Historical Testing to 1736?
Corona Del Mar, CA
Howdy Friend!
A.I * D * PP = $$$$
We'll talk about what that means in a second so stick around. First, let's discuss building a trading strategy back to 1736.
Why in the world would I want to do that?
It has to do with "D" in the above equation.
D as in Data.
One of the things that Jim Simon's hedge fund prides themselves in is having more trading data than hell has sinners.
And just in case you've been vacationing on another planet for awhile, or just got into trading, Jim's fund is the most profitable in the history of hedge funds.
They use "A.I" and "Data" and some serious "PP" to make $$$$.
A.I is clearly artificial intelligence or machine learning. You need that to learn how to build profitable strategies using that mountain of data.
OK, so what's the "PP"?
Processing power.
A.I * Data * Processing Power = $$$$
Their network of several thousands computer cores is about the size of two tennis courts according to Greg Zuckerman, author of The Man Who Solved the Market.
If you don't have enough processing power, the A.I will take years to design trading models... which is why I decided we needed to build a network of computers (currently over 3500 of 'em).
Anyhoo... back to that 1736 back test.
That's a pretty wacky test pre-dating the USA. What gives?
Well, I started testing intraday data -- 30 minute bars to be precise.
There are 13 bars in a single day (from 9:30 to 4PM). So I had them converted to daily bars since Portfolio Boss wasn't built for intraday trading (it will be soon).
So far, the A.I discovered several edges using non-human-made indicators(The A.I builds trading indicators from scratch all by itself).
Where I think it'll shine even more is in using unconventional data...like what I use in this trading strategy.
No, I'm not talking about satellite data of shopping mall parking lots (which exists).
I'm talking about premium to NAV data which can be VERY effective in timing your trades and hauling in some killer trades.
Perhaps I should add a "ED" to the equation above.
"ED" as in Exotic Data, not the thing you need a little blue pill for.
More from me soon.
P.S. If you want to see an example of a strategy that uses unconventional, exotic data to make profitable trades, then check this out >>
Sure makes trading easier when you're using this stuff.
|
|
Wondering how to get started?
Step 1: Get a free copy of my book: Artificial Intelligence, Real Profits here >>
Step 2: See a demo of The Boss "SuperAi" Strategy Builder.
During the presentation, you'll learn: How to Generate Consistent Retirement Income Using "SuperAi-Designed" Trading Strategies. Click here >>
Download Portfolio Boss Software >>
Step 3: Online training to vastly improve your trading with Ai.
Watch the podcast >> | Read the blog >>
Step 4: Additional Resources
The Relaxed Investor (Downloaded by over 200,000 readers)
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.
Responses