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bucolic_frolic

(46,998 posts)
Sat Mar 18, 2023, 05:49 PM Mar 2023

The promise of stock market data analytics

https://www.itechart.com/blog/stock-market-data-analytics/

Get capital market insights in real-time

Let’s start with the basics. Using streaming data feeds, traders can combine historical data with the real-time movements of financial markets to predict patterns and plot their next moves. With immediate access to reliable insights, both day traders and long-term investors can better refine their portfolio strategies based on whichever stock performance criteria they choose.

By building valuation models for data analysis, investment companies can feed test data sets to their data analytics solution and swiftly retrieve the theoretical results. Then, those theoretical results can be accurately tested to analyze stock fundamentals and other data sets once paired against the historical records.
Enable algorithmic trading

At its simplest, algorithmic trading can be found in any respectable stock trading platform: When a retail investor sets his smartphone app to automatically “buy when the price goes below $60 per share,” that’s algorithmic trading in action. Just a straightforward if-then conditional.

But it gets more complicated quickly: Specialized investment platforms allow for commands such as, say, “sell when the 50-day moving average goes below the 200-day moving average” and beyond, with increasing levels of complexity. Those market insights obtained previously can now be automated — and the proper config enables investors to track and execute their trading strategies without the constant need for price monitoring.

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To me this kind of stuff is just too pathetic for words. Candlestick charts have been around for 500 years, and all aggregate market information - a graphical rendering of the financial behavior of all market participants at each trading moment - is readily available. Patterns, statistical indicators, volume, and price make prediction an art for the experienced eye. Telling me I can have greater reliability and predictability with AI because AI can read articles and reports by intelligent market players is just a different parsing of already existing data. Again, charts contain all the information you need, IF IF IF you know how to read them.
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