Friday, January 20, 2017

Debug Your Charts

Lately I've returned to coding and web development.  One of the things I started to dwell upon is how debugging a program relates to trading.

Bug Free

The above image is a Ruby file.  It runs and is bug free.   In order to get this to perform an actual task the trade offs begin as each character added increases the functionality but also the possibility of introducing a bug.

Perfect Chart
The above image is a stock chart.  It runs and is bug free.  In order to get this to give us actual information the trade offs begin as each added data point and indicator increases the functionality but also the possibility of introducing a bug.

This chart is actually...

Chart of AAPL

How does our perception of this chart change by introducing just one piece of information, the name of the company?  Is the chart suddenly more bullish?  Do you think of the laptop you might be viewing this on or the phone ringing in your pocket?  A simple name on a chart can result in attachment, belief, or bias.  In other words a potential bug.


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