It must be possible for computers to look historically at EVERY variable and find winning trades.
Are there companies running algorithms such as figuring out that after a stock sells off more than 5% and the rsi reaches X level that it has an 80% chance of rebounding at least 3%.
Obviously they could continue expanding the variables that they check and find patterns that no trader is accounting for. Are these too tough to program when so much of stock movement is subjective based on human emotional to an earnings call or a change in sentiment?
Who knows maybe stocks perform best the first sunny day after at least 3 straight rainy days in New York when the market has been down greater than or equal to 5% over the past 4 weeks. You get the idea…
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