SectorX

Energy signal (green) this morning: -0.03 IC to today's returns. By mid-morning: .94 This is what it looks like when price discovery resolves into peer relative order. Me and big money flowing in the same direction. No trades today. Three small allocation trades in four days. Wait what? 🔋 🌀 🎯

@QuantSymplectic I use Massive .com, $29/month. Historical data drops straight into Google Sheets via script any AI can write. PM if you want to walk through it, under an hour. Plus I get to return the favor from your earlier feedback. 🙏

@SectorX_AI Forgot to add: I sat down one day to download all the crypto data I needed but then it seemed like a mess (having to stitch together a bunch of files), I then got distracted by something else.

Been working on a framework for classifying volatility regimes using only publicly available VIX closing data from Yahoo Finance. Here we see 2 complementary phase spaces: a vol-of-vol diagram that captures the second derivative of VIX dynamics, and a term structure diagram (VIX/VIX_MA63 vs VIX percentile rank) that captures contango/backwardation conditions. Still experimenting but love the regime classifier approach.

Absolute price: the asset narrating itself Relative price: the room telling the truth about everyone in it . What's the con against relative? Guilt by association... bad peers drag good assets. The answer isn't to abandon relative. It's to build a room worth being judged in. Peer group integrity isn't a feature. It's a constitution. 🏛️ ⚖️ 🔬

efficient market = capital goes where it's already working, and isn't this what we should WANT? the rest is narrative price is the endpoint of all human information, why wouldn't you invest in that? I add relative to the mix, and it defines my shorelines 🌍 ⚖️ 🎯

@SteveDJacobs Love the week/month compare, it tells me you don't mess around with canned tools It's a simple and effective trend/regime filter based on, ok I'm gonna say it, 1st principles 🔧 🧱 🎯

📈Leading Stocks In Leading Industries (TradingView) The chart shows largest stocks in the strongest industry groups, based on "Week x Month" Relative Strength (RS) 🏭Industries: sorted ⬆️ strongest-weakest ⬇️ Stocks: sorted ⬅️smallest-to-largest ➡️market cap “You want to own the leading stocks in the leading industry groups.” - William O'Neil * Daily $ Vol >= $50M Instructions: x.com/stevedjacobs/s…

@SteveDJacobs We are two grains of sand on a very sparse beach my friend. The next question Bill would ask is how do the peer groups react to each other, but we all need our farms don't we ;) 🚜 🏖️ 🔒

@SectorX_AI Yes, Determine the performance of the Industry by equally-weighting the constituent stocks. Sort all the Industries by performance on a weekly basis and a monthly basis. No benchmark, no index. Just relative to each other. 🤓

@SteveDJacobs just making sure, it's rare to hear someone say 'relative to each other' and actually mean it so the RS ranking is purely within the industry group? no benchmark, no index, just the peer set? I need to sit down 😄 🔬 ⚖️ 🪑

@SectorX_AI Relative to each other industry - best to worst performing on a weekly and monthly basis.

@AlgomaticTrade bingo Bingo BINGO

I usually think of my long-term portfolio as the “stable” one. The one that’s diversified. The one that should feel safer. But periods like this challenge that idea. Most assets are down. Volatility is elevated. Correlations spike. And suddenly, the long-term portfolio doesn’t feel that stable anymore. At the same time, my systematic trading portfolio is doing the opposite: • Low exposure • High cash • Strong performance in this regime It’s designed to adapt. Not to hold. It makes me wonder: Is diversification actually reducing risk… or just spreading it across assets that move together when it matters most?

I had the same error for two days, and Kyle at anthropic support found a windows laptop and confirmed it, the massive market data connector does not work in windows desktop claude and they know it now. For now I just use scripts in google sheets scripts to call claude rest to pull data.

Hey @massive_com, why cant I use your connector in @claudeai? Keep running into errors trying to test your integration. Not fun.

@traderprad Use relative price movement from the sector/industry the asset is part of. I bet you'll double your IC compared to absolute price.

Make it easier to find stocks that are moving. At a quick glance, see which sector in $SPY is up on the day. Then use the Watchlist Widget to filter by that sector and find the top-moving stocks in it. You can also use the Thematic and Industries trackers to find the top movers. Repo link below, new dashboards being built daily!

