Data-driven Trading

State Modeling is Delphian’s proprietary buy/sell indicator.  Extensive research has shown that market signals and indicators are too subjective.  State Modeling removes the emotion, fear, greed, and intuition from your analysis so trading strategies are based on facts.  With State Modeling, a stock is either bullish or bearish, with gradations of each.  State Modeling also provides clear entry signals with profit targets and stop losses.

Financial and market data volumes have gotten to the point where individuals, and even many models, cannot process and incorporate all of it into a fully-informed trading strategy.  State Modeling uses machine-learning quantitative mathematics to analyze huge datasets, identify patterns, and correlate them to probable future outcomes, creating data-driven, objective analytics.

State Modeling Explained

In State Modeling, there are 4 bullish states and 4 bearish states. The states are numbered 1-8. Odd numbered states are bullish (green) with State 1 being the most bullish. Even numbered states are bearish (red) with State 8 being the most bearish.

 

Every time a stock enters a new state, Delphian provides 3 profit targets (conservative, moderate and aggressive) and 3 stop loss prices for traders to consider. These targets are displayed on a chart and can be used as support and resistance prices for traders’ strategies. In addition to direction and important price points, Delphian provides the average move within an average timeframe for each stock in each state so you can set your trading expectations. Lastly, State Modeling provides the probabilities of what state the stock will transition to next so you know the odds of a trend continuing or reversing, based on our proprietary analytics.

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Objective Analysis, Disciplined Trading

There are many different ways to trade, some people are day traders and some are buy and hold.  State Modeling would be classified as a swing trading or position trading system.  Generally, our trade analytics cover a holding period of a few weeks to a few months; however, our targets are sometimes met within a few days.

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