Stock Picking Algorithms: The Machine Advantage

In mathematics and computer science, an algorithm (/ ˈ æ l ɡ ə r ɪ ð əm /) is an unambiguous specification of how to solve a class of problems.

The dividend investing strategy is a conservative form of this technique.

Analyzing your words

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Algorithms, by themselves, are not usually patentable. In the United States, a claim consisting solely of simple manipulations of abstract concepts, numbers, or signals does not constitute "processes" USPTO , and hence algorithms are not patentable as in Gottschalk v. However practical applications of algorithms are sometimes patentable.

For example, in Diamond v. Diehr , the application of a simple feedback algorithm to aid in the curing of synthetic rubber was deemed patentable. The patenting of software is highly controversial, and there are highly criticized patents involving algorithms, especially data compression algorithms, such as Unisys ' LZW patent. Additionally, some cryptographic algorithms have export restrictions see export of cryptography. Algorithms were used in ancient Greece. Two examples are the Sieve of Eratosthenes , which was described in Introduction to Arithmetic by Nicomachus , [69] [8]: To keep track of their flocks, their sacks of grain and their money the ancients used tallying: Through the Babylonian and Egyptian use of marks and symbols, eventually Roman numerals and the abacus evolved Dilson, p.

Tally marks appear prominently in unary numeral system arithmetic used in Turing machine and Post—Turing machine computations. The work of the ancient Greek geometers Euclidean algorithm , the Indian mathematician Brahmagupta , and the Persian mathematician Al-Khwarizmi from whose name the terms " algorism " and "algorithm" are derived , and Western European mathematicians culminated in Leibniz 's notion of the calculus ratiocinator ca A good century and a half ahead of his time, Leibniz proposed an algebra of logic, an algebra that would specify the rules for manipulating logical concepts in the manner that ordinary algebra specifies the rules for manipulating numbers.

Bolter credits the invention of the weight-driven clock as "The key invention [of Europe in the Middle Ages]", in particular, the verge escapement [72] that provides us with the tick and tock of a mechanical clock. Logical machines — Stanley Jevons ' "logical abacus" and "logical machine": The technical problem was to reduce Boolean equations when presented in a form similar to what is now known as Karnaugh maps.

Jevons describes first a simple "abacus" of "slips of wood furnished with pins, contrived so that any part or class of the [logical] combinations can be picked out mechanically More recently, however, I have reduced the system to a completely mechanical form, and have thus embodied the whole of the indirect process of inference in what may be called a Logical Machine " His machine came equipped with "certain moveable wooden rods" and "at the foot are 21 keys like those of a piano [etc] With this machine he could analyze a " syllogism or any other simple logical argument".

This machine he displayed in before the Fellows of the Royal Society. But not to be outdone he too presented "a plan somewhat analogous, I apprehend, to Prof. Jevons's logical machine, the following contrivance may be described. I prefer to call it merely a logical-diagram machine Jacquard loom, Hollerith punch cards, telegraphy and telephony — the electromechanical relay: Bell and Newell indicate that the Jacquard loom , precursor to Hollerith cards punch cards, , and "telephone switching technologies" were the roots of a tree leading to the development of the first computers.

By the late 19th century the ticker tape ca s was in use, as was the use of Hollerith cards in the U. Then came the teleprinter ca. Telephone-switching networks of electromechanical relays invented was behind the work of George Stibitz , the inventor of the digital adding device. As he worked in Bell Laboratories, he observed the "burdensome' use of mechanical calculators with gears. When the tinkering was over, Stibitz had constructed a binary adding device".

Davis observes the particular importance of the electromechanical relay with its two "binary states" open and closed:. In rapid succession, the mathematics of George Boole , , Gottlob Frege , and Giuseppe Peano — reduced arithmetic to a sequence of symbols manipulated by rules.

Peano's The principles of arithmetic, presented by a new method was "the first attempt at an axiomatization of mathematics in a symbolic language". But Heijenoort gives Frege this kudos: Frege's is "perhaps the most important single work ever written in logic. At the same time a number of disturbing paradoxes appeared in the literature, in particular, the Burali-Forti paradox , the Russell paradox —03 , and the Richard Paradox.

In an effort to solve the Entscheidungsproblem defined precisely by Hilbert in , mathematicians first set about to define what was meant by an "effective method" or "effective calculation" or "effective calculability" i. In rapid succession the following appeared: Alonzo Church , Stephen Kleene and J. Gödel's Princeton lectures of and subsequent simplifications by Kleene. Barkley Rosser 's definition of "effective method" in terms of "a machine". Kleene 's proposal of a precursor to " Church thesis " that he called "Thesis I", [90] and a few years later Kleene's renaming his Thesis "Church's Thesis" [91] and proposing "Turing's Thesis".

Emil Post described the actions of a "computer" human being as follows:. Alan Turing 's work [94] preceded that of Stibitz ; it is unknown whether Stibitz knew of the work of Turing. Turing's biographer believed that Turing's use of a typewriter-like model derived from a youthful interest: Turing had a typewriter, and he could well have begun by asking himself what was meant by calling a typewriter 'mechanical'".

Turing—his model of computation is now called a Turing machine —begins, as did Post, with an analysis of a human computer that he whittles down to a simple set of basic motions and "states of mind". But he continues a step further and creates a machine as a model of computation of numbers. The most general single operation must, therefore, be taken to be one of the following:. A few years later, Turing expanded his analysis thesis, definition with this forceful expression of it:.

