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Update from Alta5 HQ – July 26th, 2017

July 26, 2017  |  Jack Slocum

Our dev team has been very active this month and I would first like to thank everyone who gave feedback and helped us track down the bugs we ran into. We sincerely appreciate your input and understanding as we continue to develop the Alta5 platform. Here’s what we’ve been up to: We’ve launched the Alta5 …

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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 …

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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 …

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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 …

ETrade finds millennials trade options more than any other age group

June 12, 2017  |  Rocco Savage

Etrade financial found recently 40% of millennials who were surveyed are taking on options trading. 35% of the survey millennial population say the use options most likely as a way to create leverage. E-Trade Financial found a surprising demographic group has been getting into options trading: millennials.   The online brokerage firm found that 40 percent of millennials …

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 …