Trading Strategy

A trading strategy is a plan (often implemented in an algorithm) that defines when a trader will place orders to enter and exit an investment. Trading strategies range from simple sets of rules that an individual follows all the way to highly complicated applied artificial intelligence computer systems.

Many successful trading strategies go beyond orders to buy and sell. They often include risk management, hedging, and money management.


Trend Analysis in a Candlestick Market Data Chart

ZigZag Strategy Suggestion from Quora

A suggested a Zig-Zag trading strategy that bounces back and forth on the stock market to make small profits. Testing shows the strategy wouldn’t work.
Crowdsourcing Algorithmic Research

CloudQuant at FIA Expo in Chicago: perfect storm for open source revolution in quant trading

The impact of machine learning and open source resources on quant trading could be described as explosive. At FIA Expo in Chicago, CloudQuant’s CEO Morgan Slade will be discussing how that’s translating into opportunity for a wider variety of participants.

Backtest Visualization on CloudQuant

The Quantitative Strategy Backtest ScoreCard is saving time for crowd researchers who are able to visualize the results of multi-day backtests quickly, even as the backtest is running.
chicago cityscape and sears tower

Built in Chicago: Wanna try your hand at high-frequency trading? There’s an app for that

Built in Chicago discusses CloudQuant, a Chicago-based algorithmic trading startup, lets anyone try their hand at devising their own strategies.
Quantitative Strategy, Trading, and Algo Development Industry News

Quantitative Trading and Data Science in the News August 28, 2017

Quantitative Trading and Data Science in the News August 28 2017: CloudQuant opens door to crowd algo traders, RBC AI pilot, RBC pilots AI-based financial insight tools, AI focussed Chip, Momentum trading guide…

CloudQuant Launches with Unprecedented Risk Capital Allocation to Crowd Researcher

CloudQuant, the trading strategy incubator, has launched its crowd research platform by licensing and allocating risk capital to a trading algorithm. The algorithm licensor will receive a direct share of the strategy’s monthly net trading profits.
Daily ROIC Prior to improvements

Improving A Trading Strategy

TD Sequential is a technical indicator for stock trading developed by Thomas R. DeMark in the 1990s. It uses bar plot of stocks to generate trading signals. … Several elements could be modified in this strategy. Whether to include the countdown stage, the choice of the number of bars in the setup stage and countdown stage, the parameters that help to decide when to exit and the size of the trade will affect strategy performance. In addition, we could use information other than price to decide whether the signal should be traded.
SPY Benchmark Trader

Machines Poised to Take Over 30% of Work at Banks, McKinsey Says" on Bloomberg

New technologies are poised to sweep through investment banks, relieving many rank-and-file employees of roughly a third of their current workload, according to McKinsey & Co. The shift, already stoking angst on Wall Street, may take only a few years. Cognitive technologies — applications or machines that perform tasks once requiring human thought — are now cheap enough that banks can deploy them across operations facilitating trades or other capital-markets business. In a report Thursday, McKinsey said automating tasks will “free up capacity” for staff to focus on higher-value work, such as research, generating new ideas or tending to clients. “This is really starting to take steam and it’s going to transform the industry over the next two to three years,” Jared Moon, a McKinsey partner who co-wrote the report, said in an interview. The consultants estimate cognitive technologies will free 20 to 30 percent of employees’ capacity in units processing trades.
Automation has been sending shivers down spines across Wall Street, as workers worry they will be replaced by machines …. Read the full article “Machines Poised to Take Over 30% of Work at Banks, McKinsey Says” on Bloomberg – July 20, 2017, 7:00 AM CDT  

CloudQuant Thoughts

We see opportunities in this change. The growth of automation in the trading and banking industry is creating opportunities for knowledgeable workers to transition from old jobs. This is similar to the move that allowed many traders to transition from the trading pits to electronic trading. Those that choose to innovate and re-create their careers are able to move into quantitative investing. All they need is a willingness to learn, to work hard, and to have access to capital.
Trend Analysis in a Candlestick Market Data Chart

Algorithms for Trading

The hardest part of starting any project, including building a quantitative trading strategy, is figuring out where to start. To that end, this post covers a basic overview of a few algorithms for trading. We hope to help you get your creative energy to level up.
Quantitative Strategy, Trading, and Algo Development Industry News

Why You Should Always Question The Status Quo — Tradeciety

CloudQuant was mentioned in this article by Tradeciety about trading psychology. We particularly like the comment saying “If you are so worried about algos, why don’t you look at Python? Read up on it. Cloudquant, Quantopian. The tools are there, the information is there, for free.” Change is progress, stagnation is death. That is the truest truth, especially in capitalism and thus also in trading. Grow or die. But then the real question is, why do so many people want to go backward? Everything was better before, we will make this and that great again, bla bla bla, yada yada yada. And why are so many people afraid of change when change is the only thing that ever brought humanity forward?
In Germany, we have this saying:”The farmer doesn’t eat what he doesn’t know”…that exactly describes the herd mentality. People are afraid of change because it involves an unknown factor. What will happen if we do that? What will happen if do this? I want to go back to my mommy. Where is my mommy? That is exactly what is happening in politics and in the world right now. Read the full article on Tradeciety