Top 6 Algorithmic Trading Strategies!
ฝัง
- เผยแพร่เมื่อ 6 พ.ค. 2020
- To help gain a much better understanding of quantitative trading, I want to give you an overview of all the different algorithmic trading strategies that exist. Besides improving your understanding, this should also help you decide what kind of algorithmic trading strategy you want to learn more about. Regardless, of your risk tolerance, preferred time frame, and favorite asset class, there is a strategy that is right for you.
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It's so refreshing to see high-quality content on this topic from someone who clearly means well.
And there are no scammers pushing bitcoin scams in your comments, again so refreshing. Thanks for this wonderful video.
Thank you for the positive feedback. I am very glad to see that you like my content!
This is a good one, traders with no experience in financial markets repeat the same mistakes that cost them dearly
Very clear exposition of the basics. Banger of a video, thanks.
This video was on my recommendation. I completely agree with this. Well organized and documented!
Thank you so much. This helped a lot!
Thank you very much for your videos. They are all very helpful. I have advanced degrees in Finance and Economics and I use python on daily basis. You inspired me dozens of projects that I can work on in the future. Thanks again. Your explanation is very simple but informative.
That’s awesome! I am glad you like my videos.
nicely and clearly explained video. I like the drawings as well!
Excellent video.
Thank you for sharing.
Man cant believe this video is free to watch
I cant believe ur comment is free to read
It's epic video. Comprehensive algorithmic trading
Thank you so much, god bless you!!!!!!!!!!!!!!!!
Great job mate
Love it!
wow Best Video Bro Keep It Up
I'm Forex trader and cryptos the most, for some years and starting to learn to code for my own strategies i love algos, it's other kind of different subject than Mql4 for metatrader, this videos it's having a full understand of all market as well as i know in different strategies i'm using manual, but since this is a more complex it´s worth great video my friend thank you i'm sticking to your videos and advices how to also learn algorith trading and what is it, so for me in the years to come i will be more confident to automatize strategies to be more relax.
Great video will be using in my automation
excellent video.
Thank you!
Great video, Louis. Thank you!
Lovely Video! Apologies for the intrusion, I would love your thoughts. Have you considered - Saankramer Winning Step System (do a search on google)? It is an awesome one of a kind guide for learning how to start earnings on forex fast without the headache. Ive heard some decent things about it and my close friend Aubrey got cool results with it.
This is glorious, I have been researching "equity trading guide" for a while now, and I think this has helped. You ever tried - Annahiy Stockify Sabinianus - (just google it ) ? Ive heard some amazing things about it and my co-worker got amazing results with it.
you are a legend, i subbed...
Thanks!
Or you can keep it simple... Price moves in waves and you are trying to catch one of these 3 stages:
- Momentum switch: your algo is trying to catch the start of a new wave.
- Countertrend: the algo is trying to anticipate the peak or bottom of an existing wave.
- Zero cross: The algo is entering in the mid-point of an existing wave, and assumes there is room left before reaching a turning point.
Each market is a different animal, and one of those 3 stages could be their weakness (i.e Countertrend for EURUSD or Zero-cross for most GBP pairs on the Daily TF).
Can you elaborate more on zero-cross?
@@animeshsahu2803 If you want to see a "zero-cross" in action, take a look into a MACD histogram or normalized oscillator. You could build an algo by using a middle-cross as signal. For example, when histogram goes below the middle point (zero) you sell and when it goes above you buy. You are assuming that there is still movement left for such wave and are trying to reach a price over-extension (also known as overbought/oversold).
You will notice that these signals are usually a lot slower than slope switching or countertrends, but eliminates a lot of false signals. You can speed up the algo by switching the averaging method and lookback periods (ie: Instead of using simple or exponential try KAMA or FRAMA averaging in your oscillators; google them up). You can build a well balanced portfolio by mixing these 3 types.
Rock solid content Im adding this to my trading school
Thank you for covering general trading strategies.
great video!
Thank you!
Hi! As always very awesome content! I have a question for you. What's your opinion about mean reversion strategies? I mean, markets are a random sequence of time series data, where given prices are not pure random but the behaviour and "patterns" like mean reversion can change from one day to one... Don't you think is a kind of gambling use a mean reversión strategy?
Thanks in advance.
A good mean reversion strategy, is your ability to always stay hedged and patience. That is not always easy hence the risk of Gamble.
