A baffling new stock-picking app out of Williamsburg: BooleanGrid

BooleanGrid is either an app for making a random list of stocks for entertainment purposes or a radically different approach to investing.

On the one hand, it’s filed under “Finance” in iTunes and describes itself there this way: “BooleanGrid uses a unique algorithm based on quantum mechanics, random numbers, and chaos theory that can actually change the odds in your favor.”

Yet, further down, it says it is “For research and informational purposes only.” On a document linked below, it says “for entertainment purposes only.”

So which is it? A data-driven revolution or a high-tech gimmick swaddled in boilerplate legalese?

This baffling new app out of Williamsburg asks for $19.99 to give you a system for picking stocks in what apparently amounts to a high-powered roll of the dice. BooleanGrid: A Quantum Stock Screener is available for iOS.

Buy BooleanGrid on iTunes

Scott Rummler, the owner of the app, lives and works in Williamsburg. In a quote from his press release, Rummler says, “The way I would put it is, I’ve uncovered the hidden matrix underlying the stock market, and I’m pulling it out for people to use,” he says. “Theoretically, a quantum view should be able to outperform other approaches, because, as we know the market is unpredictable.”

What exactly he means by a quantum view is a bit obscure. We asked if he effectively meant it was a random pick, and he wrote back:

“Right, the algorithm is proprietary but basically uses some aspects of quantum theory and random numbers to pick stocks.” And, “The app works like a slot machine or random number game, you have to just play with it until you get results you like. So you have some control, but not all that much.”

So, if you’re following the logic of his first quote, the underlying matrix he’s found is that since the stock market is unpredictable, if you pick stocks randomly then you’ll do better than if you pick them strategically. Maybe that’s what he means. When pressed further, Rummler simply told us that it was proprietary. What’s less clear, though, is if the app is really doing anything at all.

We pointed out that this claim of finding an underlying matrix was a strong claim, and asked if he could back that up a little more. He replied by saying, “The matrix represented by the three boxes at the top of the screen. Those boxes represent the stocks that are picked per the app’s algorithm. Since the algorithm is unique, this view has been hidden until now.”

However, claims about an “underlying matrix” aside, the website says the app is “For Entertainment Purposes Only” and a disclaimer in this statement says, “BooleanGrid does not provide investment advice.”

Both in emails to Technical.ly and in statements from Rummler, he claims that the performance of the app has shown signs of success. In a statement explaining the app sent to us by Rummler, in the results section it says, “Initial testing indicates that BooleanGrid has the potential to outperform, on the whole, most if not all existing investment strategies.”

When asked for more information about the testing done to this point, he said that he’s picked a set of stocks and held them for six weeks. We also know that Rummler hasn’t put any of his own money in play using the app.

On top of that, what one is doing as one plays around with the app is incomprehensible. As Rummler describes above, there are three filters a user can use to adjust the apps picks, but there’s no way to tell what you are adjusting.

We asked. He told us, “There are three boxes at the top of the screen. Each box has its own filters, which are invoked by touching the boxes.”

We asked again and he said, “The filters are picking stocks. It feels almost random to the user, but you can make adjustments after the fact. What’s happening is that the app builds a portfolio using the algorithm in a cumulative way over time, based on the user’s actions.”

Don’t feel badly if you don’t understand. Watch it in action below:

http://youtu.be/jvR9VMmtun8

All that said, if you’ve poked around in equity circles at all, you know that the question of whether or not picking stocks at random might be the best long-term strategy has been around for a long time. The Wall Street Journal argues that a largely random portfolio is the right benchmark to judge your money manager by. David Winton Harding has built a business around it.

The question is whether or not you need an iOS app to do it for you.

The more important question is whether Rummler honestly intends customers to believe that its picks can beat the market. The answer appears to be: if a potential buyer asks, then yes; if a potential regulator, then no.

BooleanGrid is a bootstrapped project by its creator.