How to base an investment/trading/risk management strategy on ChaosMonitor signals?
A complete investment strategy always includes element of risk budgeting / money management. ChaosMonitor does not provide risk budgeting tools at this point. We are working on separate investment strategy product that would incorporate both. We advise to look at ChaosMonitor as an advanced market risk indicator and to integrate it in your own investment decision framework. This model’s unparalleled accuracy and scope is very likely to give you a powerful competitive edge. A few thoughts on the potential integration. Compression signals are valuable indicator of coming spike in market volatility. Risk- and portfolio managers may think of buying portfolio protection and scaling down their active market risk at this point. Trend-followers are provided with a very accurate indication of imminent trading channel break-out. ChaosMonitor will help them to reduce costs associated with false break-outs. Volatility traders may want to purchase a long straddle here. Extension signals provide rea
