NFA Predictive Models

NFA's Predictive models also use technical analysis further enhanced by market cycles and sophisticated time and price analysis to indicate when the market should change trend direction. This model is more subjective than mechanical.

We believe all markets have cyclical patterns that when tracked closely reveal themselves. We have identified specific cycles for the short (27-day), intermediate (9-weeks & 19-weeks) and long-term (39-weeks and above) movements of the market. Unfortunately, cycles can expand, contract, and invert, making it difficult to program a computer to recognize some of the delicacies the human eye can see. By monitoring these cycles and confirming expected market highs and lows with other technical analysis techniques, including price and time squaring, market highs and lows can be anticipated before major trend changes are apparent. By investing the portfolios, within their restrictive parameters, predictive signals often lower entry points and higher exit prices can be achieved. Predictive signals can and do increase portfolio returns but, along with these returns come some increase in risk and volatility.