Algorithmic trading

[Grey1]

. I respect you for what you do Grey1 but I am not going wrong, at all.

Good trading to you.

We all go wrong some times including myself. Nothing wrong with being wrong ,, As a trader I am wrong many times a day but that is fine ,, All part of the game buddy . Chill out no one wants to teach you lesson here,, IN fact no one is above any one else ,, lets all make money ,,, The point I was making was

Financial engeering deals with noise in terms of risk ,, If you are not into risk analysis or you never worked on risk models then what i wrote above is no good to you ,, I assumed you was into noise analysis because you said there was no noise in the market or some thing to that effect..

All in all, no one is proving you wrong ,,I disagreed with your comment but this is fine,, My research supervisor nearly always disagreed with my views too so what, this is how the knowledge evolves,, NO one is GOD and NO one knows it all ,,,


Good luck with your trading

grey1

 

[Paul71]

The fact that trading can be automated should give newbies a little hint into the obvious simplicity of trading. Of course, the constant stream of BS that noobs are open to doesn't help.

 

[jamescummins]

Hi Paul,

I agree to an extent - but, what I think new traders can potentially read into that is an over-simplification; that the rules used by automated algorithms are particularly simple, or are easily replicated. Black-box trading relies on some quite incredibly in depth techniques, and as such, it not particularly easily replicated by people new to trading.
If for example, you had a methodolgy that said when there is volume above the offer join the offer, or join the bid, or whatever it is yuo want to do, there would already be an algo running that did that. Considering the amount spent by hedge funds, investment banks, research teams, and all the other parties in developing these automated strategies, it should be clear to new traders that these are not easily replicated. Even if you could replicate it - the big firms would be quicker, and would be filled before you even noticed the trade (quicker connections, processing speeds etc etc)

In conclusion to my waffle If it was simple, quick and easy to build an automated system, it would already have been done. I dont mean to sound defeatist, but I think that is the truth.

*feel free to take my point to pieces

 

[imranmir1]

Simple or not, I start trading by the end of this month...simulator first. I would highly appreciate if anyone can suggest some websites etc to get the latest news feed/info on trading. I have started watching the Bloomberg channel...80% of the news they telecast goes over my head though but one day I will get it!!! Wish me luck guys.

 

[Paul71]

Hi Paul,

I agree to an extent - but, what I think new traders can potentially read into that is an over-simplification; that the rules used by automated algorithms are particularly simple, or are easily replicated. Black-box trading relies on some quite incredibly in depth techniques, and as such, it not particularly easily replicated by people new to trading.
If for example, you had a methodolgy that said when there is volume above the offer join the offer, or join the bid, or whatever it is yuo want to do, there would already be an algo running that did that. Considering the amount spent by hedge funds, investment banks, research teams, and all the other parties in developing these automated strategies, it should be clear to new traders that these are not easily replicated. Even if you could replicate it - the big firms would be quicker, and would be filled before you even noticed the trade (quicker connections, processing speeds etc etc)

In conclusion to my waffle If it was simple, quick and easy to build an automated system, it would already have been done. I dont mean to sound defeatist, but I think that is the truth.

*feel free to take my point to pieces

No, i agree with you James. Systems need to be kept in check and tweaked up, one specific market isn't always as clear as crystal, this where human intervention helps. In the main, i think computers are used for churning but not nesseccarilly earning. Just my opinion. Thanks.

 

[Market Wizard]

Simple or not, I start trading by the end of this month...simulator first. I would highly appreciate if anyone can suggest some websites etc to get the latest news feed/info on trading. I have started watching the Bloomberg channel...80% of the news they telecast goes over my head though but one day I will get it!!! Wish me luck guys.

Forget the news if you really want to succeed. Especially if you are a beginner.

There is a thread started by one of the members that may give you more info on trading.

http://www.trade2win.com/boards/first-steps/38100-i-want-learn.html

Begin to understand price movements and what a chart is saying ,how you can make a decision based on what you see, how you will trade it and manage it.

Sounds simple. Give it a go and good luck.

 

[gamma]

Simple or not, I start trading by the end of this month...simulator first. I would highly appreciate if anyone can suggest some websites etc to get the latest news feed/info on trading. I have started watching the Bloomberg channel...80% of the news they telecast goes over my head though but one day I will get it!!! Wish me luck guys.

Watching and listening to the idiots they have as guests will gurantee you only one thing

a loss!!!!