Data Science

Data Science is the application of scientific method, processes, systems, and tools to discover insights and knowledge or insights from all forms of data.  Modern Data Scientists use tools and skills including pythonJupyter Notebooks, linear algebra, statistics, machine learning, and more in their quest to develop those insights.  Some in the business and trading consider Data Science to be synonymous with business analysis or quantitive research.

Posts

CloudQuant ESG with G&S Quotient 2020 Q1

≈9% Return for Shelter at Home & ESG Investing

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Investing in ESG has been crazy in the past few months. A recent market-neutral backtest showed a 8.73% return (Sharpe of 4.98) for the period of January 1, 2020, to April 22, 2020.
Alternative Data Portfolio Returns on Intraday Hold Trading Strategy

The Value in Machine Learning Alternative Data for Investment Managers

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A long-short portfolio outperforms the equal-weight S&P 500 ETF by 37.9%/year (after transaction costs) using Precision Alpha Alternative Data. Over 91.5% of the total return is pure alpha.

Environmental Social and Governance (ESG) Alternative Data Sets

Performance review of ESG Dataset available from CloudQuant DataSet Catalog…   As Managed Funds decrease in popularity and Passive Funds take over there has been one bright spark for Fund Managers as Investors have realized that they can dramatically influence the behavior of companies through their investments. With each passing month more Millennials come into the trading environment with their well established trends of making purchasing and investing decisions influenced heavily by environmental and social impact. Analysis of ESG friendly ETFs and investment funds have shown them out performing all other asset classes.   We have also seen, over the last year, a dramatic increase in the number of News postings regarding ESG data.   This January 31st post from Barron’s is one of the most recent… “As sustainable investing becomes more popular, independent firms with these principles are more likely to be acquired.” … “…competition has increased among asset managers” …”the number of annual mergers among publicly traded asset managers doubled.” “Sustainable investing has been a bright spot. Last year, flows into these funds in the U.S. more than tripled, marking the fourth year of record flows.”  

CloudQuant Alternative Data Catalog

CloudQuant strives to dramatically increase your odds of finding a suitable, appropriate and valuable Alternative Data Set. If you have been in the Alternative Data environment you know how difficult it is to find Alternative Data Sets with proven performance. Do you trust the results supplied by the data vendor (rarely reproducible) or do you carry out your own analysis (too often a monumental waste of time and resources). CloudQuant researches the most in demand data types, finds sets that have not already had their Alpha consumed. We test the performance of the data and provide a white paper of the results and Python Code to reproduce and confirm the results to your satisfaction (using our leading Python Cloud Backtester CloudQuant Mariner). Head over to our Data Catalog to find out more about our tried and tested Data Sets which include the ESG Data Set from G&S Quotient.  

Environmental, Social, and Governance Data December 30, 2019

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In our study of Environmental, Social, and Governance (ESG) data, we looked at holding positions based upon the G&S Quotient short term price predictor score. We found that 5-day holds and 20-day holds using this score were very interesting and produced positive returns. Based on this data set we saw that you could have traded and held some of these stocks and closed your positions at the end of the day last Friday. See the charts for $ADBE, $AAPL, $MSFT, and $LDOS

Environmental, Social, & Governance (ESG) Short Term Trading

Short-term ESG data is showing some very interesting opportunities. Our recent whitepaper shows that 5-day and 20-day positions are profitable.

Spot checking the white paper shows the following simulated trades from last week.

The simulated trades were MOO on Monday, MOC on Friday.
ADBE 2019-12-14

$ADBE ESG Simulated Trading, 5 Day Hold

DE 2019-12-14

$DE ESG Simulated Trading, 5 Day Hold

 
FOX 2019-12-14

$FOX ESG Simulated Trading, 5 Day Hold

    Please note, this is not trading advice in any way. It is merely showing the potential of Environmental, Social, and Governance (ESG) data.  
Python Plotly Candlestick Chart with annonations

Candlestick Charts in Python with Plotly

Some traders are visually oriented. They need charts. As data scientists, we need to be able to present information in a way that others can understand. Presenting traders a candlestick chart is one of the best ways to transfer useful data. Blog Purpose: ✅ Demonstrate how to create a basic candlestick chart in Python 3 ✅ Demonstrate how to highlight/annotate points on the chart Topics covered in this post: Python, Plotly, OHLC, Candlestick Charts, Jupyter, Pandas, Traders
Morgan Slade, Python Data Scientist and Trader

