Summa Management LLC’s (Summa) three founding partners, Kalman Saffran, Joseph Bisaccio and Ronald Todd formed Summa to speculate in the stock market. We were former partners in KSA, Inc. KSA was an advanced software engineering (SE), electronics engineering (EE) and information technology (IT) company that was a leader in providing contract engineering and IT services to “Fortune 100” technology companies and their equivalent in financial services. The three partners had worked together on many advanced projects at KSA.
We spent the first two years of Summa researching and analyzing, in breadth and depth, the various existing methods of speculation; from fundamental analysis to technical analysis, and most things in between. Over 500 classic and leading books on associated subjects (see research) and thousands of associated websites, periodicals, academic and practitioner studies and articles were studied (an extensive sampling of these is listed here).
During the next year, we evaluated the existing potentially viable theories and practices both theoretically and empirically, with advanced analytical techniques; some of which we invented and have patents pending. We evaluated the detailed data associated with the implementation and results of these theories and practices. We created custom theoretical, analytical, empirical systems, metrics, data structures, processes and tools in order to properly analyze these various speculation approaches.
Our conclusions can be summarized as follows: Of all of the myriad of approaches analyzed, none produced desirable speculation characteristics, e.g. both high return and high probability of return. We concluded that their characteristics were essentially random over time. A new theory needed to be developed; that is a new theory of accurate security price prediction.
Over the next year we developed a theory using advanced system design, artificial intelligence, complex systems analysis and advanced development techniques. We then performed several hundred detailed analyses to refine and verify the theory both analytically and empirically using actual big-data from the U.S. stock markets and thousands of other sources. We created new advanced analytical processes, visualizations, etc. for this purpose.
The next period has focused on implementing, testing, and verifying the theory. We created a complete system: The Summa Event Trading System (SETS), and its two major subsystems: ROBIN and FALCON. SETS embodies a major breakthrough in financial security price prediction that will revolutionize securities trading.
SETS results apply to a broad range of securities and events, including equities, fixed income, commodities, crypto currencies, and derivatives. ROBIN predictions can also be applied to a number of non-financial systems where accurate predictions are required. We are currently developing the systems and infrastructure necessary to distribute our trading signals under a Software as a Service Plus (SaaS+) model.
