1. MARKET IN TRAFFIC LIGHTS Designed for the next Users Private Investors Professional investors in Broker companies Run mode: Real Time combined with the Day-to-Day Market scanner

2. TECHNICAL SPECIFICATIONS Written in Visual Basic (VBA) Access Excel Outlook The software was running in the environment of a broker company for 2 years Code Size: 34,000 lines, 682 pages, 302 procedures. All real time in excel, all daily saves in Access

3. MAIN OBJECTIVES Real time “Hopping” trading Substitutes Unreliable real time Human Contact Information with Objective Computer real time search Real time Intraday watch Real time Intraday forecasting combined with Day- to-Day seasonal forecasting Intarday short listing and optimal portfolio

4. OTHER OBJECTIVES Intraday virtual trading Intraday continuous clearence History of Virtual trading

5. Outline of Inputs Reads past historic Day- to-Day close data of assets from a Data Base Reads past Intraday Evenly granulated data of assets from a Data Base for the last n-days (e.g 5 days) Reads past clearance data of virtual trading from a Data Base Reads interactive setup parameters of the user like transaction costs, risk free rates etc. Reads e-mail questions about forecasting or prices from Outlook

6. Outline of Setup Parameters Size in minutes of the Intraday session and preliminary session Sizes of time scales to handle Which assets or derivatives to handle Transaction costs Make of the Volumes information or not Risk parameters calibrations (confidence intervals, acceptable probabilities of VaR, risk-free rates etc)

7. MAIN FUNCTIONALITIES Scans in real time the market and selects opportunities Makes real time forecasting in many real time scales Combines forecasting at different time scales:Long- term, seasonal, short term, real time etc Calculates in real time the correlations structure of the market, and risk metrics for all the assets Calculates in real time optimal portfolio of the market in many time scales. Performs automatic virtual trading based on the above on all or selected assets. Makes real time clearance of the virtual trading and saves final daily clearance.

8. Other Functionalities Calculates lateral real time statistics of the market (Like average percentage change of the market, average on volumes, average on capitalization, variance of percentage changes etc) Calculates continuously in real time, technical analysis, like support- resistance, spectral analysis etc. in various time scales Includes in the optimal portfolio both securities and derivatives. Performs evenly space granulation of the ticks of all relevant assets, for the needs of real time forecasting. Reads and Answers e-mail questions from outlook for real time forecasting, send by SMS messages from Mobiles and answers with SMS messages. Sends real time SMS messages to mobile phones for Buying or Selling an asset.

9. Simulation Functionalities Virtual trading in continuous Intraday time Simulation of the next day based on the forecasting Historic simulation on a number of days on the preset automatic trading What it does not do in simulation: 1) No manual interactive simulation 2) No fast Historic simulation. All historic simulation is analyzed on four intraday prices: open, high, low close and all indicators risk metrics and portfolios are recalculated 3) No alternative models Monte-Carlo simulation of future time.

10. 4-Color Market Risk-Code In actual prices or forecasting and at various time scales: Red: The asset is going down (D<0) Green: Asset is going up (D>0) Yellow: The asset has decreasing increase (D 2 <0) Orange:The asset has decreasing decrease (D 2 >0) The above give the name Traffic-Lights

11. Risk Management Techniques Combination of forecasting at various time scales to give a trading order in various ways Intraday 4-color classification of all assets

12. The Role of Information on Volumes The information of volumes per a time interval (intraday or not) is included or not in the forecasting, the risk metrics, correlation structure and optimal portfolio as a user’s choice To Volume is also used to calculate the support-resistance (as weight on the prices)

13. Data Base and Real time Requires as input data from a Data Base (4 th generation objects), and then in real time carries them in RAM in arrays for reasons of speed No tables or data base in Intraday real time only (3 rd generation objects like arrays)

14. Outline of Outputs Real time Intraday, and real time changing non-intraday, forecasting charts at 3-time scales of selected assets and derivatives Real time Intraday, and real time changing non-intraday, spectral analysis (amplitude phases, derivatives) of selected assets Real time Intraday, and real time changing non-intraday, support-resistance chart of selected assets Histograms of volume and percentage change distribution on all assets, plus averages and variances 4-color risk and other risk- metric real-time intraday classification of all asset Intra-day continuous clearance of all traded assets Intraday suggested lateral optimal portfolio of assets Intra-day continuous time scan and classification of reversals of all assets Intra-day continuous time longitudinal optimal portfolio of trading systems at various time scales on the same asset. Intra-day continuous time optimal suggested liquidity for futures