I have recently created a FREE algorithmic trading course using Python on CZcams. You can watch it here: czcams.com/play/PLtqRgJ_TIq8Y6YG8G-ETIFW_36mvxMLad.html Note that Quantopian has shut down its services which is why I use QuantConnect for this series. For a list of other useful algorithmic trading platforms, check out this post: tradeoptionswithme.com/best-algo-trading-platforms/
I’m 20 and successfully programmed a trading algo in python. You hit it spot on. I went from not knowing python or stocks to becoming profitable (25% in last 20 days). I did everything listed in the video. Good luck to all.
Im 19 in kinda in a rough spot just got layed off wanting to see if this could be a profitable way to get out of this hole. If you ever have free time i would love tips and helpful advice
Hey man that’s amazing! Good luck on tweaking and working your bot up to financial freedom! How long did it take you from point 0 (not knowing anything about programming and stocks) to today where you’ve deployed the bot and became profitable?
I'm 16 and I don't even think my brain is developed enough to handle this. But anyways yea im gonna try to go for it (started learning programming about 7 months ago ).
I am a full time trader I want to automate my trades am starting today learning about python from 100 days challenge in udemy and machine learning and data science I will back to my comment when I finished incha allah ❤
I really recommend checking out the course 'Python for Financial Analysis and Algorithmic Trading' if you want to become an algorithmic trader: click.linksynergy.com/deeplink?id=ukOn7rXWlQw&mid=39197&murl=https%3A%2F%2Fwww.udemy.com%2Fpython-for-finance-and-trading-algorithms
@@ibrahimvarachhia A short python crash course in included, but if you are completely new to programming, I recommend starting with a complete python programming course instead. I hope this helps.
Wanting to get into algorithmic trading is a driving factor in returning to college to learn Computer Science while learning Puthon on my own. I have a very minor history in line programming. Thanks for the video!
Hey I am currently on board with this python for finance and algorithmic trading already. I an experienced trader about 2 years trading. I hope to implement some few strategies that I use in trading and finally see how they turn out now that I know programming and data science. I'm so optimistic of what's to become of this knowledge and skill-set.
LOL how to get started with algorithmic trading. 1) Learn how to trade 2) learn how to code. 3) Figure out an idea of how to combine the two 4) combine the two
dude. i tried to code websites and died of boredom. tried coding a synthesizer and lost interest in the hard coding. this has been an *amazing* re-introduction to python. much obliged, kind sir.
do you really need to have knowledge in coding before you trade? but i saw other people that become a millionaire when they are trading in stock but they don't know how to code.
No, you absolutely do not need to know how to code. I would say that algo trading is a statistical process. Hft algo trading is a structural inefficiency process and manual trading is a tape reading process. Manual trading is very much like learning to play a video game or a musical instrument. Hft is flooded with the highest barrier to entry. Statistical trading is still open but has a high risk of fat tails. You can learn to be useful on a statistical trading floor in school. Manual trading is best learned with practice, just like a musical instrument. Either way, forget being a millionaire and follow your interest. Either way the marathon is way too long for any hopes of getting rich quickly.
Aren't we all. I don't think you ever get there, just keep getting closer. Don't sweat it, even the insanely talented don't really have it despite those long runs of 80+% right trades. At the end of the day, those who managed the risk survived. Don't get discouraged. Even when you buy the top you are on the right track, just 180 degrees out of phase. Live and learn... And always remember Reminisces of a Stock Operator.
When you say Algorithms, are you talking about Machine Learning and Deep Learning/ time series analysis ? Or simply coding your rules to take a trade. Like close price should be above vwap/20 MA etc.. I’m working as a data scientist and Machine learning engineer, I use python and I’ve been learning technical analysis from last one month. Read few books like Pivot boss, Mark Minervani books and currently paper trading. I’ll give it a try!!
Hi and thanks for your comment, With an algorithm I mean a clear set of formal instructions. What kind of programming paradigms you use in your algorithm is completely up to you. Most beginners should start out with basic instructions such as if X do Y, but if you already have some experience, it can certainly be advantageous to implement some machine learning and other more advanced elements to your algorithms. Hopefully, this answers your question. Definitely let me know if you have any follow-up questions or comments.
Thank you so much for your great introduction about Algorithmic trading, you really gave me the shortcut that I need to start in this track. Your video is very simple, to the point and helpful. I am waiting to see more videos, and it's my pleasure to follow you, thanks again :)
Great content! I appreciate 🙏🏽 Quick questions; Is there anyway one can just go ahead and buy a tested and working algorithm and use, and what will be your advice on this? Also will an algorithm with python language work on any brokerage platform? If not which brokerages do you recommend for python algorithms(international ones)?
Hi, Thanks for the comment. Yes, it is possible to buy premade algorithms, but generally speaking, these aren't that good (otherwise, nobody would be selling them). You can, for instance, buy algorithms in MetaTrader or other platforms. If you develop an algorithm in python, you will need to use a broker that has an API that support python. As far as I know interactive brokers does have this feature. TradeStation is another great broker for algorithmic trading. I think they also support python. But note that the API for each broker is different, so you can't just copy paste the code. You will have to make some adjustments to the code so that it works. Some brokers such as TradeStation even offer their own programming languages. I hope this helps. Otherwise, certainly let me know.
I hit a like button Always. Ur contents are very useful esp options u have been sending via email i have been enjoying those info much appreciated for ur free info. Keep up ur great work and keep growing with youtube once again. Mahalo. From Hawaii
Thanks for the video! I spent a few weeks studying and learning how to create my algorithm, did extensive back testing on multiple different investment vehicles, started making a little bit of money, and then immediately lost everything. Guess this didn't work too well for me
Great video! some question here: 1. Do you think algo trading will be ban or to be regulated where using it will become illegal in the future? 2. What level of expertise in coding needed to build your own algo? thanks. :)
Hi, considering that the vast majority of institutional trading is done algorithmically and it would be a nightmare of a task to change this and incredible hard to enforce a ban, I do not think so. Since our world is moving more and more towards automation, I think algo trading will actually become even more wide-spread. As for the level of expertise, it totally depends on how advanced of trading algorithms you want to develop. To get a better overview, I recommend checking out my free course on algorithmic trading on my channel. In the introductory video, I go over some prerequisites that might interest you.
Incredibly informative👍, I actually came up with this idea in my mind a while ago and am not surprised to see it’s a real thing, definitely something great to go into, great video👍
Hi, i just built my own simple trading strategy based on moving averages and have basically finished building my own backtester for it. What kind of things do you think I should look at next to develop a more complicated and better strategy?
That’s awesome! I just recently published a video on different types of algorithmic trading strategies. You can check it out here czcams.com/video/5iuF42s6zNo/video.html Hopefully, that video will give you some ideas on which strategies you could develop.
Great content - I and currently learning data science programming for work (University researcher) but it never occured to me to use programming for my investment strategy. I'm wondering if you would be willing to discuss the performance of your portfolio and how it performs compared to other trading strategies like dollar-cost-averaging into index funds and blue chip stocks? Thanks!
Statistically speaking, there is no significant evidence that a systematic approach is inherently better than a discretionary approach (or vice versa). That’s what a research study from AQR capital has found. But in my opinion, one of the approaches can be a better fit to a person than another. If, for instance, you struggle to control your emotions while trading, a systematic approach might yield better returns than a discretionary approach. For a more detailed breakdown, check out this post: tradeoptionswithme.com/systematic-vs-discretionary-trading/
It’s hard to draw a strict line for the shortest possible timeframe. But when accounting for retail fees, execution, and slippage, I would aim for an average holding time of multiple minutes at least. But there obviously can be many exceptions.
which systems do/would you use for monitoring live trading information online, and feeding it into the algorithm? and which programming language would you suggest if building a bot/algorithm from the ground up?