Barkley Rosser defined an 'effective [mathematical] method' in the following manner italicization added:. Kleene defined as his now-famous "Thesis I" known as the Church—Turing thesis. But he did this in the following context boldface in original:. A number of efforts have been directed toward further refinement of the definition of "algorithm", and activity is on-going because of issues surrounding, in particular, foundations of mathematics especially the Church—Turing thesis and philosophy of mind especially arguments about artificial intelligence.

For more, see Algorithm characterizations. From Wikipedia, the free encyclopedia. For other uses, see Algorithm disambiguation.

For a detailed presentation of the various points of view on the definition of "algorithm", see Algorithm characterizations. A list of numbers L. The largest number in the list L. Empirical algorithmics , Profiling computer programming , and Program optimization. Complexity class and Parameterized complexity. Heuristic Abstract machine Algorithm engineering Algorithm characterizations Algorithmic composition Algorithmic entities Algorithmic synthesis Algorithmic trading Garbage in, garbage out Introduction to Algorithms textbook List of algorithms List of algorithm general topics List of important publications in theoretical computer science — Algorithms Theory of computation Computability theory Computational complexity theory.

The History of Mathematics: Retrieved December 13, Archived from the original on April 12, Archived from the original on November 15, Retrieved May 30, The Inventor Of Algebra. The Rosen Publishing Group. Conceptual Analysis" Seig Peters Ltd, Natick, MA. The locations are distinguishable, the counters are not". The holes have unlimited capacity, and standing by is an agent who understands and is able to carry out the list of instructions" Lambek Lambek references Melzak who defines his Q-machine as "an indefinitely large number of locations The unconditional GOTO is a convenience; it can be constructed by initializing a dedicated location to zero e.

Methods for extracting roots are not trivial: Handbook of Theoretical Computer Science: Kemeny and Thomas E. Kurtz Back to Basic: Retrieved May 20, He credits "the formulation of algorithm-proving in terms of assertions and induction" to R W.

Floyd, Peter Naur, C. Tausworth borrows Knuth's Euclid example and extends Knuth's method in section 9. I , and his more-detailed analyses on pp. Success would solve the Halting problem. Are we comparing algorithms or implementations? Knowledge and Information Systems. Fundamental Concepts for the Software Quality Engineer. American Society for Quality. ACM , 38 1: Dantzig and Mukund N. Adaptation and learning in automatic systems. Stanley Jevons Elementary Lessons in Logic: Deductive and Inductive , Macmillan and Co.

Republished as a googlebook; cf Jevons Republished as a googlebook; cf Couturat Jevons states that the account is to be found at January 20, The Proceedings of the Royal Society. Republished as a googlebook. The interested reader can find a deeper explanation in those pages. Transactions of the American Mathematical Society. Gordon and Newell, Allen , Computer Structures: Blass, Andreas ; Gurevich, Yuri Includes an excellent bibliography of 56 references.

Western Culture in the Computer Age ed. The University of North Carolina Press. Computability and Logic 4th ed. Cambridge University Press, London. Chapter 3 Turing machines where they discuss "certain enumerable sets not effectively mechanically enumerable". The American Journal of Mathematics.

Reprinted in The Undecidable , p. The first expression of "Church's Thesis". See in particular page The Undecidable where he defines the notion of "effective calculability" in terms of "an algorithm", and he uses the word "terminates", etc. The Journal of Symbolic Logic. Next, we look for webpages with information that matches your query. When you search, at the most basic level, our algorithms look up your search terms in the index to find the appropriate pages.

They analyze how often and where those keywords appear on a page, whether in titles or headings or in the body of the text. As well as matching keywords, algorithms look for clues to measure how well potential search results give users what they are looking for. So Search algorithms analyze whether the pages include relevant content — such as pictures of dogs, videos, or even a list of breeds. Finally, we check to see if the page is written in the same language as your question in order to prioritize pages in your preferred language.

For a typical query, there are thousands, even millions, of webpages with potentially relevant information. So to help rank the best pages first, we also write algorithms to evaluate how useful these webpages are.

These algorithms analyze hundreds of different factors to try to surface the best information the web can offer, from the freshness of the content, to the number of times your search terms appear and whether the page has a good user experience. In order to assess trustworthiness and authority on its subject matter, we look for sites that many users seem to value for similar queries.

There are many spammy sites on the web that try to game their way to the top of search results through techniques like repeating keywords over and over or buying links that pass PageRank. Information such as your location, past search history and Search settings all help us to tailor your results to what is most useful and relevant for you in that moment. After each sell, the funds are compounded into the next buy signalled by the system, and this is repeated over one year. First of all, I am not paid by any company or promoter to recommend any particular stock.

Neither do I buy a stock and then manipulate the algorithm to recommend that stock. No curve-fitting or parameterization was involved. The algorithm runs without human input or judgment of any kind, avoiding the limitations of human subjectivity. I chose this period based on data available to me a window of 6 mths before and 12 mths after the start date is required for each test.

Each period was started one month later than the previous period. Positions are not held for longer than one month, ensuring constant turnover. However, note that past performance is no guarantee of future performance , so going forward, , the returns based on my algorithm, if any, cannot be guaranteed to be at the tested levels, or any level for that matter!