The system rates all the stocks in a stock market by assigning stars to them. The highest rating that a stock may receive is (5★) and the lowest is (1★) and some stocks are not rated. The ratings are generated and continuously updated on the basis of the trading performance in the last 6, 12 and 24 months. Please take note of the fact that the rating of a stock may differ across these different time intervals.
The philosophy behind the ratings is simple. The trading performance of a stock based on signals in the chosen time interval is compared to the average market performance in the same time interval. A high rating indicates an above average performance with respect to the market and vice versa. However, the average performance of the markets in a given time interval may differ widely from stock exchange to stock exchange. So, a high (5★) rating in NYSE may signify, for example, a more modest 50% gain, while a high (5★) rating in OTCBB may signify a spectacular 600% gain in the same time interval.
The table of ratings and performances show the hypothetical gain in a stock which a trader would be able to realize assuming that he/she trades completely on the basis of signals. As such, the rating jointly measures the system based gain as well as the conformity of the stock to our system. This is an important point, because a high performing stock is expected to behave similarly in the future since its reversal points are better identified by the candlestick patterns. Apparently, this is an outcome based on what happened in the past and it does not provide full guarantee for the future. We only expect that past will repeat itself in the future leading to similar gains.
The following caveats must be considered seriously by the potential users of this website:
Some of the reported gains (especially in over the counter stocks and pink sheets) are associated with extremely low liquidity. Achievement of such gains may be practically very difficult in a real-life scenario. We strongly suggest the consideration of volume and liquidity while picking stocks.
We want to warn the investors about a basic tenet of finance, which says that an extraordinary spectacular gain usually means a high level of risk indicating a potential big loss in case of a very sudden volatility burst usually seen in opening, and which may not be immediately detected by the system.