Thanks for the questions. Which data provider you choose totally depends on what kind of data you want. Depending on which broker you use, they might already provide you with lots of useful data. Otherwise, there are plenty of other sites such as Quandl that you can use to access and analyze more data. As for the programming language, my favorite one is python. But you will mostly have to use the language that your broker supports when deploying your algo.
Sadly, Quantopian has recently shutdown but luckily there are many other great algorithmic platforms similar to Quantopian out there. I recommend checking out my post for an overview of some of the best algorithmic trading platforms: tradeoptionswithme.com/best-algo-trading-platforms/ If you choose QuantConnect, you can check out my algorithmic trading playlist for some tutorial videos on sample trading algorithms. I hope this helps.
I'm an okay programmer and I'm learning trading concepts, but I'm wondering if algotrading would be good as discretionary trading in the long run since there is a more human element involved in discretionary trading (human brain is best computer in the world? :P). With discretionary trading it seems you would build up a deeper, more organic and all encompassing understanding of the market since you as the trader would be the analyzer and executioner of trades, able to see the subtilties an algorithm may not include in its search. Not sure if that made sense but yeah. Edit: Maybe it would be good to program algorithms to find stocks with specific things I'm looking for and then discretionarily trade them? Great video btw.
Thanks for the comment. I recommend checking out the following post for a breakdown of discretionary vs systematic trading: tradeoptionswithme.com/systematic-vs-discretionary-trading/
Learning myself too. I recommend Python for Finance by Yves Hilpisch if you want the basics. Not really needed but it’s handy. From there I’ve plugged into IEX Finance and pull in my data and save it to a local database. Since python has sqlite3, it makes saving and retrieving data so easy (note you only get so many requests for IEX per month and I found indexing my own database is so fast when doing back testing). From there I can pull in my data and work out back testing a strategy. This is where it gets really challenging depending on what you’re trying to do. Good luck
To AKB: It is good to use buy stops for entry along with bracket orders with programmed PT and SL. Usually, if the price lifts or moves up, the volume will relay some semblance of sanguinity.
Hey thanks for taking the time to do this. But I'll say this : I still don't get how they determine the value of a share when supply and demand of share itself is not taken into account. And do they make an estimation every day ? every quarter ? every hour. please help me
It’s completely up to you. You can incorporate whatever variables you want to and focus on any time frame. For more details and examples, you could check out some of my other videos or my free algo trading course on my channel
This sounds great and all however some people are just looking for preset algorithm and not have to design and program themselves people are just looking for a program to get himself going and start trading. What do you think about this do you have any other recommendations??
Thank you very much for the video it is simple and great Is it possible to trade physical backed platinum and palladinum Etfs with algorithmic trading Do you recommend any platform (not CFDs)
Hey, Thanks for the comment. Which sector you decide to use your algorithms in is completely up to you. With that being said, certain asset classes have more available platforms. For instance, Quantopian only allows you to trade/research equities (including ETFs). I recommend looking for a broker that supports the asset types that you want to trade and then look if they have an open API that allows you to send orders automatically. I hope this helps.
@@BookOfMorman Thank u for ur input but for my future reference do u know any excellent youtube channels that share about great algorithmic trading contents if u do let me know stay safe. Warm Aloha from. all the way from Hawaii. Mahalo
@@bronsonlee7372 I can recommend some day trading channels and books on fundamentals but I don't dabble much in algorithmic trading. Good luck! Much love! 🙏🏼
@@BookOfMorman I assume u are a viewer of tradingoptionswithme as a newbie i am strongly interested in options trading so if u find good channels for this old man and a newbie plz let me know much appreciated Mahalo from aloha state thanks again.
Hi, what you mean with high-frequency trading? something like binary options or trading with operations that last minutes ? Does algorithm trading is useful for binary options?
Hi, Algorithmic trading strategies can be deployed in almost any market sector, including binary options. With that being said, I recommend being very cautious when it comes to binary option brokers. The binary option market is filled with countless shady companies. High frequency trading usually has nothing to do with binary options. It is an algorithmic approach that many institutional trading firms use. It requires a large infrastructure that allows you to scan and execute millions of order within milliseconds. It isn’t really a viable strategy for retail traders. I recommend checking out Michael Lewis’ book ‘Flash Boys’ if you want to learn how high frequency trading came to be. I hope this helps.
Go Guido Granda: HFT will sink one into the sand, as the professional hedge funds prevail. The Reddit boys' games will not last with their own movement as they consider copulating, consternating, and crashing *their own* newbies -- as if they were hedge fund operators themselves!
That is true. However, there is a similar site now called QuantConnect. I offer a free course on them if you are interested: czcams.com/play/PLtqRgJ_TIq8Y6YG8G-ETIFW_36mvxMLad.html
I know python and data science I even know deep learning, I accept this challenge👍 So I should develop an algorithm and train it and optimize it, and see if it's over fitting the training data and then test it again. That's sounds good
Which would be preferred, Python or C++? Python is much easier to use, but C++ is much faster. Question is whether there is any benifit in the latter for retail/hobby traders...
Most importantly is to understand how you can hedge your short positions sometimes using other short positions ! Plus training to achieve high levels of Statistics and DB + ML
Even though it’s not a real course, you could check out my algorithmic trading playlist here on CZcams. In it, I go through example algorithms that I implemented in QuantConnect which is a very similar platform. I hope this help.
Yes! Check out the description box. A great alternative is QuantConnect, I even offer a free coding course for QuantConnect under the playlist section of my channel.
Thanks for the quick reply! That’s the thing that kinda bothers me with coding an algo. The idea that the broker can know what your algo is made of is my main concern. Wouldn’t really matter if your broker was an equity broker that just executed the trades and collects the commission. Not only don’t they care if you make money or not but it would actually be in their interest since you’d be continuing to trade, whereas a CFD FX broker would not want you to be profitable since they make money by being on the other side of your trade.
@aboctok Thanks for the answer aboctok, could you elaborate on that please? I’m not sure if you’re saying that it depends if the broker can see the code, or that it depends if they mind your being profitable or not.
@aboctok I’m really enjoying this conversation honestly. That’s something that’s been stopping me from getting started. I hate the idea that someone can have access to the code. I had done some research in the past and like you said, there seems to be quite some disagreement among people on whether or not it’s possible. Some claim they had profitable strategies that became unprofitable once coded which led them to believe that the broker had access to the algo and purposely sabotaged the execution of their trades. I’m not necessarily saying I believe those stories, but it does raise the question and it’s always better to do some research beforehand. I’ve actually coded c++ a few years ago so I should be able to get used to it pretty quickly. Do you have any recommendations of programs that I could use to make the algo in c++ which could communicate with MT4?
@aboctok The way you explain it does make sense. I guess these brokers do exist but likely are located in poorly regulated countries with little oversight. I’m assuming that as long as you stay with a reputable, regulated broker that has permission to offer their services to countries such as the US you’re safe and don’t need to worry about them seeing your code. I’m still going to go with your solution though as I feel more comfortable knowing that the logic is hidden from the MT4 platform. I’ll be reviewing my C++ knowledge tomorrow for a few days to get the hang of it after not using it for a few years. 😀 I’ll take a look at visual studio, thanks for the recommendation! 10 gigs seems not too bad, definitely something I’m willing to do to be able to sleep well knowing my EA is safe. Do you pull the data (price, indicators etc)from MT4 and code all the algo in Visual Studio?
