I made a script that:
-
grabs the daily returns from every stock from each market cap from a certain time period
-
Finds the average rate of change for the daily returns data collected on each stock
-
Puts the data onto a STD bell curve
-
Provides the data on an excel separating the data by if the sigma is negative- positive
The more positive the sigma the stronger/ faster the stock is moving in that direction due to the fact that its average rate of change is higher than the mean.
I then use the % change to see which direction the stock is moving
After , I perform financial analysis, options iv analysis , economic correlation analysis in order to see if the stocks movement is justified.
I then sell a spread or iron condor based off my research.
The images are from a paper trading account tho.
https://www.reddit.com/gallery/1frl4rh
Posted by thegratefulshread
3 Comments
Honest questions. is this chasing the market instead of just doing what the market tells you it’s doing? Have you accounted for the fact that we are in a bull market right now?
Interesting though otherwise and I recognize D3 if that is what that is 😉
Write to me when this shows green on red days, and greener on green days. That’s the idea right?
Back test good?