A brand new theory that has come after 700 years of Fibonacci and 150 years of Elliot waves, the two most popular indicators.

Innovative theory, set for release

Dear One and all,

This write up is an announcement and an invitation to expression of your interests. You are meaningful to me, if

- You understand the ‘foreign currency markets’

- You know the Importance of a ‘technical forecasting method’

- Can calculate the cost of this Innovation

A forecasting theory was designed, developed and introduced by a famous Italian mathematician called ‘Fibonacci’. This had happened about 700 years back and the theory went on to find the popularity by the name ‘fibonacci series’. Though Fibonacci is not here anymore, yet his theory continues to be the most popular technical indicator, used by the forex traders, money managers, private and the government banks as well as by all financial institutions, to analyze the foreign currency markets movements and then take decisions while making their investment plans. There have been some other theories also but ‘fibo’ by far is the best, primarily because of the ease of its looks. Application of ‘Fibo’ on the historical graph of the currency pair produces possible reversal points on each side of the trend which are used by the analysts to anticipate the likely movements. Unfortunately, ‘Fibonacci’ leaves lot many undefined areas and non-clarified doubts that surround the method of analysis. Under the method, starting of the trend is something that can only be assumed and there is no given method to confirm that the trend has started and the analysis point is correct. Similarly, there are no given strategies by the originator ‘Fibonacci’, which would mean pure profits, hence all trading individuals and investing firms, design their own unique strategies with their own understanding of this Indicator and their own skills to correctly or incorrectly trade the markets

If they are right in everything every time, i.e.,

- The correct point of analysis

- Correct calculation of the possible reversal points

- Correct strategy and

- The correct risk management,

then their investment portfolio would mean ‘profits’, but that is only and only when they have good understanding of the indicator and have their associated strategies in place.

The magnitude of the profit varies under each case, yet proper strategies and correct decisions can produce about 15% to 40% annual returns for the banks, successful money managers and the well known financial institutions. To name a few of these successful bodies, there is JP Morgan’s, Morgan Stanley, Societe generale of Paris and, others from wall street of U.S., banks of Switzerland and companies of London, who make investments running in millions and billions of dollars. All these Institutions have the ability to derive profits from the markets, big or small, their personal skills. The profit levels vary in each case as it depends purely on their own trading strategies, systems and their own research wings.

Let’s come to the topic, a forecasting theory. The innovation produced, after three long years of my involvement with the foreign currency markets, is a ‘THEORY THAT FORECASTS’. The ‘Innovative theory’ first of its kinds, deploys certain principles of pure mathematics to explain the entire market movements and has adequately been converted to a simple ‘mathematical formula’ which, when applied on the given market conditions or the historical market graphs, sharply predicts the most likely turning points to any started trend. Any market expert knows the importance of the absolute reversal points and so would you if you also have been into the markets.

This innovation may be compared with ‘Fibonacci series’ and other similar Indicators ever designed, but an as innovation, there are certain features in it that make it really different and much better than the previous ones. One of the reasons would be that the theory is able to explain entire deviations in the expected market movements which have never been technically explained previously by any of the theories. More than that, the following prototype features are Important.

1) Theory uses only the ‘rates’ to explain the markets and predict the future.

There has never been any forecasting theory that would work only with the concurrent market rates and this feature makes it unique. The formulas require only the market rates, hence taking away the complexity of application of ‘fibo’. ‘Fibo’ is used on the historical graphs where application of ‘fibo’ would mean finding the start of the trend and calculating from there. Fibo application is not clear, hence the reason for most of the miscalculations and hence all the failures.

This innovation brings clarity to reading the markets on absolute mathematical terms. The trend is calculated mathematically and so is the reversal point. That takes us to reason no. 2.

2) Clear ‘mathematical definition’ of a started trend

The mathematical formulas clearly identify the starting as well as the started trend. There has been no indicator ever produced, which could define the ‘starting trend’. This theory defines the starting trend right at the inception of it and, any trading firm will know what that literally means, in terms of market trading. Similarly, the theory gives a definite mathematical explanation to a trend already started, so calculations of the ‘most likely reversal points’ from there is just like blinking your eyes. This identification of the trend and thereon calculations take us to the 3rd point which is,

3) Very high accuracy rate of the predicted reversal points.

