Trading ahead of the algorithms
Just looked it up apparently 75/80% of trading is done through algorithms. Would it be possibel to build a machine learning model that looks at the "signals" that trigger the buy or sell for the algo? Inputs would be based on current academic research regarding short term price movement with phenomenon such as mean reversion, price momentum, post earnings announcement drift, etc. By discovering the signals and then examining the actual formula that the algo trades with would it be possible to profit by trading ahead of the algo?
The shiny, new algorithm you are proposing to “get ahead” of the old, existing algorithms is exactly what many of those old, existing algorithms sought to become.
you would enjoy the ernest chan books
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