Using Node to do Stock TA on WSBs
JaxNode Feb. 2021
Full disclosure
- I am not a Fiduciary
- Please do not use this as financial advice
- Don't take financial advice from anyone who bought an airplane
- I own BlackBerry stock
- My company is partners with BB
WSB History
- Started in 2012
- Forum on Reddit
- Meant for Retail Investors
- Discord server, now defunct
- 2020 happened!
GameStonk
- Roaring Kitty (Keith Gill) believer in $GME
- Melvin Capital and other Hedge Funds shorted $GME
- $GME was shorted at 138%
- WSBs started a short-squeeze by buying $GME
- Some Hedge funds had to get bailed out
- Billions of losses for the hedge funds
- GME went up to $483 in intraday trading
- Robinhood suspended trades of certain stocks
- GME down to $43 now
Information Technology
- 2007 Stock Market went digital
- Floor of NYSE is just for show
- High Frequency Traders or HFTs
- Trades occur through multiple exchanges and 'Dark Pools'
- Blockchain and Ethereum Network (Smart Contracts)
Michael Lewis
- Former Stock Broker
- Writes non-fiction books
- Wrote Money Ball, The Blind Side
- Flash Boys
- The Big Short
Dr. Michael Burry
The Big Short
- Burry is an MD turned Financial Wiz
- Started Scion Capitol
- Burry analyzed mortgage CDOs
- Found that growing number of mortgages were defaulting
- Conventional wisdom was that home prices never fall
- He purchased derivatives against mortgage backed securities and made $700 million for his investors
- He just looked to see if payments were being made
Flash Boys
- Book covers high frequency traders or HFTs
- Subjects include fiber optic line between Chicago and New Jersey
- Sergey Aleynikov, a Russian programmer who worked for Goldman Sachs, and was imprisoned.
- IEX, an exchange that figured out how to prevent HFTs from using bots to front load purchases.
Software Engineers Important for Finance
- Most data online and free
- Lots of open source tools
- Many providers have Python, Node and .NET SDKs
- Most boards have APIs that can be consumed
- Build automated trading bots (Algorithmic trading)
- Use Arbitrage to profit on trades
Retail Investments
- Buy and Sell stocks
- Funds and ETFs
- Options trading
- Derivatives
- Flash loans
- Shorting
- Crypto currencies
Services and Tools
- Yahoo Finance
- Google Finance
- Robinhood (Unofficial)
- Alpaca
- binance (crypto-currency trading)
- Pushshift.io (Reddit Big Data)
- Twitter 🐦
- talib
- Sentiment Analysis
Pushshift.io
- BigData API for Reddit
- Reddit also has their own API
- Service is rate limited to 60 requests a minute
- Three main endpoints
- reddit/comment/search
- reddit/submission/search
- reddit/subreddit/search
🚀 💎🙌🏾 🚀
Demo
Future Topics
- Numer.ai Hedge Fund
- Blockchain
- Smart Contracts
- Ethereum
- Solidity Language
Links
Questions?
Next Meeting
- Blockchain
- Ethereum Network
- Solidity Programing Language
- Smart Contracts
- DeFi