Though the firms prefer trading with the trend and nothing like catching it right from the beginning, yet the reversal points have their own Importance. Let me not comment on the predictions made using ‘Fibo’ as I never tested them much but what I see is that ‘fibo’ predictions are available just about everywhere, yet 99% of the traders would only find only the losses. It’s unfair to say that’ Fibo’ fails when I know that it could very well be the inadequacy of the analyst or the incompetence of the Investor. Yet, if predictions made based on my theory were to be commented on, then it definitely has a much higher and a much stronger accuracy rate, only little less than a cinch.

The word ‘cinch’ takes me to defining strategies. As I mentioned, Predictions require strategies to covert the ‘trends and reversals’ into profits. The strategy adopted is a matter of personal intelligence and personal convenience for any individual investor or the investing firm, as some prefer ‘swing trading’ and some the ‘Intra day’ style. Of course, every firm will have its own trading temperament, so it becomes its own need to design an appropriate strategy, suiting its own trading style.

Though my focus has only been on designing this theory, yet I was also able to identify my own strategies to trade these predictions. The sharply defined strategies over the period of testing have been successful in producing some extraordinary results in terms of profits. To be more precise, each strategy produces about 60%-80% returns over a month, with minimum trading efforts. Of course the profits potential is directly proportional to the risk management style and it differs in individual cases. While a high risk program can multiply the indicated results to at least thrice of the potential, a highly conservative program also can produces about 20% to 30% monthly profits with as good as ZERO RISK and minimum trading efforts. Talking that, I will mention that the risk factor is reflection of money management skills of an individual where percentage of the equity used as margin money calculates the risk levels. An extremely safe trading will look for deployment of about 0.25% margin utilization, 8-9 trades in a month and an average profit of 150 Pips on a trade. The no. of trades mentioned here can significantly increase if it is an automated trading robot trading the markets twenty four hours, on all trading pairs, so the magnitude of profits better be imagined.

Coming back to the innovation, this theory holds enough potential to impact the finance Industry worldwide and, I am ready to release it now.

In a nutshell, this is,

1) The brand new theory towards analyzing and forecasting the forex market and it has come after 700 years of Fibo and 150 years of Elliot waves, the two most popular indicators.

2) Clearly defined Strategies, with each one holding its own value. This part is important because it’s not just the theory, but each of the strategies also is my own brainchild. Each strategy can be converted into an automated robot to trade the markets without any human intervention for ‘24 hrs. Non- stop wealth building’.

Both put together, are clear profit. And it can actually change the way they look at the markets, both Banks and the financial Institutions.

Let’s come to the point. I have the option to keep trading and keep accumulating profits till I reach the worth of this innovation. The other option would be to release it for an equal amount and save all my time for my other innovations. Second is my preferred option and as I said I am ready to release it now but prior to that, I wish to ensure the maximum returns for my work. I will be highly demanding here, justification is that the theory serves the ‘cash market’ and, forex is a global term.

- Theory means ‘a much higher level of returns’ for any bank in any country. While the savings rate in Japan is nothing more than 0.5 %, the highest savings rate in New Zealand is 7.5% annual. The banks expect an annual market return of 18%-20% on their investments. These figures will most likely change, if the theory was to be released to the banks.

- Theory will be used by the forex giants like Holding brothers and Soc. Gen, to build huge wealth. The investment portfolios of these companies run in billions and trillions of dollars, with their expectations of about 30%-40% annual returns. My theory will definitely multiply their returns by Factor X, but more than that, the gestation period on their investments can now be as less as 3 months.

Here is what I expect,

- Lump sum amount for release of this theory.

What should this figure be and what is the benchmark to calculate it? Should it be compared to ‘Google taking over you tube’, or should it be what ‘George soros did to Bank of England’?

- Lump sum amount for release of each of my strategies.

What should this figure be? (If I were to take it as a business selling my strategies to Individual customers, then it would take me nothing more than two years to find 10,000 retail traders to pay me $30,000 each? That is the minimum potential. ) However, retail traders are not my target segment.

- Patent rights

Obviously, I would like to have patent rights to my theory and hold the right to benefit from any other possible extensions to my work.

If you have the creativity, the clarity, the business acumen and the capacity, then

Give me an action plan!!!

PRASHANT CHANDOLA

This innovation provides forecasting on the foreign currency market movements.Certain features make it unique and the best so far. Other similar theories were designed 700 years back ( Fibonacci ) and 150 years back ( Eliiot waves )

The theory could interest all forex investment institutions, forex brokers, forex traders and all related bodies worldwide.

Invention #11140

Date posted: 2008-11-25

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