jjcap

Friday, September 20, 2019

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General formula for calculating SMA

• Wikipedia news trends for moving averages

• Google news trends

• Using EMA and SMA possibly ROY

• Using price to cash flow will be good for certain companies in an industry so we must focus on a certain industry and specialize in that for now.

• For companies start small and possibly put a limit on market cap
  • No companies like google, amazon, apple, etc.
  • Small to mid cap

• Micro cap < 50 million, we want around 100-500 million or anything under a billion depending on the industry.

• Time window?: variable length and test different lengths to see what works best.

Backtesting vs paper trading: Paper trading shows the current valuation of the Algo through the markets. Backtesting allows you to go back a year, 5 years, decade, etc. and try out the algorithm to see how the strategy might perform. It’s not 100 percent of what the future holds, but does allow for a good reference point and singling out certain stocks.

Next meeting: presentation for classifier models for best predictors (Adeet)