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Algorithmictrading

AI and Algorithmic Trading #1AI and Algorithmic Trading #1 - Introduction to AI and Algorithmic Trading In recent years, algorithmic trading has become increasingly popular in the world of finance. Algorithmic trading refers to the use of computer programs to automate the trading process, including the analysis of market data, the identification of trading opportunities, and the execution of trades. As algorithmic trading has become more prevalent, artificial intelligence (AI) has emerged as a key tool for traders looking to gain a competitive advantage in the market. In this article, we'll provide an overview of AI and its role in algorithmic trading. What is Algorithmic Trading? Before we dive into AI, let's first define algorithmic trading. Algorithmic trading, also known as automated trading or algo trading, is a method of executing trades using computer programs. These programs can analyze market data, identify trading opportunities, and execute trades at a speed and efficiency that is impossible for human traders. Algorithmic trading can be used for a variety of trading strategies, including high-frequency trading, statistical arbitrage, and trend following. What is AI? Artificial intelligence refers to the ability of machines to perform tasks that would typically require human intelligence. AI can be divided into several categories, including machine learning, natural language processing, and pattern recognition. Machine learning is a type of AI that involves training algorithms to learn from data, enabling them to make predictions or decisions without being explicitly programmed. Natural language processing involves teaching machines to understand and interpret human language, while pattern recognition involves identifying patterns in data. Benefits of AI in Algorithmic Trading One of the key benefits of using AI in algorithmic trading is the ability to make faster and more accurate trading decisions. AI algorithms can analyze vast amounts of market data in real-time, identifying trading opportunities and executing trades with a speed and efficiency that is impossible for human traders. Additionally, AI algorithms can learn from their mistakes and adjust their strategies accordingly, leading to more consistent and profitable trading outcomes. Challenges of AI in Algorithmic Trading While the benefits of AI in algorithmic trading are significant, there are also potential challenges associated with this technology. One of the main challenges is the need for high-quality data. AI algorithms rely on large datasets to learn from, and if the data is incomplete or inaccurate, the algorithms may produce flawed results. Additionally, AI algorithms may be subject to biases, both in the data they are trained on and in their decision-making processes. Finally, there are ethical considerations around the use of AI in trading, particularly around the potential for AI to exacerbate market volatility or contribute to systemic risk. The Future of AI in Algorithmic Trading Despite these challenges, it is clear that AI will continue to play an important role in algorithmic trading in the years to come. As the technology continues to develop, we can expect to see even more sophisticated AI algorithms being used to analyze market data, identify trading opportunities, and execute trades. Additionally, we may see new applications of AI in areas such as risk management and portfolio optimization. Conclusion In conclusion, AI is an increasingly important tool for traders looking to gain a competitive advantage in the world of algorithmic trading. By using AI algorithms to analyze market data and make trading decisions, traders can operate with a speed and efficiency that is impossible for human traders. However, there are also potential challenges associated with using AI in trading, including the need for high-quality data and ethical considerations. As the technology continues to develop, we can expect to see even more sophisticated applications of AI in the world of algorithmic trading.
BITSTAMP:BTCUSDEducation
by JS_TechTrading
Short position - Silver futures (COMEX)Our semi-systematic programme, consisting of different trend-following models that we apply manually, is opening short positions in some futures contracts, including COMEX silver futures. This position could also be executed via A-book CFDs or correlated ETPs. Positions 1st sell stop: 20.515 1st guaranteed trailing stop loss: 21.370 Take profit: 18 2nd sell stop: 19.700 2nd guaranteed trailing stop loss: 20.515 Take profit: 18 Risk & portfolio management Portfolio risk 1st position: 0.5% Portfolio risk 2nd position: 0.3% Portfolio exposure: 3% Financial engineering COMEX Futures Trading model TTW Execution Manual, semi-systematic.
