91–100 of 149 posts
I always wonder if this space hasn’t been entirely cornered by HFTs. Isn’t it futile as an individual?
For an individual - HFT isn't all that accessible. Fees gonna kill ya. But yeah - you just zoom out a little bit and work from there.
Earlier quoted context omitted.
It works, but do not expect huge returns. I have worked on multiple strategies. - Strategies using technical indicators do work, but you have to reasonable. If you find these giving higher than expected returns, or too many consecutive wins - take the money. Stop live trading and continue dummy trading - eventually there is a point where you can start live trading again. The thresholds will be determined from backtes…
I do similar stuff and confirm most of the above. It matches my experiences. The only other thing I'd say is that if you're in a bull market you may have easy wins. Then after -- when the market turns against you -- these will evaporate. So long term you have to ask yourself if you are REALLY beating the market. If you'd bought Amazon or Microsoft instead, over 20 years you'd probably be far ahead.
And if you'd bought pets.com, or webvan, you'd be far behind. Survivor bias at work.
I don't buy the argument.
Removing tick (or at least reducing it 100x) would put more emphasis on price discovery instead of speed.
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.
Is there a more socially unproductive, legit practice than this?
Many things, I'd argue. Meat industry causing animal suffering. Social media, tobacco, fast food industries causing human suffering. Oil and gas industry causing environmental destruction. What direct suffering does algorithmic trading cause? It would take quite the narrative spin to argue that it's as bad or worse as one of the above industries.
They won't, but they could. They totally could, and you are ruining that possibility.
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.
The term "quant" has many meanings. Originally it used to mean "quantitative", as opposed to "qualitative". It is a type of investment strategies where you target to be right "on average". Once you are right, say, 51% of the times, you aim to reach this asymptotic behavior by trading more and more. Either horizontally (trading more stocks) or vertically (trading more often). You want to keep the law of large numbers…
A couple years ago I read all I could on this and started systematic trading on crypto. Ended up with the best results on a public platform and ran a small trading operation with a few clients, one a crypto market maker. It's really hard due to all the market unknowns, stress and psychology/emotion. After the FTX debacle I lost ~35% of capital. Currently put it on pause and back software engineering.
Had to rebuild my asset allocation system which was based on FTX api. Improved it to be realtime and using Binance api. There's still the counter party risk-Binance could get busted or USDT fraud.
Earlier quoted context omitted.
It works, but do not expect huge returns. I have worked on multiple strategies. - Strategies using technical indicators do work, but you have to reasonable. If you find these giving higher than expected returns, or too many consecutive wins - take the money. Stop live trading and continue dummy trading - eventually there is a point where you can start live trading again. The thresholds will be determined from backtes…
I do similar stuff and confirm most of the above. It matches my experiences. The only other thing I'd say is that if you're in a bull market you may have easy wins. Then after -- when the market turns against you -- these will evaporate. So long term you have to ask yourself if you are REALLY beating the market. If you'd bought Amazon or Microsoft instead, over 20 years you'd probably be far ahead.
If your algotrading profits depend on market being bull or bear, you're doing it wrong. Volatility matters, not the direction.
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.
I started off doing it on my own back in 2008 with nothing more than an Interactive Brokers account. Then I went all in and started a company to do it professionally around 2012. As far as strategies go, I've said it here before, but all my strategies are quite simple and straight forward. The difficulty is almost always the execution. Almost all of my strategies are arbitrage or market making, and some of them trade…
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.
Success rate for newly formed hedge funds is probably something like 50% over a 5 year horizon. For solo traders, it's probably closer to 1%.
There is WAY too much stuff you need to be on top of, if you want to be successful, than a single person can manage. It's about as feasible as starting a one man (coal) mining operation, where you must dig the tunnel, extract the coal, process it, sell it, manage the business operation and retain your sanity. You need at least a handful of people to be effective, all with different specialties.
...not to mention that if you're successful as a solo trader, you could be making 10x more with proper financial backing. If your strategy is returning 25% annually on a personal 1 mil investment, there's a good chance it'll still be returning >20% on a 10 mil investment (once you get to 100 mil or into the billions, your returns start to diminish due to market impact). Find a good backer, they'll literally give you money and a support team for a piece of the profit.