SEEK YOUR WISDOM SIR, I have 2 choices--1) buy one given forex pair every new day at the open at market price wth take profit(TP) 50 pips and stop loss(SL)50 pips on one ticket as one order 2) second choice is to buy same pair but order is placed as pending order at the open of every new day--buy the same forex pair 100 pips below the open price as pending order with take profit of 50 pips and stop loss of 50 pips all on the same ticket.And after one year of every day trading which strategy is more likely to make any money?And what answer SUPERCOMPUTER would give to my question?
You certainly have to be careful not to overfit your algorithm to a certain dataset. Thanks for pointing that out. With that being said, it is certainly possible to continuously work on, improve, and optimize your algorithms without overfitting them.
That’s the beauty of the internet. You don’t need to have a college degree to learn something. There are plenty of other (free or cheap) resources that can help you learn this.
@@wizzwag4617 Information Systems on the infrastructure side. I've been working with more code lately, so I guess it wouldn't be THAT hard to pivot to this kind of thing. Full blown software dev never interested me in college though.
If you did information systems (i guess electrical and electronic engineering) then you are are well placed to trade on companies like Qualcomm, IBM, Dell and AMD, and any other company consuming their products.
What’s the next step after I have wrote an algo on quantopian? How do I forward test with demo account and how can I use the same code from quantopian?
Sadly, Quantopian have recently stopped supporting live and demo trading. So now you can only use it as a research and learning platform. A great alternative that supports live trading through interactive brokers and other brokers is QuantConnect. Otherwise, check out this post to learn about other algo trading platforms: tradeoptionswithme.com/best-algo-trading-platforms/
We have One question ? 1 ) If u said Algo trade Then Why major institutions using professional trade do It work with market Will they Have lot of money So He is thought using Algo trade One robot bring to used at trade Then Why using the human ?
I am not entirely sure if I understand your question correctly. But as far as I can tell you are asking why institutions still use people to trade. That's because, depending on the manager/trader, discretionary trading can be just as profitable as algorithmic trading. Both have their own challenges, advantages, and disadvantages. I wouldn't say that one is superior to the other. They are just different investing methodologies. I hope this answers your question. Otherwise, definitely let me know.
It's best to have a team to do this, not on your own. All the simple trading rules do not outperform the current strategies that require more data and background knowledge. I'm not saying it's impossible to do, it's just going to take you a long time. If you think a simple buy over the 20 SMA and sell below 100 SMA is going to cut it, it won't.
I hope you see this if we could exchange some kind of social media or even phone numbers im extremely interested in this I’d really appreciate it if you could teach me anything about this
@@JackMehoff762 Algorithms don't choose stocks from a scanner. If It could, at the right time, and appropriate ones emerged, this would be useful. The live person still needs to view the vista and volume from a better vantage point.
Hi, I originally clicked on your link for the udemy class on python for financial analysis and algorithmic trading and the cost was $19 I believe. At that moment I didnt sign up for it but am planning on doing it now but it's jumped to $149. What am I missing. Thanks
Thanks for the question. Udemy hold very frequent sales where they discount most courses heavily. If it’s not on sale right now, I’d just recommend waiting until the next sale. This shouldn’t take too long. I hope this helps.
I am sorry, but I am not sure what your question is. Maybe try rephrasing it. If your question is how algorithmic trading is taxed, the answer is that it is taxed the same way as discretionary trading.
I don't have any experience with TradingView which is why I can't give you a detailed answer. But as far as I know, they offer their own scripting language which allows you to build and trade automated trading strategies. If you are interested in a list of other algo trading platforms, you could check out my post here: tradeoptionswithme.com/best-algo-trading-platforms/ I hope this helps.
Everyone says Python is best but PHP OOP is better too I heard and also c++. People are hiring people with PHP and c++ Experience more than Python which is very hard to learn.
Thanks for the input. Python is one of the most used programming languages out of all. Furthermore, it is quite an easy language to learn which makes it great for beginners. Also, most algorithmic trading platforms support Python. In data science, Python is used much more than c++ for example. Nonetheless, other programming languages such as c++ also have their advantages. But for retail algorithmic traders that are just getting started, I would recommend starting with Python simply because the support for Python among algorithmic trading platforms such as QuantConnect is much better than for other languages.
@@TradeOptionsWithMe Python don't have many libraries and API's, well not as many as C++ and PHP. Also Python user created modules are limited too and most of the time you have to write your own which is a task especially on windows. The support is there but not the tools.
Thanks for your reply. I don’t have any experience with PHP which is why I can’t comment on it. But I certainly have to disagree that Python doesn’t have many libraries. It has a very rich collection of diverse libraries for almost anything (especially for data science). I don’t know if it has more or fewer libraries than c++, but in my opinion that’s a flawed comparison anyway. c++ is quite a low-level programming language whereas Python is quite a high level programming language. This difference alone, requires c++ to have many more custom libraries to accomplish things that are automatically done for you in Python (e.g. garbage collection, memory allocation, etc.). I’d say if you are an advanced programmer, c++ allows you to create more efficient algorithms since it gives you more control, but at the same time, accomplishing this requires much more work and a deeper understanding than just using Python. All in all, I still think Python is much more convenient to use for data science applications.
@@TradeOptionsWithMe what I'm trying to say is Python is designed for me to do all the work especially if I'm using a windows system. Government agencies love Python. As a lazy programmer myself, and when I say lazy I don't mean incompenetent but always looking to make my program smaller and simple and yet powerful. I love the idea of modules and also the ability to pull from a module and rename it as an alias and to pull a specific method from a module instead of applying the entire module. Other than these two abilities everything else is boring especially when working with windows you maswell just call it yours or theirs. Anyway enough of my babbling. Happy Holidays.
Why can’t you backtest a discretionary strategy? You just go back on the chart and look at the indicators and see if the price moves in the direction you thought when you get signals.
Thanks for the question. Firstly, I differentiate between systematic and discretionary trading strategies. Systematic trading strategies have a clear set of rules and trading system which is why they can be automated. For discretionary strategies, however, you usually don’t have a clear set of rules (otherwise, it would be a systematic strategy which could be automated). Instead, you have general principles and your discretion that you base your trades on. Looking at a chart after the fact presents you with much more information than you actually have at the time. So manually backtesting discretionary trading strategies is prone to countless biases that makes it very hard to actually evaluate the performance. Furthermore, systematic strategies can be backtested over decades even if the strategy trades 100 times a day. Manually backtesting this long by hand simply isn’t viable. So even if you could reliably backtest your discretionary strategies, you likely wouldn’t be able to do so for a statistically significant amount of time. So the results obtained from backtesting discretionary strategies by hand aren’t very reliable. I hope this helps. Make sure to check out my video on systematic vs discretionary trading for a deeper comparison of the two: tradeoptionswithme.com/systematic-vs-discretionary-trading/
Well Hedgee Fonds are forced by law to buy stocks and they use algos mostly for timing their purchases otherwise they would destroy their prices with these sort of huge orders. Usually they dont trade by themselves they order purchases via banks. So most of these 80% algos are not trading by themselves these are only helping tools to trade manually.
