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Recommend Books for building trading algorithms
- hartator 6y agoWord of caution here: You lose money every time you buy and sell stocks even when there is no explicit fees. In addition, you're playing against very sophisticated systems that have access to both faster and denser data. Playing with algorithms with real money at this level is not different than gambling.
- smitty1e 6y agoWhat's interesting to consider is whether the results would differ: - if one bought the book and built the trading algorithms against historical data as programming exercise, - then tried them in a real-world context. Restated: is the math really that magical, or is it a question of scale/volume, or is the fairness of the market a mirage?
- rootusrootus 6y agoAn alternative perspective: there are other markets besides the big obvious ones, and they don't necessarily have the same level of very sophisticated players already entrenched. But still reasonable advice. Start small, without real money for a while.
- aj7 6y agoZero (“without”) money - zero learning.
- vmception 6y agoAlgorithmic trading does not equal high frequency trading, most of your post implies the opposite to justify your conclusion of folly. An algorithm can swing trade at the same time frames a human is interested in, it can create complex order types faster than humans can, it can adjust chains or orders triggered by one order being filled or canceled, it can adjust which exchanges an order can go to.... Order and position management is a more important piece of algorithms than actually getting filled faster and analyzing data faster.
- hartator 6y agoThat’s not true. High frequency trading is the reason why the spread between buying and selling is so low. They compete to get your order. But you do loose money to these traders each trade you do. Even if that’s actually play in your favor.
- benmanns 6y agoThat's _if_ HFT will allow you to lift their offers: http://www.nanex.net/aqck2/4661.html http://www.nanex.net/aqck2/4661.html
- vmception 6y agoAlgorithmic trading does not equal high frequency trading. What isn't true about that. High frequency trading is a subset of algorithmic trading, not the other way around. why do you want to die on this hill?
- wakahiu 6y agoDon’t
- adhoc32 6y agoYou will burn. Just don't.
- sansnomme 6y agoI will just link to my old comment: https://news.ycombinator.com/item?id=22709906 https://news.ycombinator.com/item?id=22709906
- aj7 6y agoOne of the LEAST productive uses of your time as an investor.
- dang 6y agoShow HN is not for posts like this. Please see the rules: https://news.ycombinator.com/showhn.html https://news.ycombinator.com/showhn.html.
- masonic 6y agoThere are on average a dozen submits a day that are just lists of affiliate links, most of them even violating the rules of Amazon affiliate agreements. Why aren't the repeat offenders banned? A handful of far more innocuous sites are banned.
- dang 6y agoThere are two different issues: what's on topic for HN generally, and what is a fit for the "Show HN" category, which is much more specific. I was talking about the latter. Is that distinction clear? I wasn't talking about banning anyone, just removing "Show HN" from the title of posts that don't fit that subsection.
- person_of_color 6y agoJust buy a high growth ETF and be done with it.