Testing every combination of financial instrument, trading strategy, and trade type to find the combination(s) that best fit(s) my criteria for success.
Yeah, that was just as confusing to write as it was to read, so I’m going to illustrate with an example.
Let’s start with just one stock, which we will call Stock 1. They will be announcing earnings next month and we want to decide if we should trade it.
In Operation Surge Strike, we trade leading up to high volatility events such as these, and BRUTUS does all of the leg work for us.
I am a pattern trader, which means I am looking for patterns on stocks that repeat time and time again, and I use historical data for thousands of instruments to feed BRUTUS’s algorithmic engine.
BRUTUS takes the stock AND options price data for Stock 1 and runs a test to see what happened during previous earnings announcements.
Testing one stock couldn’t possibly be that much work, right?