The ongoing research being conducted by GALATEIA Corporation will provide the user with tools and systems to trade the market with a consistent likelihood of success.

I - Consensus

We consider the best approach to trading to be one of statistically independent assessment and prediction of related markets and market internals (i.e various volume indicators or individual stocks within an index) combined with an objective analysis by the trader to determine when this constellation of predictions agree with each other. We often refer to reaching a 'consensus' with regard to the individual predicitions of related time series. While this may be a bit of a misuse of the word consensus, we think it captures the spirit of the objective: to only take trades when most or all predicitons for highly correlated targets are in reasonable agreement with each other.

II - Short range prediciton and high frequency trading makes predicting the next 'bear market' a moot point

While it is exciting to contemplate crowing about having predicted the next notable market move, it seems that one might be able to reach a point of 'diminishing concerns' (as opposed to diminishing returns!) with regard to these large equilibrium changes in the market. Certainly 'day traders' know this to be the case: the scale and resolution of intra-day trading is such that one does not care if the market losses 30% during any given quarter if one is capturing and compounding a fraction of a percent a day, or more.

This same idea is what drives our interest in short range price moves. Our goal is to maintain our focus on END-OF-DAY systems that allow the trader to execute trades with an average profit as well as an average frequency, high enough in each case, to allow for returns far in excess of the typical end-of-day trading systems, an consequently allow one to disregard the long term trend in the market.

III - What you can expect of us, and what WE EXPECT OF YOU

We don't currently predict the market perfectly within the confines of any one model, or in the consensual sense across all models, on every day. In this sense we can 'see ahead' better on some days than we can on others. Yet despite periods when the models disagree, we seem to be able to find a good consensus a couple times a month. And, in fact, that is all one needs to make money at a good rate. If, for example, one can maintain an average trading frequency of 24 times per year combined with an average return of 2% per trade, then one can look forward to 61% annual returns. We think that this is not at all unreasonable. In fact, we hope to achieve higher trading frequencies (2.5-3.0 times per month) and higher returns (2.5-3%), but only time will tell.

We don't expect you to 'buy into' an idea and we wouldn't respect you in the morning if you did! Follow the public trading statistics for our corporate trading and see how we do. If the returns stimulate your interest, sign up and commit yourself to evaluating what we have to offer you. We expect you to convince yourself of the usefulness of what we provide, not the other way around.