Posts Tagged ‘fast-reading computers’

Fast-Reading Computers Are About To Drink Your Trading Milkshake

Fast-Reading Computers Are About To Drink Your Trading Milkshake

Courtesy of Tyler Durden

Milkshakes on countertop

Add speed reading to the set of mad skills that rich robotic algos are now much better at than humans. The latest craze among the computerized trading community is using Johnny 5 to read through thousands of press releases in combination with some fuzzy logic and the 80/20 rule, to trade stocks pronto, even as plain vanilla Homo Sapiens are still stuck on footnote 1. The WSJ reports that: "Researchers have been working on an artificial-intelligence computer program designed to mimic the way an analyst uses financial news. In simulated trading, the program beat the S&P 500, and when combined with quantitative stock-picking techniques, it saw a return on trades of more than 20%."

Unlike traditional number crunching methods to front run those armed with less than the latest SPARCs, this latest development will instead try to determine what the subtext of a given PR narrative is and trade it accordingly. It is unclear whether these programs are already in place, and whether they account for the almost universally wrong knee jerk reaction post any earnings and press release by public companies. We can’t wait for corporate counter-espionage divisions to reverse engineer these algos, and determine just what keywords and phrases set off Buy programs, and flood their press releases which announce 100% misses to expectations, yet result in flash dashes and inexplicably push stock prices up a few million percent. In other news, the market is now no longer about forecasting, predicting, and, generally, investing, but merely about being faster to frontrun/react/buy than your immediate competitor.

More from the WSJ:

To make stock predictions, the program does what is known as “text mining” — scanning large volumes of content and analyzing the words in it. Computer-aided quantitative funds already are plentiful, but they analyze numerical data rather than text. The new program is different because it attempts to simulate what has traditionally been a human activity.

“Our approach is more like the analyst approach, simulated by a program,” said Hsinchun Chen, director of the University of Arizona’s Artificial Intelligence Lab, in an interview with Digits. “You have an analyst reading papers, looking for clues that others have not observed.”

The program, which was first reported by MIT’s Technology Review, scans stock prices and financial news and buys


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Phil's Favorites

Citizens United: The Court Ruling That Sold Our Democracy

 

Citizens United: The Court Ruling That Sold Our Democracy

Ten years after Citizens United, the damage is broad and deep—but we can still fix it.

By Tiffany Muller, Common Dreams  

With so many politicians in the pockets of their big donors, it’s been even harder to make progress on issues like gun safety, health care costs, or climate change. (Photo: DonkeyHotey/Flickr)

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Zero Hedge

DOJ Hires Antitrust Staff As "Broad Investigation" Into Big Tech Firms Accelerates

Courtesy of ZeroHedge View original post here.

The US Department of Justice Antitrust Division has been on a hiring spree amid investigations into Silicon Valley tech giants, according to Reuters, citing two DOJ officials with knowledge of the matter.

The department is scheduled to post an advertisement for positions, potentially on Monday, for additional attorneys, paralegals with an ...



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Insider Scoop

4 Energy Stocks Moving In Monday's After-Market Session

Courtesy of Benzinga

Gainers

SAExploration Holdings, Inc. (NASDAQ:SAEX) stock moved upwards by 6.3% to $2.77 during Monday's after-market session.

Abraxas Petroleum, Inc. (NASDAQ:AXAS) stock surged 6.2% to $0.30. According to the most recent rating by Johnson Rice, on November 19, the current rating is at Accumulate.

Pacific Drilling, Inc. (NYSE:PACD) stock increased by 4.7% to $1.80. The most recent rating by Fearnleys...



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Chart School

Top Patterns for Retail Investors

Courtesy of Read the Ticker

Retail investors are last in line for market leading research, no matter, the retail investor can profit from these secret sauce patterns..

Well not so secret now, the main point is you do not have to climb Mount Everest to be called a mountain climber, there are many other hills to climb to make your mark. Just like stocks.

You do not have to battle with the high frequency traders to win in the markets, there are long and slow methods to do just as well.  

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Some charts from the video


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The Technical Traders

The Wuhan Wipeout - Could It Happen?

Courtesy of Technical Traders

News is traveling fast about the Corona Virus that originated in Wuhan, China. Two new confirmed cases in the US, one in Europe and hundreds in China. As we learn more about thispotential pandemic outbreak, we are learning that China did very little to contain this problem from the start. Now, quarantining two cities and trying to control the potential
outbreak, may become a futile effort.

In most of Asia, the Chinese New Year is already in full swing.  Hong Kong, China, Singapore, Malaysia, India and a host of other countries are already starting to celebrate the 7 to 10 day long New Year.  Millions of people have already traveled hundreds of thousands of miles to visit family...



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Kimble Charting Solutions

Bad News For Crude Oil Should Come From This Pattern, Says Joe Friday

Courtesy of Chris Kimble

It’s a good idea for investors to be aware of key indicators and inter-market relationships.

Perhaps it’s watching the US Dollar as an indicator for precious metals or emerging markets. Or watching interest rates for the economy. Experience, history, and relationships matter. And it’s good to simply add these to our tool-kit.

Today, we look at another relationship that has signaled numerous stock market tops and bottoms over the years, and especially the past several months, Crude Oil.

When crude oil tops or bottoms, it seems that ...



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Biotech

Snakes could be the original source of the new coronavirus outbreak in China

Reminder: We are available to chat with Members, comments are found below each post.

 

Snakes could be the original source of the new coronavirus outbreak in China

Chinese cobra (Naja atra) with hood spread. Briston/Wikimedia, CC BY-SA

Haitao Guo, University of Pittsburgh; Guangxiang “George” Luo, Univers...



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Members' Corner

The War on All Fact People

 

David Brin shares an excerpt from his new book on the relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

Excerpted from David Brin's new book, the beginning of chapter 5, Polemical Judo: Memes...



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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Digital Currencies

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...

...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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