Weird Edges for Fun and Profits
Corona Del Mar, CA
"Epidemiologists exist to make weathermen look good." - Dan Murphy
Howdy Friend!
This might be a stunning admission for some, but it's the honest truth...
...I get more joy from making new discoveries in the markets than I do from trading profits.
There's something magical about discovering something only a few people in the entire world know.
Since the day I fired up "The Boss," I've been unearthing new discoveries like Indiana Jones on 80 cups of coffee.
The other day, it dawned on me that we pay a lot of money for a huge list of index data.
Are there hidden relationships between stock trading and various indices?
You bet!
There are a lot of weird stats and indices ALREADY inside Portfolio Boss that even yours truly didn't know existed.
Here a partial list of the weird ones (although some of the stats aren't quite ready like "NQUD" because we have to do some customization and update the PB search function).
&TRIQ Nasd TRIN
^TRIN Short-Term Trading Index
NQUD NMS Adv, Dec, Unch, UpVol, DnVol
VXO CBOE OEX Market Volatility Index
MKST NYSE - New Hi And Low
@BCOM Bloomberg Commodity Index
UVDV NYSE Sum-Up-Down-Unch,Up/Dn Vol
ISSA Amex Adv,Dec,Unch,Up/Dn Vol
NQHL Nasdaq Adv,Dec,Unch,New Hi/Lo
&SHORTVOL Short VIX Futures Index
SKEWX CBOE Volatility EOD Skew
@VXST CBOE Short-Term Volatility Index
@VXMT CBOE Mid-Term Vol Index
@TICN Tick NYSE
@TICA Tick Amex
@TICQ Tick NASDAQ
^GVZ CBOE Gold Volatility
^EVZ CBOE Eurocurrency Volatility In
^VVIX CBOE VIX of VIX
The entire list is available here (actives have a check mark)
There's also a bunch of commodity and currency data on that list.
Why does that matter?
Well, because there are hidden relationships in the markets that are only discoverable by either a team of 1000 programmers working around the clock, or by machine.
I'll go with option B.
Those weird edges are often where the big bucks are hiding.
"The Boss" leaves no stone un-turned.
I was reading an interview with some of the big wigs at Renaissance Technologies (the most successful hedge fund ever).
They expressed shock and amazement at the weird combinations they'd find.
And as you know, Jim Simons and crew have practically been minting money for decades since they switched to machine learning.
It's pretty cool to see their stories match what me n the team have been going through for he past couple years.
Anyhoo...time to put on my hat, equip my whip, and get back to spelunking the innards of the data mines.
More from me soon...
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Government required disclaimer: The results listed herein are based on hypothetical trades. Plainly speaking, these trades were not actually executed. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under (or over) compensated for the impact, if any, of certain market factors such as lack of liquidity. You may have done better or worse than the results portrayed.
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