The Basics

If you're fairly new to the world of share investing, and in particular to using a software product to help you invest, this is probably a great place to start. One of our guiding principles is to do away with the mystery of share trading and the 'smoke and mirrors' used by so many companies out there, and put world-class technology and easy to understand information in the hands of regular investors. In fact, even if you're an experienced trader, some of these terms may be unique to our processes, so it's worth investing a few minutes of your time now to get off on the right foot.

  • Mechanical Investing:

    This is an investment style that requires a pure investigation and evaluation of stock price data, conducted through a researched and rigorous process. There is no personal judgement involved or any kind of influence from outside sources of information including market commentators and media, forecasts or so-called 'expert' opinions. A true mechanical investment methodology involves strictly following a set of researched and unambiguous rules to produce a positive outcome.

    The key to a good Mechanical Methodology is in the evaluation criteria. While these can vary, when you're trying to decide whether or not a Mechanical Methodology is effective or not, a great place to start is to simply look at the results such a system has produced under varying market conditions over an extended period of time. It is reasonable to assume positive results over a large sample of trades indicate the evaluation criteria are effective although it's essential you keep in mind no mechanical methodology is 'perfect' - such a system simply does not, or ever will, exist.

    The truth is, unpredictable variables in the market do affect the results produced. Trying to guess or predict these events in advance is impossible, so what differentiates a good mechanical methodology from an inferior one then, is the ability to consistently produce larger positive results than negative ones and often enough no matter what the market does such that the mechanical methodology handsomely outperforms the market making the active effort very worthwhile.

  • The Edge:

    In it's simplest terms, you have an 'Edge' when you have a set of rules about when to invest, how much to invest, and when to get out of your investment that helps you achieve enough positive results to exceed any costs you incur trading and any other losses you may make along the way.

    Yes, we used the word 'losses'. Sorry, but it's an inescapable fact of investing in the share market that some of your trades will 'under perform'. The only way to never lose, is to never invest. And this is why it's important to acknowledge losses do happen, and to have an Edge that ensures you produce a positive result despite your losses. Historical results prove our mechanical products give you a definite Edge when investing in the stock market to the extent that, over time, you will outperform the market and 98% of Managed Funds and Managed Superannuation Funds.