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Is ‘Big Data’ the next Technical Analysis? A trading technique based on a statistical trend view of the markets

(Last Updated On: March 14, 2012)

Is ‘Big Data’ the next Technical Analysis? A trading technique based on a statistical trend view of the markets

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there seems to be a split…some firms treat their data as a living tool, but I also know of some other firms who collect but never analyze past data for trend analysis, they just junk terabytes every few days. Interestingly enough at least one world class database is used and constantly updated by one of the HFT pioneers.

 

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The idea of the question is to ask if some are looking in to ‘Big Data’ trying to find meaning or patterns in data which may very well be random.

 

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There is a good point here. You can analyze all your business data and come up with what looks like an important nugget of knowledge but this knowledge may already be useless due to changing external factors outside of your business. A simple example would be you notice that the buggy whip sales are going up and up but then the car is invented.

But if you can notice a trend sooner, you can capitalize on it sooner before it peaks. For example you notice buggy whip sales are dropping you then liquidate your inventory quickly with a big sale before the rest.

 

 

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

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