COMEX:SI1!Short
by blockmas
Long position - Live Cattle futuresOne of our algorithmic, trend-following systems entered long at Live Cattle futures at 149. The system is holding the position with a guaranteed and progressive trailing stop loss of 0.3% and could average new positions if the trend is confirmed in the next weeks. In recent weeks we have converted a few algorithmic trading programs from Pro Real Code to Python, AFL, or Pine Script with the help of Chat GPT, which shows how revolutionary AI will become in the algorithmic investing space.
CME:LE1!Long
by blockmas
KGC, The Barometer For Easing Tensions?Based on historical movement, the peak could occur anywhere in the larger red box. The final targets are in the green boxes. The pending bottom should occur within the larger green box as has been the historical case. Half of all movement has ended in the smaller green box. In this instance, the signal indicated SELL on February 10, 2022 with a closing price of 5.45. If this instance is successful, that means the stock should decline to at least 5.39 which is the top of the larger green box. Three-quarters of all successful signals have the stock decline 8.029% from the signal closing price. This percentage is the top of the smaller green box. Half of all successful signals have the stock decline 12.591% which is the end point of the black dotted arrow. One-quarter of all successful signals have the stock decline 21.953% from the signal closing price which is the bottom of the smaller green box. The maximum decline on record would see a move to the bottom of the larger green box. These are the same concepts for the levels in the red boxes as well. The ends/vertical sides of the boxes are determined in a similar fashion. The trough of the decline can occur as soon as the next trading bar after signal close, while the max decline occurs within the limit of study at 35 trading bars after the signal. A 1% decline must occur over the next 35 trading bars in order to be considered a success. Three-quarters of successful movement occur after at least 10 trading bars; half occur within 20 trading bars, and one-quarter require at least 31 trading bars. The black dotted arrow represents median historical movement. Medians are a good metric, but they are just one of many I use when forecasting future movement. As always, the stock could decline the very next bar after the signal without looking back (therefore the red boxes would not come into play) or the stock may never decline (and the green boxes may never come into play).
NYSE:KGCShort
by StockSignaler
THETA long: +7% in 19 days - New algorithmLadies and gentlemen, after a long pause dedicated to fine tuning and improving my algorithm even further (100% accuracy rate, as testified by my history), I'm back on the playground. Now the algorithm allows for accurate price prediction up to one month forward in time, rather than just few days! The algorithmic analysis, in regards to THETA, says "+7% in 19 days", but it really is more like "+ at least 7%, in up to 19 days". I have bought 24 THETA at the price of $4.65, for a grand total of 111 USD invested in this new trial. My plan is to hold them until the conditions are right and then sell them for ETH, as suggested by the algorithm. I'll update this post every time something significant happens. Keep in mind that the algorithm has run an analysis with the current data, so if something terrible comes up for THETA or the crypto market as a whole, we may decide to abort the trade! Leave a comment If you found this post useful, and I'll post more!
Long
by Estagon
7
HIBB another near-term buy targetBased on historical movement, the trough could occur anywhere in the larger red box. The final targets are in the green boxes. The pending top should occur within the larger green box as has been the historical case. Half of all movement has ended in the smaller green box. In this instance, the signal indicated BUY on October 1, 2021 with a closing price of 70.74. If this instance is successful, that means the stock should rise to at least 71.52 which is the bottom of the larger green box. Three-quarters of all successful signals have the stock rise 4.025% from the signal closing price. This percentage is the bottom of the smaller green box. Half of all successful signals have the stock rise 7.296% which is the end point of the black dotted arrow. One-quarter of all successful signals have the stock rise 9.856% from the signal closing price which is the top of the smaller green box. The maximum rise on record would see a move to the top of the larger green box. These are the same concepts for the levels in the red boxes as well. The ends/vertical sides of the boxes are determined in a similar fashion. The peak of the rise can occur as soon as the next trading bar after signal close, while the max rise occurs within the limit of study at 40 trading bars after the signal. A 0.5% rise must occur over the next 40 trading bars in order to be considered a success. Three-quarters of successful movement occur after at least 9 trading bars; half occur within 19 trading bars, and one-quarter require at least 32 trading bars. The black dotted arrow represents median historical movement. Medians are a good metric, but they are just one of many I use when forecasting future movement. As always, the stock could decline the very next bar after the signal without looking back (therefore the red boxes would not come into play) or the stock may never decline (and the green boxes may never come into play).
