Article by: Tom Hunter
What I am about to share with you, is a very unusual story.
Unusual... because it is about 2 "geeks", named Michael and Carl. Who developed the first commercially available stock picking "robot". Michael (the programmer) named the robot "Marl".
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| Above: Carl and Michael Programming "Marl" |
Marl came about after Michael developed the famous "Global Alpha" computer stock trading model, while contracted to Goldman Sachs.
A piece of software which most years is responsible for...
$4,000,000,000+ Annual Trading Profit
With this software project completed, Michael looked for a new way to line his pockets. Unfortunately he had signed a Non Compete and NDA agreement with Goldman Sachs, forbidding him to create software which trades derivatives and similar financial instruments (like Global Alpha).
After 3 weeks of being temporarily unemployed, Michael who was very wealthy and very bored... Decided to start a new project.
You' see Goldman Sachs and most other large investment funds are at a major disadvantage. They often manage portfolios of up to $10,000,000,000 (ten billion dollars) - and because of this when they invest in stocks their scope is limited to just a few of the worlds largest firms (Coca-Cola, Google).
This problem is widespread amongst fund managers whom manage large amounts of capital. In fact Warren Buffet (Whom manages $53 billion) has the exact same problem.
Michael knew he could take advantage of this. By developing software which can run on any home computer, and manage funds between $100 and $500,000.
With managing such a small comparative amount, Michael's software could yield much higher returns. In fact it is designed to trade in the volatile penny stock market where stocks can increase 400% in a matter of minutes.
Michael worked with fund manager Carl Williamson to create the bot. "Marl" works by analysing each stock using "technical analysis". Which means analysing a stocks past price movements to predict the stocks future direction.
Below is an example stock chart. For all it looks like something NASA would be proud of... it is merely showing the stocks changes in price against time.
The various changes in price (when made into a chart) form what traders call "chart patterns" and it is exactly these price patterns Marl is looking for.
When first activated, Marl will use its own database to perform a scan of stocks trading on the OTC and Pink sheet exchanges. During this time Marl is looking for companies whom are forming bullish trading patterns.(stocks about to increase)
Carl helped Michael program the bot to identify (in split second timing) distinct trading patterns from a vast range of 6578, held in Marl's internal database.
If Marl identifies a clean, uncongested chart pattern, that is proven to yield a good risk/reward - Then the stock will be added to Marl's "Watch List". All of these "watched stocks" will be forming bullish patterns (indicating the stock is about to rise).
This watch list has two distinct advantages. The first and most obvious is that Marl can easily monitor hundreds of stocks at the same time. The second is that Marl is programmed on an "evolutionary framework". What this means, is that as Marl is watching hundreds of stock patterns it actually learns the most likely direction of stock prices under thousands of situations.
Because of this. The longer Marl is allowed to run on a computer...
The More Advanced He Becomes!
What's more by scrutinising the miniscule movements in price of hundreds of stocks... Marl becomes familiar... even intimate... With each individual stock.
Developing what professional traders call a "sixth sense". A sort of "feel" for how the stock will behave in any given situation.
While monitoring hundreds of stocks in the watch list... Marl may notice that a stock has been hitting resistance at $0.50 all week (not being able to rise above 50 cents a share). And if the stock breaks that level (meaning there is a good chance it will "breakout" and run much higher) the bot will start analyzing the stock in more detail... looking at its longer term weekly trading pattern and applying its vast range of criteria.
Any stocks that reach this stage have been under close scrutiny and passed a variety of complex tests. Marl will then analyze the charts looking for the best entry point (to buy the stock at) with the lowest risk to potential reward.
The average professional stock trader can analyze one stock chart around every 8-10 seconds... when looking for an opportunity. On the other hand Marl can analyze 7 charts every second.
Why Does That Matter?
It means that Marl can be extremely selective, waiting until all the correct criteria line up until a trade recommendation is made.
Often Marl will disregard profitable trades... In favour of a potentially more profitable trade occurring at the same time.
After creating Marl to version 1.0... The two input a trading capital of $1000 and set it running. Marl spent 13 hours analysing over 6,000 small capitalisation firms. After those 13 hours Marl made his first ever stock recommendation...
LPTC.OB Trading at $0.74 Per Share
Carl placed the trade in his online brokerage account with $1000 invested, as the market closed for the night. The following morning (a Tuesday) the stock climbed to $1.05 within the first 3 hours (a 42% increase).
Something ‘magical’ had just happened. In Carl Williamson’s dark, damp basement the first ever profitable stock robot was created.
Computer Science Universities around the country had attempted this feat for years with no avail. They lacked one crucial thing, these students only had a basic grasp of stock trading - Let alone the complex thinking and analysis involved.
