The matrix is an AI system that uses options premium pricing to anticipate trading signals. Often times, options premiums can indicate a move in the underlying stock well before they happen. This occurs because market makers and options writers can have a better expectation of how price might move compared to an average retail trader, and that knowledge shows in the options premium values. Based on some mathematics and statistics, we are able to figure out when there's a significant difference between the stock price and what premiums are expecting, and generate a signal from that. Our AI Portfolios are entirely generated by the Matrix system.

Here are some tips on how to use this widget.

• How to play?

  We have four things - the matrix region i.e green and red lines and the region between them, the matrix line i.e the yellow line, and white line i.e the stock line. For bullish plays, we enter when the matrix line crosses above the green line, and stay in the play as long as it doesn't cross below the green line. For bearish plays, we enter when the yellow line crosses below the red line and stay until the yellow line crosses above the red line and goes into the matrix region.

• Better for Bearish Reversals

  The matrix system works much better for anticipating bearish reversals i.e when the price of a stock might start to move downwards. It works well for bullish plays as well but bearish ones have a much higher accuracy.

• Matrix Lines Values Interpretation

  The numbers on the right axis in the chart are what's called matrix numbers. Those range between -2 to 2. When they are below -0.75, the signals are considered very strong and yield highly profitable plays. When they are between -0.3 to -0.5, the plays are okay but require some technical analysis.

• Triangles on the White Line

  White line in the chart is the stock price. The green and red dots are buy and sell signals. We remain in a position as long as the yellow line i.e matrix line remains above or below the matrix region. The purple triangle signs are the exits for the plays.

• Signals Timeframe

  This widget should only be used for swing or longer term trading. Please do not use it for day trading.

• Tips & Tricks

  From some of our historical analysis, the widget works amazingly well on stocks < 100 dollars in price, market cap under 100 billion dollars, and a matrix score of less than -0.6 (-0.7, -0.8 etc). These criteria can garner you over 6% average returns per trade. It is also a good idea to wait for some distance to be there after the matrix line crosses the matrix region. Sometimes, it goes back immediately into the region causing us a small loss.

That's it. These simple rules should help you prevent any large drawdowns, and consistently make a good income in the markets.