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Have you done this? If so it would be great to get your perspective
Yes, I am doing it as a side project and I am looking to retire in a few years and live off that...
Earlier quoted context omitted.
Yes, I am doing it as a side project and I am looking to retire in a few years and live off that...
I'll third this comment. Some more details on what you trade, where you trade, how long you've been doing it, performance metrics, etc... would be fascinating.
All that said, here are the 2 most important advises I wish someone told me when I started years ago:
Have an iron clad risk management strategy for your portfolio, e.g. if you are willing to risk 1% of your capital on any given day and tomorrow happens to be the Black Monday and all stock go down 50% you still have to be sure you’ll loose only 1% if you have to sell everything... This is where the back data comes into play – the goal is to back test not how much money you are going to make, but how much money you are going to loose in the worst case scenario if you have to liquidate everything and move to all cash. If you have this working 100%, you just need a trading strategy with a minimal edge and you’ll make money in the long run in the market and the compounding effect will really make you a rich person (rich person to me is someone who makes more money then he spends, WITHOUT working more than 1 hour a day)
And the second advice is never ever trust and buy a trading strategy from someone, the fact he is selling or "teaching" a trading strategy means it is not working and he is trying to make some money by scamming people and selling the dream, all those trading educators cannot make money trading and that’s why they are coming with up with those fake trading courses... just check this website to see the magnitude of this scam and how people are loosing their life savings... I just don’t know why FBI, SEC and the government is not doing something to stop those guys...
https://www.tradingschools.org/
Good luck and as I said before, just treat is as a hobby at first and spend the time testing and you’ll find something that is working for you...
EDIT: some spelling errors fixed.
Personally, I struggle to see the competitive advantage Quantopian brings. They use retail brokerage platforms to facilitate trading, which rules out anything close to HFT. Then, they are tied to any financial data vendor (Morningstar in this case) to not offer too much visibility on the underlying data. As others have mentioned, this makes it tough to validate aspects like adjusted vs. as reported earnings, how deli…
I think the other goal being that if you create a profitable strategy, you can enter it into competitions, trade with other people's money, and make a profit. I think the platform is a value add, I have an account and use the research notebooks. Some day when I more spare time I'll make some trading algorithms.
It is a great article, but why on earth someone will use a service like Quantopian or similar service? They are your competitor and who will prevent a disgruntle employee or a hacker to steel your successful trading strategy? Just buy some data from eBay, you can get 20 years of historical stock market data for less than $100 and you can test any trading strategy or idea imaginable, including trend following, buy and…
Personally, I struggle to see the competitive advantage Quantopian brings. They use retail brokerage platforms to facilitate trading, which rules out anything close to HFT. Then, they are tied to any financial data vendor (Morningstar in this case) to not offer too much visibility on the underlying data. As others have mentioned, this makes it tough to validate aspects like adjusted vs. as reported earnings, how deli…
My understanding is that Quantopian has no interest in being a platform for HFT. It's there to democratize trading strategies and test them in a sound way. They do a lot to have a good backtesting platform and clean the data that is available in the platform. If I wanted to automate a strategy, I'd have to figure out the Robinhood API and basically recreate what they have. Instead, I can use their platform, their bac…
It is a great article, but why on earth someone will use a service like Quantopian or similar service? They are your competitor and who will prevent a disgruntle employee or a hacker to steel your successful trading strategy? Just buy some data from eBay, you can get 20 years of historical stock market data for less than $100 and you can test any trading strategy or idea imaginable, including trend following, buy and…
Not everyone can build their own backtesting tool. I played around with quantopian for a little while and did some live trading with quantopian + robinhood and I never would have been able to do that without quantopian
My biggest thing with the Python for Finance books - I know Python, I want to learn finance. All these books are the inverse of that, for people who know finance and want to learn Python. There is a good site for quantitative economics [1] that has tutorials in Python and Julia. I would love a mathematics of finance book that had the examples in Python.
Earlier quoted context omitted.
My understanding is that Quantopian has no interest in being a platform for HFT. It's there to democratize trading strategies and test them in a sound way. They do a lot to have a good backtesting platform and clean the data that is available in the platform. If I wanted to automate a strategy, I'd have to figure out the Robinhood API and basically recreate what they have. Instead, I can use their platform, their bac…
The main problem with Quantopian is that the data missing especially for delisted stocks, here are some examples you can test yourself: AA, CWH, NIHD, PANL, HTZ, DSL - I have a whole list I found very fast, just imagine what other mistakes could be there... And the other problem is that they are my competitor, so I would never give them my trading strategy or ideas I am testing at the moment...