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iSigma Fractal Trading System
Description
Our fractal system is a complete trading system, based on the fractal market modeling concepts initially advanced by Benoit Mandelbrot. The system is suitable for trading in any sort of market, at any time, by anyone. It is entirely mechanical. Users of our system have to make only two discretionary decisions for as long as they trade the system: maximum acceptable losses and which markets they intend to trade. The system is somewhat similar to trend following systems in that it seeks to capture profits during trending periods. However, the system is not a conventional trend following approach.
Other Systems
First of all, we are not categorically opposed to other trading systems. There are many good systems out there. Ours simply happens to be better. To understand why, consider the approach that someone unfamiliar with statistics takes at a poker game. Eventually the player notices that certain hands are worth raising to the ceiling while others leave no option but to fold. The player may not fully understand why this is the case, but it works well enough against most opponents. The same thing happens in the design of most trading systems. Rather than starting from a coherent model of the market, the system developer just creates and refines a set of rules until it works well enough.
| Feature Comparison | Our System | Other Systems |
|---|
| Based on Coherent Model | YES! | NO |
| Requires Expensive Software to Get Alerts | NO! | Often |
| Possibly Curve Fit | NO | Often |
| Completely Mechanical | YES! | Sometimes |
Who Can Use the System?
The system is suited for anyone who is otherwise prepared to engage in speculative trading. No special training is needed in order to trade this system. Although some of the math involved in the development of the system is demanding, there is no need to solve equations or derive formulas in order to carry out day to day trading activities. If you can multiply decimals with a pocket calculator, you know all the math required to trade the system.
Invariance of Scale
The system can be used to trade in any timeframe. Our alerting services are oriented around long term trading but the system itself is not limited to any particular timeframe. Rather, the system finds its own proper timeframe by adapting to market conditions rather than leaving the trader to guess blindly.
For more information on why a fractal model is appropriate and how we aply the fractal model in markets, click here.
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