{"id":2725,"date":"2021-07-20T02:33:39","date_gmt":"2021-07-20T02:33:39","guid":{"rendered":"https:\/\/www.tejwin.com\/en\/insights\/trading-strategy-by-keeping-an-eye-on-big-players\/"},"modified":"2021-07-20T02:33:39","modified_gmt":"2021-07-20T02:33:39","slug":"trading-strategy-by-keeping-an-eye-on-big-players","status":"publish","type":"insight","link":"https:\/\/www.tejwin.com\/en\/insights\/trading-strategy-by-keeping-an-eye-on-big-players\/","title":{"rendered":"Trading Strategy by Keeping an Eye on Big Players"},"content":{"rendered":"

Chip analysis and backtesting using TEJ API trial database<\/p>\n

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Photo Creds:\u00a0Usplash<\/a><\/figcaption><\/figure>\n

Preface<\/strong><\/h2>\n

Generally speaking, big players such as institutional investors, insiders or other investors holding large amounts of shares have information advantages over retail investors. Thus, they are more likely to select stocks with potential growth and distance themselves from risky stocks. To decrease this kind of information asymmetry, The Financial Supervisory Committee in Taiwan requires firms and securities firms to release their daily trading data, allowing investors to analyze the trend of stock price by observing big players\u2019 investment. And this is so-called chip analysis.<\/p>\n

Common indicators in chip analysis include\u00a0the net buy-and-sell of three primary institutional investors, the days of consecutive buying or selling, trading amounts by institutional investors, stock holding of directors and supervisors, the ratio of short sale and margin purchase<\/strong>. Since the TEJ API database contains a variety of chip indicators, there\u2019s no need to calculate ourselves and we can immediately carry out stock selection and backtesting based on it. This article follows the content of\u00a0\u3010Introduction(5)\u3011Starting Using TEJ Trial Database<\/a>, so we will still obtain data from the\u00a0trial database<\/a>\u00a0for backtesting. And for those who already applied for access to the trial database, it\u2019s recommended to do the backtesting yourself while reading this article !<\/p>\n

The Editing Environment and Modules Required<\/strong><\/h2>\n

We use Windows OS and Jupyter Notebook in this article<\/p>\n

import tejapi\nimport pandas as pd\nimport numpy as np\nimport matplotlib.pyplot as plt\ntejapi.ApiConfig.api_key = \u201cYour Key\u201d\ntejapi.ApiConfig.ignoretz = True<\/code><\/pre>\n
Note: Remember to replace \u2018Your Key\u2019 with the one you applied for. The last line indicates the time zone is not shown.<\/em><\/p>\n
The Highlights of the Article<\/strong><\/h2>\n