The Lighthouse | finance

Backtesting a Successful Trading Algorithm

By Erik Zimerman On February 13, 2018 · 4 Comments · In The Jackal's Den, The Whiskey Room

Being one who understands something of economics, the stock market, the arts of war, high cuisine, technology and can dance a pretty mean salsa, it stood to reason that of all people, your humble Lighthouse Keeper should be able to write a decent trading bot. We have all heard how an ever increasing amount of the day-to-day market activity is dominated by Quants and their bots. With this algorithmic trading, computer programs basically buy and sell securities with lightning speeds, making decisions based on any number of measurable criteria far more quickly than any human could. Still, the trick is to know what “measurable criteria” should tell a bot to buy, hold or sell what security and how much of it. Physicists, nuclear neurosurgeon rocket scientists and PhDs of unknown types reportedly dominate this Quant world. Never one to be stymied nor overly impressed with titular authorities¹ and academic regalia, I dusted off my one of my old trading strategies I had developed and delved into the Quant world. Apparently, python was a good language to do this with, and though I get by well enough with JavaScript, VBscript, and even php, had never even seen Python. All the available [...]

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When Businesses expect a period of Low Cash Flow

By Erik Zimerman On May 16, 2017 · Add Comment · In The Whiskey Room

As many an experienced businessman knows, being great at what you do is only part of managing a successful business. From successful marketing to human resource management, there is a lot required for your success. Perhaps nothing is as fundamental however, as proper cash flow management. Many otherwise successful businesses fail because of a failure in cash flow management. Small and medium businesses can often find themselves fully occupied, selling their goods or services at a profitable margin, with their owners working hard day in and day out happy to see so much profitable activity, only to find themselves unable to pay basic expenses at the end of the month; and then descending into a death spiral as cash becomes less and less available. Proper accounting, administration and long-term cash flow management are incredible important, and necessary to match up income streams with expenses (who often have very different cycles and schedules), but also to be able to recognize what is and is not working in the company. Very often orderly analysis of the numbers will reveal very different profitability or even loss of different parts of the business than what one would expect. When we do accounting, and cash [...]

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Backtesting a Successful Trading Algorithm

When Businesses expect a period of Low Cash Flow

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Backtesting a Successful Trading Algorithm

When Businesses expect a period of Low Cash Flow

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