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> Binary Decision Diagrams (BDDs) where does intraday/momentum/swing trading fit into this? like little “algorithms” looking at indicators or "open/high/low/cl

> Binary Decision Diagrams (BDDs) where does intraday/momentum/swing trading fit into this? like little “algorithms” looking at indicators or "open/high/low/close" candles + volume to pick direction, entry, stop loss/limit? i’ve seen something that looks at things like VWAP/EMA fast/slow crossover and then pours into 0 days to expiration. “guessing/following” the market along for a 0.5% move in the index can turn into 100-500% ROI in options. obviously has its drawbacks/isn't perfect. i always felt the results with "trading" (given how market the random is overall) aren't worth it. i'd be curious how the results of this compare to basic "technical analysis".

taeric 4y ago
Agreed that this isn't worth much as a legit trading algorithm. That is the framing I was given to the puzzle. With how fast this answers the question of the boolean linear program, I suspect it could be used for some neat tricks. That said, if you try to make the decision diagram smarter, it tends to explode in size. (At least, I think it does?)
- deleted 4y ago
  [deleted]
- fedeb95 4y ago
  For size I read there are ways to reduce and/or compress BDDs in literature. As for trading, I get this is a neat programming exercise, but maybe it's better to put in the article a disclaimer on it not being a real trading strategy? Set aside skepticism on trading strategies as a whole.
  - taeric 4y ago
    Yes, variable order, in particular, can have a dramatic impact on size. With just 5 nodes per day, I think this may be hard to make smaller. I got lucky with not having to reduce this one after I create it. Got a lot of feedback yesterday, but house was without power, so couldn't update post before we left. Will try to get some updates in when I'm back home in a few days. Biggest one is to more clearly label this as a toy problem.
  - MuffinFlavored 4y ago
    is there even such thing as a publicly available/known "trading strategy" that actually wins more than it loses?
    - fedeb95 4y ago
      Well, some claim to have it. I think it can be true, until it isn't

taeric 4y ago

Agreed that this isn't worth much as a legit trading algorithm. That is the framing I was given to the puzzle. With how fast this answers the question of the boolean linear program, I suspect it could be used for some neat tricks. That said, if you try to make the decision diagram smarter, it tends to explode in size. (At least, I think it does?)

deleted 4y ago
[deleted]
fedeb95 4y ago
For size I read there are ways to reduce and/or compress BDDs in literature. As for trading, I get this is a neat programming exercise, but maybe it's better to put in the article a disclaimer on it not being a real trading strategy? Set aside skepticism on trading strategies as a whole.
- taeric 4y ago
  Yes, variable order, in particular, can have a dramatic impact on size. With just 5 nodes per day, I think this may be hard to make smaller. I got lucky with not having to reduce this one after I create it. Got a lot of feedback yesterday, but house was without power, so couldn't update post before we left. Will try to get some updates in when I'm back home in a few days. Biggest one is to more clearly label this as a toy problem.
- MuffinFlavored 4y ago
  is there even such thing as a publicly available/known "trading strategy" that actually wins more than it loses?
  - fedeb95 4y ago
    Well, some claim to have it. I think it can be true, until it isn't