Q: What is
A: Reverse Signals is a registered trademark of Reverse Signals, Inc. ReverseSignals.com
provides online access to the results of
the Reverse Signals' trading solution. For registered users
Reverse Signals will show either a “buy” or a “sell” signal at
all times, unless data quality of particular ticker symbol is
in question or it's been discontinued. Active subscribers can view the latest trading signals' reversal date.
Currently over 5,000 stocks registered at NASDAQ, NYSE Amex Equities and NYSE
stocks exchange and
over 15,000 mutual funds are included in the analysis. Signals
shown are calculated daily for each stock and mutual fund
included in the study during a default period of nine years,
or from the symbols inclusion date. Email updates are also
Q: What is the objective of
the Reverse Signals?
A: The main objective of Reverse Signals' trading solution is
to produce consistent and measurable results, higher than S&P500 index and “buy
and hold” investment strategy, that can help you increase your
investment returns and reduce your risk exposure, while
limiting the amount of trade transactions.
The conventional wisdom that a well-diversified
portfolio shields investors from market disasters did not work
during the bear market of 2007-2009 that wiped out $6 trillion
worth of wealth in the U.S. alone. Only “reverse signaled”
portfolio can provide that extra defense mechanism to protect
your investments against such rapid downfalls the stock market
experienced during the beginning and the end of the last
decade. The results show that Reverse Signals consistently
outperforms the stock market each and every year with
Q: Why keeping a low number
of buy and sell transactions, is considered good?
A: Keeping the number of transactions low is one of the most
important characteristics of a trading strategy, next to the
profit. Achieving consistent and steady long term gain by
high-frequency trading in unstable or declining markets,
we have experienced twice during the last decade,
is an illusion considering in addition that the time
required, higher taxes and risk, commissions and potential
penalties could substantially reduce your investments.
Because the number of buy and sell transactions is kept
at a minimum with the Reverse Signals' trading solution, the
investment cost is considerably lowered. Mutual funds often
limit the number of transactions over certain time period.
Therefore, it is imperative to make the best of these
limitations by knowing when to buy or sell. Reverse Signals
provides results, which can be relied upon to maximize your
gain, while minimizing the number of trade transactions
required to do so.
Q: What makes Reverse
A: Reverse Signals produces buy and sell trading signals as a
result of a trading solution designed by
the principles of cybernetics and proprietary trading
techniques created for, owned and operated by Reverse Signals,
Inc. These proprietary trading techniques, formally known as
“Reverse Signals Trading”, are applied to determine superior
buy and sell decision points to help increase your investment
returns and reduce your risk exposure, and not to predict
future stock market prices.
While at different phases of the study, artificial
intelligence methods including neural networks have been used to produce the trade reversal points,
there are a number of published and proprietary data analysis concepts and
patterns simply used for data filtering,
cleansing, normalization and optimization process during the
Reverse Signals analysis.
Q: Why analyzing nine years
of stock market data?
A: As a result of numerous and intensive back-testing studies
with data since 1975, it was concluded that by analyzing a
period of nine years of stock market data, prior to the last
day of trading, Reverse Signals produces returns with optimal
gain to risk ratio with a minimum number of buy and sell
Q: Why Reverse Signals
operates with adjusted-closing prices?
A: When examining historical returns, the adjusted-closing
price gives an accurate representation of the stock or fund
value beyond the simple market price. The adjusted-closing
price takes into consideration, all corporate actions
affecting the value of stock for a particular day, such as
stock splits, dividends distributions and rights offerings.
Q: Are the character of the
stock market prices random?
A: This is the fundamental question to ask when evaluating any
trading system or investment strategy. There have been a
number of studies conducted with the intent of proving that
stock market prices are predictable and oppose the century old
conclusion that “the mathematical expectation of the
speculator is zero”. Predictability is not what our “Reverse Signals
Trading” solution is designed to explore.
Reverse Signals is designed and implemented with the
realization that for the purpose of practical exploit stock
prices move randomly. Good reading material about the subject
of investing can be found in the book “A Random Walk Down Wall
Street”, by Burton Malkiel and for more curious minds in the
book “A Non-Random Walk Down Wall Street”, by Andrew W. Lo and
A. Craig MacKinlay.
Q: Who created Reverse Signals trading solution?
A: After receiving a M.Sc. in Systems Automation, the visionary and architect of Reverse Signals
worked as a researcher with a large computer manufacturer.
Since 2000, he has been providing IT consulting services for a number of S&P 500,
private and government entities across a variety of industries.
