For the last eight years I have been holed up in my trading cave developing an indicator that allows me to predict future stock movement with uncanny accuracy. I am now ready to reveal it to the world!

My indicator, which I affectionately call RAPT (Rewards After Perfect Timing), is based on a combination of mathematical formulas that date back to the 13th century.  Using any one of these in isolation yields meager results but when used in combination the world becomes my oyster.  I have made a fortune with this indicator but my conscience will not allow me to keep it a secret any longer.

If you take the time to study great mathematicians, you will find that each one copied and built upon the work of their contemporaries and predecessors, thus leading to greater discoveries.  Follow along with me as I guide you along the path of enlightened discovery 8 years in the making with our friends Fibonacci, Fermat, and Euler.

Leonardo Pisano Fibonacci (1170-1245) is widely credited with the discovery  of a sequence of numbers first used to calculate the birth rate of rabbits. Here is the question posed to Leonardo:  Beginning with a single pair of rabbits, if in every month each productive pair bears a new pair, which becomes productive when they are 1 month old, how many rabbits will there be after n months?  From this equation, Fibonacci came up with a sequence of numbers wherein each successive number is based on the addition of the two previous:  1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987,.…  Fibonacci sequences can be found throughout nature, particularly in flowers.  Fibonacci numbers are prevalent in stock prices as long as the correct combination is used, yielding yet a higher Fibonacci number.  Here is the combination I discovered:

89 + 34 + 21 = 144.  144 is the target number once points A (89), B (34), and C (21) are calculated.

Blaise Pascal (1623-1662) described a convenient tabular presentation for binomial coefficients, now called Pascal’s triangle.  One example of Pascal’s triangle is the shallow diagonals based on the triangular sum of Fibonacci’s numbers.  The triangle includes the Fibonacci numbers 1, 2, 3, 5, 8, and 13, thus creating a piece of the full triangle.  Let’s call it a wedge.  You can see an example here:


Leonhard Euler (1707-1783) developed the magical magic square.  The equation begins with a given: normal magic squares exist for all orders n ≥ 1 except n = 2, although the case n = 1 is trivial, consisting of a single cell containing the number 1.  Each column in the square, if the correct number combinations are used, will equal the same total.  I have discovered the following magical square, which fits right in with the Fibonacci sequence and Pascal’s triangle.  If you add up the numbers in each row you will get 34, a Fibonacci number.  When you add up the diagonal numbers you will also have a total of 34, fitting perfectly with the triangular scenario.


Now, what does this all have to do with making my fortune?  It is very simple.  I have designed a wedge within a magic square box connected by Fibonacci numbers, the numbers are calculated with simple moving averages plotted along a price pattern.  I run a scan on a universe of carefully selected stocks locating those that meet my RAPT criteria.  There is but a few of these, maybe 5-10 a month, but when they trigger there is nothing else like it.  I simply check an earnings date, consult with my options pricing software, and make the trade.  I have never had a loser.

Here is a recent trade that met the RAPT criteria.  This is COSTCO (COST) on the DAILY chart.  Once triggered there was an 8 point move…my Reward After Perfect Timing.

The six figure price for the software that powers this information is available only by invitation.  Maybe I will hear from you soon.   If not, I know your pockets aren’t deep enough!

For a detailed understanding of RAPT, please read the following four part explanation with DISCLAIMER.

  1. Michael Owens
    February 9, 2011 | 10:25 pm

    If you are not going to offer your RAPT to the public, why even mention it?

    I would like more info if you decide to share.


  2. Rick
    February 9, 2011 | 11:05 pm

    What a complete bunch of total shit.

  3. Jesse Livermore
    February 9, 2011 | 11:33 pm

    hahaha nice one, I knew where this post was going with your title.

    All kidding aside, how true what you say. I say, keep it simple. Embrace the trend, find out what it is. Then go for price action and heavy volume and let it ride. Learn how to figure out pivot points.

    But keep it simple.

    In closing, I wonder if Fibonacci liked rabbits? lmao

  4. J
    February 9, 2011 | 11:35 pm

    Great post..although some clearly missed the point…

  5. Calvin Johnson
    February 9, 2011 | 11:36 pm

    Very interesting, bet this caused sleepless nignts, but makes sense when you read through it.

  6. Calvin Johnson
    February 9, 2011 | 11:37 pm

    Can you use this outside of TradeStation?

  7. Mark Wolfinger
    February 10, 2011 | 12:17 am


    I believe you missed the point.

  8. Wilbur
    February 10, 2011 | 1:19 am

    Pfft. 100% accurate? You are a joke! 28 years in this industry, time spent as a floor trader, on a prop desk, just about any part of the market you could name. Anyone that says anything is 100% accurate is a fool.

    You spent 8 years in your “trading cave”? Sorry son, those are wasted years you’ll never get back.

  9. Grotaiche
    February 10, 2011 | 2:59 am

    Michael : I am quite sure this is irony 😉 (and if it’s not, I’ll just have to unsubscribe from Stewie’s posts :p )

  10. Andrew Menaker, PhD
    February 10, 2011 | 6:30 am

    David, as I sit here and babysit an overnight short in the ES (3:30am Pacific….ugh…), I was going to write a blog piece about why most traders will never succeed at trading. But your excellent piece does a nice job of doing it. I hope everyone reads your blog. Bravo!

    The holy grail is an indicator that lies within each person. Sad but true, most will never do the work necessary to discover it for themselves. And it does take work, the kind that most never anticipate.

