* I'm looking at the Ichimoku Cloud indicator in addition to whether it has whatever unique value inwards predicting futurity cost behaviour inwards stocks. The challenge is inwards finding unique value, equally whatever indicator is probable correlated amongst others in addition to amongst past times cost alter itself. So inevitably you're looking at the value of the residuals (the indicator minus the overlapping input of other variables), non the human relationship of the indicator to marketplace position behaviour per se. I've gathered the information for give away of all stocks on NYSE each twenty-four hours that are moving into in addition to exterior their clouds in addition to constitute about interesting things. For instance, if really few shares motility into their clouds from levels higher upwards in addition to below, returns are much to a greater extent than bullish than if many shares move inwards their clouds. Returns are likewise dissimilar when yous expect at the give away of stocks trading higher upwards versus below their clouds. The whole exercise has acquire a agency of thinking virtually momentum in addition to value factors inwards near-term returns.
* I've divided each day's marketplace position into sparse slices of book in addition to applied an algorithm to each spell to decide whether the book transacted over that menstruum was dominated past times buyers or sellers. This is dissimilar from looking at upticks versus downticks inwards the market, equally it's designed to rail the footprints of sophisticated execution algorithms that essay to purchase the bid cost in addition to sell the offer. The coin stream figures resulting from this analysis present interesting divergences at turning points inwards the market. (Right forthwith it's lagging the recent marketplace position strength).
* I've gone dorsum to 1980 in addition to am manually creating an lawsuit time-based fourth dimension serial of cost behaviour for SPX. That is difficult, because yous can't role book bars (volume totals are wildly dissimilar over that period), in addition to then bars accept to live on created on the footing of cost behavior. Preliminary results propose that marketplace position cycles are much to a greater extent than evident inwards the stock index when looking over long periods in addition to when looking at bars that are activity-based in addition to non based on chronological time. The destination is to devise an active investment approach based on these cycles.
Well, yous acquire the idea. These projects may or may non pan out, simply at that spot volition ever live on at to the lowest degree a twosome of projects inwards my hopper at whatever given period. Research in addition to evolution never stops; that ensures that I proceed learning in addition to adapting.
What does your R&D programme expect like? How are yous exercising creativity? How are yous innovating inwards your trading practice? How are yous going to live on dissimilar in addition to amend past times the halt of this year? These are the kinds of questions truthful trading entrepreneurs involve to live on addressing.
Further Reading: Finding Your Creativity Zone
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