Dataincubator Capstone project: Automated binary option trading (work in progress)

https://glueckert.shinyapps.io/binary_options/

• Goal: predict hourly or daily stock direction using machine learning and perform API based automated trading on binary option platforms.
• Result: up to 0.7 accuracy yielding 20%+ ROI at sharp-ratio of 5+

The webapp shows:

• explantion and resources regarding binary options
• example simulation for binary option trading
• visualizations of hourly directional stock movements
• backetesting results and benchmark
• dashboard of live trading results (wor in progress)

Data used

• for end-of-day data: yahoo finance via quantmod package
• for minute data: activetick API

Key directories and files

/build_stocks.R retrieves stock data for daily rates and minute rates

/build_plotdata.R builds 5-minute, 15-minute, 60-minute directional stock movements for visualizations in the stock directions tab

/build_features_day.R calculates features for next-day analysis using a mix of technical indicators (R-quantmod) and sliding window approach

Tech stack

Shiny-R application deployed to shinyapps.io

Analysis and machine learning

• R

Web & Graphics

• R Shiny
• Bootstrap
• Custom CSS, HTML tweaks
• JQuery / Javascript

Sources

Stock trading papers

• http://cs229.stanford.edu/proj2012/ShenJiangZhang-StockMarketForecastingusingMachineLearningAlgorithms.pdf
• https://pdfs.semanticscholar.org/4ecc/55e1c3ff1cee41f21e5b0a3b22c58d04c9d6.pdf

Trading tutorials

• https://www.toptal.com/machine-learning/s-p-500-automated-trading
• http://francescopochetti.com/stock-market-prediction-part-ii-feature-generation/

Live data feeds

• https://www.quora.com/What-are-some-good-APIs-to-get-real-time-stock-quotes
• https://www.programmableweb.com/news/96-stocks-apis-bloomberg-nasdaq-and-etrade/2013/05/22
• http://quant.stackexchange.com/questions/32336/api-or-service-to-get-german-dax-and-uk-ftse-historical-and-or-live-minute-data
• http://quant.stackexchange.com/questions/18215/where-to-get-long-time-historical-intraday-data?rq=1

About binary options

• http://www.investopedia.com/articles/active-trading/061114/guide-trading-binary-options-us.asp
• http://www.investopedia.com/terms/b/binary-option.asp

Stock symbol guides:

• http://www.qmatix.com/XLQSymbolGuide.htm