I've been punting around with a couple of thousand on the Nikkei as a hobby lately, and generally been getting good returns.
I mainly play with smart phone/social game development securities, because they're very volatile and very liquid.
Lately, I've noticed that for the most part, stocks will stay low volume, and then most of the price change for a given period will happen in a very short time - usually when information, either fake or real, is released on social media. The effect that Twitter and Yahoo Textstream has on these stock values is phenomenal.
It's got me wondering - is there any software that allows you to make orders based on stock price velocity? Like, you can set loss-limit orders so that if your held stock falls below a certain value, it will sell. You can set orders to purchase if it moves above a certain value.
But is there anything that let's you say "if the value has moved upwards by more than 30 cents in less than 2 minutes with over ___ volume, buy ___ amount"? Or the opposite, if it's dropped by more than x cents in y minutes with over ___ volume, sell or short ___ amount?
I think managing this manually would be pretty much impossible, but it seems like a strategy that could be quite profitable if managed by AI. It could also immediately cash in on profits when the value drops below a given velocity.
Is there any reading on this sort of thing? Apologies if it's either obvious/well known, or has already been shown to be stupid. I'm very new and not very educated.
Submitted June 01, 2017 at 01:42AM by Skerper http://ift.tt/2rX3j0S
