>>20841812I like the idea of quant trading, but I can't do HFT and having data streams and shit is difficult.
Do you understand how Fourier Transforms work? It's basically taking random signal noise, like and decomposing it into sine waves. Something like speech or an earthquake can be modeled this way.
If you take the daily returns of the S&P over a year, you can make a similar "random noise". In other words, something like that can be applied to markets.
So your idea has merit, but the troublesome part I've found is the time scale. 10 days works sometimes, but not every cycle is 10 days long. Yet it's very difficult to find the breaks in the cycles or which one is the biggest contributor.