Most algorithmic trading platforms that have a big enough community behind them, have loads of sample algorithms that can be copied and modified. For a list of some of the best platforms, you can check out this post: tradeoptionswithme.com/best-algo-trading-platforms/ Inside of my algorithmic trading playlist, I also have a couple of videos where I code a trading bot and explain how it works. If you want to, you can also copy and play around with those algorithms (there is a link for that in the description box below those videos).
@@TradeOptionsWithMe thank you !! I will check your videos. I'm a newbie in trading (I only trade stocks, no options for now) and electrical engineer specialized in industrial robots programming, I find your video extremely interesting... thanks a lot!
Thanks for the comment. Sadly, Quantopian recently took their service down. Luckily there are many other great alternatives that are just as good. For an overview of some of the best algorithmic trading sites, check out this post: tradeoptionswithme.com/best-algo-trading-platforms/ If you go with QuantConnect, you could check out my algorithmic trading playlist in which I show you how to code a trading bot using Python. I hope this helps.
@@aronteklu4355 Hi Aron, I am not entirely sure what your question is. Could you maybe try rephrasing it? Even though Quantopian is down, the linked Udemy course is still useful since it teaches you very important Python knowledge which you will need to know for QuantConnect (or any other algorithmic trading platform).
How can I improve my development skills on quant connect I have gone through a number of the boot camps but I have trouble developing my own algorithms
Have you checked out my algorithmic trading video playlist? In it, I develop example algorithms and explain each aspect of them. In my opinion, a great way to get better is to use working algorithms (such as the code from one of my videos, the forum, or other tutorials) as a base and then try to really understand how everything works. Then you can try to add your own alterations and improvements. Doing so doesn’t require you to be able to develop your own algorithms from scratch while still learning a lot. Besides the code from my videos and the forum, you could also check out QC’s strategy library for code of finished algorithms.
Thanks for the comment. That's a very tough question to answer and I don't think I can give you a time-frame. It just totally depends on your learning speed, and starting point. Also, I am not sure what it means to master algo trading since there always is room to improve. I'd just recommend to start by learning how to code (if you can't already). As soon as you feel reasonably comfortable with a programming language such as Python, you can start learning the API of a trading platform such as QuantConnect (for tutorials on how to code trading bots on QC using Python, check out my algo trading playlist). In my opinion, it's best to focus on the journey of learning new skills instead of having a fixed "endpoint" in mind. It will take time to learn all this stuff, but it's also a great opportunity to learn a lot of valuable skills. I hope I could help even though I couldn't give you a direct answer.
@@TradeOptionsWithMe yes I currenlty want to acquire more quantitative skills I have a background in financial markets already . But I want to swicht to Algo trading , machine learning applied to this field I am taking courses on Udemy and WorldQuant , I want to get a good level by June before landing an internship
A strategy is always digression. The goal is to automate the thing which we have decided are our parameters. The algo is ONLY better than you if YOU have a solid understanding and strategy in the market. This is a useful tool in a very wide toolkit! Thanks
An program that buys if it crosses above it's 30 day avg and sells if crossing below it's 30 day avg is epitome of a bad move ... Am I right ? Sell and buy or above and below need to be swapped respectively
Depends on your approach. A momentum approach usually buys if a shorter term average crosses above the longer term one. But either way, this was just a simple example. I would not recommend trading with such a simple bot anyways.
I have recently created a FREE algorithmic trading course using Python on CZcams. You can watch it here: czcams.com/play/PLtqRgJ_TIq8Y6YG8G-ETIFW_36mvxMLad.html
Note that Quantopian has shut down its services which is why I use QuantConnect for this series. For a list of other useful algorithmic trading platforms, check out this post: tradeoptionswithme.com/best-algo-trading-platforms/
Even though Quantopian has shut down, would you still recommend the udemy course you've recommended in the video?
I’m 20 and successfully programmed a trading algo in python. You hit it spot on. I went from not knowing python or stocks to becoming profitable (25% in last 20 days). I did everything listed in the video. Good luck to all.
Im 19 in kinda in a rough spot just got layed off wanting to see if this could be a profitable way to get out of this hole. If you ever have free time i would love tips and helpful advice
Hey man that’s amazing! Good luck on tweaking and working your bot up to financial freedom!
How long did it take you from point 0 (not knowing anything about programming and stocks) to today where you’ve deployed the bot and became profitable?
just turned 18. getting my foot in the door early. hopefully, it goes well!
And how is doing?
I'm 16 and I don't even think my brain is developed enough to handle this. But anyways yea im gonna try to go for it (started learning programming about 7 months ago ).
Meanwhile me with no money : print("Hello World") 😄✌️
exactly!
me: load “loader”
on a Commodore 64
Keep going, you will enjoy the process 😊 been there and once you are past the basics it gets very exciting !
Try print($)
😂😂😂
@@the_notorious_bas This should work. 😂😂😂
I was a trader:
- find a profitable strategy: by hand, data analysis
- test by hand
- automate
I am a full time trader I want to automate my trades am starting today learning about python from 100 days challenge in udemy and machine learning and data science I will back to my comment when I finished incha allah ❤
What books did you read?
I really recommend checking out the course 'Python for Financial Analysis and Algorithmic Trading' if you want to become an algorithmic trader: click.linksynergy.com/deeplink?id=ukOn7rXWlQw&mid=39197&murl=https%3A%2F%2Fwww.udemy.com%2Fpython-for-finance-and-trading-algorithms
Is this course suitable for someone with absolutely no programming knowledge.
@@ibrahimvarachhia A short python crash course in included, but if you are completely new to programming, I recommend starting with a complete python programming course instead. I hope this helps.
I have medium level python knowledge but i havent any knowledge about trading is this course suitable for me?
@@dunyacokilginc9192 In my opinion, yes. This course does not require any real trading knowledge.
@Trading Wizard 11
Very well explained. This is one hell of a video that deserves a million likes.
Wanting to get into algorithmic trading is a driving factor in returning to college to learn Computer Science while learning Puthon on my own. I have a very minor history in line programming. Thanks for the video!
Exactly my situation, I have a degree in finance but I’m seriously considering getting a degree in CS
Cmdr I LOOOVEE your profile picture. Such a special number
Hey I am currently on board with this python for finance and algorithmic trading already. I an experienced trader about 2 years trading. I hope to implement some few strategies that I use in trading and finally see how they turn out now that I know programming and data science. I'm so optimistic of what's to become of this knowledge and skill-set.
That sounds like a great plan!
LOL how to get started with algorithmic trading. 1) Learn how to trade 2) learn how to code. 3) Figure out an idea of how to combine the two 4) combine the two
You increased my motivation to learn programming.
That's awesome!
Me 2 br
dude. i tried to code websites and died of boredom. tried coding a synthesizer and lost interest in the hard coding. this has been an *amazing* re-introduction to python. much obliged, kind sir.
Did you start??
TLDW - Step 1 learn how to code, Step 2 Learn how to trade
2x speed
do you really need to have knowledge in coding before you trade? but i saw other people that become a millionaire when they are trading in stock but they don't know how to code.
No, you absolutely do not need to know how to code. I would say that algo trading is a statistical process. Hft algo trading is a structural inefficiency process and manual trading is a tape reading process. Manual trading is very much like learning to play a video game or a musical instrument. Hft is flooded with the highest barrier to entry. Statistical trading is still open but has a high risk of fat tails. You can learn to be useful on a statistical trading floor in school. Manual trading is best learned with practice, just like a musical instrument. Either way, forget being a millionaire and follow your interest. Either way the marathon is way too long for any hopes of getting rich quickly.
