Over the last week I spent a lot of time implementing a stock trading algorithm that determines when to buy and sell based on the relationship between moving averages and closing prices. I had no prior experience working on these types of algorithms but I quickly realized that I really enjoy this type of work. I think that part of this enjoyment is motivated by the prospect of actually deploying algorithms like this (and not just backtesting) with the goal of making money. <\/p>\n\n\n\n
As I had mentioned in a previous blog post, I have not had much success with my personal investing strategies. The fact that I can take my time to create an algorithm that only acts based on certain rules and that I can even backtest this algorithm to see how it has performed over any historical period of time is amazing to me and feels like a trading cheat code. With that said, historical performance is absolutely no guarantee of future performance, but there is a reason why “Algorithmic trading accounts for around 60-73% of the overall US equity trading” (Mordor Intelligence<\/a>). This percentage clearly shows that institutions are not leaving their investments in the hands of human decision making and are instead making use of algorithms like the one I worked on, albeit much more complicated ones. <\/p>\n\n\n\n I am looking forward to continuing to work on this project and am excited to see what other algorithms we can come up with and how well they do historically.<\/p>\n","protected":false},"excerpt":{"rendered":" Over the last week I spent a lot of time implementing a stock trading algorithm that determines when to buy and sell based on the relationship between moving averages and closing prices. I had no prior experience working on these types of algorithms but I quickly realized that I really enjoy this type of work. […]<\/p>\n","protected":false},"author":12321,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-17","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blogs.oregonstate.edu\/steve\/wp-json\/wp\/v2\/posts\/17","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.oregonstate.edu\/steve\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.oregonstate.edu\/steve\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.oregonstate.edu\/steve\/wp-json\/wp\/v2\/users\/12321"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.oregonstate.edu\/steve\/wp-json\/wp\/v2\/comments?post=17"}],"version-history":[{"count":2,"href":"https:\/\/blogs.oregonstate.edu\/steve\/wp-json\/wp\/v2\/posts\/17\/revisions"}],"predecessor-version":[{"id":19,"href":"https:\/\/blogs.oregonstate.edu\/steve\/wp-json\/wp\/v2\/posts\/17\/revisions\/19"}],"wp:attachment":[{"href":"https:\/\/blogs.oregonstate.edu\/steve\/wp-json\/wp\/v2\/media?parent=17"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.oregonstate.edu\/steve\/wp-json\/wp\/v2\/categories?post=17"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.oregonstate.edu\/steve\/wp-json\/wp\/v2\/tags?post=17"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}