How to spot a Pump And Dump fast?

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How to spot a Pump And Dump fast?

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Momentum Tools and Tips

Hello Quantopian Community,

I have a rather unusual question. I'd like to spot pump and dumps faster algorithmically. The price usually surges within a cuple of seconds and for it to go back to normal it can take between 2-10 Minutes. Indicator which I use now are the change in price and buy volume with fixed limits between consecutive api data calls. Anything that would make me more confident to say it is a PnD within a very short time would be great.

Do you have any tipps or rescources on this one?

3 responses

Possibles
https://www.quantopian.com/posts/take-profit
https://www.quantopian.com/posts/code-to-capture-profit-on-price-jump

The take profit part is partly what I have implemented for now. After I bought in I get the average price at which I bought in and multiply an extra like 1.1 factor for 10% profit and place the sell order at that price and hope it goes through.
The thing is that my question is more about the buying in part:

How can I determine that a stock is being seriously pumped and that it is not just some single guy moving the price a lot when there are large spreads.

One way for me was taking volume into account as well (next to price), which works fine. For the second link you started my just looking at price spikes.
In the comments volatility is suggested. I think that might be a good factor for me as well to calc std on the asset class I look at and thereby adjusting my fixed price and volume limits according to what is usual (or unusul).

Thanks so far

Actual alghoritm 2019 ?
Pump and Dump

Social media
watchlist
trade before pump

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian.

In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.