Q2: Jessica Stauth – Seeking Alpha? Try Alpha Factors
Chat With Traders
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How to Find an Alpha Factor to Predict Stocks' Going Up or Down
quantopian has built a couple of open source python libraries for looking at this type of stuff the one we built for analyzing alpha factors is called alpha lens. One of the ways that people would test this type of thing would be to say okay great so let's pretend I can take tomorrow's price and roll it in today or take the price five days from now. Then how well does that predict or rank stocks based on their returns? You know you either get lucky or you've been working on something for a long time you finally find something where yes there is predictive power.
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