@@onekycarscanners6002 thanks for your feedback.
@TradeOptionsWithMe what's your opinion about this?
What is the difference between mean-reversion (via pairs trading) and statistical arbitrage?
In statistical arbitrage strategies, you usually don’t only look at the correlation between 2 securities. Instead, you often look at and analyze the correlations between hundreds of different securities and look for small inefficiencies. Even though this is still based on the pairs trading idea, I wouldn’t directly call it a mean reversion strategy.
I hope this answers your question.
TradeOptionsWithMe answered mine
can you please tell me
what if i want to trade through trading bot on exchange platform that i use
and i did not want my limit order to show up in order book on the basic exchange platform
what i meant here is hidden order on the basic exchange platform
So can you please tell me what is the name of this strategy
Gonna have to try this with my EagleFX account next time I load it up!
i have a trading stratigy and i know someone who knows how to code . but how do i give them the right information to code it into trading
Firstly, you need to make sure that you actually have a complete strategy. Try to write it down in an “if this then do that” manner. You only have a strategy if you actually cover every possible case.
As for coding, you could check out some of the best algorithmic trading platforms here: tradeoptionswithme.com/best-algo-trading-platforms/
For examples of how to code a trading bot using Python, you could check out my algorithmic trading video playlist.
@@TradeOptionsWithMe im gonna check out yourr playlist now and yeah i got a complete strategy . Also destinction graduate of london academy of trading
Where u get the chart for spy-QQQ?
What kind of servers are you using for trading algorithms?
QuantConnect since they allow you to create, backtest, and host your algos in one place: www.quantconnect.com/?ref=towm
I have a course in which you also learn how to create algorithms using Python and their platform.
Great video! Sub'd
Do you have profitable trading bots on the markets?
Top).
Indicator + candlestick pattern + ??? = ??? can we make this ?
SIR, Which support is more likely to hold-- A) one with fractal support Or B) one without fractal support?
Which support is more likely to hold A) fresh recent support--not tested before Or B) Support which has proved successful being tested many times before?
Which support is more likely to hold A) where price spent little time before being repelled away successfully Or where price spent a lot of time before moving away?And I Seek your wisdom on these life & death questions.
Awesomeness.
Will it work for crypto,,?
Yes, check out my free algorithmic trading course playlist. There you will learn how to code your own algorithms using Python and QuantConnect. I’ll release a video demonstrating how to trade crypto like that soon.
Whilst you have made this accessible, you talk about algorithmic trading - do you teach how to code in your course? What is your own background that means you can teach us?
You can check out my free course here: th-cam.com/play/PLtqRgJ_TIq8Y6YG8G-ETIFW_36mvxMLad.html
I also go over coding in it, but I expect you to already be familiar with basic Python
@@TradeOptionsWithMe what's your experience with python? Are you a hobbyist or professional coder? How many years experience do you have? I can't find it on your Web page.
love the europian accent . wonder what's his nation?
My mother tongue is German. I have, however, lived in many countries including Switzerland, Denmark, the UK, and the US.
@@TradeOptionsWithMe beautiful
Why not just use a couple of emas or moving averages?
You can certainly use moving averages as tools inside of a given strategy. For instance, they are great to measure an average for a mean reversion strategy. Note that how you implement your strategy is entirely up to you. You can make it as simple or complex as you want to. So it is definitely possible to create a strategy that solely relies on moving averages for its trade signals. The performance of such a simple strategy, however might not be very outstanding.
Könnten Sie ein Buch über dieses Thema empfehlen?
Ich finde "Inside the black box" ist ein sehr gutes Buch in diesem Themenbereich: amzn.to/3vGJngN
Ansonsten wird "Quantitative Trading" von Ernest Chan oft empfohlen: amzn.to/3c2dnfi (das habe ich jedoch noch nicht gelesen)
What platform can I use for this?
Thanks for the question. 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.
