Our 3 year track record is based on trading simulations with
over 20 Financial News Analysts.
The results suggest that the process and models that were developed
for this site have a positive return that is significantly better than the market
return.
In September 2001, a one month trading experiment had 3 analysts tracking 16 stocks. The FNA models predicted
40 trades. The average return for the stocks in this period was -11.37%, and the
average prediction model return was 2.82% for the month.
A larger 6 month trading experiment in July 2002, had 15 analysts tracking news stories
for all the stocks in the Dow 30 and NASDAQ 100. The trading results for
this period had a 54.2% return on 382 round-trip trades, or 4 trades per day.
Since going live on July 1, 2004, our model portfolio has been maintained
using news from stocks in the Dow 30 and NASDAQ 100. Our top analysts have
collected classifications for over three years of historical financial news.
These data and historical prices have been driving our model portfolio. Our
model portfolio closed out 2004 with an 84% return.
