Using Exponential Smoothing in Algorithmic Trading

Trading board

Smoothing or averaging is a form of noise reduction and traders use to get a clearer picture on the trend or on extreme moves. The Stochastic Oscillator is known to have a signal line called the %D where a simple moving average is applied to the Stochastic formula so that it smoothes it out. In this article, we will create a Stochastic Oscillator entirely made out of exponential moving averages.

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A simple technique to Enhance Trading Decisions

Exploiting Lookback Periods to Have a Wider Look at Momentum. The famous Relative Strength Index is used commonly by retail and institutional traders to understand where do we stand momentum-wise. The choice between lookback period makes the task even more difficult and longer. Which one is better? We do not have to answer that question as we can develop a solution that gives us multiple answers as we will see in the article.

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The evolution and future of AI in the Stock Market

Man trader stock market

Are you aware of how the buying and selling of stocks were carried out when there was no internet or computers? Back then, stock exchanges had active trading floors filled with brokers and traders. To make a trade or a purchase, they had to shout or use hand signals to alert others about their buy or sell orders. It looked a whole lot like an auction at a fish market today. But then came computers and the internet to change the game completely.

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Statistical Analysis on Technical Indicators. Taking Trading to a Higher Level.

Trading Chart

We tend to use technical indicators as they come and follow the already established rules and conditions. However, we forget that we have tools and methods to analyze any type of time series that comes across our way. It is true that technical indicators are price-derived but that should not stop us from analyzing them for patterns and any statistical anomalies that we may encounter and use in our trading framework. In this article…

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The Triangular Moving Average: Another way to find Support & Resistance Levels

Moving averages are a great way to provide support and resistance levels among other uses. There are many types of moving averages and in this article, we will discuss the Triangular Moving Average and some strategies revolving around it. For more on other types of moving averages, feel free to check the below article…

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Value Investing. Step to the next level

If you are interested in value investing, you probably know that fundamental analysis is the most effective and at the same time, the most complicated way to determine the intrinsic value of a company. But this approach takes a lot of time and effort, limiting the investor’s horizons. To solve this problem, I started the COVANN project. Today, it is a cascade of artificial intelligence models whose task…

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A false sense of security

So, a couple of days ago, I got into a little squabble with my dad about what to do with some cash that I had lying around in my bank. I wanted to invest the money to generate a better interest rate than the pathetic ~0.5% offered by most banks. My dad leaned more toward just parking my money with a random advisor and trusting them to invest it while I was more inclined toward managing the money on my own. Unable to come to a conclusion, we decided that an experiment was in an order and decided to split the money in a 2:1 ratio, parking 2/3 of the money with this new, popular investment firm and leaving 1/3 of the money for me to invest with.

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