The ultimate trading system takes greed and fear out of the equation
Institute founder Larry Edelson often said that, if we could only buy low and sell high, we’d all be richer than Bill Gates. But because we humans are emotional animals, we tend to do just the opposite.
We tend to buy high out of greed — only after we see others making money … and we tend to sell low out of fear — often after suffering painful losses.
Larry realized that the only way to eliminate this “whipsaw effect” — to stop buying out of greed and selling out of fear – is to completely remove human emotion from financial decision-making.
So, for the past three years, Larry worked feverishly behind the scenes to eliminate all human interference from his cycles analysis model.
Larry worked with lead editor Mike Burnick, his trading team, and the Institute’s team of visionary computer engineers and artificial intelligence experts to improve his trading model in four careful steps:
First, they gathered all the cyclical information Larry had accumulated during his 40-year career; detailed price data for food, gold, currencies and other essential items going back more than 5,000 years; to the time before the first Egyptian pyramid was a gleam in Pharaoh’s eye.
This data includes detailed price movements in virtually every major empire the world has ever seen; from ancient Egypt, Persia, Babylon, Greece and Rome, through the heights of the British Empire of the 1700s and 1800s.
Mathematical models married to artificial intelligence
The second step was to make sure the price cycle chart for every stock, ETF, option and other investment we follow is as current as possible.
To do this, we spared no expense; acquiring massive streams of real-time fundamental and technical data on nearly 20,000 stocks, over 4,000 ETFs and 7,000 mutual funds.
So, in addition to 5,000 years of cyclical price data on each investment class, we also have nearly 30 million current, real-time data points for every investment we follow.
Next, we entered the mathematical models and formulas Larry devised to plot these price cycles.
The big difference: Because Larry created these formulas long before computers were readily available he did these calculations by hand.
But over the past three years, he worked with expert computer programmers to build them into his computer-based E-Wave model.
As the fourth and final step, we gave Larry’s model the ability to think for itself. We used state-of-the-art artificial intelligence technology to make sure the E-Wave model learns from every success and every failure.
The result is the E-Wave model: The world’s first and ONLY Artificial Intelligence model based on Larry’s proprietary brand of cycles analysis.
Historical validation for every forecast
While adding the artificial intelligence component to our cycles forecasting is state-of-the-art, the second step is extremely low-tech; no computers required.
Larry insisted that we personally examine every forecast we make for the economy, the overall stock market and individual sectors to ensure that they make sense from an historical perspective.
Given the serious nature of the recent convergence of these historical cycles — an event that occurred prior to the great crash of 1929 and the Great Depression, Larry has often used the events of that period to validate his cyclical analysis.
Today, an entire team of economic historians here at The Edelson Institute uses this same approach to validate everything being forecast by the economic and investment cycles Larry trusted most.
A better way to identify optimum entry and exit points
Knowing whether an investment is about to rise or fall is critical; knowing precisely WHEN to buy and when to sell is even more important.
To identify the optimum entry and exit points for each trade – Larry taught us to rely heavily on technical analysis: The study of key chart patterns.
His primary tool for triggering “buy” and “sell” signals is something called “Andrew’s Pitchfork.”
The Pitchfork approach to technical analysis uses three parallel trendlines to identify levels of support and resistance for each investment .
Together, these trendlines determine the lowest and highest levels each investment is likely to achieve.
Then, armed with this information, it’s easy to identify the optimum entry and exit points; the times when “buy” and “sell” signals should be issued.
The E-Wave Trader is available free with your Edelson Institute membership
The E-Wave Trader is the ONLY trading service that harnesses the power of The Edelson Institute’s approach for leveraged investments. The goal: Grow your wealth faster and more consistently than ever before with trades optimized by our proprietary Artificial Intelligence model.
E-Wave Trader is free to Edelson Institute members. To learn more about how to join, see this page.