About the LEADS2012 Portfolio Management System.

This is a newly developed System being released for the first time in March 2016. It has been designed for a non-expert investor in the stock market. There are numerous Systems, Brokers, Advisers and Experts who all purport to provide you, the potential investor with a best way of achieving your goals . Those goals, maximizing profit, providing growth and preserving wealth, can be at times self contradicting. We make no claims for our system here, except that we will provide you a tool that will provide you information to make investment decisions that you will be confident and comfortable with.

 


The methodology for accomplishing this is a simple simulation of the stock market using historical data to make buying and selling decisions. The simplest explanation opf the model we use is as follows. Real data such as high and low price observations, volume of shares traded and closing prices are used to plot the daily trends of a great number of stocks for a specified period of time. This is illustrated in the figure above where a line has been calculated to best approximate the trend of the data points.

The next figure shown below illustrates boundary lines that are drawn above and below the trend lines. The lines will be used to indicate buying and selling points for the stock being assessed. If a stock's value drifts out of the band formed by the boundaries it will trigger a selling event. And similarly, a stocks value that drifts into the band might trigger a buying event.


Using the above figure again to illustrate, we refer to the time period to the left of the jagged break as the period of assessment, and the period to the right as the period of simulation. In the assessment period, we calculate trend lines for each stock that is in our universe of stocks--our database. We next make some arbitrary choices such as the width of the boundary bands, the duration of the assessment period and the technique to be used for choosing our stock. An understanding of these is not necessary in this initial exposition.

The bands of the time period of calculation are extrapolated to the following time period which is dubbed the period of simulation. The pre-specified rules are then applied to the bands by selling the stocks that are in a portfolio when rise or drop outside the bands and replacing the stocks that are sold with stocks that are eligible when they become advantageously available.

That's it in a nutshell! For a tiny investment of your time in understanding the process, a minimally computer-literate individual can obtain results immediately without a one cent investment.