HLong
by StockSignaler
OMG, people go long, but I short. - New algorithmCurrently the market is unstable. It's bullish at the moment, but there are some coins - such as BTC - which show a certain degree of resistance. That resistance can either mean that they will EXPLODE in a super bull run, or that they are acting as brakes. Given that in such a volatile context our sweet OMG has flown to +30% overnight, we should make sure to open a short position and prepare for a potential bearish return wave. In case the short position is blown off and the other big players show a bullish movement, we'll just take a small loss and ride the bullish wave to interesting heights. I am currently looking for an entry point after a small sculpting session from 9.9 to 9.5, in order to short and leave it there for a while. Afterwards I'll be using 3x leverage to open a short position with 25% of the capital I am comfortable with holding there. BE WARY: this is not a long time investment strategy. I am testing this algorithm in day trading sessions and so this suggestion holds, but for the medium-long term, this coin's prospects look green to me. I'll update as soon as the situation changes: leave a comment if you found this information useful, and I'll post more.
OShort
by Estagon
4
BTC long, but only as a hedge investmentThe market is unstable, and that can be attributed to the uncertainty surrunding BTC. So, in order to profit no matter what, I'll be shorting some coins that show the most potential for a loud downfall and going long on BTC, which doesn't really look like it will grow further in the short term BUT has limited potential for a downfall. So if the bulls start running, my investment will be hedged and if the bears prevail I will gain a lot of money. 3x, permanent futures, 15% of the capital I'd be comfortable with investing in a single currency. ---- This time the algorithm has nothing to do with my decision, except for showing a significant resistance in BTC. I'll update as I begin the long operation. If you found this information useful, make sure to comment and I'll post more!
Long
by Estagon
2
THETA long, but be careful - New AlgorithmThe algorithm suggests that THETA's price is currently unstable and that it has potential for even further growth. If you are looking for a medium-term investment, go for it, but if you want to grab some juicy profit and run away you must consider that it will likely fall below $8 once again to stabilize before consolidating to $8.3 for some time. So wait for a good entry point (personally, I'll be waiting for the price to drop to 7.75 before I set another buy order) and then enjoy the ride to a tasty profit. I'll be using permanent futures once again, yet again with leverage 3, but I will only invest half of my destined capital as the price reaches $7.7, given that there is also the possibility for it to fall once again and I may get to enter at a better price. Remember: only buy THETA is the price drops a little, as the market is currently bullish but unstable, and might turn upside down at a moment's notice. I'll post an update as soon as the situation changes. Comment below if you found this information useful, and I'll post more.
Long
by Estagon
10
THETA possible long - New algorithmThe market is currently bearish, but THETA is looking for the right moment to turn the tendency upside down. The algorithm suggests an upcoming +7%~+14%, consolidating the price above USD 8. Look for your entry point and open a long position, being aware that you might need to wait a couple of days for the prediction to take effect. Personally, I opened a position at 7.6825 (a silly mistake of mine, the algorithm is not to blame), but I am not too concerned. My estimate is that in 48h at most, I'll see a juicy +24% (leverage 3, permanent futures). If you found this information useful, let me know and I'll post more.
Long
by Estagon
6
Short BNB, -6% in 8h. - New algorithmThe algorithm suggests that following the rapid price increase, BNB's price will be falling of about 6% over the next few hours. Short opened at 498.68 with leverage 3, permanent futures. The target is 475, to be reached in maximum 8 hours unless the market is swept by a bullish wave. In case you are worried, make sure to hedge the short (XLM and DOT, according to the algorithm). Comment below if you found this idea useful, and I'll post more.
