The problem with probability is not the concept of probability itself. The casino uses the theory of probability to make money. Insurance companies use the laws of probability to calculate insurance premiums -- and they make money!

Financial advisers say you should have a long-term view on investments. But without the controlled environment of the casino or the resources of an insurance company, the Law of Large Numbers, which dictates the link between your actual and long-term average return, makes investing a somewhat trickier affair.

if you are playing in a casino, the Law says the long-term average (which is always slightly stacked in favor of the casino) will rule --- the longer you play. For a new life insurance company, the first 2 years are critical as it grows its client base. Once a substantial client base is achieved, the Law kicks in and insurance premiums, that are calculated based on average claim costs in mortality tables, ensure profitability.

The formula for the Law of Large Numbers comes in various forms and one only has to reference a College textbook on Statistics to view it in all its mathematical glory. The Law of Large Numbers does not assume normality. It just states things the way they are.

Contained somewhere within these Greek symbols is a template for the lone investor who has neither large numbers nor unlimited funds on his side, The formula says that the probability of your actual return closing in on the long-term average return can be improved by reducing the variance of returns. Reducing this variance is what diversification, asset allocation, and portfolio optimization try to achieve. But using the correct long-term average in these formulations is critical.

So how does the ISO strategy do it?

In essence, the ISO-Algorithm analyses the market as a

Financial advisers say you should have a long-term view on investments. But without the controlled environment of the casino or the resources of an insurance company, the Law of Large Numbers, which dictates the link between your actual and long-term average return, makes investing a somewhat trickier affair.

if you are playing in a casino, the Law says the long-term average (which is always slightly stacked in favor of the casino) will rule --- the longer you play. For a new life insurance company, the first 2 years are critical as it grows its client base. Once a substantial client base is achieved, the Law kicks in and insurance premiums, that are calculated based on average claim costs in mortality tables, ensure profitability.

The formula for the Law of Large Numbers comes in various forms and one only has to reference a College textbook on Statistics to view it in all its mathematical glory. The Law of Large Numbers does not assume normality. It just states things the way they are.

Contained somewhere within these Greek symbols is a template for the lone investor who has neither large numbers nor unlimited funds on his side, The formula says that the probability of your actual return closing in on the long-term average return can be improved by reducing the variance of returns. Reducing this variance is what diversification, asset allocation, and portfolio optimization try to achieve. But using the correct long-term average in these formulations is critical.

So how does the ISO strategy do it?

- It does not assume returns are normal.
- It does not assume historical price patterns will repeat themselves.
- It does not assume that past earnings reports will dictate future performance.
- It identifies the myriad of vectors in constant flux that affect each stock.
- It employs a credibility-based optimization technique for greater effectiveness.

In essence, the ISO-Algorithm analyses the market as a

*. The result is a strategy that performs consistently, efficiently, and effectively. See this page for overall performance of the G3 strategy or hit the G3 button below to view performance statistics in detail.***continuum**