    Andrew Menaker

  11. David
    February 10, 2011 | 6:56 am

    Read the disclaimer. I am not a joke but the joker with a very valid lesson.

  12. David
    February 10, 2011 | 6:57 am

    Well said! Thank you!

  13. David
    February 10, 2011 | 6:57 am

    No need to unsubscribe!

  14. David
    February 10, 2011 | 6:58 am

    Read the disclaimer. I am not a joke but the joker with a very valid lesson.

  15. David
    February 10, 2011 | 6:58 am

    I am sure there are many who will miss the point…something about the forest and the trees I suppose?!?

  16. David
    February 10, 2011 | 6:59 am

    Sure. It is all in your head.

  17. David
    February 10, 2011 | 7:00 am

    Thank you…many have to the point of being angry about it!

  18. David
    February 10, 2011 | 7:00 am

    Thanks! He breed them for calculus class.

  19. David
    February 10, 2011 | 7:01 am

    AWESOME analysis! Proved my point!

  20. David
    February 10, 2011 | 7:02 am


  21. steve737mp
    February 10, 2011 | 8:05 am

    Dangit!! Now what should I do with this $5000 cashiers check? Maybe I should send it to you anyway, since the information you impart is worth 10 times more.

    Well said,

  22. David
    February 10, 2011 | 8:16 am

    Send the $5000 to your favorite charity, on me! Thanks!

  23. Bobby Nichols
    February 10, 2011 | 9:44 am

    This is THE GREATEST INDICATOR I am so glad that I was able to buy on the ground floor. The has a great value to me also at a bargain. Just let me say IT IS PRICELESS

  24. CasinoJim
    February 10, 2011 | 9:55 am

    Thanks for spending the time writing the post and for all the others..

    i missed the disclaimer aswell at first,

    But is there a Holy grail in trading ?
    perhaps not ? unless you work for The Goldman Sachs or JP Morgan

    Whats the difference between a good and a bad trader

    10,00O hrs

    Good luck to everyone still searching

  25. AL
    February 10, 2011 | 11:15 am

    How clever! I needed this today, and I’ll tell you why…. Early on in my trading career, I would have been writing out my check to buy this magical system after just reading the title. But, when I read this today, I thought, “Aw…come one….why would anyone try to scam people this way.” I had hope for the author, when I saw that he did at least post a “Disclaimer”. And when I read it I rejoiced! Thank you! You taught me something about myself. As a fledgeling trader, I have so much to learn and at times I feel I’m never going to grow as a trader. This post has given me a small glimmer of hope, albeit a small one, but it made me realize that at least I’m making a little progress in my thinking. If it’s one thing I’ve learned over the recent months in my expensive Trading Univesity of Hard Knocks, in that there are no magical indicators; there is no one system that will work every time; you can’t control the market, but you can control the process. So, thank you!!!!!

  26. lechiffre
    February 10, 2011 | 12:51 pm

    Can I set my own color for LONG and SHORT signals? 😀

  27. Joe
    February 10, 2011 | 1:34 pm

    Excellent Post. I enjoyed reading the fine print. If anyone wants to buy this system at half price let me know.


  28. Gary L.
    February 10, 2011 | 1:47 pm

    Amazing on sooo many levels!

  29. NG
    February 10, 2011 | 2:41 pm

    I developed this system back in the 60’s and have been using it successfully for nearly 50 years. David is a very nice guy but he is clearly taking credit for my proprietary system!!

  30. David
    February 10, 2011 | 2:42 pm

    Love it! If only I used it!

  31. David
    February 10, 2011 | 2:42 pm

    Thank you!

  32. Brian
    February 10, 2011 | 5:47 pm

    This is crap… anyone who says they can predict the market with 100% accuracy is full of it.

    80% is possible with this:

    But don’t trust anyone with who says anything is 100%. If they do it’s 100% crap!!!

  33. Paul
    February 10, 2011 | 6:27 pm

    Well done lol! Cant wait to hear more
    thank you

  34. David
    February 10, 2011 | 6:34 pm

    Proved my point. Thank you!

  35. Tim
    February 10, 2011 | 8:44 pm

    The sad fact is many think there is a magic indicator. I guess that why the same people believe in the pot of gold at the end of the rainbow. After you follow David’s teaching you realize the “trick” is to follow the rules, all the time, and learn to control yourself.

  36. MikeS
    February 10, 2011 | 11:20 pm

    On closer inspection I see that in the magic square: 1) the four numbers in the 2×2 square at the center of the larger square add up to 34; 2) the four numbers in the four corners of the magic square add up to 34; 3) the two numbers in the middle of the top row and the two numbers in the middle of the bottom row add up to 34; and 4) the two numbers in the middle of the first column and the two numbers in the middle of the last column add up to 34. This is clearly incredibly powerful stuff! I hope there’s a discounted price for people who sign up early. What’s the web address to use?

    (BTW, were you surprised at how many people got angry or got excited without even bothering to read the fine print…?)

  37. Qman
    February 11, 2011 | 8:50 am

    Brilliant, I especially like the posts that are already angry with you. LOL

  38. Michael
    February 12, 2011 | 3:39 pm

    Wow this was hilarious.

    You missed your calling at being funny and proving a point in your fine print.

    Your time would be better spent studying the market rather than being a comedian.

  39. Jaspm
    February 26, 2011 | 1:11 pm

    That was really good. Completely proves the point! Well done. It was just as funny reading the posts of those who didn’t get it…I guess we need people like that to be on the other side of our trades.

    They have a long way to go.

Leave a Reply

Wanting to leave an <em>phasis on your comment?