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I have spent the last year building an algorithm for more efficiently trading using Interactive Brokers API. My algorithm is not a stock picker... I think this
by silexia 6y ago
I have spent the last year building an algorithm for more efficiently trading using Interactive Brokers API. My algorithm is not a stock picker... I think this is best done using human judgement. I pick stocks based on business fundamentals, and while this strategy has underperformed during this bubble market, I think I have much lower downside risk than the people with fear of missing out.
I think retail investors like me just need a more efficient algo for getting in and out of stocks... Currently the big players can game the market far more effectively than a single trader just putting in a limit order here and there that gets quickly filled.
- tjs8rj 6y agoThe main reason we started maintaining this library of models is to capture that human judgement in a box easily accessed by others without the time or resources to develop it on their own. Some of them are goofy (like choosing stocks based on what r/wallstreetsbets likes), but most of them just seek to remove the need to rebalance, check indicators constantly, or code your own human judgement into an algorithm. The value here we think is mainly the transferability of others skills and strategies, and removing the grunt work. By getting in and out, do you mean in a physical sense (as in large institutions front-running sell orders, beating retail), or in a technical sense (identifying the ideal time to enter or exit a position)?
- antire12 6y agoFor the front-running of orders, I don't think anything beyond regulation and rule changes could fix that. The incentives are too strong.