Sure, watching two teams play that you don’t care about just to see how your DFS picks perform is still fun, but it was the “analytics in motion” that compelled you to want to play DFS in the first place. It was discovering if your intuition was validated or invalidated that got you excited each week to play, up early Sunday morning like a kid on Christmas (you know who you are). And finally, it was the fact that you liked winning money every week, you loved the challenge of being right, and your chance to boast about how good you are when you go back to work on Monday. Yes, this is DFS, and this is “analytics in motion.”
But if you’re like us, you may not get the same enthusiasm about daily fantasy basketball, or hockey, or eSports. So what to do then? Well, we had this same problem a year ago, and realized that it was the challenge of DFS as a whole that kept us intrigued for more. So what did we do? We created an app for our second favorite category: trading stocks. We had seen that there wasn’t a daily/weekly fantasy stock trading game, and that boring companies had failed at making paper trading into a fantasy contest because they didn’t introduce the same concepts found in DFS. So instead, staying true to our love of DFS, we built a fantasy stock trading game that specifically models as many characteristics of fantasy football as possible.
So what is this game, you ask? It’s a gaming platform called TradeJester, with one-week long fantasy contests that focus on specific elements of trading that are fun, simple, and use strategy and analytics to make it an exciting player versus player experience. Our first game, the Earnings Game, involves a one week contest in which you pick 6 stocks from a list that are reporting earnings that week to buy long or sell short. This makes it exciting because it minimizes the other variables that normally drive stock price movement, and you’re using data analytics to “pick the best players” that will do what you think they should do, just like in football. You also have a limited portfolio value (salary cap), so you have to spend wisely, choosing how much weight to assign to each stock, similar to what you would do in DFS. And finally, you have to pick a strategy to use that makes sense for your play style: Do I go for a RB focus, or receiver focus? Do I try the ‘pick everyone from the same team if they’re going to dominate the other team’ strategy? Do I go with the consensus picks from the analysts? The same mechanics can be applied to stocks in the Earnings Game. So what are the strategies for playing to win, and how is that analogous to football?
The first strategy is what we call the Sector Focus, meaning you pick stocks specifically from one or two sectors of the economy. There are 10 sectors to choose from, and think of them as receivers/backs. You could spread the ball around among multiple receivers (picking stocks from multiple sectors), or you may just focus on going to your go-to backs (Zeke Elliot for you Dallas fans), meaning you consistently make your picks from one sector. The best part is we use descriptive and predictive analytics within our app to tell you what sectors you’re best at, so the more you play, the better you know.
The second strategy is what we call the Consensus Focus. This is like reading the defense and figuring out what play to call based on what you see. Here, we give you the Wall Street consensus on what they think the stock is going to do. If you know anything about Wall Street, like most football commentators on TV, half the time they’re wrong, and the other half they pretend they’re right. In this case, if Wall Street pegs a stock as Outperform, but the stock has missed earnings the last 4 quarters, you might think, I am going to call their bluff and short this stock. After all, it’s like reading a defense, but more important, doing it correctly. So you might use the Wall Street analysts’ consensus for each stock as a starting point to decide what to do.
The final strategy is what we call the Volatility Focus. This is like deciding “do I want to call a play to throw the long ball, even if it is riskier, but can lead to a touchdown, or do I want to play it safe, and just run the ball with Zeke?” (which the Cowboys should have probably thought about doing more often against Green Bay, but I digress…). Here, we give you stocks that are sorted by which will move the most, and which will move the least. You decide: do I want to go for the long bomb play with this stock but risk the interception? Or do I pick a stock that’s like a draw play, that is a safe bet.
After each week, we give you analytics back within the app that tell you how well you’re executing any of these strategies, so you know how to adjust, or if you need to double down.
So play TradeJester this offseason and put your intuition and strategy skills to the test. Unlike football season, earnings season never ends. Download the app for free on iOS or Android, or check out our website at TradeJester.com.