Using an automated day trader to generate income

Post by mattmaroon » Tue, Dec 09, 2008, 12:47 AM UTC

mixmax wrote: post #34

matt1 wrote: post #15

I have no idea what that guy is talking about with double moving averages and what not, but I'd bet that a few simple IF/THEN statements could have produced similar results over the same period of time. Say it hand done well, would you go an invest a few thousand dollars using the IF/THEN algorithm? On a similar note, say this guy did lose his $3500. Do you think you'd be reading this post on how to automate day trad…

using past performance to estimate future performance simply does not work This is not always true. I had a theory a few years ago that went like this: The price of a stock is a direct function of the perceived price of the company multiplied by a risk factor: The more risk the less the stock is worth. On the day the yearly report is publicised for a company the risk is big just before the publication because nobody…

Post by apstuff » Tue, Dec 09, 2008, 12:50 AM UTC

  if (mktStatus == FALLING) {
    Sell();
    return true;
  }

  if (mktStatus == SURGING) {
    Buy();
    return true;
  }

  if (mktStatus == FEAR) {
    Loathing();
    return true;
  }

  if (mktStatus == OVERMYHEAD) {
    UseProfanity();
    return true;
  }


  return true;

Post by mattmaroon » Tue, Dec 09, 2008, 12:52 AM UTC

fattyfatfat wrote: post #28

mattmaroon wrote: post #6

If you thought something were profitable in a market, and it was easy enough to implement that any hedge fund could, why would you publish it? They'd just do it too until it was no longer profitable.

its quite true that a lot of people do it. Its not ACTUALLY a profitable venture in the sense that the risk-reward profile from a purely monetary standpoint is probably unjustified. I did it for fun, to learn, to gamble, and hopefully get lucky. God knows I've spent money in worse ways before. Regarding the theory that other players would jump in the market and cause the opportunity to go away: you're right, but they…

Post by pjharrin » Tue, Dec 09, 2008, 12:57 AM UTC

Prrometheus wrote: post #42

pjharrin wrote: post #24

Earlier quoted context omitted.

What is investing if its not a IF/THEN statement? If price goes up then sell, if price goes down then buy. If the company meets these financial criteria then buy, if not then sell. If the price approaches a resistance level then sell. Whether your basing the investment decisions on fundamental or technical analysis, either way its an IF/THEN statement at some level.

>If price goes up then sell, if price goes down then buy By how much? Within what time period? Are there any other factors that might be pertinent? The world is not simple.

Post by pmorici » Tue, Dec 09, 2008, 1:37 AM UTC

erik wrote: post #9

mattmaroon wrote: post #6

If you thought something were profitable in a market, and it was easy enough to implement that any hedge fund could, why would you publish it? They'd just do it too until it was no longer profitable.

I don't expect wikipedia to be a reliable source of information on this topic, but there is an entry that claims that hedge funds already do this sort of thing: http://en.wikipedia.org/wiki/Program_trading