Vermillion is a system
based on dynamic statistical models - a unique strategy that
can be applied and optimized to multiple time frames.
What is unique about Vermillion is that it is uncorrelated to
many popular strategies. Also, it is portable in between
various time frames on the same cross.
The algorithm behind Vermillion is based on the convergence of
statistical models from 2 and 3 standard deviations. This
solves the fundamental flaw in common moving average
strategies, which analyzes current price rathar than
derivative models such as standard deviation of current price.
Standard deviation is a mathematical formula that measures
volatility, showing how the price can be spread around it's
"true value". The technician can be relatively certain that
almost all of the price data needed will be found between the
two standard deviations.
This approach toward strategies gives Vermillion the
analytical edge over linear regression and least squared
algorithms, which although advanced, only analyze current
price.
Wikipedia states: It is of interest to note that faulty
interpretation of a price touching or breaching a band based
on incorrect statistical assumptions has become so widespread
that some traders now use these events alone as trading
signals and by so doing may have unwittingly injected
significance into these band-touching events that would
otherwise be absent.
Vermillion does not execute signals based on the price
touching or not touching a bollinger band - Vermillion does
not analyze current price. It analyzes various bands and other
statistical models, which gives it the ultimate advantage over
bollinger based strategies.
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NEITHER MAN FINANCIAL NOR ITS EMPLOYEES HAVE REVIEWED OR
VERIFIED THE PERFORMANCE RESULTS OF OR CLAIMS MADE BY ANY
THIRD PARTY SYSTEM PROVIDER. NEITHER MAN FINANCIAL NOR
ITS EMPLOYEES ARE RECOMMENDING ANY SPECIFIC THIRD PARTY SYSTEM
PROVIDER.
THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR
TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS
WHICH CAN ADVERSELY AFFECT TRADING RESULTS. THERE ARE NUMEROUS
OTHER FACTORS RELATED TO THE MARKETS IN GENERAL WHICH CAN AFFECT
THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT
BE FULLY ACCOUNTED FOR IN HISTORICAL BACK TESTING AND IN THE
PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS, ALL OF WHICH
CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS
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