CloudQuant CEO John Morgan Slade presenting at THE TRADING SHOW – CHICAGO 2019

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CloudQuant CEO John Morgan Slade will be taking part in THE TRADING SHOW – CHICAGO 2019 on Wednesday 8th May 2019. At 13:20 (Central) he will be partaking in a Panel to discuss “Deep Neural Networks – how supervised do deep learning machines need to be?” At 14:00 (Central) He will be moderating a discussion on “AI and Machine Learning – how markets will move forward.” See the official website for more information.
backtest chart

CloudQuant Partners with RavenPack to Expand Use of Alternative Data

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FOR IMMEDIATE RELEASE: CloudQuant Partners with RavenPack to Expand Use of Alternative Data Chicago, Illinois, USA, November 20, 2018 – CloudQuant LLC today announced the addition of RavenPack analytics within their trading strategy incubator. Crowd researchers can now use RavenPack historical data to discover tradable alpha signals on CloudQuant’s online Python and JupyterLab-based tools. RavenPack is a leading provider of big data analytics for financial services that enables hedge funds, banks and asset managers to query and visualize unstructured data including insights from thousands of news and social media sources. “We are thrilled to include RavenPack analytics in our ecosystem as they have become a vital source of alpha for quantitative investors,” said Morgan Slade, CEO of CloudQuant. “Our community is already finding promising signals that originate from the very popular RavenPack datasets.” Crowd-based research tools are increasing in popularity along with the rapidly growing data science field. RavenPack and Cloudquant are finding that crowd researchers desire access to Wall Street professional-quality tools and datasets, which enable them to thrive in the professional investment field. “We were impressed with how CloudQuant provides anyone with Python-coding skills the opportunity to mine our datasets for alpha signals and earn compensation for their contributions,” said Amando Gonzalez, CEO of RavenPack.  “We strongly support initiatives designed to give data scientists the tools that liberate ideas to improve financial modeling.”   About CloudQuant CloudQuant is the cloud-based trading strategy incubator. Quantitative analysts around the world create and test trading strategies leveraging free institutional grade technology. By providing the capital, technology, and trading acumen to develop and utilize trading strategies, CloudQuant offers a mutually beneficial profit sharing agreement enabling both parties to profit. CloudQuant LLC, who officially launched in 2017, is a wholly owned subsidiary of Kershner Trading Group LLC.   www.cloudquant.com Twitter: @CloudQuant About RavenPack RavenPack is the leading provider of big data analytics for the financial services industry.  Financial professionals rely on RavenPack for its speed and accuracy in analyzing large analyzing large amounts of unstructured content.  The company’s products allow clients to enhance returns, reduce risk and increase efficiency by systematically incorporating the effects of public information in their models or workflows. www.RavenPack.com Twitter: @RavenPack   For Media Inquiries Please Contact: Jessica Titlebaum Darmoni Jessica@thetitleconnections.com + 1 312 358 3963 – END –
AdobeStock_91734599

Alternative Data News. 27, September 2018

Finding sources and uses for alternative data can be difficult. At CloudQuant we regularly read and search the internet for new sources of data that can be used in our mission to find alpha signals and build quantitative trading strategies. We recognize that we are technology and data junkies so we wrote our own crawler that specifically seeks out web pages, posts, and news articles that give us a snapshot of what is going on in the world of Alt Data. The following is a collection of articles that we think you will find interesting from the past week.

Social Market Analytics Sentiment Data for Forex Trading

Social Market Analytics (SMA) provides real-time sentiment data for equities (North America & LSE), commodities, foreign exchange, Crypto Currencies and ETF’s. In this blog I am going to explore a trading system using the SMA Twitter based sentiment data to trade a basket of: EURUSD, EURGBP, GBPJPY, GBPUSD ,USDCAD ,USDCHF ,USDJPY. We will explore two straight forward trading systems: Forex Sentiment RSI: Daily Long/Short Strategy SMA S-Score … 2018-09-20 00:00:00 Read the full story. CloudQuant Thoughts: We like SMA. Recently we used SMA to improve a breakout strategy. The following chart shows the effect that adding SMA data to a breakout trading strategy. It took a losing trading strategy and made it better. To see the source code for this trading strategy with SMA use this link.
SMA AltData on Breakout Trading Strategy

The effect of adding SMA data to a trading strategy

Senator Warns of Fintech Privacy Risks

The Senate Banking Committee continued to examine Tuesday how to handle the regulation of fintech, as concerns persist about data aggregation and consumers’ privacy. “I think it’s critical that the government move methodically on a regulatory approach to fintech so we encourage productive innovation but we don’t expose consumers to a lot of unnecessary risks,” Sen. Elizabeth Warren, D-Mass., said duri… 2018-09-20 00:00:00 Read the full story.