Short
by Estagon
11
Short ADA, -3% in 8h. - New algorithmNo details about the algorithm I'm using, but ADA will fall of little less than 4% in the next few hours, unless the market will be permeated by a global bullish wave. Hedge the operation with a XLM long, if a sudden bullish wave worries you. 8 hours is the maximum amount of time we'll be leaving this position open. Short started at 2.8579 using 2x leverage permanent futures. Will update as I manage the position. Temporary take profit set at 2.75. Comment below if you found this idea useful and I'll post more.
Short
by Estagon
1
Best Buy may be heading down near-termBased on historical movement, the peak could occur anywhere in the larger red box. The final targets are in the green boxes. The pending bottom should occur within the larger green box as has been the historical case. Half of all movement has ended in the smaller green box. In this instance, the signal indicated SELL on August 9, 2021 with a closing price of 112.54. If this instance is successful, that means the stock should decline to at least 111.3 which is the top of the larger green box. Three-quarters of all successful signals have the stock decline 4.2515% from the signal closing price. This percentage is the top of the smaller green box. Half of all successful signals have the stock decline 8.478% which is the end point of the black dotted arrow. One-quarter of all successful signals have the stock decline 15.7105% from the signal closing price which is the bottom of the smaller green box. The maximum decline on record would see a move to the bottom of the larger green box. These are the same concepts for the levels in the red boxes as well. The ends/vertical sides of the boxes are determined in a similar fashion. The trough of the decline can occur as soon as the next trading bar after signal close, while the max decline occurs within the limit of study at 35 trading bars after the signal. A 1% decline must occur over the next 35 trading bars in order to be considered a success. Three-quarters of successful movement occur after at least 3.0 trading bars; half occur within 13.0 trading bars, and one-quarter require at least 25.5 trading bars. The black dotted arrow represents median historical movement. Medians are a good metric, but they are just one of many I use when forecasting future movement. At the time of this publishing, the stock has already reached the top of the small red box and may be in the early stages of the short-term forecasted decline. As always, the stock could decline the very next bar after the signal without looking back (therefore the red boxes would not come into play) or the stock may never decline (and the green boxes may never come into play).
NYSE:BBYShort
by StockSignaler
Visa with 5% room to run?Based on historical movement, the trough could occur anywhere in the larger red box. The final targets are in the green boxes. The pending top should occur within the larger green box as has been the historical case. Half of all movement has ended in the smaller green box. In this instance, the signal indicated BUY on August 13, 2021 with a closing price of 232.62. If this instance is successful, that means the stock should rise to at least 235.82 which is the bottom of the larger green box. Three-quarters of all successful signals have the stock rise 4.355% from the signal closing price. This percentage is the bottom of the smaller green box. Half of all successful signals have the stock rise 4.952% which is the end point of the black dotted arrow. One-quarter of all successful signals have the stock rise 7.587% from the signal closing price which is the top of the smaller green box. The maximum rise on record would see a move to the top of the larger green box. These are the same concepts for the levels in the red boxes as well. The ends/vertical sides of the boxes are determined in a similar fashion. The peak of the rise can occur as soon as the next trading bar after signal close, while the max rise occurs within the limit of study at 40 trading bars after the signal. A 0.5% rise must occur over the next 40 trading bars in order to be considered a success. Three-quarters of successful movement occur after at least 14 trading bars; half occur within 27 trading bars, and one-quarter require at least 34 trading bars. The black dotted arrow represents median historical movement. Medians are a good metric, but they are just one of many I use when forecasting future movement. BONUS ANALYSIS: All five algorithms have simultaneously signaled a BUY on the two hour chart on four prior occasions. All four instances saw the stock move up a minimum of 4.35%. The median move was 5.557% while the average was 5.89%. The top occurred 12-38 trading bars (24-76 trading hours) after the signal bar with the average around 29 bars, and median at 32.5. The stock did not begin moving upward on three of the four occasions. The stock moved down after the signal for an average of 3 trading bars (6 hours). The target top based on this additional analysis could see the stock move toward 244.37 near the close of trading on August 24, 2021. As always, the stock could decline the very next bar after the signal without looking back (therefore the red boxes would not come into play) or the stock may never decline (and the green boxes may never come into play).
NYSE:VLong
by StockSignaler