This is a summary of links featured on Quantocracy on Wednesday, 07/19/2017. To see our most recent links, visit the Quant Mashup. Read on readers!
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How to Run Trading Algorithms on Google Cloud Platform in 6 Easy Steps [Robot Wealth]Earlier this year, I attended the Google Next conference in San Francisco and gained some first hand perspective into whats possible with Googles cloud infrastructure. Since then, Ive been leaning on Google Cloud Platform (GCP) to run my trading algorithms (and more) and it has become an important tool in my workflow. In this post, Im going to show you how to set up a GCP cloud compute
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How to Improve Shiller’s CAPE Ratio [Quantpedia]The accuracy of U.S. stock return forecasts based on the cyclically-adjusted P/E (CAPE) ratio has deteriorated since 1985. The issue is not the CAPE ratio, but CAPE regressions that assume it reverts mechanically to its long-run average. Our approach conditions mean reversion in the CAPE ratio on real (not nominal) bond yields, reducing out-of-sample forecast errors by as much as 50%. At present,