@@davidchan9716 thank you sir.. im still learning and making analysis for my daily trading.. thank you again. GOD BLESS US ALL
Aren't we all. I don't think you ever get there, just keep getting closer. Don't sweat it, even the insanely talented don't really have it despite those long runs of 80+% right trades. At the end of the day, those who managed the risk survived. Don't get discouraged. Even when you buy the top you are on the right track, just 180 degrees out of phase. Live and learn... And always remember Reminisces of a Stock Operator.
probably first need to learn the trading strategy properly..
When you say Algorithms, are you talking about Machine Learning and Deep Learning/ time series analysis ? Or simply coding your rules to take a trade. Like close price should be above vwap/20 MA etc..
I’m working as a data scientist and Machine learning engineer, I use python and I’ve been learning technical analysis from last one month. Read few books like Pivot boss, Mark Minervani books and currently paper trading.
I’ll give it a try!!
Hi and thanks for your comment,
With an algorithm I mean a clear set of formal instructions. What kind of programming paradigms you use in your algorithm is completely up to you. Most beginners should start out with basic instructions such as if X do Y, but if you already have some experience, it can certainly be advantageous to implement some machine learning and other more advanced elements to your algorithms.
Hopefully, this answers your question. Definitely let me know if you have any follow-up questions or comments.
So how did it work out?
"Get to the Choppa". Arnold lent his golden voice to this mechanical trading session
Thank you so much for your great introduction about Algorithmic trading, you really gave me the shortcut that I need to start in this track.
Your video is very simple, to the point and helpful.
I am waiting to see more videos, and it's my pleasure to follow you, thanks again :)
Thanks for your comment. It’s great to see that you liked it.
Great content! I appreciate 🙏🏽
Quick questions;
Is there anyway one can just go ahead and buy a tested and working algorithm and use, and what will be your advice on this?
Also will an algorithm with python language work on any brokerage platform? If not which brokerages do you recommend for python algorithms(international ones)?
Hi,
Thanks for the comment. Yes, it is possible to buy premade algorithms, but generally speaking, these aren't that good (otherwise, nobody would be selling them). You can, for instance, buy algorithms in MetaTrader or other platforms.
If you develop an algorithm in python, you will need to use a broker that has an API that support python. As far as I know interactive brokers does have this feature.
TradeStation is another great broker for algorithmic trading. I think they also support python.
But note that the API for each broker is different, so you can't just copy paste the code. You will have to make some adjustments to the code so that it works.
Some brokers such as TradeStation even offer their own programming languages.
I hope this helps. Otherwise, certainly let me know.
use deriv, it's free and try on demo.
hangtuah on streaming! Hello bro, where can I find it and what trading app does it work with?
@@anotheperspective hello, this is the link deriv.com/dbot/
I hit a like button Always. Ur contents are very useful esp options u have been sending via email i have been enjoying those info much appreciated for ur free info. Keep up ur great work and keep growing with youtube once again. Mahalo. From Hawaii
Thank you very much!
@@TradeOptionsWithMe keep up ur great work and i am always much appreciated for all ur free info. Mahalo
Thanks for the video! I spent a few weeks studying and learning how to create my algorithm, did extensive back testing on multiple different investment vehicles, started making a little bit of money, and then immediately lost everything. Guess this didn't work too well for me
Can you go into a bit more details? Didn't you improve your strategy afterwards? Have you stopped Algo trading now?
Great video!
some question here:
1. Do you think algo trading will be ban or to be regulated where using it will become illegal in the future?
2. What level of expertise in coding needed to build your own algo?
thanks. :)
Hi, considering that the vast majority of institutional trading is done algorithmically and it would be a nightmare of a task to change this and incredible hard to enforce a ban, I do not think so. Since our world is moving more and more towards automation, I think algo trading will actually become even more wide-spread.
As for the level of expertise, it totally depends on how advanced of trading algorithms you want to develop. To get a better overview, I recommend checking out my free course on algorithmic trading on my channel. In the introductory video, I go over some prerequisites that might interest you.
Incredibly informative👍, I actually came up with this idea in my mind a while ago and am not surprised to see it’s a real thing, definitely something great to go into, great video👍
Man I really hope I can be an algo trader after college
why not before college?
Thanks for sharing such valuable information.👍 Content of this vedio is great.
thanks for the info. you give my the clear and good direction to go
Hi, i just built my own simple trading strategy based on moving averages and have basically finished building my own backtester for it. What kind of things do you think I should look at next to develop a more complicated and better strategy?
That’s awesome!
I just recently published a video on different types of algorithmic trading strategies. You can check it out here czcams.com/video/5iuF42s6zNo/video.html
Hopefully, that video will give you some ideas on which strategies you could develop.
Absolutely a perfect video! 👏👏👏
thanks so much, this has open my mine!
Great video Mate. Brilliant effort. THX!!!
Thank you very much!
Man , you have won my like 100% great video
Thank you very much!
Great content - I and currently learning data science programming for work (University researcher) but it never occured to me to use programming for my investment strategy. I'm wondering if you would be willing to discuss the performance of your portfolio and how it performs compared to other trading strategies like dollar-cost-averaging into index funds and blue chip stocks? Thanks!
Statistically speaking, there is no significant evidence that a systematic approach is inherently better than a discretionary approach (or vice versa). That’s what a research study from AQR capital has found. But in my opinion, one of the approaches can be a better fit to a person than another. If, for instance, you struggle to control your emotions while trading, a systematic approach might yield better returns than a discretionary approach. For a more detailed breakdown, check out this post: tradeoptionswithme.com/systematic-vs-discretionary-trading/
@@TradeOptionsWithMe great thanks for the response!
Great video, thank you. You should also make a video of you saying "chance" many times, it sounds really cool 😊👍
This is a great startup in the world of trading, please how can I have access to your paid courses? Thank you
Hi, I actually offer a completely free course here on YT nowadays: czcams.com/play/PLtqRgJ_TIq8Y6YG8G-ETIFW_36mvxMLad.html
Great video! Will definitely be subscribing
Great summary video! Where do you draw the line in terms of shortest viable timeframe where a home trader can operate - 2 seconds, 10 seconds?
It’s hard to draw a strict line for the shortest possible timeframe. But when accounting for retail fees, execution, and slippage, I would aim for an average holding time of multiple minutes at least. But there obviously can be many exceptions.
which systems do/would you use for monitoring live trading information online, and feeding it into the algorithm? and which programming language would you suggest if building a bot/algorithm from the ground up?
Thanks for the questions. Which data provider you choose totally depends on what kind of data you want. Depending on which broker you use, they might already provide you with lots of useful data. Otherwise, there are plenty of other sites such as Quandl that you can use to access and analyze more data.
As for the programming language, my favorite one is python. But you will mostly have to use the language that your broker supports when deploying your algo.
I tried visiting Quantopian, but got a DNS error...has the company shut down? Video is great btw, gave a lot of useful info...thanks a lot!
Sadly, Quantopian has recently shutdown but luckily there are many other great algorithmic platforms similar to Quantopian out there. I recommend checking out my post for an overview of some of the best algorithmic trading platforms: tradeoptionswithme.com/best-algo-trading-platforms/
If you choose QuantConnect, you can check out my algorithmic trading playlist for some tutorial videos on sample trading algorithms.
