The NewArc Technology
NewArc's models use neural networks and genetic algorithms

In order to analyze the market scientifically to gain a unique trading advantage, NewArc Investments combines two exciting new methodologies — neural networks and genetic algorithms.

What's special about neural networks? Unlike computer programs that follow pre-designed rules to examine one small piece of information at a time, neural nets make a computer operate like a human brain. They look at entire patterns of information and learn from experience. In fact sometimes neural nets see opportunities a human might miss.

What's special about genetic algorithms? Genetic algorithms bring out the best in neural networks. From a large group of artificial trading "brains", they eliminate those which perform the worst on training data. Some have the aptitude for trading. Some don't.

The NewArc model developed with these methods does not require us to know or explain the reasons behind the flow of funds from one stock or sector, group of stocks in the same business, to another. NewArc has built its own proprietary sectors for maximum flexibility in investment timing. Each day the model looks at each sector as well as cash.

The model also recognizes that not all positions will be profitable and limits losses when conditions change dramatically.