Carl Williamson was vital to Marl's success and so on that day. The 16th of January 2007. Michael and Carl signed a legally binding contract. Both swore themselves to "secrecy". No one would know about Marl. Not Carl's trading partners... Not Michael's old Global Alpha colleagues... Not anyone.
Within the next few days Carl and Michael rented a commercial lock-up where their new business was to be stationed. They drove to the nearest PC World and bought 12 brand new laptops.
Back at the lock-up Michael set-up a wireless network and configured each laptop. They spent the first night setting up each laptop v1.1 of Marl the trading robot. Yes you guessed it...
Carl & Michael Were Setting Up A Lockup To House Marl...
Marl Was To Analyse the Markets... 24 Hours a Day!
By setting up Marl on a network, with 12 versions of "himself" running at the same time - His internal database of chart trading patterns was able to grow at a much faster rate.
Each bot was linked to one central database, held on a separate server, and hosted online.
Carl & Michael Were Set For Riches!
The second day after 12 sets of Marl analysed over 17,000 small cap firms... Marl made
It's Second Stock Recommendation...
Marl recommended another stock named NSMG.OB. Carl once again placed the trade online, this time investing $1380 using the profits made on the last trade.
Within 3 days time the stock had rocketed from $1.12 per share to $3.42. In total a 205% increase in just a matter of days.
In fact by this point the two were so excited they slept on the floor in the lockup. Watching as Marl analysed hundreds of thousands more stocks.
Michael (the programmer) has insisted I include some technical details pertaining to his ‘masterpiece’ in this article, here they are:
- Marl can process 1,986,832 mathematical calculations per second.
- As explained the more Marl is used the better his skills will become; every situation it analyses is fed back to an online "master database" which also gauges the performance of its actual stock picks. The result is a bot which is constantly perfecting its trading formula.
- Marl doesn't just compare each trade to past situations. It also looks at volume traded, Support and resistance levels, Trend reversals patterns, Consolidation patterns and Channels a stock trades in. - Marl takes all of this into account before even watching a certain stock.
Carl went on to explain that Marl is a simple bot. And unlike the computer science universities currently trying to create programs like Marl. Michael and Carl were adamant their stock robot would be extremely simple. It is simple in design and simple in programming. For the end user this means there are virtually no errors or bugs, which could prove financially fatal.
Below is a Screenshot of Carl's online Brokerage account after using Marl for 9 days:
Now as explained above, Marl is the first "Commercially available" stock trading robot. And since its introduction in early 2007, Marl has been responsible for creating 86 millionaires and 13 multi-millionaires.
And because of this a license to use Marl is no "cheap date".
In fact it costs...
$28,000 Per License!
And each person who purchases a license is invited to Michael's home for a week of personal training.
Now Michael did go on to tell me something very interesting. Stay with me on this because I'm about to tell you how anybody can benefit from Marl... Without shelling out $28,000.
You' see Michael and Carl know that not many people have $28,000 to "risk" on buying a Stock Trading Robot. And so they thought for days about how they could prove Marl is everything I have explained, without giving him away on some sort of "trial basis".
So they created a weekly newsletter, named "Doubling Stocks". Each week every reader of that newsletter would receive one Penny Stock pick chosen by Marl.
And so far since the newsletter was started 4 months ago... Each pick has made an...
$5000, $6000 or More
They went on to tell me they were offering a membership to this newsletter at just a token fee of $47.00! And better yet this token fee of $47.00 will allow you to trade Marl's picks for the lifetime of the newsletter.
Why?
Because Carl told me:
"This newsletter is the best kind of advertising available. Thousands of people read the email each week and witness returns consistently averaging 80%+"
"And we priced the newsletter at $47.00 simply to ensure those who join are serious about investing in each stock pick".
And because of this $47 newsletter, Marl has already been featured in Business Week and the Wall Street Journal.
Just take a look at these stock graphs. Just a few of the trades Marl has picked in the past 5 months:
Above: One of Michael's Personal Favourites!
Above: In total Michael's subscribers earned an estimated $192,392 from this pick.
Above: Michael told me this one was quite risky, but it certainly paid off.
In fact, Carl tells me 3.2% of members of this newsletter, end up buying Marl outright.
Why would they pay such a large amount to buy their own Marl when they can simply follow the newsletter?
Because Marl usually predicts at least 2 good stocks per day. And owners of the software can make 10 or more investments per week, unlike members of the newsletter.
There is one more caveat. Members of the newsletter are expected to report back to Michael and Carl details of their entry point, exit point and profit/loss (if they decide to trade that week).
$47.00 One Off Subscription Amount
Including an 8 Week Free Trial...
This is 100% Risk Free...
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