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Show HN: Algorithmic trading for everyone

justfor.fund

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Re: Show HN: Algorithmic trading for everyone

#31

Post by Unknomad »

Unknomad wrote: post #30
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…

Thank you for your feedback. It's a work in progress. Being the only developer, an engineering student and a part-time freelance dev at the same time, it's hard to keep up with the maintenance of the algorithms and keeping the platform working perfectly. 3.5 months was the time i developed full-time. Some of the algorithms have been running since aug 2020

Also. I don't think that generating alpha is necessarily the only motivation behind building an investment strategy. There are endless possibilities of financial products that could be built on top of a platform like this.

Basically, im looking for help to build the best possible platform.

Re: Show HN: Algorithmic trading for everyone

#32

Post by jamesrom »

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…

1. You gotta start somewhere. Keep laughing at noobs though.

2. It says this person is new, and doesn’t have connections or inroads to get capital from “a big multi-manager”.

3. Sounds about right, but I disagree that the only way to go out on your own is by starting at an established shop. That doesn’t pass the sniff test.

Very likely won’t make a profit. Sure. Will it get him a job offer, connections, or experience. Absolutely.

Re: Show HN: Algorithmic trading for everyone

#37

Post by bigsparky »

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…

1. "it takes months/years....but taking months is laughable" -?????

2. You could say this about any startup in YC. "If XXXXX then YYYY would do it".

3. Again, you could say this about any startup founder.

Seriously

Re: Show HN: Algorithmic trading for everyone

#39

Post by kirse »

benreesman wrote: post #26
TedDoesntTalk wrote: post #22

Earlier quoted context omitted.

How are market makers using algo trading to warehouse a bunch of stock?

The use of models and algorithms is in an effort to not get caught on the wrong side of a big move, the technical term for this is adverse selection, more colloquially “getting lifted”. If someone is coming through with a massive order and you fail to anticipate this and cancel in time, you’ve effectively subsidized a block trader. Market makers want to participate on both sides picking up a small fee (typically one…

they already had inventory.

Lots of wiggle room in that "had inventory" definition as well.

Re: Show HN: Algorithmic trading for everyone

#40

Post by mhh__ »

bigsparky wrote: post #37
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…

1. "it takes months/years....but taking months is laughable" -????? 2. You could say this about any startup in YC. "If XXXXX then YYYY would do it". 3. Again, you could say this about any startup founder. Seriously

Wrt number 3 it is really is like walking into a knife fight with a spoon. It may be of note that a lot of financial practitioners consider themselves experts in markets, not trading. This is partly modesty, and partly an acknowledgement that there is a mountain of either bullshit or financial genius (e.g. the moment you have an option for sale you can suddenly turn apparently disconnected numbers into a correct price) to deal with.
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