I hope this helps.
I'm an okay programmer and I'm learning trading concepts, but I'm wondering if algotrading would be good as discretionary trading in the long run since there is a more human element involved in discretionary trading (human brain is best computer in the world? :P). With discretionary trading it seems you would build up a deeper, more organic and all encompassing understanding of the market since you as the trader would be the analyzer and executioner of trades, able to see the subtilties an algorithm may not include in its search. Not sure if that made sense but yeah.
Edit: Maybe it would be good to program algorithms to find stocks with specific things I'm looking for and then discretionarily trade them?
Great video btw.
Thanks for the comment. I recommend checking out the following post for a breakdown of discretionary vs systematic trading: tradeoptionswithme.com/systematic-vs-discretionary-trading/
Im learning python just for this
Learning myself too. I recommend Python for Finance by Yves Hilpisch if you want the basics. Not really needed but it’s handy. From there I’ve plugged into IEX Finance and pull in my data and save it to a local database. Since python has sqlite3, it makes saving and retrieving data so easy (note you only get so many requests for IEX per month and I found indexing my own database is so fast when doing back testing). From there I can pull in my data and work out back testing a strategy. This is where it gets really challenging depending on what you’re trying to do. Good luck
@@jasonmeissner1711 thanks Man i really appreciate this
Also check out sentdex on CZcams if you haven't already. Amazing channel and really cool projects using Python
To AKB: It is good to use buy stops for entry along with bracket orders with programmed PT and SL. Usually, if the price lifts or moves up, the volume will relay some semblance of sanguinity.
Exactly
The code literally buys high sells low! But good video!!!!
If you want to see me code some actual trading bots, check out my other videos
Hey thanks for taking the time to do this. But I'll say this :
I still don't get how they determine the value of a share when supply and demand of share itself is not taken into account. And do they make an estimation every day ? every quarter ? every hour. please help me
It’s completely up to you. You can incorporate whatever variables you want to and focus on any time frame. For more details and examples, you could check out some of my other videos or my free algo trading course on my channel
Thanks for the awesome introductory video .. ♥️
This sounds great and all however some people are just looking for preset algorithm and not have to design and program themselves people are just looking for a program to get himself going and start trading. What do you think about this do you have any other recommendations??
Thanks bro, great video! Good luck with your models
Thank you!
Can you make a video summing up the BASICS , and links to learning resources?
Thank you very much for the video it is simple and great
Is it possible to trade physical backed platinum and palladinum Etfs with algorithmic trading
Do you recommend any platform (not CFDs)
Hey,
Thanks for the comment. Which sector you decide to use your algorithms in is completely up to you. With that being said, certain asset classes have more available platforms. For instance, Quantopian only allows you to trade/research equities (including ETFs). I recommend looking for a broker that supports the asset types that you want to trade and then look if they have an open API that allows you to send orders automatically.
I hope this helps.
Congratulations for a great video.
could you recommend us a course for learning the basics of programing for before taking the algorithmic trading courses?
CEST TRÉS MAGNIFIQUE!.. MERCI BEAUCOUP !!.. SALUTATIOS DE LIMA!🇵🇪👍🏼🙋🏻♂️
Great video! how long does it take for everyone to learn?
Thanks for helping out man ❤️
Foe a newbie little overwhelming but makes a sense good content i hit the like button. Mahalo from Hawaii
Well yea, a newbie shouldn't be jumping into algorithmic trading. That's like a high school freshman quarterback joining the NFL combine xD
@@BookOfMorman Thank u for ur input but for my future reference do u know any excellent youtube channels that share about great algorithmic trading contents if u do let me know stay safe. Warm Aloha from. all the way from Hawaii. Mahalo
@@bronsonlee7372 I can recommend some day trading channels and books on fundamentals but I don't dabble much in algorithmic trading. Good luck! Much love! 🙏🏼
@@BookOfMorman I assume u are a viewer of tradingoptionswithme as a newbie i am strongly interested in options trading so if u find good channels for this old man and a newbie plz let me know much appreciated Mahalo from aloha state thanks again.
Hi, what you mean with high-frequency trading? something like binary options or trading with operations that last minutes ? Does algorithm trading is useful for binary options?
Hi,
Algorithmic trading strategies can be deployed in almost any market sector, including binary options. With that being said, I recommend being very cautious when it comes to binary option brokers. The binary option market is filled with countless shady companies.
High frequency trading usually has nothing to do with binary options. It is an algorithmic approach that many institutional trading firms use. It requires a large infrastructure that allows you to scan and execute millions of order within milliseconds. It isn’t really a viable strategy for retail traders. I recommend checking out Michael Lewis’ book ‘Flash Boys’ if you want to learn how high frequency trading came to be.
I hope this helps.
Go Guido Granda: HFT will sink one into the sand, as the professional hedge funds prevail. The Reddit boys' games will not last with their own movement as they consider copulating, consternating, and crashing *their own* newbies -- as if they were hedge fund operators themselves!
Thanks, btw:
In November 2020, Quantopian announced it will shut down after having operated for 9 years
That is true. However, there is a similar site now called QuantConnect. I offer a free course on them if you are interested: czcams.com/play/PLtqRgJ_TIq8Y6YG8G-ETIFW_36mvxMLad.html
absolutely excellent video. SUBBED. 👍
I know python and data science I even know deep learning, I accept this challenge👍
So I should develop an algorithm and train it and optimize it, and see if it's over fitting the training data and then test it again. That's sounds good
Going well?
Which would be preferred, Python or C++?
Python is much easier to use, but C++ is much faster. Question is whether there is any benifit in the latter for retail/hobby traders...
C++ for HFT and Python for data analysis, modeling and low frequency trading.
Most importantly is to understand how you can hedge your short positions sometimes using other short positions ! Plus training to achieve high levels of Statistics and DB + ML
Having a good understanding of statistics is definitely a key skill to master when developing profitable trading algorithms.
Any other courses you recommend, since Quantopian has closed, seems the course mentioned is structured around it?
Even though it’s not a real course, you could check out my algorithmic trading playlist here on CZcams. In it, I go through example algorithms that I implemented in QuantConnect which is a very similar platform.
I hope this help.
@@TradeOptionsWithMeSounds great, thanks!!
What are the best algorithmic trading softwares you can get? (Not making one but using one on the internet)
Quantopian, Metatrader, and your broker’s API are the ones I can think of at the top of my head.
TradeOptionsWithMe thanks for the fast reaction!
Unfortunately Quantopian is gone. Do you know any other similar platforms? I would appreciate any input. Cheers!
Yes! Check out the description box. A great alternative is QuantConnect, I even offer a free coding course for QuantConnect under the playlist section of my channel.
When using the MT4 platform, do you know if your broker is able to see your MQL4 code?
I have no experience with MT4 so I can’t really comment on this, but I’d hope not.
Thanks for the quick reply! That’s the thing that kinda bothers me with coding an algo. The idea that the broker can know what your algo is made of is my main concern. Wouldn’t really matter if your broker was an equity broker that just executed the trades and collects the commission. Not only don’t they care if you make money or not but it would actually be in their interest since you’d be continuing to trade, whereas a CFD FX broker would not want you to be profitable since they make money by being on the other side of your trade.
@aboctok Thanks for the answer aboctok, could you elaborate on that please? I’m not sure if you’re saying that it depends if the broker can see the code, or that it depends if they mind your being profitable or not.
