is this the same as 'quant trading'? I heard fresh outs who got offer from quant-trading companies making like half-million a year before their bonus.
Algorithmic Trading: A Practitioner’s Guide
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Re: Algorithmic Trading: A Practitioner’s Guide
#32Earlier quoted context omitted.
HFT exploits very short lived movements. If you had some algorithm to predict long-term trends, then you could beat HFT without relying on low latency.
Is that essentially what Warren Buffett and Charlie Munger do?
Buffet and Munger are value investors, there are multiple strategies in both investing and trading. Jim Simmons might be a more relevant example here in regards to trading if you are comparing the two.
Re: Algorithmic Trading: A Practitioner’s Guide
#33I always wonder if this space hasn’t been entirely cornered by HFTs. Isn’t it futile as an individual?
Someone who merely bought and held tech stocks, like Apple & Nvidia, beat virtually all funds since 2009. There are always ways to make money even when your competitors have such advanced tools. The world of finance is big enough that there are opportunities for players of all sizes and resources. Look how badly AQR has done despite hiring from such a qualified talent pool.
>> Someone who merely bought and held tech stocks, like Apple & Nvidia, beat virtually all funds since 2009.
This is both absolutely correct, and entirely in-actionable since it uses hindsight. The question would be...what are the two stocks to buy to beat the market for the next 13yrs.
Re: Algorithmic Trading: A Practitioner’s Guide
#34I always wonder if this space hasn’t been entirely cornered by HFTs. Isn’t it futile as an individual?
Someone who merely bought and held tech stocks, like Apple & Nvidia, beat virtually all funds since 2009. There are always ways to make money even when your competitors have such advanced tools. The world of finance is big enough that there are opportunities for players of all sizes and resources. Look how badly AQR has done despite hiring from such a qualified talent pool.
Monster Beverage has been the best stock of the last 20 years. Only idiots didn’t put their entire bankroll into it. Point is, you just can’t know.
Re: Algorithmic Trading: A Practitioner’s Guide
#35Is there a more socially unproductive, legit practice than this?
Re: Algorithmic Trading: A Practitioner’s Guide
#36Trading seems dauting, especially when your competition are HFTs and huge firms, but there are even very simple patterns that can be profitable, that does not require any advanced coding, APIs, huge troves of data, quant formulas, etc. Once such simple method, which still works, is to short BTC and go long QQQ/SPY during market hours if there is relative weakness of BTC before the market open, whilst going long QQQ/S…
As soon as your write about a successful strategy and publish it, it no longer becomes profitable. Trading pairs of stocks is one such example, firms made money from identifying stocks that have a negative correlation with one another. This went on for some time until someone published a paper on it and then it became unprofitable.
Re: Algorithmic Trading: A Practitioner’s Guide
#37Is there a more socially unproductive, legit practice than this?
This is such weird commentary that pops up on every algotrading post. Why does it have to be socially productive? No one makes the claim it is.
Re: Algorithmic Trading: A Practitioner’s Guide
#38How would I implement algorithmic trading at home? And would this be a viable idea if I knew what I was doing? Has anyone done this successfully?
I'd like to know how an individual can do this, 1) And avoid some code bug causing them to lose all their money, and 2) Not get lose all their money to some company's API fees...
I suspect the biggest catch for 1, is that you do it from an account where losing all of the money is an acceptable outcome. Clearly not the preferred outcome. But will not destroy you financially.
Which leads in to 2. The idea is that you are aiming for algorithms that take into account the API fees. If you didn't account for that in the price of business, than this is the same as not accounting for taxes in how you pay for things. That is, you did it wrong.
Re: Algorithmic Trading: A Practitioner’s Guide
#39Is there a more socially unproductive, legit practice than this?
This is an article about how pension funds and other large players use algorithms to reduce their trading costs. You have a problem with that? Or did you not know you were in a Wendy's?
Re: Algorithmic Trading: A Practitioner’s Guide
#40A colleague here tried to break into the trading world as an adult. He had a reference to be a member with a small cozy firm where his accounts could be held. He got "direct market access" (?) with a trading terminal that he said was good quality. Yet when I watched him work for several weeks each day, he was locked out of a SELL order more than once.. it didn't go through in any reasonable amount of time and he ende…
Your story doesn't make any sense. Was this guy trading his own account, or was he employed as a proprietary trader, or was he running his own little investment fund using another company's platform? In any case, a legitimate trader won't be "locked out".
Are you perhaps referring to a locked market?