Correlations between markets and external energy cycles like gravity and geomagnetism. Understanding the master rhythm of the world’s first computer from ancient times. Included is the methodology behind the implemented tools along with concrete examples of how to put cyclic analysis into trading practice. The Business Cycle Forecasts plotted as an indicator is transformed into a mechanical trading rule whose profitability has been evaluated against the Dow buy-and-hold performance of 1990-2013. The results suggest that trading based on recurring sentiment significantly outperforms the Dow in nearly all performance metrics, including net return, profitability, and Sharpe ratio.
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