It does, thanks for the quick reply and amazing content #Respect🙏🏾
I made my own trading robot and tested it on old data and found that it was 80% effective, but when I tried it on real data, I noticed that it was not working, I don’t know why, even though I use a good server with a fast speed
Thanks for the comment. Note that there is a huge difference between historical results and actual real-life results. These differences can be due to biases, errors, market changes and much more. I have two videos going over some of the potential problems when it comes to analyzing backtest results that you can check out here:
th-cam.com/video/VmD2fUt8KYY/w-d-xo.html
th-cam.com/video/oFvYbfDOJ5c/w-d-xo.html (this one is part of my free algo trading course)
I recommend using QuantConnect since they allow you to create, backtest, and host your algos in one place: www.quantconnect.com/?ref=towm
In my course, you also learn how to create algorithms using Python and their platform.
data leakage should be the problem definitely
trades still not happen instantly like in your simulation. Real time trading is a very copetitive field. A "good" server is simply not good enough here. We are talking reactions to price movents in nanoseconds
10:55
You did not do the TWAP strategy.
Thanks Count Chocula; it's sad you had to change your regular job and learn to code. Hard times for all of us, I know :'(
😂🤣
Rsi!!!
Rsi is awful
Hypothetical.
Whos voice is this ?
It’s mine.
Morgan Freeman
Mine
Actually mine
Forrest Gump
1:23 This is known as the gambler's fallacy and is false for human heights. It may be true for stocks, but that's because movement of stock prices are not time independent.
Hi Mike,
Thanks for your comment. I think you misunderstood me. Since human height is a normally distributed variable, you are much more likely to meet a person with a height near the mean than a person that is particularly short or tall. I am not saying that this probability changes just because you met a tall person like the gambler's fallacy would imply. But if you meet a person that is taller than 90% of the population, chances are high that the next person you see is part of this 90% and thus shorter than the tall person.
I am sorry if I didn't make this clear enough.
If you are interested in a detailed breakdown of the gambler's fallacy, and 9 other trading-related biases, you could check out this video: th-cam.com/video/oDJBscAgDFk/w-d-xo.html
@@TradeOptionsWithMe Yes, that is correct. Seeing a taller than average person doesn't change the probability distribution of heights you will see in the future, but you would still expect them to be shorter than that initial person on average because that person was taller than the mean. Thanks for the quick response!
Price is not mean reversing, that’s a jolly inanity you got going on here ...
English is not his first language, so give him a break.
You said that if you meet a tall person, that there's higher chance that the next person will be shorter. That's not true, and is an example of gambler paradox, gamblers often think that if they lost many times on a bandit machine, their probability of winning increases so they can bet more. In fact the probability is constantly the same (unless the bandit machine cheats).
As for people, even the opposite may be true, eg when a group of basketball players is coming, all of them are very tall.
Hi Mike,
Thanks for your comment. I think you misunderstood me. Since human height is a normally distributed variable, you are much more likely to meet a person with a height near the mean than a person that is particularly short or tall. I am not saying that this probability changes just because you met a tall person like the gambler's fallacy would imply. The probability distribution stays constant. But if you meet a person that is taller than 90% of the population, chances are high that the next person you see is part of this 90% and thus shorter than the tall person.
I am sorry if I didn't make this clear enough.
If you are interested in a detailed breakdown of the gambler's fallacy, and 9 other trading-related biases, you could check out this video: th-cam.com/video/oDJBscAgDFk/w-d-xo.html
I don't think retail trader can profit from them
Writing options via algorithms? ... which broker let's you do that ? None I think.
Most brokers that have an open API and offer options. Interactive brokers is just one example.
@@TradeOptionsWithMe Interactive Brokers is fakking expensive
@@MrSimonw58 That depends on your trading volume. But IB was just one example. Like I said, most brokers that have an open API and options, allow you to trade options algorithmically...
You can write options on td Ameritrade trading platform
if you sold options during 2020 you would likely bankrupted. you can sell stocks using limit orders and that has zero impact on the price
Oh, when the guy says he's going to break down each and everything... it's a red flag. Damn I was intrigued too
I am sorry that the video didn’t meet your expectations. The purpose of this video was to give a conceptual overview of different (algorithmic) trading approaches. What exactly did you expect?
@@TradeOptionsWithMe nevermind, it was a tasteless jab because i've watched too many videos featuring scammers. it has nothing to do with you at all.
Oh ok, thanks for clarifying.
Hey guys I made market predicting algorithm
help me please
does it work?
That was a long yawn.
I am always open to feedback.
TradeOptionsWithMe not from a troll shouldn’t be
@@TradeOptionsWithMe stupid people will drag u down with them and beat you with experience.. leave the clowns alone..