A collection of less obvious hurdles you may discover on the Algo trading implementation journey.
#1 Data is king
Some brokers provide basic data feed for algo trading, but more often you will be looking for:
Decent amount of historical data of decent quality for backtesting.
Real time market data. Not the end of the day, and not 15 minutes delayed. As...
Everyone wants a trading strategy that allows you to make one trade per day, yet you can still beat the market. Here we explore how you could make one.
The Strategy: Gap & Go for Biotech Stocks
We decided not to reinvent the wheel and just took the highly popularized "Gap & Go" strategy. The “Gap & Go” is looking for a stock gap up from the previous day's...
According to the New York Times 2018: most gains for $SPY happen overnight. "If you had bought the SPY at the last second of trading on each business day since 1993 and sold at the market open the next day — capturing all of the net after-hour gains — your cumulative price gain would be 571 percent."
We thought why not to review this thesis in a bit more detailed...
Pre-market is an exciting time when you start looking at your screens to check what's going on. There is a lot of information to consume: news, reports, charts... you can continue the list. In this study, we explore if price movement in pre-market can provide any indications of what the day is going to look like.
There are 3 setups we tested from 2015 to 2022 ...
First-time day traders are most likely going to lose money. CNBC quotes at least four studies with a similar conclusion: 90% of traders fail to make money.
The primary reason that most traders fail is not because of their strategy, it is because of their psychology. As Benjamin Graham liked to say, “The worst enemy of the investor is most likely himself.”
To...
Traders with symptoms of gambling addiction “tend to follow a more active and speculative trading style, indicated by a higher frequency of stock trading, day trading and investing in derivatives and leveraged products.”
Here are some signs of addiction:
Trading becomes the main focus of your daily life.
You are trading at work, which isn’t your job.
...
Everyone wants a trading strategy that allows you to make 1 trade per day but still beat the market. Here are I explore how you could make one.
The Strategy: Gap & Go for Biotech Stocks
There is no point to reinvent the wheel so I took a highly popularized Gap & Go strategy. The “Gap & Go” is looking for stocks gap up from the previous day's close price with...