A non-inclusive list of clients include AOL/Time Warner, US Department of Treasury,
Citigroup, HSBC Bank, Coca-Cola, Aegon/TransAmerica,
IBM, Allstate Insurance, Exelon/Commonwealth Edison, Wal-Mart, Safeway,
Nissan North America, Lenovo, Alticor, USAA Insurance,
Kana Software, Nationwide Insurance, State Farm Insurance,
PFPC Global Fund Services, Household International, Cerner Software, Louis Dreyfus.
Q: How do I know Reverse
Signals' past performance is real?
A: All subscribers are able to view the last trade dates and
quotes of their portfolio picks and monitor the performance of
individual stocks and mutual funds to verify the accuracy of
our returns and transactions amount.
Q: How do I make changes to
A: You have complete control over your subscription at all
times. You can cancel your subscription through your account
at PayPal. All payments are processed by PayPal secure
payments. Reverses Signals, Inc. does not collect any credit
card information, customer name or mailing address.
Q: What is the refund
A: With the subscription and buy now options there are no refunds on
charges made. If you decide to cancel a subscription PayPal
will immediately stop all future scheduled payments for this
Q: How do I get trading
signals for my stocks and mutual funds?
When you sign in and press 'Show Porfolio' on the left side of
the portfolio window 'Del' button will be shown. Select
symbols from the input box at the top and use a 'Add' button
to add symbols to your portfolio. You can use the 'Add' and
'Del' buttons to modify your portfolio at any time. You can
add up to 50 symbols if you are an active subscriber and view
signals for symbols up to the amount of your subscription
From the home page you can select, view and compare
performance results of Reverse Signals trading with some
famous investors' stock picks, i.e. "reverse signaled"
investors' stock picks:
A: Sign up and create custom portfolio with your stocks and
mutual funds. Reverse Signals provides separate web pages for
stocks and mutual funds. From the home page menu select
“Stocks” or “Funds”, type the symbol or multiple symbols
separated by a space and press “Get Results”. Active subscribers can also get
last trading reversal date and email trading updates if this option is enabled.
Portfolio entries are updated daily.
Q: How should I read the
results of the Reverse Signals' trading solution?
In addition, an overall statistic is presented in another
table below your selected results, which shows how the Reverse
Signals is performing within different stock indexes or fund
A: Reverse Signals will display the results of each stock or
fund requested in a "trading results" window. The annualized
investment returns and the number of buy and sell transactions
committed are the key for comparison with others' investment
strategies. The “Period Owned” shows the percentage of the
entire trading period in which the stock or fund was actually
owned (bought). The last column shows the last nine days of
price fluctuation. For registered members with active
subscription "buy" or "sell" signals will be shown in their
custom portfolio. Across the very bottom of the results
window, it shows the average returns and transactions
committed for the selected symbols.
Q: What is the approximate
investment gain or loss?
A: Reverse Signals results do not include the cost an investor
incurs when executing a trade transaction, nor does it
consider distribution of dividends during the trading period.
However, by considering the data provided in “Trades/Year” and
“Period Owned” columns one can easily calculate these costs
and thus approximate the total gain or loss of our trading
solution within reasonable accuracy.
Q: What does consistent and
measurable profit mean?
A: Reverse Signals has been back-tested periodically using
several decades of historic daily quote price data from over
20,000 stocks and mutual funds. The results showed that
Reverse Signals' trading solution consistently outperforms the
stock market each and every year and provides positive
results, including the periods of the 2000-2002 bear market
(S&P500 lost over 47%)
and the stock-market decline of
2007-2009 (S&P500 drop 55%) during which major stock indexes
and fund categories lost a significant portion of their
values, i.e. your money.
Q: What is the meaning of
A: The “Period Owned” column shows what percentage of the
entire trading period Reverse Signals maintained the "buy"
signal for a particular ticker symbol, index or a group of
Q: How is the Win-to-Loss
A: A ratio of the total number of winning trades to the total
number of losing trades: Win-to-Loss Ratio = Winning Trades /
Q: How is the Kelly Ratio
A: A mathematical formula relating to the long-term growth of
capital developed by John Larry Kelly Jr.: Kelly Ratio = W –
[(1 – W)/R], where W is the winning probability factor and R
is the total positive trade amounts divided by the total
negative trade amounts.
Q: How is the system
A: Expectancy is widely used by professionals to evaluate the
profitability of a trading system: Expectancy = (Probability
of Winning x Average Win) - (Probability of Losing x Average