MIPS stock market timing systems use very intricate and complex applied mathematics, technical analysis, and artificial intelligence algorithms for market trend prediction of mid-term market changes from up-to-down and from down-to-up. In mathematical terms, an "inflection point" is where the slope of a given curve (for example, a sine wave) changes direction from say up-to-down or down-to-up. The exact point where this occurs is where the slope (or tangent or derivative) of the curve goes from positive to negative or vice versa. When this happens, the slope is "flat" and actually goes through "zero", and this event is called an "Inflection Point." Of course, the real world is not quite that simple, but our goal is still to identify the Inflection Points in the stock market (market trend signals analysis) and issue buy/sell/short signals. Hence, the name of our stock market trading system is "Market Inflection Point Signals" (MIPS). Click here for animated Inflection Point (WikiPedia)
The good news is that individual investors do NOT have to fully understand MIPS to use it and benefit from it...
MIPS' TARGET MARKET (Medium Frequency Investors)
We targeted mid-term (medium frequency) investors because this includes the largest number of investors who need the most help. We knew that we could provide these investors with a practical stock trading model to help them make more money in up markets, and to either protect their nest egg (buy and sell) or make money, even in down markets (buy and short).
As you can imagine, market timing developers have a choice of what cycles to analyze and try to predict. With a perfect market timing system, one would make more money trading ultra-high-frequency cycles (second-by-second cycles) like the very largest of the market-makers do now. (Of course, this is where the greatest risk lives because if your model is off by seconds, you could get clobbered.)
The main problem with trading with relatively high-frequency models is that they generate 100's of trade signals every year. Day traders love this, but this is NOT the type of investor that MIPS stock market timing systems is geared for. MIPS market trend signal analysis was designed for low-to-medium frequency investors (that is, investors that want to trade an average of 5-15 times/year on average). But, even though it is not our target market, MIPS now offers a model that produces stock signal prediction for very low-frequency investors (one trade every 1-2 years).
Most individual investors are taught to simply buy and hold, even in down markets. They are also told that (a) no one can time the market and (b) they should never consider short trades. And somehow, the SEC made it illegal for "retail" fund managers to execute short orders in their portfolios. But, everyone must have forgotten to tell the hedge fund managers this, as they have been making billions of dollars for the last 35 years.
MIPS Timing Systems, LLC, was formed to provide stock market timing signals for individual investors to help them make money in both bull markets and bear markets like the high-profile professional money managers do (that is, like hedge fund managers that can trade long and short as they see fit).
The MIPS Timing Systems models analyze the stock market and provide information to our members when the models issue buy, short, and/or cash "signals". The MIPS trading system uses the S&P 500 Exchange Traded Fund (ETF), the SPY Index Fund, to represent the market and uses SPY in one of its index trading strategies. MIPS is not for high frequency online trading or for day traders.
Most of the information regarding the stock market direction provided herein is derived from quantitative models and algorithms owned and developed by MIPS Timing Systems, LLC. These are made up of numerous technical indicators, some of which are published and some of which were developed in-house. These technical indicators are looking for new stock market trends and the exact time that the market changes its trend line from up-to-down or vice versa (i.e., an "inflection point" in the stock market trend line). This provides our members with new tools for timing the stock market and to better manage their stock market investments.