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Show HN: Algorithmic trading for everyone

justfor.fund

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Re: Show HN: Algorithmic trading for everyone

#71

Post by HyprMusic »

hiyer wrote: post #45

Apologies as this is not directly related to the post - what books/other resources would you recommend for someone who wants to get into algorithmic trading?

Ernie Chan's books are a great starting point. If you plan on getting into the ML side of things then Stefan Jansen and Marcos De Prado's books are a must have.

Some advice: Read lots of books, stay away from Reddit, be prepared to get lamented by other algo traders, expect every idea you read about to have lost all it's alpha, get ready for several misguided "I've done it, I'm rich" moments, and most of all have fun. It's a long and arduous journey with very little hope, but if you like impossible challenges then there's nothing quite like it.

Re: Show HN: Algorithmic trading for everyone

#72

Post by Unknomad »

hiyer wrote: post #45

Apologies as this is not directly related to the post - what books/other resources would you recommend for someone who wants to get into algorithmic trading?

I would recommend creating one from your own intuition. That's an awesome practice i think. You would be amazed on how simple they can be.

Also some books i would recommend are: - Hands on Machine Learning for Algorithmic Trading, Stefan Jansen, Packt - Python for Finance Cookbook, Eryk Lewinson, Packt

Cheers!

Re: Show HN: Algorithmic trading for everyone

#73

Post by t_mann »

csense wrote: post #12

One potential target audience might be employees / executives of publicly traded companies. If Alice owns stock in her employer or her employers' partners / suppliers / clients, she may be very interested in an algorithmic position manager to help her achieve her financial goals (e.g. selling down if the position exceeds a certain percentage of her net worth). The main reason Alice would like this is to create an aud…

Setting an algorithm loose on the stocks that you own in your employer is not a great look from a compliance perspective at all. And if you give it specific instructions like try to sell down my holdings optimally, that doesn't relieve you of insider trading allegations at all. If you want to sell, follow the appropriate compliance procedure, then you're free to do so in whichever way you like.

Re: Show HN: Algorithmic trading for everyone

#74

Post by MuffinFlavored »

smabie wrote: post #28

1. Takes months/years to develop a profitable trading strategy with a team of people. 3.5/mo on multiple algorithms is kinda laughable. 2. The adverse selection here is really really high: if you could generate alpha, you would find some capital from a big multi-manager or allocator (which is incredibly easy to get these days), and just focus on running their money. The fact that you are making a retail focused site…

How does one generate alpha?

Re: Show HN: Algorithmic trading for everyone

#75

Post by fluxode »

Sorry to pile on, but this doesn't look great. Most people with any quantitative finance experience will tell you this is the wrong approach / the wrong application of these types of techniques. ML in trading is primarily used for portfolio optimization and relative value-type analysis. It (and especially Reinforcement Learning) are not useful if you a just trying to build signals to trade with. And Fibonacci Retracements are only kinda useful as a visual tool for assets that are mean-reverting in some capacity (i.e. forex). It is applicable to Crypto to an extent, but the volatility of Crypto nullifies most of the usefulness as this as an actual trading signal.

If you really want to pursue this, it would be helpful if you provided a bit of info on how the strategies worked, what type of hedging / risk management is going on, etc.

Best of luck

Re: Show HN: Algorithmic trading for everyone

#76

Post by anamax »

Why are you doing KYC?

Yes - you're doing KYC because you're holding your customer's money.

Don't do that. Instead, figure out a way to provide trading services using your customer's accounts at existing exchanges (or DAOs). Let the exchanges do KYC.

In other words, be a tout, not a bookie.

Re: Show HN: Algorithmic trading for everyone

#77

Post by Unknomad »

anamax wrote: post #76

Why are you doing KYC? Yes - you're doing KYC because you're holding your customer's money. Don't do that. Instead, figure out a way to provide trading services using your customer's accounts at existing exchanges (or DAOs). Let the exchanges do KYC. In other words, be a tout, not a bookie.

Yes! That's a brilliant idea. I'm going to figure it out. Thank you that is very helpful!

Re: Show HN: Algorithmic trading for everyone

#78

Post by Unknomad »

fluxode wrote: post #75

Sorry to pile on, but this doesn't look great. Most people with any quantitative finance experience will tell you this is the wrong approach / the wrong application of these types of techniques. ML in trading is primarily used for portfolio optimization and relative value-type analysis. It (and especially Reinforcement Learning) are not useful if you a just trying to build signals to trade with. And Fibonacci Retrace…

Hi! the vision is different as the products are shown right now. Because i lack expertise, of course an experienced quant would laugh at my basic algorithms. But i had to start from somewhere. My aim and the features i want to implement now, will mainly come from fast product iteration, making connections with people that do have much more experience than me and quality growth for the algorithms.

"Attitude is a little thing that makes a big difference" Winston Churchill.

Give it some time haha!

Cheers

Re: Show HN: Algorithmic trading for everyone

#79

Post by Unknomad »

cyral wrote: post #23

Just an FYI, there is a company that spent 5+ years building a no-code algo trading platform and it's pretty slick: https://optionalpha.com/ Of course, competition is always good for innovation though. It looks like they are integrating with brokers to avoid the KYC issues (however, there is certainly a lot of liability in automatically placing orders though). You will still need to get live market data from somewher…

That company looks great! Thanks for the info and the advice

Re: Show HN: Algorithmic trading for everyone

#80

Post by anamax »

Unknomad wrote: post #77
anamax wrote: post #76

Why are you doing KYC? Yes - you're doing KYC because you're holding your customer's money. Don't do that. Instead, figure out a way to provide trading services using your customer's accounts at existing exchanges (or DAOs). Let the exchanges do KYC. In other words, be a tout, not a bookie.

Yes! That's a brilliant idea. I'm going to figure it out. Thank you that is very helpful!

Note that you don't need partnerships with exchanges to do this. You just need API documentation.

You're just providing software and possibly running (that is, arranging to run said software on some cloud service) software for people.

Also, you might want to look at hummingbot.io .

One of their models is aggregating market-makers.

Exchanges and some coin promoters pay rebates to large market-makers.

If you use hummingbot to do market-making, they'll include you in their pool (which consists of lots of small market-makers that the exchanges and promoters won't deal with individually) and give you a proportional share of the rebates that the pool earns.

Yes, that aggregation does involve dealing with exchanges, but maybe you can come up with an angle that doesn't. Or, maybe that's an easy relationship to arrange.

See https://hummingbot.io/en/blog/2022-02-liquidity-mining-march... for some recent numbers. (Liquidity mining is what they call being paid to do market-making.)

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