The Power of Detail - Behind the Scenes
How Little Leaps Move The Needle
A warm hello to all new readers! I’m glad you are on board.
New here? I’m Michael and on a mission to make beating the stock market as easy for you as choosing your favorite ice cream. I write an algorithm that does exactly that.
Read the full story here.
In many projects, it's the small things and gears that turn the largest wheels. A long list of tiny, often unseen decisions that pave the road ahead. This is an update about how little leaps move the needle quietly.
It's been a week, packed with awkward work and finished in noteworthy achievements.
I've finally finished the code on my day-to-day calculation algorithm, a task that proved more complex than initially anticipated. The challenge lies in the nature of dates—ubiquitous for us humans, yet challenging for a computer.
Let me explain.
Dates - a topic in themselves!
Months vary in length. The bonus comes in quirks of weekends, public holidays, and non-trading days. Scheduling is therefore far from a straight line. For instance, the gap between trading days might stretch to two, three, four, or even five days on rare occasions, turning what should be simple into a logistical puzzle.
Choosing the most realistic approach for handling date calculations in trading simulations is challenging because there isn't a straightforward right or wrong answer.
For instance, when deciding whether to adjust our calculations forward or backward to account for non-trading days, both ways have their right to exist. Imagine you've set a rule for how to handle these gaps, but unexpected events happen in every life, suddenly throwing your schedule off by four days. This unpredictability illustrates the complexity of trying to “mimic real-world trading” accurately within a simulation. It highlights, that the best approach often depends on the specific context and goals of the simulation rather than a one-size-fits-all right or wrong answer.
To simplify matters, I've decided to roll back for gaps of one day and roll forward for longer gaps.
How much does it make?
And now, drumrolls please — my simulator is up and running, smooth as silk!
Have a look at the current development state.
(Note: this is just dummy data and there is still some work to be done.)
This tool will offer a glimpse into the past market performance with my approach, showing the reality of results despite consistent underlying math. The purpose of these day-to-day calculations, beyond sheer interest, is twofold: accuracy and transparency.
While your bank might dazzle you with (often outdated), glossy brochure about their fund, my aim is to provide fresh, monthly updates, offering a level of openness rarely seen with such tools.
The next step is refining the beta calculation to include day-to-day comparisons against benchmarks like the Dow Jones and S&P 500.
It's not all about algorithms and data
However, there are additional details to manage, such as setting up payment processing. You might think that this part is straightforward, aiming for maximum flexibility, especially when adjusting prices for the same product.
Surprisingly, this isn't as simple - at least with PayPal. Unlike other payment processors that easily allow for price changes without complications, PayPal requires you to set up "Reference Transactions" to treat price adjustments as part of the same product. Therefore, I need to navigate this setup process with PayPal to ensure it meets my needs for flexibility in payment handling.
In the meantime, I will go with good old Stripe.
These details, though seemingly minor, are crucial for a smooth operation, emphasizing how time can fly when tangled in details.
So. This week has been a blend of technical topics and operational snags that come with bringing a project to life. As always in real life - with a mix of decision-making, commitment and just doing what needs to be done - although it sucks - you get it done.
So much so on the progress side.
Plan
Keep pushing, because there are lots of ideas brewing in the background.
What’s on my head
My mom recently beat cancer. I was with her in the hospital this week for some routine checks, it’s all good and it reminds me how things can change. As a healthy person, we have thousands of wishes, and as an ill person just one.
Threat yourself as good as possible that’s all you can do because it’s in our control.
Nuggets I’ve enjoyed
Have a great day StockStar!
Hit that heart if you love progress!
Michael
If you think somebody should read this, share it, and make them happy.
Btw.
How it really looks.
Recommend The Economy Rocket to your readers and friends
I share my stock investment story without sugarcoating – you get the good, the bad, and those tricky ego trips. I'm developing a service with a mix of smart code and proven investment strategies, making stock analysis a thing of the past if you wish. Because life offers so much more beyond the confines of stock analysis.
Disclaimer:
The information in this article is my personal opinion. I’m not a certified investment professional. It is not consulting, nor does it constitute investment recommendations.
I do my research carefully and follow my personal investment strategy.
The stock market is a complex building with its own rules. There are no rules set in stone, like the rules of physics.
Therefore, use the contents of this newsletter at your own risk and do your own research as well. Investing in the stock market can lead to a total loss of the capital invested.
As a healthy person, we have thousands of wishes and as ill person just one.
We should remind ourselves more often of this. Thanks for sharing and keep on pushing!
Thanks for the mention Michael, really appreciate it. And as always, its always lovely to read your posts.