For the past eight months or so I have been writing my own quant based trading system. I like to call it quant based trading, and not automated trading because quant implies analysis and some automated trading. Trading based on quantative analysis is becoming the norm, not the exception. Automated trading implies auto-pilot and not as much analysis. If you don’t know much about automated trading it is time that you start learning about it.Now brokerage companies are starting to release automated trading software that you can use to devise your own strategies. For example, TDAmeritrade has released such software. I use Interactive Brokers as an online brokerage, which has an application programming interface allowing me to write my automated trading software. Or you can buy software that allows you to write scripts.
On Monday, I wrote about using Google Trends as a resource for investing ideas. I took a look at three restaurant businesses which, while they were on my mind at the time, probably weren’t the best candidates for this kind of research.
We’ve had discussions here about different ways to use the huge amount of data freely available on the web to make better informed investing decisions. Let’s take a look at some graphs courtesy of Google Trends and see if they can inform us about which restaurant stock to purchase.
