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What Is myShare2u Investing Model (MS2U)?

The myShare2u Investing Model (MS2U) is based on a set of mathematical formulas that uses a powerful computer "algorithm" based on technical analysis. The MS2U selects a portfolio of stocks by applying this algorithm to historical price and volume data.

MS2U main objective is to create a simple trading strategy: A buy signal is generated when the stock is "technically" undervalued and a sell signal when the value of the stock is overvalued as reflected by the technical indicators.

How Does MS2U Work?

MS2U processes ALL the stocks in Bursa Malaysia (over 1,000) on a continuous basis using the MS2U algorithm to each stock price/volume data. New data is also applied when available, emphasizing the effect of the latest price movement while also using historical trends.  The purpose and result of MS2U is to create a list of undervalued and overvalued stocks.

Why Does the Model Work?

MS2U dynamic algorithm is designed to be adaptive to the ever-changing stock market conditions.  The Stock Market is Efficiency Theory says that the value stocks are "truely" reflected in the market action, well, most of the time.

Volatility is caused when surprise earnings announcements, forecasts or unexpected news. These are the times when the stock market overreacts, mainly caused by the emotions of traders, namely Greed & Fear.

MS2U goal is to identify the temporary inefficiencies in the stock market's reaction to this new information. Extensive back-testing reveals that there's a consistent interaction of the stock market that leads to a consistent pattern of undervalued and overvalued of stocks.

 

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