Recently I’ve been reading Benoit Mandelbrot’s book The (Mis)Behavior of Markets: A Fractal View of Financial Turbulence (this is an affiliate link for Amazon, if a purchase is made via this link I will receive a portion of the proceeds). Early in this book Mandelbrot discusses one major issue with the underlying assumption of certain financial simulations. In particular, he mentions the use of the bell curve (i.e. the normal distribution) to create random stock price movements when using stochastic models, such as geometric Brownian motion (GBM), to generate stock paths. …


Recently on Medium, I’ve seen a slew of posts about trading the wheel, which is an options selling strategy wherein covered calls and cash-secured puts are used to generate cash flow in a portfolio. I have personally written about finding stocks to wheel using Genetic algorithms. This previous post also gives a more in-depth definition of the wheel strategy.

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One question that pops up frequently on these posts is how to find lists of stocks under a certain price that the speculator can trade options on since they are limited by their amount of capital. Fortunately, I had built a…


An explanation, implementation, backtest, and analysis.

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Determining the trend of a stock price is very powerful when devising a technical trading system. If we are able to determine when a trend is reversing, that is reaching a top or a bottom, we’re able to determine good buy or sell points for our securities. In most of technical analysis, a single indicator is usually insufficient to develop a trading system and actual price movement predictions depend on multiple different indicators “firing” at the same time. Bollinger bands are an interesting trend analysis tool that forms bands around a stock price to…


A link for those who don’t want my opinion but are interested in the site’s demo.

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I’ve recently launched a platform to enable efficient fundamental research on thousands of different publicly traded companies worldwide. Initially, I was going to provide this service for free but after finding out how expensive it was to ascertain and redistribute this type of data I had to update the site to a subscription model. That being said, I searched the web for similarly functioning sites and tried to price the application as affordably as possible when compared to its peers. I don’t hope to…


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Material UI’s Autocomplete is a useful tool when providing users of your application the ability to select options from a list of values. For example, if you’re application deals with the stock market, an Autocomplete component could allow the user to type the name/ticker of a stock while the component provides suggestions from the available options. This is actually the exact use-case for me when using the Autocomplete component in both its single and multi-select forms. One thing I did get hung up on when using the component was being able to limit the number of selections the user is…


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In a previous post, I wrote about a genetic algorithm (GA) whose goal is to find stocks that could potentially create a promising put-selling portfolio. Currently, the GA searches through stocks that offer weekly options and tries to build a portfolio with three objectives:

  1. Maximize the premium earned when selling the options
  2. Minimize the risk, which in this case is stock price volatility
  3. Build a portfolio for which the user has enough cash collateral to actually trade

Although I don’t use the algorithm’s results directly to sell puts, it has become an interesting resource for providing ideas on which stocks…


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Some years ago my wife bought me a few (6) Raspberry Pi 3 B+ single board computers for Christmas so that I could experiment with creating and managing clusters of computers (it’s what I’d asked for). Since then, I’ve discovered better ways to do high-performance computing with a few higher-end PCs that I use regularly. Thus, my Raspberry Pi cluster largely sits dormant performing only a few small tasks (primarily gathering data for my stock price API and acting as an SSH access point for my home network). Before this, I had used the Raspberry Pis for many tasks and…


In a previous post, I wrote about finding undervalued sectors in the stock market by determining the divergence of the sector from some representation of the market itself. This post was intended to be a starting point for an investor to determine which sectors (or which stocks belonging to a sector) might warrant a closer look. If you primarily invest in ETFs this is a pretty useful tool as you could invest in an ETF representing the sector if further research deemed that the sector is worthwhile of investment. …


Real estate is an imperishable asset, ever increasing in value. It is the most solid security that human ingenuity has devised. It is the basis of all security and about the only indestructible security.

— Russell Sage

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Buy and hold real estate investing can be very satisfying and, oftentimes, very lucrative. In his book, One Up on Wall Street, even legendary stock picker Peter Lynch recommends buying a home before picking individual stocks in the stock market due to its investment potential (although some of his message comes off slightly sarcastic). Unlike with stocks and bonds purchasing real estate allows…


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The wheel is a loss-limited option selling strategy that is very effective at generating income in a portfolio. Typically when trading the wheel, stocks with weekly options are preferred since they fetch higher premiums (percentage-wise) than monthly options or LEAPS. However, due to the high number of stocks on US stock exchanges offering weekly options and the differences in volatility and price, it’s challenging to find an optimal set of stocks to sell puts against that will maximize your collateral usage and income while minimizing the risk taken due to volatility.

Optimization problems like this, wherein some variables are maximized…

Anthony Morast

I am a professional software engineer and an amateur mathematician. My main interests are programming, machine learning, fluid dynamics, and a few others.

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