Comments on: Fusion 3.0

By: alfred e

alfred e — Fri, 26 Jun 2009 01:16:39 +0000

@Mike:Good point. I would guess that they have enough horsepower that looking at market conditions and buying patterns over time they can be pretty predictive of other buyers’ behavior, especially when they’re big enough to nudge things along – set traps and then release them.

By: Mike in Nola

Mike in Nola — Thu, 25 Jun 2009 21:35:07 +0000

Barry: Re: manipulation detection

I understand what you’re saying. Just joshing.

OTOH, is Fusion susceptible to deception by the JPM and GS trading programs?

My guess is that their programs are designed to suck in day traders using prepackaged software looking for patterns like that advertised frequently on CNBC.

By: matt

matt — Thu, 25 Jun 2009 21:31:55 +0000

Very innovative. Congratulate your team again.

By: dbowe

dbowe — Thu, 25 Jun 2009 21:17:53 +0000

Is there any plan to spread your wings beyond the US and cover stocks in for example London (or beyond!)?

By: Barry Ritholtz

Barry Ritholtz — Thu, 25 Jun 2009 20:02:09 +0000

They are all over — its is a relatively standard software app

By: Greg0658

Greg0658 — Thu, 25 Jun 2009 19:58:56 +0000

TDAmertrade snagged your Heatmap idea and is spending on airtime to tell us

By: Its_Science

Its_Science — Thu, 25 Jun 2009 19:02:06 +0000

Since the ranking algorithm was presumably tested on historical data, did it do any worse in the historic October slide and aftermath than it did leading up to it? Any data you can share on its performance? I realize it doesn’t actually run a portfolio, but maybe some success rate figures for buy and sell signals by month or something.

By: Barry Ritholtz

Barry Ritholtz — Thu, 25 Jun 2009 17:38:40 +0000

It gives you insight into the relative positioning (fundamental and technical) of any stock against the rest of the universe.

We designed it to be used as both a risk management tool and as a first step of a screening process.

A surprising number of users have been Value investors who wanted another discipline as an overlay . . .

By: constantnormal

constantnormal — Thu, 25 Jun 2009 16:59:07 +0000

Does it do your thinking for you, and just tell you to “do this”, or is it “merely” an excellent tool that offers information to those with the requisite skill sets to make use of it — i.e., can I cut off my arm with this razor-sharp tool?

By: ben22

ben22 — Thu, 25 Jun 2009 16:42:22 +0000

alfred E,

Rolling Stone just made the same claim about the next bubble.

http://www.ritholtz.com/blog/2009/06/goldman-sachs-the-great-american-bubble-machine/