The iso-algorithm is an innovative blend of established theorems from both the investment and actuarial fields. ‘iso’ stands for isomorphic structured optimization.
Taking price information as its input, the iso-algorithm neither assumes normality nor non-normality exclusively, but seeks to profit from both instances of normality and non-normality which can occur in the same stock over different periods.
A key assumption is that non-normality is the resultant mixed effect of normal distributions in other domains. As such, the iso-algorithm processes price behavior in a non-time domain, optimizes the selected portfolio, then converts back to a time series for trade execution.
A strength of the system lies in the fact that it is able to identify opportunities in any market using key characteristics of price behavior.