Modeling Through
Advanced Quantitative Research
Discover methodologies to develop and evaluate proprietary market models across multiple asset classes.
At Morgan Group
Our Approach
- We employ the principles of advanced signal processing to develop stock market trading models.
- Our models cover a variety of market periods, including down-market periods.
- Our models cover currencies, commodities, and certain Market Options.
Core Model Development Principles
These models are derived from the same fundamental theories:
Principle 1
Fundamental information about an asset is contained in the price history and can be extracted with advanced signal processing.
Principle 2
Some assets have built-in “correcting forces” to short-term price changes. These include many commodities and currencies.
Principle 3
Multiple assets that are highly uncorrelated can be traded aggressively with good risk control.
Principle 4
All emotion and “gut” must be eliminated. All trading decisions must be made mathematically. All trading executions must be auto-traded.
Research Methodologies
All of our models are based on principles of
Reversion to the Mean (RTM)
Momentum (MMOM)
Volatility (VOL)
Markets and Time Horizons
- Our models cover a variety of markets on a variety of time bases.
- All of our modeled trading is short-term in nature, with holding periods of 2-45 days.
- Because of the trading capacity of various markets, the capacities of our systems may be somewhat limited.
Purpose of Published Results
- We publish these model results solely to document the development and validation of our trading systems.
- We are not seeking investors, licensees, or customers of any kind through this website.
Important Information About Model Results
- All results shown are model results based on back-testing of historical market data.
- They do not represent actual trading results and do not constitute a forecast of future performance.
- Past performance, whether actual or modeled, is not indicative of future results.
- Hypothetical performance results have many inherent limitations.
- Actual results may differ materially.
Website Disclosure
- This website is presented for informational purposes only.
- It is not an offer to sell any security, commodity interest, or other product, and does not constitute investment advice or a solicitation of any kind.
- Morgan Group does not offer investment opportunities to any person through this website.
- This website is not directed to any person in any jurisdiction where its publication or availability would be contrary to local law or regulation.