Portfolio Boss

Anomaly Trading

Corona Del Mar, CA

Howdy Friend!

We're currently working on two major projects, but I wanted to fill you in on one of them: Anomaly trading.


It's one of many strategies the most successful hedge fund in the world uses, as you can see in this interview with it's founder, Jim Simons.


Machine learning is really good at spotting weird anomalies in data, and Renaissance Technologies has been using it effectively since 1995.


Jeff Bezos actually worked at one of their competitors, D.E Shaw, and decided to merge machine learning with shopping. You might have heard of Amazon? I think they'll catch on one day.

Anyhoo, let's get back to anomaly trading...

You can find anomalies in stocks, bonds, gold, bit-coin, inverse ETFs, currencies...everything.

The anomalies must pass rigorous statistical significance tests to make sure they're not due to randomness (this is where most system traders derail).

Then what you do is come up with a large basket of dozens of trading strategies.

Normally, that would be a pain in the neck, but I've discovered machine learning with The Boss SuperAi has cut my development time down to about a day when it used to take months of trial and error. Check out a demo here >>

Now the big problem with trading a bunch of strategies is that too many could fire off a buy signal all at once.

Let's say that you have a portfolio constructed like this:

25% index ETFs, 25% commodity ETFs, 25% bond ETFs, 25% inverse ETFs. Let's say that you have 10 strategies for trading stock indices like the S&P 500, Dow, or NASDAQ 100.


All of a sudden, you get a buy signal on five of them, but you only want to trade one ETF at a time...how to you manage something like that?


The solution: Strategy Stacking.


Stack strategies on top of each other like bricks. If strategy #1 isn't giving a buy signal, you look down at strategy #2. Is there a buy signal? No, then check strategy #3 and so on until there's a buy signal.

We added this ability to Portfolio Boss back in 2017 so none of this is done manually.

There's simply no other way to do anomaly trading without this technique.

(You can also do multiple strategy stacks with a technique I call Strategy Spigoting).

It's like Jim said is this interview...the strategies are really simple, but under the hood, the software to design the strategies so they all work together took millions of lines of code.


More from me soon...


Trade smart,

Dan "Prince of Proof" Murphy

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Wondering how to get started?

Step 1Looking for more consistent profits?

Get a free copy of my book: Artificial Intelligence, Real Profits here >>

Step 2Want to build a trading strategy in under 10 minutes?

Watch this free training video >> (Scroll down the page)

Step 3: Want A.I to build tailor-made trading strategies for you?

A.I is beating people at just about anything related to numbers and data. Nearly every billion-$$$ hedge fund now uses A.I to boost profits.

Watch a demo of The Boss "SuperAi" Strategy Builder as we harness the raw power of 3500 computer cores and strong A.I.

During the presentation, you'll learn: How to Generate Consistent Retirement Income Using "SuperAi-Designed" Trading Strategies. Click here >>

Step 4: Looking to discover new trading ideas to help grow your nest egg?

Online training to vastly improve your trading with A.I.

Watch the podcast >> | Read the blog >>

Step 5: Additional Resources

The Relaxed Investor (The simple strategy proven to work since 1926. Downloaded by over 200,000 readers)

The Ghost of Bernie Madoff is Not Yet Dead (Is your broker on the naughty list? Many traders have no idea they're being sold out)

The Ultimate Crash Detector (The strange weekly report that helps predict crashes. LIVE trading signals since 2006)

Portfolio Boss User Guide (Our flagship strategy building platform User Guide. See what it can do to help you on you quest for F U money)

Trading With Other People's Money - Coming Soon!

Bit-coin for Busy People (How to get started with Bit-coin in under an hour without the complicated new exchanges, high fees, and complicated wallets)

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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