‭ reating features like the ones in QuantsApp, such as "Relative Performance Graph," "Option‬

C
‭Scalping," and "Scrip Cycle," involves developing sophisticated algorithms, integrating AI, and‬
‭building robust data pipelines. Here's an outline of how you might go about creating similar‬
‭features:‬

‭1. Relative Performance Graph‬

‭ his feature compares the price performance of different stocks, options, or indices relative to‬
T
‭each other over a certain period. To create this using AI:‬

‭Steps:‬

‭●‬ ‭Data Collection & Preprocessing:‬

‭○‬ C ‭ ollect historical price data for the stocks, options, and indices you're interested‬
‭in.‬
‭○‬ ‭Clean and normalize the data (adjust for splits, dividends, and other anomalies).‬
‭‬ C
● ‭ alculation of Relative Performance:‬

‭○‬ F ‭ or each pair of instruments, calculate the relative performance. This could be‬
‭done by comparing the percentage change of one instrument’s price relative to‬
‭another over a set period.‬
‭○‬ ‭You could also normalize the data for volatility to avoid misleading conclusions‬
‭due to differing volatilities.‬
‭‬ V
● ‭ isualization:‬

‭○‬ C
‭ reate a graph (e.g., line chart) to show the relative performance of the selected‬
‭stocks/options, plotting their price changes over time.‬
‭‬ A
● ‭ I Enhancements:‬

‭‬ U
○ ‭ se machine learning models like clustering to group similar-performing assets.‬
‭○‬ ‭Implement anomaly detection to highlight instruments that deviate significantly‬
‭from the normal relative performance pattern, possibly signaling trading‬
‭opportunities.‬

‭2. Option Scalping‬

‭ ption scalping involves taking advantage of small price movements in options. To develop a‬
O
‭feature for this, AI can help with predicting short-term price moves and setting strategies.‬

‭Steps:‬

‭●‬ ‭Data Collection:‬

 ‭○‬ G ‭ ather options data, including implied volatility, greeks (Delta, Gamma, Vega,‬
‭Theta), and historical price movements.‬
‭●‬ ‭Short-Term Price Prediction Model:‬
‭○‬ ‭Use a time-series forecasting model, such as LSTM (Long Short-Term Memory)‬
‭or other recurrent neural networks (RNNs), to predict short-term price‬
‭movements of underlying assets.‬
‭ ‬ ‭Scalping Strategy Development:‬
●
‭○‬ ‭Based on predictions from your AI model, define entry/exit points for scalping. A‬
‭simple strategy might involve entering a trade when a small price movement‬
‭(e.g., 0.2% move) in the underlying asset is predicted, and exiting after a small‬
‭profit is achieved.‬
‭●‬ ‭AI Enhancements:‬
‭○‬ ‭Implement reinforcement learning (RL) algorithms to optimize the scalping‬
‭strategy over time, adapting to changing market conditions.‬
‭○‬ ‭Use natural language processing (NLP) to scan news and social media for‬
‭sentiment analysis, helping to predict sudden volatility or movement in the asset.‬

‭3. Scrip Cycle‬

‭ “Scrip Cycle” might refer to identifying and tracking stocks or options that move in specific‬
A
‭patterns over time (e.g., cyclical movements based on certain market conditions). AI can help by‬
‭analyzing historical trends and making predictions about future cycles.‬

‭Steps:‬

‭●‬ ‭Data Collection & Analysis:‬

‭○‬ G ‭ ather historical data for various stocks, including technical indicators (e.g.,‬
‭moving averages, RSI, MACD).‬
‭○‬ ‭Collect seasonal data or time-based features that might reveal cyclical behavior‬
‭(e.g., monthly, quarterly).‬
‭‬ F
● ‭ eature Engineering:‬

‭○‬ C
‭ reate features related to time cycles, such as daily, weekly, monthly, and yearly‬
‭trends, as well as market conditions (bullish or bearish sentiment, volatility).‬
‭‬ M
● ‭ achine Learning for Cycle Detection:‬

‭○‬ I‭mplement unsupervised learning techniques like k-means clustering or‬

‭hierarchical clustering to group stocks based on similar cyclical behavior.‬
‭○‬ ‭Use AI models like decision trees or random forests to predict future cycles‬
‭based on historical patterns.‬
‭‬ A
● ‭ I Enhancements:‬

‭○‬ I‭mplement AI-based pattern recognition techniques, such as convolutional neural‬

‭networks (CNNs), to detect recurring price patterns or cycles in stock charts.‬
 ‭○‬ U
‭ se reinforcement learning (RL) to develop strategies that adjust positions based‬
‭on detected cycles.‬

‭4. Putting It All Together:‬

‭●‬ ‭Data Infrastructure:‬

‭○‬ S ‭ et up a data pipeline to collect, clean, and process real-time market data (price,‬
‭options, news, sentiment, etc.).‬
‭○‬ ‭Store processed data in a robust database that supports fast querying for‬
‭real-time analysis (e.g., MongoDB, SQL, or specialized time-series databases).‬
‭‬ A
● ‭ I Deployment:‬

‭○‬ D ‭ eploy your AI models to a production environment where they can run on‬
‭real-time data. You might use frameworks like TensorFlow, PyTorch, or‬
‭scikit-learn for model development and deployment.‬
‭○‬ ‭Integrate your AI models into a user-friendly front-end interface (web or mobile)‬
‭where users can interact with the features (graphs, predictions, strategies).‬
‭‬ B
● ‭ acktesting:‬

‭○‬ B
‭ acktest your models on historical data to see how well they would have‬
‭performed. This is critical before deploying any strategy live.‬

‭Tools and Technologies You May Need:‬

‭‬ P
● ‭ rogramming Languages:‬‭Python, R‬
‭●‬ ‭Libraries/Frameworks:‬
‭○‬ ‭For AI: TensorFlow, PyTorch, Keras‬
‭○‬ ‭For data manipulation: Pandas, NumPy‬
‭○‬ ‭For visualization: Matplotlib, Plotly, Dash‬
‭○‬ ‭For backtesting: Backtrader, Zipline‬
‭●‬ ‭Data Sources:‬
‭○‬ ‭Stock market data: Yahoo Finance, Alpha Vantage, Quandl‬
‭○‬ ‭Options data: CBOE, NSE (National Stock Exchange), or API providers like‬
‭Tradier or Interactive Brokers.‬

‭Summary:‬

‭ uilding these features involves collecting the right data, applying machine learning algorithms‬
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‭for prediction and pattern recognition, and then developing a platform for users to visualize and‬
‭interact with the data. The integration of AI, especially reinforcement learning, for optimizing‬
‭trading strategies and detecting anomalies, will add an advanced edge to these features.‬