@aboctok I’m really enjoying this conversation honestly. That’s something that’s been stopping me from getting started. I hate the idea that someone can have access to the code. I had done some research in the past and like you said, there seems to be quite some disagreement among people on whether or not it’s possible. Some claim they had profitable strategies that became unprofitable once coded which led them to believe that the broker had access to the algo and purposely sabotaged the execution of their trades. I’m not necessarily saying I believe those stories, but it does raise the question and it’s always better to do some research beforehand.
I’ve actually coded c++ a few years ago so I should be able to get used to it pretty quickly. Do you have any recommendations of programs that I could use to make the algo in c++ which could communicate with MT4?
@aboctok The way you explain it does make sense. I guess these brokers do exist but likely are located in poorly regulated countries with little oversight. I’m assuming that as long as you stay with a reputable, regulated broker that has permission to offer their services to countries such as the US you’re safe and don’t need to worry about them seeing your code. I’m still going to go with your solution though as I feel more comfortable knowing that the logic is hidden from the MT4 platform. I’ll be reviewing my C++ knowledge tomorrow for a few days to get the hang of it after not using it for a few years. 😀
I’ll take a look at visual studio, thanks for the recommendation! 10 gigs seems not too bad, definitely something I’m willing to do to be able to sleep well knowing my EA is safe. Do you pull the data (price, indicators etc)from MT4 and code all the algo in Visual Studio?
SEEK YOUR WISDOM SIR, I have 2 choices--1) buy one given forex pair every new day at the open at market price wth take profit(TP) 50 pips and stop loss(SL)50 pips on one ticket as one order 2) second choice is to buy same pair but order is placed as pending order at the open of every new day--buy the same forex pair 100 pips below the open price as pending order with take profit of 50 pips and stop loss of 50 pips all on the same ticket.And after one year of every day trading which strategy is more likely to make any money?And what answer SUPERCOMPUTER would give to my question?
great video. helped me a lot. thanks
Is there a specific program that is best to learn?
You can check out QuantConnect. I have a free course for them that you can check out under my channel’s playlists.
To keep optimizing is the best way to overfit.
You certainly have to be careful not to overfit your algorithm to a certain dataset. Thanks for pointing that out.
With that being said, it is certainly possible to continuously work on, improve, and optimize your algorithms without overfitting them.
I studied the wrong thing in college....
That’s the beauty of the internet. You don’t need to have a college degree to learn something. There are plenty of other (free or cheap) resources that can help you learn this.
😂😂😂 for real
Dancing? ahaha
@@wizzwag4617 Information Systems on the infrastructure side. I've been working with more code lately, so I guess it wouldn't be THAT hard to pivot to this kind of thing. Full blown software dev never interested me in college though.
If you did information systems (i guess electrical and electronic engineering) then you are are well placed to trade on companies like Qualcomm, IBM, Dell and AMD, and any other company consuming their products.
What’s the next step after I have wrote an algo on quantopian? How do I forward test with demo account and how can I use the same code from quantopian?
Sadly, Quantopian have recently stopped supporting live and demo trading. So now you can only use it as a research and learning platform. A great alternative that supports live trading through interactive brokers and other brokers is QuantConnect. Otherwise, check out this post to learn about other algo trading platforms: tradeoptionswithme.com/best-algo-trading-platforms/
so there is no more Quantopian, do you have a suitable alternative?
Yes, QuantConnect. I have a free video course for them as well. Check out the playlists of my channel.
@@TradeOptionsWithMe thank you
Very useful
In the course.... How to developed a strategy for market or only coding section
I will bring out a free video course on algorithmic trading very soon.
What are people using now that Quantopian is no longer around?
QuantConnect is a great alternative. I have a free tutorial series in them on my channel
Thank you
We have One question ?
1 ) If u said Algo trade Then Why major institutions using professional trade do It work with market Will they Have lot of money So He is thought using Algo trade One robot bring to used at trade Then Why using the human ?
I am not entirely sure if I understand your question correctly. But as far as I can tell you are asking why institutions still use people to trade.
That's because, depending on the manager/trader, discretionary trading can be just as profitable as algorithmic trading. Both have their own challenges, advantages, and disadvantages. I wouldn't say that one is superior to the other. They are just different investing methodologies.
I hope this answers your question. Otherwise, definitely let me know.
This is very well explained
Thank you!
is there any platform out there that can back test option strategy automation on spy?
QuantConnect is one platform that allows you to backtest options strategies.
It's best to have a team to do this, not on your own. All the simple trading rules do not outperform the current strategies that require more data and background knowledge. I'm not saying it's impossible to do, it's just going to take you a long time. If you think a simple buy over the 20 SMA and sell below 100 SMA is going to cut it, it won't.
Thanks for sharing your opinion. The SMA strategy was just a very simple example to illustrate what an automated strategy could look like.
TradeOptionsWithMe understood, just that, people need to know not to DIY algo trading because its more efficient to have a team to do it.
6:50 Me, a programmer: Challenge. Accepted.
yes sir
I hope you see this if we could exchange some kind of social media or even phone numbers im extremely interested in this I’d really appreciate it if you could teach me anything about this
@@JackMehoff762 Algorithms don't choose stocks from a scanner. If It could, at the right time, and appropriate ones emerged, this would be useful. The live person still needs to view the vista and volume from a better vantage point.
Do you have a good algorithms for trading
You could check out this video for some inspiration: czcams.com/video/5iuF42s6zNo/video.html
@@TradeOptionsWithMe i mean a algorithm for sell or i can use now
No, I currently do not sell any algorithms.
You are amazing 👍👍👍
Hi,
I originally clicked on your link for the udemy class on python for financial analysis and algorithmic trading and the cost was $19 I believe. At that moment I didnt sign up for it but am planning on doing it now but it's jumped to $149. What am I missing.
Thanks
Thanks for the question. Udemy hold very frequent sales where they discount most courses heavily. If it’s not on sale right now, I’d just recommend waiting until the next sale. This shouldn’t take too long.
I hope this helps.
Thank you. I'll wait
@@TradeOptionsWithMe Sometimes you can even use your phone or browse incognito and it will give a sale price too
What's tax part of this trading, please tell me?
I am sorry, but I am not sure what your question is. Maybe try rephrasing it.
If your question is how algorithmic trading is taxed, the answer is that it is taxed the same way as discretionary trading.
Could I trade algo on the platform tradingview?
I don't have any experience with TradingView which is why I can't give you a detailed answer. But as far as I know, they offer their own scripting language which allows you to build and trade automated trading strategies.
If you are interested in a list of other algo trading platforms, you could check out my post here: tradeoptionswithme.com/best-algo-trading-platforms/
I hope this helps.
well explained sir, i would like to see more of these videos.. please upload.
10:21 road map
pretty awesome video
Thanks!
Everyone says Python is best but PHP OOP is better too I heard and also c++. People are hiring people with PHP and c++ Experience more than Python which is very hard to learn.
Thanks for the input. Python is one of the most used programming languages out of all. Furthermore, it is quite an easy language to learn which makes it great for beginners. Also, most algorithmic trading platforms support Python. In data science, Python is used much more than c++ for example. Nonetheless, other programming languages such as c++ also have their advantages. But for retail algorithmic traders that are just getting started, I would recommend starting with Python simply because the support for Python among algorithmic trading platforms such as QuantConnect is much better than for other languages.
