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Simple strategy using industry leaders in tech sector
Nyan Paing Tin
edited Jul 29, 2014

This is basically the first program/strategy that I have implemented in Quantopian. It is very simple. It basically buy when majority of stocks' prices in the list is 1% higher than those of the previous days.
And, sell when the prices today is 1 % lower than that of the previous days.

The list I have put here are apple, HPQ, IBM, ACN, CSC, YHOO, MSFT, GOOG_L, Facebook and AOL, which are industry leaders according to the Bloomberg.

I understand that there is survivorship bias in this program.. But, this will do for now. Any feedback or comment for improvement is greatly appreciated. ..

2 responses
Alisa Deychman
Aug 1, 2014

You can try to avoid the bias of cherry picking stocks by using set_universe, which creates a basket of stocks for you.

I cloned your algo and ran it with a universe of approximately 40 stocks, and it looks the algorithm returns are heavily influenced by the stocks traded!

Using set_universe or Fetcher's custom universe are great ways to test your strategy against a larger group of stocks.

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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.

Nyan Paing Tin
Aug 2, 2014

Hi Alisa,

I also have tested different stocks on different values of percentage and realize this is a horrible strategy. It just does not work. :) But, that is ok since it was good coding practice in Quantopian. :)

I have used set_universe on other strategies. It does indeed remove survivorship bias. Thank you for suggesting custom universe. I didn't know about it and I will try to use it in the future.

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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.