Radical proposal: Rather than trying to police leakage of insider information,
level the playing field for both politicians and fed employees by
creating a dozen or so national mutual funds of at least 1,000 equity positions each that intend to model the US economy as a whole. Anyone can invest in them, but all US Federal employees and immediate family members are required to liquidate all other positions and hold only national funds. If the economy and funds do well, all federal folks profit. Distribute fund management among multiple fund management firms.
Trading bot that buys stocks bought by politicians is up 20% since May 2022
21–30 of 150 posts
Re: Trading bot that buys stocks bought by politicians is up 20% since May 2022
#22How does one get this information about congressional trades?
Re: Trading bot that buys stocks bought by politicians is up 20% since May 2022
#23not very useful. no comparison of S&P 500 and it stops in early 2023 and starts in 2020. a 3 year backtest that ends in early 2023 and ignores the bull market that began in 2023 is enough to prove anything.
The post says “The market has been flat during the same time period.”, which is not true.
Re: Trading bot that buys stocks bought by politicians is up 20% since May 2022
#24How does one get this information about congressional trades?
The, literally, million dollar question. Self-reported data success means nothing to me without this
Re: Trading bot that buys stocks bought by politicians is up 20% since May 2022
#25The two graphs have visibly quite different volatilities. A number like 20% is not meaningful unless you also somehow state the risk, eg in terms of volatility or beta or other measures.
3 years is not far enough to draw any meaningful conclusion and it abruptly ends in early 2023.
Re: Trading bot that buys stocks bought by politicians is up 20% since May 2022
#26Is there a legitimate argument for keeping this legal and not pursuing an expansion of existing insider trading laws? The incentives here are horrifically backwards.
Can you clarify what you mean by "this"? Being able to copy the trades of politicians or politicians making trades that are almost instantly profitable?
Why in the world would somebody be complaining about the first one? Obviously the second one is a long standing, often talked about issue and is what they mean. Don't play dumb.
Re: Trading bot that buys stocks bought by politicians is up 20% since May 2022
#27This is super interesting. The delay between the transaction and the disclosure may not be much of a handicap if lawmakers are making the purchases far in advance of the events to come. Has anyone run a historical backtest of this strategy?
It is hard to run a backtest when the actual strategy cannot be explicated precisely. For example, you would need to know the size of the account/capital. Just saying that a congress person sells $1 million of microsoft is useless unless you know when it was purchased how much capital total etc.
That shouldn't be hard, we have historical stock market data that we can use. The strategy would enter/exit positions on the day that the disclosures were released, see if it beats the market.
Re: Trading bot that buys stocks bought by politicians is up 20% since May 2022
#28Radical proposal: Rather than trying to police leakage of insider information, level the playing field for both politicians and fed employees by creating a dozen or so national mutual funds of at least 1,000 equity positions each that intend to model the US economy as a whole. Anyone can invest in them, but all US Federal employees and immediate family members are required to liquidate all other positions and hold on…
Unfortunately the stock market is not (reflective of) the economy? It seems reasonable to force them to diversify nonetheless.
Re: Trading bot that buys stocks bought by politicians is up 20% since May 2022
#29Radical proposal: Rather than trying to police leakage of insider information, level the playing field for both politicians and fed employees by creating a dozen or so national mutual funds of at least 1,000 equity positions each that intend to model the US economy as a whole. Anyone can invest in them, but all US Federal employees and immediate family members are required to liquidate all other positions and hold on…
What about state and local gov employees?
Re: Trading bot that buys stocks bought by politicians is up 20% since May 2022
#30@dang, can you change the display for (threads.net) to be like twitter, where it shows the username to the right of the post title? For example, threads.net/@quiverquantitative
Typing "@dang" does not actually do anything. Write to the mods using the Contact email at the bottom of the page.