@@TradeOptionsWithMe Python don't have many libraries and API's, well not as many as C++ and PHP. Also Python user created modules are limited too and most of the time you have to write your own which is a task especially on windows. The support is there but not the tools.
Thanks for your reply. I don’t have any experience with PHP which is why I can’t comment on it. But I certainly have to disagree that Python doesn’t have many libraries. It has a very rich collection of diverse libraries for almost anything (especially for data science). I don’t know if it has more or fewer libraries than c++, but in my opinion that’s a flawed comparison anyway. c++ is quite a low-level programming language whereas Python is quite a high level programming language. This difference alone, requires c++ to have many more custom libraries to accomplish things that are automatically done for you in Python (e.g. garbage collection, memory allocation, etc.).
I’d say if you are an advanced programmer, c++ allows you to create more efficient algorithms since it gives you more control, but at the same time, accomplishing this requires much more work and a deeper understanding than just using Python. All in all, I still think Python is much more convenient to use for data science applications.
@@TradeOptionsWithMe what I'm trying to say is Python is designed for me to do all the work especially if I'm using a windows system. Government agencies love Python. As a lazy programmer myself, and when I say lazy I don't mean incompenetent but always looking to make my program smaller and simple and yet powerful. I love the idea of modules and also the ability to pull from a module and rename it as an alias and to pull a specific method from a module instead of applying the entire module. Other than these two abilities everything else is boring especially when working with windows you maswell just call it yours or theirs. Anyway enough of my babbling. Happy Holidays.
You certainly bring up some valid points. Thanks again for sharing your thoughts. Happy holidays to you too!
Why can’t you backtest a discretionary strategy? You just go back on the chart and look at the indicators and see if the price moves in the direction you thought when you get signals.
Thanks for the question. Firstly, I differentiate between systematic and discretionary trading strategies. Systematic trading strategies have a clear set of rules and trading system which is why they can be automated. For discretionary strategies, however, you usually don’t have a clear set of rules (otherwise, it would be a systematic strategy which could be automated). Instead, you have general principles and your discretion that you base your trades on. Looking at a chart after the fact presents you with much more information than you actually have at the time. So manually backtesting discretionary trading strategies is prone to countless biases that makes it very hard to actually evaluate the performance. Furthermore, systematic strategies can be backtested over decades even if the strategy trades 100 times a day. Manually backtesting this long by hand simply isn’t viable. So even if you could reliably backtest your discretionary strategies, you likely wouldn’t be able to do so for a statistically significant amount of time.
So the results obtained from backtesting discretionary strategies by hand aren’t very reliable.
I hope this helps. Make sure to check out my video on systematic vs discretionary trading for a deeper comparison of the two: tradeoptionswithme.com/systematic-vs-discretionary-trading/
Well Hedgee Fonds are forced by law to buy stocks and they use algos mostly for timing their purchases otherwise they would destroy their prices with these sort of huge orders. Usually they dont trade by themselves they order purchases via banks. So most of these 80% algos are not trading by themselves these are only helping tools to trade manually.
Hi ... thanks for the info. Do anyone knows if there is an online library where we can find trading template programs that we can modify?
Most algorithmic trading platforms that have a big enough community behind them, have loads of sample algorithms that can be copied and modified. For a list of some of the best platforms, you can check out this post: tradeoptionswithme.com/best-algo-trading-platforms/
Inside of my algorithmic trading playlist, I also have a couple of videos where I code a trading bot and explain how it works. If you want to, you can also copy and play around with those algorithms (there is a link for that in the description box below those videos).
@@TradeOptionsWithMe thank you !! I will check your videos. I'm a newbie in trading (I only trade stocks, no options for now) and electrical engineer specialized in industrial robots programming, I find your video extremely interesting... thanks a lot!
Great overview. Please enable closed captions! I had a hard time hearing while eating Grape Nuts :-)
is the quantopian Working I check their website its not Working ??
Thanks for the comment. Sadly, Quantopian recently took their service down. Luckily there are many other great alternatives that are just as good. For an overview of some of the best algorithmic trading sites, check out this post:
tradeoptionswithme.com/best-algo-trading-platforms/
If you go with QuantConnect, you could check out my algorithmic trading playlist in which I show you how to code a trading bot using Python.
I hope this helps.
@@TradeOptionsWithMe Yes sire It Did I already Enrolled in Udemey Do you have them there those list ?
@@aronteklu4355 Hi Aron, I am not entirely sure what your question is. Could you maybe try rephrasing it?
Even though Quantopian is down, the linked Udemy course is still useful since it teaches you very important Python knowledge which you will need to know for QuantConnect (or any other algorithmic trading platform).
The 3 hedge funds you mentioned use algoritmic as a tool not has something 100% mechanical, not by a mile.
How can I improve my development skills on quant connect I have gone through a number of the boot camps but I have trouble developing my own algorithms
Have you checked out my algorithmic trading video playlist? In it, I develop example algorithms and explain each aspect of them.
In my opinion, a great way to get better is to use working algorithms (such as the code from one of my videos, the forum, or other tutorials) as a base and then try to really understand how everything works. Then you can try to add your own alterations and improvements. Doing so doesn’t require you to be able to develop your own algorithms from scratch while still learning a lot.
Besides the code from my videos and the forum, you could also check out QC’s strategy library for code of finished algorithms.
@@TradeOptionsWithMe thank you I’ll start working through that
I know how to code. Now I need to learn how to trade
And I know how to trade.
Wasnt there a discount on the udemy course yesterday? it was 15€ now it is 200?
Udemy has sales all the time. So if it’s too expensive right now, just wait until the course is under $20 again.
how many months do you need to master algo trading on 25 hours /week ?
Thanks for the comment. That's a very tough question to answer and I don't think I can give you a time-frame. It just totally depends on your learning speed, and starting point. Also, I am not sure what it means to master algo trading since there always is room to improve. I'd just recommend to start by learning how to code (if you can't already). As soon as you feel reasonably comfortable with a programming language such as Python, you can start learning the API of a trading platform such as QuantConnect (for tutorials on how to code trading bots on QC using Python, check out my algo trading playlist).
In my opinion, it's best to focus on the journey of learning new skills instead of having a fixed "endpoint" in mind. It will take time to learn all this stuff, but it's also a great opportunity to learn a lot of valuable skills.
I hope I could help even though I couldn't give you a direct answer.
@@TradeOptionsWithMe yes I currenlty want to acquire more quantitative skills I have a background in financial markets already . But I want to swicht to Algo trading , machine learning applied to this field I am taking courses on Udemy and WorldQuant , I want to get a good level by June before landing an internship
@@wenceslasebe1003 That sounds like a great plan!
@@wenceslasebe1003 how is it going?
@@alexpeak1008 still in the process just joined a master in quantitative finance and big data
A strategy is always digression. The goal is to automate the thing which we have decided are our parameters. The algo is ONLY better than you if YOU have a solid understanding and strategy in the market. This is a useful tool in a very wide toolkit!
Thanks
Well said.
An program that buys if it crosses above it's 30 day avg and sells if crossing below it's 30 day avg is epitome of a bad move ... Am I right ? Sell and buy or above and below need to be swapped respectively
Depends on your approach. A momentum approach usually buys if a shorter term average crosses above the longer term one. But either way, this was just a simple example. I would not recommend trading with such a simple bot anyways.
good
12:46 Quantopian is now defunct. "Due to the underperformance of its investment strategies." So much for Algo-Trading by amateurs.
Crazy huh ?