The New Legal And Ethical Challenges Of Big Data

As data technology advances, the ethical challenges of big data increase and raise questions that society has never faced before. Data is now one of our world’s most precious resources, and over the last few years, businesses have been learning how to use it to become more successful and profitable. Big data, a term that is used to refer to the use of analyzing large datasets to provide useful insights, isn’t just available to huge corporations with big budgets. Companies of all sizes are getting in on the action to improve their marketing, cut costs, and become more efficient. As a result, ethical challenges of big data have begun to surface. Big data is useful in nearly any industry, but it has huge potential in the healthcare field to trim waste and improve the p… 2018-09-26 20:44:30+00:00 Read the full story. CloudQuant Thoughts: Both the Senator’s concern on FINTECH data above and this article on Legal and Ethical challenges of Big Data create some of the same thoughts.  The growth of Big Data has created the Mosaic Effect. (Google it, it is a thing.) This effect is simply the idea that as more data becomes accessible and machine-readable, there is the threat that disparate threads can be pieced together in a way that yields information that is supposed to be private.

What’s the Secret to Success as a Data Scientist?

The data science field is growing at a rapid pace, which is creating a huge need for additional data scientists to join the industry. But with so much competition, the question is, how do you stand out and become successful? Understanding the Role of a Data Scientist The term gets thrown out a lot, but what exactly is a data scientist? What do they do on a daily basis, and why are they in such high demand? In essence, data scientists are … 2018-09-16 14:58:43+00:00 Read the full story. CloudQuant Thoughts: Even if you aren’t a full-time data scientists, you should be familiar with the analytical skills and tools they utilize to give insight into your business, and your areas of interest. After all, this posting is generated using those same tools.

Is The Data Ops Workbench A Thing?

Data ops, data engineering, data development — oh my! From new roles and teams to new skills and processes, the hot topic on everyone’s mind is data ops. I started to notice the data ops emergence back in 2015 as companies began to look at Agile development to spin up new data capabilities rapidly. Later, as data preparation entered the market, ETL developers were gravitating to these tools for quick data loading with transparency into newly for… 2018-09-19 13:29:35+00:00 Read the full story. CloudQuant Thoughts: We love this because it falls in line with everything we are doing. In short, you can sum this up by saying “Innovate or Die.”  

Alternative Data Group Launches New API Platform for Wrangling Alternative Data • Integrity Research

Alternative Data Group (ADG), a firm specializing in alternative investment data, launched the ADG API – a programmatic platform that gives clients an ability to automatically process raw alternative datasets, making it easier for institutional investors and vendors to safely extract structured company information and ensure a dataset free of Personally Identifiable Information (PII). With the launch of the ADG … 2018-09-26 07:53:15+00:00 Read the full story. CloudQuant Thoughts: We have our own API too. We call it Data Liberator.  

Turkish Volatility Showed Value of Alt Data

In the middle of the summer vacation on Friday 10 August, Turkey’s lira plunged by one-fifth, leading to fears that the country’s crisis would spread to other markets. The US had suddenly imposed tariffs on Turkish steel in protest against the imprisonment of an American pastor, which added to investors’ existing concerns about President Tayyip Erdoğan taking increasing control over the Turkish economy. The steep jump in volatility highlighted … 2018-09-25 19:12:02+00:00 Read the full story. CloudQuant Thoughts: Alternative data is being used both pre-trade and post-trade. Lot’s of good thoughts there!  

Below the Fold

Announcement: Sector-Focused Alternative Data Events Covering Travel and Autos

AlternativeData.org’s Briefing events provide investors with a sector-focused discussion of fundamental trends and insights from alternative data. Presenting data providers have been hand-picked and evaluated based on their unique insights and perspectives. These events do not include sales pitches or high-level dataset overviews. Institutional Investors: Registration is free, however space is limited – Reserve your Seat. Data Providers: Presentation slots are largely filled, however you can request to present at the event here…. 2018-09-20 14:46:01+00:00 Read the full story.

