Written on February 9, 2011 by David in Humorous

For the last eight years I have been holed up in my trading cave developing an indicator that allows me to predict future stock movement with uncanny accuracy. I am now ready to reveal it to the world!

My indicator, which I affectionately call RAPT (Rewards After Perfect Timing), is based on a combination of mathematical formulas that date back to the 13th century.  Using any one of these in isolation yields meager results but when used in combination the world becomes my oyster.  I have made a fortune with this indicator but my conscience will not allow me to keep it a secret any longer.

If you take the time to study great mathematicians, you will find that each one copied and built upon the work of their contemporaries and predecessors, thus leading to greater discoveries.  Follow along with me as I guide you along the path of enlightened discovery 8 years in the making with our friends Fibonacci, Fermat, and Euler.

Leonardo Pisano Fibonacci (1170-1245) is widely credited with the discovery  of a sequence of numbers first used to calculate the birth rate of rabbits. Here is the question posed to Leonardo:  Beginning with a single pair of rabbits, if in every month each productive pair bears a new pair, which becomes productive when they are 1 month old, how many rabbits will there be after n months?  From this equation, Fibonacci came up with a sequence of numbers wherein each successive number is based on the addition of the two previous:  1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987,.…  Fibonacci sequences can be found throughout nature, particularly in flowers.  Fibonacci numbers are prevalent in stock prices as long as the correct combination is used, yielding yet a higher Fibonacci number.  Here is the combination I discovered:

89 + 34 + 21 = 144.  144 is the target number once points A (89), B (34), and C (21) are calculated.

Blaise Pascal (1623-1662) described a convenient tabular presentation for binomial coefficients, now called Pascal’s triangle.  One example of Pascal’s triangle is the shallow diagonals based on the triangular sum of Fibonacci’s numbers.  The triangle includes the Fibonacci numbers 1, 2, 3, 5, 8, and 13, thus creating a piece of the full triangle.  Let’s call it a wedge.  You can see an example here:

Leonhard Euler (1707-1783) developed the magical magic square.  The equation begins with a given: normal magic squares exist for all orders n ≥ 1 except n = 2, although the case n = 1 is trivial, consisting of a single cell containing the number 1.  Each column in the square, if the correct number combinations are used, will equal the same total.  I have discovered the following magical square, which fits right in with the Fibonacci sequence and Pascal’s triangle.  If you add up the numbers in each row you will get 34, a Fibonacci number.  When you add up the diagonal numbers you will also have a total of 34, fitting perfectly with the triangular scenario.

Now, what does this all have to do with making my fortune?  It is very simple.  I have designed a wedge within a magic square box connected by Fibonacci numbers, the numbers are calculated with simple moving averages plotted along a price pattern.  I run a scan on a universe of carefully selected stocks locating those that meet my RAPT criteria.  There is but a few of these, maybe 5-10 a month, but when they trigger there is nothing else like it.  I simply check an earnings date, consult with my options pricing software, and make the trade.  I have never had a loser.

Here is a recent trade that met the RAPT criteria.  This is COSTCO (COST) on the DAILY chart.  Once triggered there was an 8 point move…my Reward After Perfect Timing.

The six figure price for the software that powers this information is available only by invitation.  Maybe you will hear from me soon.   If not, I know your pockets arent deep enough!

For a detailed understanding of RAPT read the following four part explanation with DISCLAIMER.