This project delves into the trading strategy development and implementation of a robo-advising system crafted for retail investors, highlighting a growing trend in the intersection of technology and finance. It forcused on a mean reversion strategy by leveraging the correlation between VIX and VIX Future to predict the SPX market movement. To enhance accessibility and real-time interaction, the system is also integrated with a Discord bot to deliver daily simplfied trading signals directly to users.
Figure 1: Correlation Plots between SPX and VIX
Figure 2: Example of the Strategy
Figure 3: Example of Robo Advising
To make use of the automated trading signal functionality through the Discord bot, follow these steps to set up and run the bot locally:
- Python installed on your local machine.
- Discord account, a created Discord server, a discord bot TOKEN where the bot will operate. Video Demonstration: https://www.youtube.com/watch?v=z_t32dOK5uM
The project was conducted as a part of the IEDA 4500 - Engineering Foundations in FinTech course, Spring 2024.