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The Mathematics of PCA
The sine wave graph above shows how the PCA system buys and sells incrementally. As the stock rises, profits are locked-in, and as the price dips, additional shares are accumulated. The flexibility of the PCA system allows the user to optimize the trade levels to suit any particular stock. What makes the PCA system revolutionary is the compounding effect over time that adjusts the size of the trades to maximize profits as the price fluctuates. As the wave oscillates, trades are executed around the core position. The frequency of the oscillation over time and the magnitude of the deviation will determine the rate of return.
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