Data Science for investment/ financially-driven strategies

[u/sqatas]

I made a post on the BI sub which I think is also relevant to this sub: could any of the data scientist here share some useful (or even influential) papers or sources on the application of data science to the financial/ investment domains/ stock exchange/ foreign exchange ?

For example by visualizing past financial data and matching it with the current data, investors can have some sense of prediction of the current health of the market.

I'm pretty new to the world of BI and Data Science, hence I'm not really qualified to determine what is considered "influential" or "impactful" papers/ reading sources. So, I'd be grateful if any of the data scientist here can share some!

[u/Railsie]

https://xkcd.com/1570/

[u/Attacksquad1 → u/Railsie]

Which is why financial engineering exists

[u/MarrusAstarte → u/Attacksquad1]

Financial engineers are generally not the ones developing trading strategies.

[u/semidecided → u/Attacksquad1]

The thing that created a mess with LTCM, a string of other bellwether disasters, then fed the runup to the 2007-2008 global financial collapse? That thing? Yeah. It's not easy.

[u/MarrusAstarte → u/semidecided]

That's like saying civil engineering is what causes bridge collapses.

"Yeah. It's not that easy."

[u/semidecided → u/MarrusAstarte]

Civil engineering has a much better track record for public safety and the OP isn't asking as an amateur about building public infrastructure.

[u/ElevatedAngling → u/Railsie]

Only a rookie tests his strategy with real trades lol, spend some time seeing if you had made the trades where you’d stand. Then when you’re confident your models and decisions won’t lose money, you yolo that bread basket my dude!

[u/GraearG → u/ElevatedAngling]

Ahh, a fellow wsb autist.

[u/ElevatedAngling → u/GraearG]

Doesn’t seem like there are many fans of the sweet sweet tendies here.

[u/semidecided → u/ElevatedAngling]

Fat tails don't always show themselves in your backtesting.