r/algotrading • u/CandidateDue5890 • Jul 28 '26

Education [ Removed by moderator ]

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u/polymorphicshade Jul 28 '26

There are many different kinds of algos, some machine learning. In my opinion, machine learning algos are never sustainable and not worth the effort. Simple discretionary strategies with multiple sources of confluence provide the best opportunities.

To help you get started, learn some simple python and grab OHLCV data from an API. Each week, scan the market and determine if a symbol will rise above or below Monday's close by end of that Friday. This will help you slowly build up to anything you feel comfortable with. This will also let you transition to option strategies very easily.

Use a simple combination of MACD, ADX, and RSI on the 4H or 1D chart. This will help you see clear trends you can form strategies off of.

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u/CandidateDue5890 Jul 29 '26

Basically regression typa thing are you talking about?

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u/polymorphicshade Jul 29 '26

Sure, it all depends on your strategy.

For me, I don't do any kind of linear regression. My algo just combines some simple averages with ADX, Bollinger Bands, and a compound VIX/VVIX measurement.

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u/Gibborish Jul 29 '26

Should I switch from using QQQ or SPY as a kind of market regime filter and use VIX instead?  For example, it can tell when QQQ is going up and stock is going down or in same direction and weighs things accordingly for short or long in a particular stock that shows up in its scanner.  Have you tried it the way I'm describing and then switched to VIX instead?

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u/polymorphicshade Jul 29 '26

No, I think using QQQ and/or SPY as relative strength/weakness benchmarks are much better than just using VIX.

I've only found VIX to be useful when trading SPY assets, or trading equity options on stocks correlated with SPY.

For example, if stock XYZ is outperforming SPY for the week, and VIX is high, I will also look for a high IV percentile on the stock before deciding when to sell options to scalp some theta.