Magister's CIT Model Arms Investors with a New Weapon to Beat High Frequency Traders at Their Own Game
San Diego, CA (PRWEB) June 06, 2014 -- The weapon that turns the tables in this war against high frequency traders is a predictive model called CIT (an acronym for “change in trend) that has been in development for over 10 years and is only just now being made available publicly. It forecasts financial market swings on a minute by minute basis and generated profits in the S&P 500 futures of over 200 points, with only 3 small down days, this past April and May in a very difficult trading environment.
With the recent release of Michael Lewis’s new book “Flashboys”, the battle between high frequency and algorithmic traders versus institutional traders, funds, and average investors has reached a new crescendo. HFT proponents point to the increase in liquidity and the reductions in transaction prices as being directly related to their activities. Detractors counter that the practice is often no more than “front running” or “skimming” and ends up costing institutional investors, and ultimately the average investor, far more than it saves. However, Joseph Holleman, the CEO of Magister Investment Research, believes that his firm has a solution to the concerns of institutional and average investors who are feeling outgunned in this battle.
“When the Flash Crash hit in 2010,” said Holleman, “our CIT model was already short on a daily basis and had been forecasting lower prices since 9:09 Central time that morning. Our models started flashing “buy” just after the worst of that debacle was over in the afternoon when a variation of the CIT model (called Disequilibrium or “DQ”) started indicating the worst was over. It was a VERY profitable day for anyone who followed our recommendations. Something similar happened on April 23 of last year when the “Twitter Crash” hit the market. We had signals to sell the market just a few minutes PRIOR to when that mini-crash hit and we reported it on our Twitter stream. Since then the markets have been largely dominated by High Frequency and Algo traders and we have generally been ahead of them every step of the way. The last two months, which were particularly difficult for many, were a prime example of that fact.”
Unlike traditional predictive financial models which have difficulty during times of market volatility, Magister’s models thrive during periods of high volatility often caused by high frequency traders.
“With our forecasting models, no institutional or individual investor needs to be afraid of what any High Frequency or Algo trader might be doing. Instead it’s the other way around because we usually have an idea what they are going to do BEFORE they do it. We’ve seen it time and time again”, said Holleman.
“Disciplined individual traders will find they have an edge they have not known before. It’s like trading with your eyes open for the first time,” said Holleman. “And Institutional traders can know the optimal times during the day to place their trades to diminish any negative effects that High Frequency traders have on their entries or exits.”
Individual investors can follow Magister’s trade signals in the S&P for free on Twitter at http://www.twitter.com/magisterir.
Magister’s analysis process is part of ongoing research conducted by its founder, Joseph Holleman, a 30 year veteran trader and market analyst, into human behavior patterns and their underlying causes. He is now building a new company around the results of this research.
“Financial markets were our first attempt at testing the reliability and accuracy of our technology”, said Holleman. “And if what we have seen so far is any indication, then we are on the verge of disrupting a number of established industries.”
To learn more about Magister Investment Research and what it’s doing, visit http://www.magisterinvestmentresearch.com. There you can sign up to get the same CIT cycle forecasts that were used to get the results shown on their site that can be seen here at http://www.magisterinvestmentresearch.com/newsletter-subscription.html. Customized services are offered for institutional investors and hedge funds depending on what their needs are.
About Magister Investment Research:
Magister Investment Research, a subsidiary of Magister Technologies Inc., is the first and only research firm of its kind specifically geared to equip individual investors, funds and institutions to fight back against the problems brought about by High Frequency and Algorithmic traders. Originally focused on just institutional level clients, Magister is now in the process of providing a wealth of resources for individual investors as well as institutions based on its unique predictive financial models that are applicable to stock indexes, individual stocks, ETFs, futures, interest rates, Forex and commodities in time frames as short as 1 minute to as long as monthly. Founder Joseph Holleman is a 30 year veteran trader, investment manager, system designer and consultant as well as the author of the upcoming book “The Prosperity Clock” which details the history of the world from a cyclical perspective and what lies ahead for us over the next few decades.
Disclosure: Neither Magister Investment Research nor its parent company, Magister Technologies Inc., is a licensed broker, broker-dealer, market maker, investment banker, investment advisor, analyst or underwriter. Our discussions, analysis and predictions are derived by our interpretation of our proprietary model readings, and should not be misconstrued as an investment recommendation or advice in any form. It should be clearly understood by anyone viewing this press release or related materials that investing in the stock market carries with it inherent risks and uncertainties. The actual results of a stock or commodity or currency could differ materially from descriptions given. There is a risk for substantial losses trading securities and commodities. Material and commentary provided is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities
Media Contact:
Charles Theiss, Marketing Director,
Magister Technologies Inc.,
914-843-1414
magisterinvestmentresearch(at)gmail(dot)com, attention Charles Theiss
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Charles Theiss, Magister Investment Research, http://www.magisterinvestmentresearch.com, +1 619-795-7281, [email protected]
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