Featured Article

Create a bot to sell covered calls every month in 23 lines of JavaScript

April 23, 2017  |  Jack Slocum

A Covered Call is a common option strategy that is used to enhance a long stock position. In simple terms, it allows an investor to sell a portion of the unlimited upside in a stock position for cash each month. I almost always prefer covered calls to naked stock because it provides some downside protection (via cost basis reduction) and it allows …

Featured Article

Tasty Condor – a bot that collects monthly premium trading Iron Condor spreads on SPY

April 11, 2017  |  Jack Slocum

Earlier this week we introduced a new build of the Alta5 platform with additional support for option strategies, including Iron Condor spreads. Iron Condor is a popular delta neutral strategy used by professional money managers and individual investors to collect monthly premium and slowly profit from Theta (time decay). In this article, I will walk you through my process to build a bot that …

Featured Article

Introducing the Bittman Strategy

January 8, 2015  |  Jack Slocum

In 2012 Jim Bittman, Director of Program Development and a Senior Instructor for The Options Institute at CBOE, gave a presentation that outlined a 2-step strategy for trading the S&P 500 Index (SPX) using weekly options. The strategy is particularly attractive because Mr Bittman supplied very specific entry and exit points, back testing data, probabilities and a detailed comparison vs …

The self-directed investing market is growing rapidly and their returns are beating financial advisers

March 8, 2017  |  Rocco Savage

As the technology gap narrows between institutional and retail, investors are deciding to take their financial future in to their own hands. Today there are 54 million self directed investors, increasing 4.9% annually compared to non self-directed at only 1.4%. Previous average returns for self-directed investors are at 17.1% vs. investors who use financial advisers at 14.1%. Individual …

Goldman Sachs lays off 600 traders and hires 200 programmers

February 14, 2017  |  Rocco Savage

Goldman Sachs, and the rest of the institutional industry, is fulling embracing the advantages of automation. The acceleration of automated trading programs over the past 5 years are now seeping past equities through additional asset classes and even through areas of business. At its height back in 2000, the U.S. cash equities trading desk at Goldman …

Wall Street firms use algorithms that capture Trump’s tweets to profit from automated trades

February 2, 2017  |  Rocco Savage

Automated trading is once again flexing it’s muscle by showing the possibilities when having access to the right data. The jaw-dropping speed at which certain stocks have moved in response to Donald Trump’s tweets about corporate America makes it seem as if Wall Street already was waiting for the president-elect’s words. It was. Some sophisticated traders with …

The Role Of Technology In Financial Trading

January 31, 2017  |  Rocco Savage

In this article Andy Wilson defines the role technology is playing in the future of trading. As algorithms and automation become the norm, online brokers are going to have to find new ways to serve their customers besides their current business model. The truth is trading is thrilling, and at the same time a hugely …

Who needs bankers when you have robots?

November 29, 2016  |  Rocco Savage

This article by NY Mag’s David Wallace-Wells highlights a few instances where institutional investors are moving in to automation tools and the general fear among financial advisors and managers of diminishing traditional employment opportunities. On September 4, a new activist investor announced himself to the world of big-swinging-dick finance. In a short email sent to …

Embracing the future: How automated trading is reshaping the markets

October 18, 2016  |  Rocco Savage

Traders are increasingly relying on high-speed data and intelligent algorithms to adapt to fast changing markets. This article takes a look at the growth in algorithmic trading and what it means for gaining an edge in markets moving forward. London-based trader Nathan Rothschild was once the wealthiest man in Britain. He is believed to have sent …