Role of Automation and Technology in Investing Business

 “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” ~Bill Gates

Today I want to talk on, How I have applied (Semi) Automation in my trading and Investing to manage more than 150 stocks in the portfolio. The whole process is divided in three parts, (a) Identifying Stocks to Invest (b) Verifying their Corporate Governance Standards (3) Periodic entry and exit in terms of Price movements for profit booking.
(a)   I use Smart Money Tracker Report which is generated after ranking high momentum stocks based on price, delivery volume and time weightage for past one year data that gets derived from approx. 2500 stocks from 5000 instruments being traded in NSE in last one year. The dataset is approx. 6 lakh (0.60 million) records.
(b)  I use web search to look for any scams in the past for all the stocks that have been top n ranking to filter some of the stocks from the list.
(c)   I don’t believe in keeping the stocks for life time. They remain in the portfolio as long as they continue to appear in top ranking stocks in Smart Money Tracker Report. I don’t do pyramiding, rather I do reverse pyramiding i.e. with every price movement of certain percentages on upside I keep booking partial profit and every price movement of certain percentages on down side, I enter the stock if it is still appearing as top ranking stock in Smart Money Tracker Report. I use GTT (Good till Trade) feature for this. I enter the GTT orders which remain valid for 1 year. I already know at what price interval I want to enter or exit a stocks. My screen time during the market hours is very low only to check trade book for which trades have been triggered by GTT so I can enter their next orders.

As of now I am individual investor but my processes have been well defined which would not have been possible without technology and automation. In future when I decide to move from being an individual investor to business with large capital size, my processes will continue to be same with only change being size of the quantity.
smartmoney smartmoneytrackerreport invest investing trading
Location: India

Comments

Post a Comment

Popular posts from this blog

Next 20 days Outlook of SPX based on Patterns from Historical Price Data as on EOD Jan-5-2024

Patterns based prediction using Predictive Analytics Every data contains patterns based on which it is possible to predict the expected movement of the market. Here I am trying to derive expected movement of SPX in next 20 trading session which will be approx 1 month timeframe from the day it is evaluated.  This blog is like central repository for me that I can refer in future to see how my research of the subject is progressing. Please don't use it for your trading. See the disclaimer below. Next 20 days Outlook of SPX based on Patterns from Historical Price Data as on EOD Jan-5-2024 The historical price data as on Jan-5-2024 is matching the pattern with  3 instances of the past.  1. First Pattern match is from March-21-1985 where in SPX had moved up 1.79%, corrected -0.84% and closed positive 0.98% in next 20 trading sessions compared to the opening levels of next trading day of March-21-1985. 2. The second pattern match is from April-22-1996 where in SPX had moved up 3.98%. corr
Read more

टीसीएस नाम का व्याकरण शास्त्र से विश्लेषण

 टीसीएस एक आईटी सेवा, परामर्श और व्यापार समाधान संगठन है जो पिछले 50 वर्षों से दुनिया के कई सबसे बड़े व्यवसायों के साथ साझेदारी कर रहा है। हमारा मानना ​​है कि नवाचार और सामूहिक ज्ञान बड़े उद्देश्य के साथ हमारे सभी भविष्य को बदल सकता है। टीसीएस यह चार अक्षरों का शब्द जिसमे की ३ अक्षर जल मंडल से है और १ शब्द पृथ्वी मंडल से है. जल मंडल और पृथ्वी मंडल मित्र मंडल है और उनका विरोधी मंडल अग्नि मंडल और वायु मंडल है. जैसा की आप देख सकते है की टीसीएस शब्द में अग्नि मंडल और वायु मंडल से कोई भी अक्षर नहीं है. यानि इस नाम के चारो अक्षर मिलके एक साथ टीम बांके काम करते है.  शायद इसी लिए टीसीएस कंपनी एक बड़ी सॉफ्टवेयर कंपनी बन पायी है जिसके अभी २०२४ में ६ लाख से ज्यादा कर्मचारी है जों १५३ देशो में काम करते है और इस कंपनी को नवोन्मेषी कंपनियाँ में गिना जाता है.  Disclaimer Note – This subject is of Faith or Trust. There is no assurance that every individual using this service will get their desired outcome.  
Read more

Next 20 days Outlook of SPX based on Patterns from Historical Price Data as on EOD Jan-12-2024

Jai Jinendra, Patterns based prediction using Predictive Analytics Every data contains patterns based on which it is possible to predict the expected movement of the market. Here I am trying to derive expected movement of  SPX in next 20 trading session which will be approximate 1 month timeframe.  This blog is like central repository for me that I can refer in future to see how my research of the subject is progressing. Please don't use it for your trading. See the disclaimer below. Next 20 days Outlook of  SPX based on Patterns from Historical Price Data as on EOD Jan-12-2024 1. First Pattern match is from Nov-11-1991 where in  SPX had moved up 4.17%, corrected 0% and closed 4.17% in next 20 trading sessions compared to the opening levels of next trading day of Nov-11-1991. 2. The second pattern match is from December-12-2017   where in SPX had moved up 7.09%. corrected -0.34% and closed 7.09%  in next 20 trading sessions compared to the opening levels of next trading day on Dece
Read more