Smartstock is based on a time-tested algorithm developed by Robert Lichello in the 1970s. Of course Lichello had to perform all his calculations by hand - a tedious chore to be sure. Over the years, Lichello's algorithm has been improved significantly. We have made some improvisation over the algorithm by introducing some technical parameters. which has improved performance.
Smartstock not only implements the very latest improvements, but also harnesses the power of your computer and the Internet to make managing your investments a breeze.
Lichello came up with a simple, but brilliant, system based on stock market volatility. With the proliferation of the computer, and the Internet, hundreds of calculations can now be performed in a second. Furthermore stocks are much more volatile today, and the Internet brings an unprecedented amount of financial information right to your desktop. These key developments have combined with Lichello's algorithm to usher in a system that can significantly increase your investment returns.
Smartstock is a money-management investing technique that incrementally adjusts exposure to a stock holding based on the price action of that stock. It relies strictly on mathematical calculations and does not take any subjective matter, like news or company fundamentals, into account when generating trade advice.
The strategy considers a "portfolio holding" to have two components at all times. The equity portion and the cash portion. Over time, both components are fluid, and will constantly change based on trades executed. As a stock rises, incremental shares are sold and directed to the cash reserve. On significant price dips, the cash reserve is strategically deployed back into that same stock. It is programmed to buy-low and sell-high, systematically trading around a core holding in an equity.
The software itself acts as a personal trade advisor, generating automatic buy and sell signals through use of mathematic formulas. It features portfolio management capabilities as well as the ability to back-test any stock with a few clicks of the mouse. The software is designed to more effectively manage stocks with a systematic and disciplined method.