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This article is about two programmers who created the first commercially available stock selection program. They created the prominent "Global Alpha" computer stock trading model, while contracted to Goldman Sachs.
Software which most years is responsible for 4,000,000,000+ Annual Trading Profit.
With this software project completed, Michael looked for a new way to line his pockets. Unfortunately he had signed a Non Compete and NDA agreement with Goldman Sachs, forbidding him to create software which trades derivatives and similar financial instruments (like Global Alpha).
After 3 weeks of being temporarily unemployed, Michael who was very wealthy and very bored... Resolved to begin a new project.
You see Goldman Sachs and most other large investment fund are at a chief deficiency. They regularly handle portfolios of up to $10,000,000,000 (ten billion dollars) - and because of this when they invest in stocks their scope is limited to just a few of the worlds biggest firms (Coca-Cola, Google).
This conundrum is widespread amid fund managers whom handle large quantitys of capital. In reality Warren Buffet (Whom handles $53 billion) has the exact same conundrum.
Michael knew he could take advantage of this. By developing software which can run on any home computer, and handle funds between $100 and $500,000.
Being in charge of such a small comparative amount, Michael's software could yield much higher returns. In reality it is intended to trade in the explosive penny stock market where stocks can escalate 400% in a matter of minutes.
Michael worked with fund manager Carl Williamson to create the bot. "Mar1" operates by analysing each stock with "technical analysis". Which means analysing a stocks past price actions to predict the stocks future direction.
The numerous changes in price (when made into a chart) form what traders call "chart patterns" and it is exactly these price paterns Mar1 is looking for.
When first activated, Mar1 will use its own database to perform a scan of stocks trading on the OTC and Pink sheets exchanges. During this time Marl is looking for companies whom are forming bullish trading patterns.(stocks about to increase)
Carl helped Michael program the bot to recognize (in split second timing) clear trading patterns from a vast range of 6578, held in Mar1's domestic database.
If Marl identifies a clean, uncongested chart pattern, that is proven to yield a good risk/reward - Then the stock will be added to Mar1's "watched stocks" list. All of these "watched stocks" will be forming bullish patterns (indicating the stock is about to rise).
This watch list has two distinct advantages. The first and most obvious is that Marl can easily monitor hundreds of stocks at the same time. The second is that Marl is programmed on am "evolutionary framework". What this means. is that as Mar1 is watching hundreds of stock patterns it actually learns the most likely direction of stock prices under thousands of situations.
Category: SoftwareSTOCK TRADING SOFTWARE PROGRAMS was written by:Author:Jeffrey WolfAdded: Mon, 03 Dec 2007 21:58:10 -0500 This Article Has Been Read 198 times View all Jeffrey Wolf's articlesAbout the Author: If you are looking for your movie favorites click on : Top10Downloads.org |
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