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Robert Taylor’s Xyber 9 Reviewed

Thursday Jan 14, 2010

In this review of Xyber 9, I will examine the Xyber 9 stock forecasting program developed by Robert Taylor, and offered online through a monthly membership site. The software is based on the research of Robert Taylor, a nominee for the Nobel Prize in Economics, who discovered that stock prices correlate with gravitational fluctuations as evidenced by the level of tides. 

You may question how gravitational forces have anything to do with the stock market, however, Taylor’s research does show a strong connection between the two. In fact, the research he conducted demonstrated that every significant high and low in the market over the last century has had an inverse relation to the highs and lows in tidal activity. From this finding, Taylor developed a model that predicts future stock market direction based on expected gravitational fluctuations, and Xyber 9 is the result of this research.

For those inclined to take a closer look at the research, Taylor has written a fictional book called Paradigm, which outlines the research behind his theories. Fortunately, people who are not interested in the fictional tale can skip to the paper at the end of the book which details Taylor’s findings.  ”Taylor’s Law” summarizes the correlation between gravitational forces and the financial markets and states the following.

“The financial market’s expansion and contraction is quantitatively in direct correlation to the increases and decreases in gravitational fluctuations experienced at the human level. Increases in market price are in direct response to decreases in gravitational forces; and, decreases in market price are in direct response to the increases in gravitational forces.”

All this may be quite fascinating, but the real question is whether the model, and more specifically whether the Xyber 9 software can indeed predict stock prices. The Xyber 9 site does post all past forecasts, so you can see for yourself. Overall, the Xyber 9 program does seem to perform better than what believers of the random walk theory would expect. But it is not yet perfect by any means. 

As a former subscriber of Xyber 9, one frustrating thing was trying to replicate the performance posted on the site. Taylor calculates gains and losses in an unrealistic way by taking the high or low of the day the forecast was made, and comparing it to the high or low at the end of the forecast. For a long position, this would mean that the low of the signal day would be used as the entry price, and the high of the final day would be used as the exit price. Of course, in real life, no trader would be able to capture the high or low of the signal day, and therefore the actual results tend to be a lot lower than what is posted, especially after commissions and slippage are taken into account.

But in spite of this, the Xyber 9 forecasts do often beat the market. During the major market collapse that occured in late 2008, the Xyber 9 forecasts did relatively well compared to a buy and hold strategy. On the other hand, Xyber 9 did deliver some signals that missed some major moves, so it is not reliable enough to be completely trusted. 

So in conclusion, although I think Taylor has unveiled an interesting relationship between gravitational fluctuations and stock prices, I believe he may need to tweak his program just a bit more to make the Xyber 9 program truly powerful. Although I do feel the program shows much promise, I personally am still not comfortable with its accuracy rate, especially when the market is going through a volatile period.

The following site offers more information on Xyber 9, as well as a full Xyber 9 review article. 

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