Matrix provides clear concise actionable commentary of the currency, stock and commodity markets over multi time frames to suit the different needs of the trader or investor.
This commentary comes from evidence based analysis of the key drivers of any market:
Fundamentals, Intermarket relationships, Technicals and Sentiment (FITS).
Fundamental analysis - the real world study of countries, governments, companies or commodities, determined by economic data such as interest rates, GDP, unemployment levels, and PMIs.
Matrix seeks to identify fundamental trends that can be monitored through such data AND price action.
Inter market Analysis - the dynamic study of the extent to which one market influences another.
Matrix seeks to identify correlations (causal or non-causal) in the same or adjacent time periods.
Technical Analysis– the study of price action (and other price related data) to identify particular patterns or relationships which markets form, such as triangles, trendlines, Elliott Waves, Fibonacci and other well-documented and frequent patterns.
Matrix seeks to identify the conditions and markets where particular formations work best or fail.
S entiment Analysis –Traditional sentiment analysis is the study of the views/trades of the market, expressed in such statistics as commitment of traders, and general worry about uncertainty.
Matrix seeks to translate the variety of reports and media (social and public) into probable market positions and the likely ensuing effect on price.
Adaptive sentiment analysis assesses the impact of trading robots. Since the growth of algorithmic trading and in particular the explosion of High Frequency Trading since 2008, the impact of quantitative trading cannot be ignored.
Matrix seeks to identify shorter term price action that is repeating itself ‘robotically. in the form of fractals.
In the broader sense Sentiment is also taken to include seasonal and cyclical patterns. Matrix seeks to determine and exploit any such repetition.
Clearly each of these different drivers need different tools or indicators. But, as the impact of fundamentals, intermarket relationships, technical and sentiment will vary over time and markets, some tools or indicators will work better sometimes and in some markets than others.
For example, fundamentally driven trends operate very differently to range bound technical markets; extreme sentiment in one market can have a disproportionate effect on another related market. A classic head and shoulders formation can work well where sentiment is strong in a technical market; but be disastrous where there is an opposite fundamental move in another related market.
Matrix therefore seeks to measure the impact of each and every driver on each and every market and time frame to determine which indicators or tools or more likely to succeed and therefore which should be followed more closely. (FITS Scores).
Knowing the character of a particular market, its idiosyncrasies and non-price trends will also help determine which tools or indicators work best. A market dominated by HFTs will move differently to one that waits for Central Bank manipulation.
As the aim is to identify the most probable outcomes in the most volatile markets, Matrix also attributes levels of clarity and volatility. (VC scores) A trade is likely to be more profitable when the combination is higher.
Clearly history can play important role in determining probability. A market is more likely to follow a similar pattern when confronted by similar conditions whether those conditions are fundamental, technical, intermarket or sentiment. Where similar conditions combine or particularly when this similarity is reflected in price action and can be compared to other price action (fractal) the results can be very powerful. The odds shift even more in our favour.
The results of this analysis is made available by individual markets in the three asset groups of currencies, stock indices and commodities). Commentary is provided in a concise accessible format over different time frames to provide context and fine tuning that best suits an individual trader.