Utilizing a straddle option strategy on earnings release dates can be a strategic move for investors seeking to capitalize on potential stock price volatility. By simultaneously buying a call and a put option, traders aim to profit from significant price swings, irrespective of the market direction, during the crucial period surrounding earnings announcements. Stock price volatility often surges around earnings report dates, creating a dynamic market environment. Investors eagerly anticipate these releases as they provide insights into a company’s financial health and future prospects. The unc ..read more

Multiple time frames Analysis In this post, I will use our pattern recognition algorithm to detect key support areas for stock prices in multiple time frames. The strategy of employing multiple timeframes is a trading approach that entails examining an asset’s price chart across different periods to identify optimal moments for entering and exiting trades. This method involves integrating various timeframes into the analysis of an asset before making trading decisions. In this context, timeframes denote the standard intervals used in charting platforms to represent trading sessions. Common tim ..read more

The current bull market of the S&P 500 is being driven by subdued inflation figures in the U.S. and Europe, coupled with the widespread anticipation of upcoming declines in interest rates. However, the stock market’s dynamics have become increasingly top-heavy, making the term “bull market” less significant than in the past. The influence of the so-called “Magnificent Seven” – Apple, Microsoft, Alphabet, Amazon.com, Nvidia, Tesla, and Meta Platforms – has become so pronounced that without their contributions, the S&P 500 would have only seen an 8% increase this year, as opposed to the ..read more

Portfolio construction is selecting and combining a mix of assets to achieve a specific investment objective. Whether you are an individual investor or a professional portfolio manager, constructing a well-balanced portfolio is crucial for achieving long-term financial goals while managing risk. The challenge for a financial application is that constructing and analyzing a portfolio requires a lot of work before the first result is visible. The analyst must have historical data, code the construction thesis, verify the thesis on historical data, and display the results. Our financial service A ..read more

Managing a stock portfolio means manually adding or removing stocks in the portfolio, when the portfolio is live, updating it is a must for every trader. Using a broker’s paper portfolio means you may “try before you buy” your assets.  But if you wanted to try several portfolios for different strategies, accounts, or clients, then you would need an online service that can provide multiple portfolio management, There are plenty of such services but all of them limit you to manually manage them, there is no service to manage multiple portfolios automatically at scale.  The solution to ..read more

In the previous post, I described a system for trading a 1-second resolution DOW30 index based on market depth and machine learning, It showed potential for profit so I kept digging to review how can I take this further. Following requests and comments from readers, I made some changes to test the validity of the system (backtest, for now , live trading will be implemented soon) The first thing I did was to trade on a 24 hours cycle, meaning train the machine on early data then test it on later data, and start the process fresh every day, another change was to review the effect of the train da ..read more

Preface In this post I will describe a successful trading strategy that uses market depth (AKA level 2) data for an HFT trading strategy, the data used is the current state of the order book best bid / ask price, and size. The strategy is heavily based on obtaining the current state of the bid ask for the specific asset, then by using machine learning to detect entry and exit triggers the strategy trades long and short in 1-second intervals.   Strategy logic First, the data is aggregated into 1-second intervals, since we have many changes in bid/ask values of a 1-second period the bid / a ..read more

  A Python script will execute trades described in an Excel spreadsheet. I saw a growing need among my clients to run trading from an Excell spreadsheet they made some time before the market opened and decided to open-source the script so anyone can enjoy it. Basically, the CSV file ( which can be edited in Excel or any other CSV editor) contains the required parameters for the trade execution, these parameters are currently in the CSV file: Symbol – the selected asset to trade, at the moment only stocks and ETFs are supported Action – buy or sell the selected asset Quantify – the size ..read more

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Passively investing in the stock market has its advantages – it takes very little effort, no homework required, in fact, no knowledge is required, just pick your favorite S&P500 ETF (SPY, IVV,…) invest all your money in the one ETF and track the market. This strategy is known as “buy and hold”, the question is: Does buy and hold work? Buy and hold is Warren Buffett’s way of investing, a system that made billions for this very intelligent investor. But, does it work for us mortals? When testing passive investment strategies like “buy and hold” on paper, it appears like a sound method for fo ..read more