Introducing EWAVES (beta) Flash Services

Over the years, EWI has been developing a computer program that interprets markets under the Elliott wave model. It does not take short-cuts such as using momentum indicators to guess at Elliott wave patterns. It identifies the patterns from the price action, as one should. Getting a computer to recognize Elliott wave forms at all degrees of trend was not easy to do. It has been a challenge. But we’ve done it.

We call our program EWAVES.

Along with this analytical module, we have been developing a strategy module that converts the analysis to simple “buy” and “sell” alerts. This combination, while still under intensive development, is finally ready for application.

The ultimate version of EWAVES is not finished. But we have gotten the project to “beta” mode. This designation means the program is fully operable, yet we still have a long list of improvements that we are rapidly implementing.

To decide whether to start using EWAVES in real time, a year ago we back-tested the beta version of the program. We constructed our tests rigorously to avoid data mining. The results were good enough that last spring we began using the program in real time to make market calls for our Flash service.

We are cautiously excited about this but not inclined to make a big deal out of it. Sometimes test periods work great only to fail later. And drawdowns are inevitable with any market-calling approach.

As a result, computers now power all our Flash recommendations, with the current exception of long-term recommendations in the major stock indexes. EWAVES will soon take them over as well.

Frankly, we have never heard of a computer program that worked reliably in calling markets. But we have an idea of why this is the case. As far as we know, all other market-calling computer programs run on “quant” parameters, which are based on the fallacy that markets adhere to quantitative norms. But the market is a fractal, as Elliott discovered and Mandelbrot proved. EWAVES is not a quant system. It is a qualitative system. It identifies Elliott wave patterns regardless of size or duration.

Our first issue of EWAVES Flash covers this fascinating topic and more. The second issue covers the history of EWAVES. Subsequent issues update you on our progress, discuss program improvements, and show test results. This publication is open-access, meaning it is available at no charge. We hope you will come along for the intellectual ride and enjoy the fascinating new world of EWAVES.

Visit EWAVES.com to learn more and download issues of EWAVES Flash now >>

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