I see traders nodding in agreement about strategy diversification like it's settled science. What's the cost of maintaining multiple belief systems that can each break for their own reasons? The hidden cost of non correlation is epistemic fragmentation. Multiple strategies you have to believe in separately. When one breaks, you're diagnosing a stranger. My answer: one framework across partially correlated ecosystems. Diversification through ecosystem selection, not methodology collection. ⚖️ 🔬 💎

There's a curve in finance that most investors get wrong. It's called the efficient frontier. Markowitz defined it in 1952. Most investors still don't understand what it means in practice. Here's what they get wrong:

@SystematicPeter The hidden cost of non correlation is epistemic fragmentation... two models you have to believe in separately. One framework across PARTIALLY correlated ecosystems gets you diversification without splitting your conviction. 🧱 💥 🎯

One of the easiest ways to improve trading is not to optimize one strategy harder. It is to add another non-correlated strategy with a different risk profile and trading frequency. I published a practical example today comparing: • A portfolio of 3 swing strategies • The same portfolio with one small intraday breakout added The result shows why portfolio construction matters so much in systematic trading. Even a small intraday system can materially change the combined equity curve and day-to-day PnL behavior. Full breakdown and charts here: 👉 crackingmarkets.com/portfolio-cons…

The 2.1% drag is fascinating because it raises a question nobody asks: what if the issue isn't diversification itself, but what qualifies as a peer group? I found that if basket assets don't share a dominant factor then diversification = dilution. IOW the timing component downstream (entries, exits, etc) has to work overtime to compensate. If you get the peer group right (competitive assets sharing a dominant factor) then the downstream work collapses in complexity. Timing gets simpler. Hedging becomes less necessary. Curious what the numbers look like when you tighten the universe to assets that are genuinely competing for the same capital flows. Something to think about! ⚗️ 🪒 🎯

Diversification (as opposed to market timing) has been a huge drag on TAA performance over the last 15+ years, to the tune of 2.1% annually. We break down TAA's performance based on 100+ strategies into two buckets: market timing and diversification. allocatesmartly.com/diversificatio…

Simplicity is the most radical position in a field that monetizes complexity I'm not radical, I'm reductive... unforgiving in a business that bills by the parameter A mix of Spock and Data, a sense maker in a world that would rather stay chaotic 🪚 🧮 🖖

@systematicls ... and a leather jacket.

It is crazy to me that in this day and age you can create enterprise value just by having impeccable tastes in design and implementation and having the ability to articulate these tastes. Implementation risk is now a function of eloquence.

@SteveDJacobs Love the dashboard, I'm inspired, I'll be porting my sheets dash soon 🙏

As an update on using 0.5% allocation (max 200 positions), the average utilization would be 68.7% with 193 days at full capital. The average number of slots used would be 137 giving a capacity efficiency of 69% (see pic 1). At 1% allocation (100 positions), the capacity efficiency increases to 84% (pic 2) while 2% allocation (50 positions) increases it to 93%+ It can be seen in pic 4 that 1-2% is the "sweet spot" in terms of max drawdown and risk-adjusted returns.

@PrimeTrading_ My usual spiel... I'm 100% all in, all the time, and allocate relative strength My sleeves are built with assets that oscillate, like picking up bills on the street outside traxnyc I appreciate your hustle! 💎 🔄 💰

I don’t remember ever getting this much backlash just for opening exposure. It’s honestly strange how simply being long seems to trigger people now. Why are you long? Why take exposure? Why 50%? That’s my system. My rules. The way I’ve traded for years. If your system tells you to stay in cash, then stay in cash. But don’t act offended because I’m putting capital to work. What exactly does my exposure change in your life? Why the need to push back against it?

@massive_com @claudeai push this... HARD! game changer and sooooo easy

Screen the full options chain in @claudeai Desktop. Every strike, every expiration. Bid/ask, volume, open interest, IV, and all the Greeks. No terminal required. All using the Massive Market Data connector.

@RichB118 "The only rational response to a living system is not prediction. It is alignment." This line alone is my crown jewel. Thank you for putting this together Richard.

The Physicist Who Proved Prediction Has Limits He built a computer into his shoe to beat a roulette wheel. Then he found exploitable structure in financial markets. Then he spent two decades proving why the kind of prediction that works in a casino is permanently unavailable in markets. J. Doyne Farmer's career is the most precise argument in science for why trend following works, and why prediction never will. The patterns we harvest are not anomalies waiting to be arbitraged away. They are the inevitable output of adaptive agents in a non-equilibrium system. The only rational response to a living system is not prediction. It is alignment. Article 5 of 8 in Out of Equilibrium is live now. atstradingsolutions.com/out-of-equilib… #TrendFollowing #ComplexityEconomics #SystematicTrading #OutlierHunter