April 8th, 2021

Algorithms to Live By

Using algorithms isn't technological witchcraft or a leading indicator to a "Westworld" existence...

Do you ever feel like Netflix can read your mind and suggest your next favorite movie? How about when Instagram is filled with ads for products you were googling the previous day?

It’s unlikely that these companies and apps are psychic, but they do rely on algorithms.

So what exactly are algorithms and how do they impact you?

An algorithm is a process or set of rules to be followed in calculations or other problem-solving operations, especially by a computer. Algorithms can be used for a simple task like calculating suggestions for which movies you’d like to watch next, to determining when a stock price is about to drop.

It’s important to understand this concept as it's most likely used to benefit you or work against you in all aspects of your life, without your knowledge of it. Algorithms allow us to make more informed decisions. They take large equations and break them down into consumable data sets. No decision is easier than another in life. It all depends on the quality of the data you have available to make a decision with and the experience (or experiential knowledge inherent in the systems you’re using) you have at your disposal. 

In science, computing, and engineering, a black box is a device, system, or object which can be viewed in terms of its inputs and outputs, without any knowledge of its internal workings. Almost anything might be referred to as a black box: a transistor, an algorithm, or even the human brain. is your investing black box in an app... algorithms are all individually written coded instructions. They're first designed in mathematics to apply to a unique problem or command. This could be a filter task, a search task, a calculation task, or complex formulation of multiple layers. 

Once the mathematics has been designed and tested, it will then be written in code and applied to the platform and tested. Each algorithm is processed hundreds of thousands of times using our historical data to ensure that it works properly as designed once it is in code. After the code has been validated and tested for certification, it is bound in the system and loaded into vSPACE—the first-ever investing algorithm store.

Our algorithms never make decisions for you, they simply provide you with a specific output based on the mathematical parameters of the coded algorithm, whether that’s an options strategy, new stock entry, or existing stock hedge.

How is that delivered? Well it comes directly to the vFEED on your mobile app or on your web app dashboard vFEED. These algorithmic notifications are pre-programmed systematic calculations that track an unlimited amount of potential variables in the market to provide you with an indication that those variables have been met. 

For example, the proprietary algorithm called 'Scorching' tracks over 5 different volatility and index metrics at any given time. When those metrics all meet the requirements of the pre-programmed notification, you then receive an alert notification. 

You don't have to mathematically track all of the different metrics for their confirmation. That's what the algorithm does for you.

Algorithms are very helpful in our day-to-day lives. They help us discover new things that we wouldn't have known about any other way. They help us solve complex problems quickly. They help us overcome obstacles that seem unsolvable. And they should be used in investing the same way.

Start for free with today and see how easy it is to incorporate algorithms into your investing process. Computer Algos
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