 

More modules followed, some originated from customer requests.