Using our unique investment methods we still use systems to narrow down stock investments and place the odds in our favor.
Valuation Model and Program
One method we use is valuation models. We have built a robot to provide users with a list of stocks that are trading below their current valuation based on various formulas. the way you then go ahead and trade these methods is entirely up to the user and interpreter.
Imagine the possibilities if you are buying business that are currently trading below their valuation. Whether you use long calls, or short puts or margin stocks or just straight stocks, using this method surely assists in placing the odds in the traders favor.
Here is a a screen shot of the outcomes from our scanner.
A user can see the different stock codes down the left hand side and then the different valuation models across the top. A user can then see the current traded price and current valuation average price on the right hand 2 columns. This provides a quick analysis for a user to make a decision on how and what to invest in.
Whilst the scanner is not definitive it does provide a quick reference guide based on the valuation inputs. From this a user should then use other analysis to make an informed investment decision.
Option trading scanner and program
This program is currently used in conjunction with the valuation model program. Our current style of trading with this portfolio is looking for stocks that are trading below valuation. We then use Statistical probability, based on the entire history of the stock on the probability of whether a naked put option will actually get exercised.
Using this method we can easily generate about a 1% return per Week, in cash flow as we receive the option premium. On the weeks were only a one or 2 stocks from the portfolio get exercised we end up owning stock in a company, which is trading below valuation anyway, so we then write calls on that stock for extra income or wait till the stock trades back at valuation before selling it.
Its a simple strategy, but to-date i have not yet found anything like it on the internet so i created my own.
I could write a whole book on the system and algorithms used, but for those who are in know you will understand what i do and how i do what i do by looking at the screen shot and reading in between the lines.
Currently the programs are not available for resale, or monthly fees. I am happy to discuss various options so please email me with any requests. If you have a proposition is commercially viable for me, i am willing to hear from you to discuss further.
