Tag Archives: algo trading

Dumb Social Media Sentiment Algos Target The Stock of O’Reilly Automotive

Increased volatility in the stock of O’Reilly Automotive (ORLY) in the last two days while the name O’Reilly was trending in the news raises questions about the effectiveness of social media sentiment algos and their perils.

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Why Does It Feel Like Summer In The Stock Market?

Someone I follow in Twitter made a comment yesterday that recent market activity is similar to that observed during summer months. Below I include some – mostly useless – statistics and the possible reasons for the subdued action.

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Use Algos to Fight The Algos

Every trader’s resolution for this year should include a transition to a mode of operation that is compatible with current market environment. Among other things, this includes abandoning random discretionary trading and adopting a systematic framework. When human traders start … Continue reading

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End Of Discretionary Trading Era

As far as I am concerned, this year marks the end of discretionary trading. Although this is done on a positive note for this blog, it is clear that discretionary trading, especially the type that is based on classical technical … Continue reading

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Machine Learning With DLPAL PRO: Part Two

In this article we show how to prepare historical files with continues features and a discrete target for an ensemble of securities using DLPAL PRO. Then, we apply machine learning on a random sample of half of the data and … Continue reading

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A Random Walk Up And Down Wall Street

This article combines thoughts from an article by Howard Lindzon and my analysis on the performance of random trading. I argue that monkeys win in this market because the bulk of quant trading is worse than random.

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Forward Performance Of Two Machine-Designed Trading Algos

Last April I wrote an article where I introduced a strict validation method for machine-designed trading algos. This article includes  the forward performance of the trading algo in that article, as well as, of another algo that was machine-designed in … Continue reading

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Losses Mount for Russell 2000 Head and Shoulders Traders

In the era of social media, it is unlikely that anyone can profit from a widely talked pattern, like the head and shoulders in Russell 2000 and in its popular ETF, IWM. If you are not sure of what is happening, you … Continue reading

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