The good news is that individual investors do NOT have to fully understand MIPS to use it and benefit from it...
MIPS' TARGET MARKET (Medium Frequency Investors)
We targeted mid-term (medium frequency) investors because this includes the largest number of investors who need the most help. We knew that we could provide these investors with a practical stock trading model to help them make more money in up markets, and to either protect their nest egg (buy and sell) or make money, even in down markets (buy and short).
As you can imagine, market timing developers have a choice of what cycles to analyze and try to predict. With a perfect market timing system, one would make more money trading ultra-high-frequency cycles (second-by-second cycles) like the very largest of the market-makers do now. (Of course, this is where the greatest risk lives because if your model is off by seconds, you could get clobbered.)
The main problem with trading with relatively high-frequency models is that they generate 100's of trade signals every year. Day traders love this, but this is NOT the type of investor that MIPS stock market timing systems is geared for. MIPS market trend signal analysis was designed for low-to-medium frequency investors (that is, investors that want to trade an average of 5-15 times/year on average). But, even though it is not our target market, MIPS now offers a model that produces stock signal prediction for very low-frequency investors (one trade every 1-2 years).
- very low-frequency investors (VLF) 1 trade/year
- low-frequency investors (LF) 5 trades/year
- medium-frequency investors (MF) 15 trades/year
- high-frequency investors (HF) 100 trades/year
- very high-frequency investors (VHF) 1,000 trades/year
- ultra high-frequency investors (UHF) 10,000 trades/day