4 ms·
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. I
by smdz 4y ago
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 backtests.
- Statistical strategies work for swing trading. However, these are very difficult to figure out. Need a lot of data (for backtesting). These work consistently over a longer period and might look loss making over a small period.
- Scalping within 5-10 minutes works pretty consistently, signals based on options data.
- Understand and realise the law of large numbers, and use that to your advantage.
- Give importance to understanding the concept of Time. There is a whole lot of weird and scammy pseudo-science around it. Therefore do not blindly rely on one theory.
- hungryforcodes 4y agoI 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.
- beagle3 4y ago> 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.
- hungryforcodes 4y agoTrue, but that's the nature of investing. If you don't like risk, use an RRSP I guess.
- areyousure 4y agoIn case anyone is curious, it seems "RRSP" stands for "registered retirement savings plan", a type of financial account specific to Canada. https://en.wikipedia.org/wiki/Registered_retirement_savings_plan https://en.wikipedia.org/wiki/Registered_retirement_savings_...
- reisse 4y ago> 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. If your algotrading profits depend on market being bull or bear, you're doing it wrong. Volatility matters, not the direction.
- hungryforcodes 4y agoPlease line up with all the other cranky people to tell r/algotrading -- I'm sure they are interested. Mine work in either market. But I trade on the millisecond lines to avoid market bias. And yes volatility is key. As if confirmation of this approach I see Binance has just recently introduced a 1s chart (effectively 1000ms). However most retail algo traders using indicators use larger time frames that are more susceptible to market trendiness.
- jvanderbot 4y agoNot that I have liquidity, time, or ability to get into this, but how would one individual get access to ms trade times and data?
- ikrenji 4y agoeasy - you pay for it
- hungryforcodes 4y agoNo, Binance and other similar exchanges give it away for free. Just call their API ever 1000ms. TradFi is a bit behind on this I think.
- willtemperley 4y agoMost crypto exchanges provide free websocket endpoints with millisecond latency for trade and order book data
- dachryn 4y agoI dabbled in this myself, and never managed to beat a classic index tracker. So yes, I made a 3-5% profit over roughly 18 months, but it took a lot of time, stress, and in the end I ended up with less money. Is your experience the same?
- boshalfoshal 4y agoNot to mention more taxes if you are buying and selling a lot. As an individual, I would probably just do discretionary stock picks and buy & hold fundamental analysis. After working at an HFT firm, I've more or less realized that institutional level trading (or things that try to emulate it at the retail level) are pretty difficult for little return. It would be a fun side project, but as a way of getting money, not so sure...