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Algorithmic Trading: A Practitioner’s Guide

henrikwarne.com

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Re: Algorithmic Trading: A Practitioner’s Guide

#71

Post by Kranar »

rustamm wrote: post #69
Kranar wrote: post #52

Earlier quoted context omitted.

>Someone who merely bought and held tech stocks, like Apple & Nvidia, beat virtually all funds since 2009. This is a common misconception or a poorly phrased statement. It's not true that someone who bought/held tech stocks, or an ETF beat virtually all managed funds or that holding on to ETFs beats virtually every managed fund. It's true that passive investing, in tech or ETFs would have beat the average managed fun…

Just because a managed fund outperformed a market doesn't mean it didn't happen by pure luck. There are lots of managed funds and most of them are not profitable. If each chooses portfolio randomly, some of them will outperform the market.

Can you please quote what you think you're disagreeing with me about or how your reply has any relevance to my post?

Did you perhaps intend to reply to someone else?

Re: Algorithmic Trading: A Practitioner’s Guide

#72

Post by Galanwe »

kilgnad wrote: post #3

How 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?

There is litteraly 0 chance for you to be profitable in the medium to long term if you don't have years of experience in the industry.

Anyone claiming that is not the case is just misinterpreting his PnL.

The internet is full of people thinking they are market wizards just because they cannot residualize their idiosyncratic returns properly against beta, sector, country, size properly.

Re: Algorithmic Trading: A Practitioner’s Guide

#74

Post by mythrwy »

nemo44x wrote: post #35

Is there a more socially unproductive, legit practice than this?

In theory it is not socially unproductive at all (in practice much less so).

The socially useful idea behind trading is allocation of capital. How do we determine which sectors get capital and which don't? How do we determine a price of something?

This is in theory. In practice of course... BitConnect!

Re: Algorithmic Trading: A Practitioner’s Guide

#76

Post by Lapsa »

andrewstuart wrote: post #75

Anyone here making real money from algo trading? I'm talking about people who write their own software rather than working for a company that does it professionally. I'd be interested to hear any tips or pointers on what strategies you've found that work.

Managed to stay even for 3 months. Arcane stuff is what I got but I find it sensible.

Re: Algorithmic Trading: A Practitioner’s Guide

#78

Post by rtcoms »

dougSF70 wrote: post #36
paulpauper wrote: post #24

Trading 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.

Pioneer of Turtle Trading system once said

Dennis reasoned that even though he could publish all the rules in a newspaper, only a few traders would heed them since most traders tend to avoid following rules rigidly. He mentioned that most people only follow the trading rules as a method of improvising when they deem it necessary and that deviating from the rules can affect the performance of the trade.

Re: Algorithmic Trading: A Practitioner’s Guide

#79

Post by baq »

HeyZuess wrote: post #32
jjtheblunt wrote: post #28

Earlier quoted context omitted.

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.

They are value investors… who definitely know the technicalities of the market, and have at times taken serious size option positions. They say to just buy index funds because otherwise it’s a full time job with all the research and accounting.

Re: Algorithmic Trading: A Practitioner’s Guide

#80

Post by Nihmie »

Temporary_31337 wrote: post #73

Strategies are interesting too, but which brokerages can I use to get a simple API with pricing that is low enough for a small trader?

A few exist -- you can find use the unofficial Robinhood API, for example. I use Alpaca, which has an official API.
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