Top Australian fintech hub Stone & Chalk is getting a new chair in a major board overhaul

Miguel Medina/AFP/Getty Images Stone & Chalk is getting a new chair and almost an entirely refreshed board. The fintech innovation hub says it is part of a transition from start-up to scale-up mode. Stone & Chalk start-ups and scale-ups have secured over $255 million of direct equity investment in less than three years. Stone & Chalk, Australia’s fintech startup hub, has had a major overhaul of its leadership as it moves out of start-up mode … 2018-09-26 08:44:47+10:00 Read the full story.

Google Updates, Clarifies Its Location Tracking Policy – StockNewsTimes

Following an investigation from the Associated Press, Google has changed some information on one of their help pages which had not properly described how its “Location History” setting operates. The update clarifies that the operating system does still, in fact, track location even when users turn the setting off. For example, the Associated Press investigation learned that even when you turn Location History off, Google will continue to store y… 2018-09-13 00:00:00 Read the full story. 0.8058326937835764

Doctors Look To Data To Increase Patient Engagement

For many reasons, several of which we’ll discuss here, a patient’s full understanding of, and engagement with, their health care experiences are vital for a positive outcome. And today, we have more options than ever for achieving higher levels of interest, patient engagement, and “buy-in” from health care customers. These include data-rich wearables, telemedicine for housebound patients and electronic health records that follow us around as we s… 2018-09-24 22:14:23+00:00 Read the full story. 0.7566706491437674

AI And Augmented Reality Merge For New Business Solutions

Big data continues to shape the corporate universe in unexpected ways, especially when AI and augmented reality come into play. A few years ago, most experts believed that big data would only be used to handle a few functions: Using new data models to enhance marketing Improving supply-chain logistics by collecting data on various points in the supply chain Improving security by using data to improve threat detection models A number of new ap… 2018-09-14 18:46:10+00:00 Read the full story. 0.6674653431456443

4 Ways Wellness Can Cost Annuity Clients a Fortune

Here’s a look at how controlling 4 major types of health risk can add (expensive) years to an annuity buyer’s life… 3. (tie) Controlling High Blood Pressure: 3 extra years of life 3. (tie) Controlling Obesity: 3 extra years of life 2. Controlling High Cholesterol: 5 extra years of life 1. Ending Tobacco Use: 6 extra years of life Advertisement (Related: What You Think About the Value of Life Is All Wrong) Economists have been paying more atte… 2018-09-25 00:00:00 Read the full story. 0.6318006318006317

Life and P&C Actuary Groups May Merge

(Image: Thinkstock) (Related: James Glickman to Lead Society of Actuaries) Two groups that serve actuaries may merge. The boards of the Society of Actuaries (SOA) and the Casualty Actuary Society (CAS) announced today that they are looking into the possibility of combining. The boards could vote on a combination proposal as early as mid-November, and they could put the proposal to a vote in early 2019. The combination proposal would address … 2018-09-26 00:00:00 Read the full story. 0.31545741324921134    
This news clip post is produced algorithmically based upon CloudQuant’s list of sites and focus items we find interesting. If you would like to add your blog or website to our search crawler, please email customer_success@cloudquant.com. We welcome all contributors. This news clip and any CloudQuant comment is for information and illustrative purposes only. It is not, and should not be regarded as “investment advice” or as a “recommendation” regarding a course of action. This information is provided with the understanding that CloudQuant is not acting in a fiduciary or advisory capacity under any contract with you, or any applicable law or regulation. You are responsible to make your own independent decision with respect to any course of action based on the content of this post.
Algo Trading powered by Alternative Data Sets

Conversations: Effects of Alternative Data Sets on Trading Algorithms

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What effect can alternative data sets have on trading algorithms?

We asked a few of our teammates and systematic traders what the effect of alternative data sets is on trading algos. We thought we could spread some insight as to why our alternative data is so valuable the also developers. We all start using the smallest and most basic data sets, such as the generic S&P500 stock prices. This is all just fine until you want to take your development to the next level. You can delve deeper into predicting the rise and fall of each stock using these specified alternative data sets. CloudQuant offers a wide and expanding variety of these data sets for free, giving our users easy access to alternative data in order to help them improve their trading strategies.
The teammates featured are:
  • Tayloe Draughon- Sr. Product Manager
  • James Chang- Quantitative Portfolio Manager
  • Morgan Slade- CEO
  • Steve Pettinato- Portfolio Manager
  • Paul Tunney- Client Success Manager