Quote from toc:
'A program can't understand that a plane just hit the WTC and the market will go to complete shit in about 2 seconds so get out now.'
A strategy which has no stop loss mechanism is not viable.
Even the sudden event or news item can be mechanized. Just have some service rate each and every news on the scale of 1-10. Any news rated 8 or above on 'Bearish' or 'Bullish' category will automatically close out or introduce positions. Some intelligent human being will have to rate these news items and this rating will become an indicator.
I bet TS would love this idea and can improve further on it. Artificial Intelligence can help.
Some intelligent human being will have to rate these news items and this rating will become an indicator.
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Marty Zweig has some formulas for classifying news and ads, bullish, bearish or neutral.