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As a non-trader investor what intrigues me was his statement a little while ago that he might license Socrates to a fund management group. It is hard to be objective about his calls if the manner of investment differs between individuals and the risk/reward consideration is often overlooked, but an openly marketed registered fund would surely put to rest any argument about the validity of Socrates as it would be judged against its peers for all to see. I dont mean it has to beat all its peers over every time frame but if it could provide regular positive returns with low risk (high Sharpe Ratio/high Information Ratio etc) then that would attract a lot of money and fulfil his stated commitment to the little guy.
As a non-trader investor what intrigues me was his statement a little while ago that he might license Socrates to a fund management group. It is hard to be objective about his calls if the manner of investment differs between individuals and the risk/reward consideration is often overlooked, but an openly marketed registered fund would surely put to rest any argument about the validity of Socrates as it would be judged against its peers for all to see. I dont mean it has to beat all its peers over every time frame but if it could provide regular positive returns with low risk (high Sharpe Ratio/high Information Ratio etc) then that would attract a lot of money and fulfil his stated commitment to the little guy.
That is propaganda or wishful thinking. It is not going to happen for multiple reasons. First MA was in jail for so many years for financial missteps where he lost large amounts of other people's money. No way that a fund management group would want to get anywhere near his services. The second reason is that if it was realistic, then MA would do it himself and make big money. As MA admits numerous times, everybody acts in his own interests. The third reason is that big money cannot invest following signals emitted by the Socrates system. Their acquisitions have to be made over long periods of time using hidden orders. They usually have to buy when the market is declining. Socrates does not emit buy signals on lows or declines. If, for example they would buy at the election of a Bullish Reversal, it would be devastating because they would drive the price up with their large orders too much to be profitable. Different dynamics.
MA survives in this niche area where he makes money from selling services to retail investors with limited experience, the reports, and conferences. His dream is to create a business detached from his personality like Socrates. Once he retires, the system will collapse. There is no business model. Armstrong cannot grow. That is because any computer based trading system defeats itself naturally as soon as a significant number of people start trading based on it. Especially a system like Socrates which is single dimensional and cannot adapt because it is not using AI at all. You can say that you have been successful because you followed the wider trend which is fine. But that is what I call single observation based statistics. In contrast, I have taken hundreds of predictions made by Socrates and found that it is not better than tossing a coin. Surely a large scale manager will come to the same conclusions that I did, further complicating the situation. No way.
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12240520
Martin Armstrong is a charlatan, and he spent 11 years in jail for a reason.
Read this blog starting at page 273 to find out more about computerized fraud.
See armstrongecmscam.blogspot.com for a more compact view of major findings posted in this blog.