This guy puts out really specific pointers for algo traders, even throws out great indicators that simply were not good enough for his own account. Has anyone taken his course? How is it?
There are so many ways to put the information together and so many ways to act on that information. It seems to me that trading in the stock market is a highly creative process.
Hi Scott - there's certainly a degree of technical creativity, where you come up with a novel ways to put something together; however the bulk of it is more systematic then creative in my opinion - for example when looking at the backtest report, there are only a handful ratios that matter and only a handful ways in which you can affect them
Hi David! What is your advice on risk per trade? Let’s say I have 4 algo strategies in my portfolio. Should I be risking 1% of my account per trade, or 0.25% (for example). Basically allocating $25000 for each strategy (if total capital is $100000).
I don't think there's one good answer to this as this will also depend on your risk appetite & individual strategy risk profile - I have got a strategy that (on its own) had 35% max drawdown, and I have got a strategy wiith max DD below 20% - sure, you can just say allocate capital to them equally, but you can also say allocate less to the one with higher volatility (risk) and have it more balanced - you need to run a series of different allocations and find out which works best for you in terms of return to risk ratio (annual return / max dd)
David, thank you for the films. An observation : if you were to only bench mark this to the time range after the outlier event, 3/2020, it 'seems' to be par; or move in concert with the SPY, at least that's what my eyes assume. Second observation: with the outlier event left in, the positive of this strategy was that it mitigated drawdown very well.
Hi Joshua - yes can be right, sometimes you don't manage to beat the index, that's just how it works; on the other hand, as you pointed out, you want to get your drawdowns significantly lower which is what I personally aim for
NIce, what program and broker would you recommend to get an algo going? Im considering tinkering with one, seems complicated, but I actually know a little bit of code and think it could help
Hi Jeramy, are you thinking intraday algo? I would recommend starting on daily timeframes using software called Amibroker - it's definitely a steep learning curve but well worth it in the end
1. Do you have a course for algo trading? 2. Does the strategies you teach on your supply and demand are automated, are you getting the signals from your algo? I'm very interested in learning more from you. I can not find a video talking about your portfolio Performance using algo trading. Also, why sell a course if algo trading is working. In my mind if I'm able to find an algo trading system that works then why to even bother in spreading the word
Hi David, not at the moment, but will be launching a systematic trading programme in April which will include hands-on support, community, 3+ strategies, daily signals, data etc. No, my Supply & Demand course is aimed at discretionary trading. I talk about performance of my algo portfolio in this video actually. Re the course - it's simply to A) diversify my income B) to help people; personally not too bother by spreading the word as my audience is very small and it's only a tiny fraction of people who take action anyway
Not negative, but below one - but agree it's not the strongest, however as I pointed out in the video, I look at my strategies on a portfolio level, where this particular system has a relatively low correlation to others which I why I trade it
This guy puts out really specific pointers for algo traders, even throws out great indicators that simply were not good enough for his own account. Has anyone taken his course? How is it?
There are so many ways to put the information together and so many ways to act on that information. It seems to me that trading in the stock market is a highly creative process.
Hi Scott - there's certainly a degree of technical creativity, where you come up with a novel ways to put something together; however the bulk of it is more systematic then creative in my opinion - for example when looking at the backtest report, there are only a handful ratios that matter and only a handful ways in which you can affect them
Hi David!
What is your advice on risk per trade?
Let’s say I have 4 algo strategies in my portfolio. Should I be risking 1% of my account per trade, or 0.25% (for example).
Basically allocating $25000 for each strategy (if total capital is $100000).
I don't think there's one good answer to this as this will also depend on your risk appetite & individual strategy risk profile - I have got a strategy that (on its own) had 35% max drawdown, and I have got a strategy wiith max DD below 20% - sure, you can just say allocate capital to them equally, but you can also say allocate less to the one with higher volatility (risk) and have it more balanced - you need to run a series of different allocations and find out which works best for you in terms of return to risk ratio (annual return / max dd)
@@CriticalTrading thank you so much!
David, thank you for the films. An observation : if you were to only bench mark this to the time range after the outlier event, 3/2020, it 'seems' to be par; or move in concert with the SPY, at least that's what my eyes assume. Second observation: with the outlier event left in, the positive of this strategy was that it mitigated drawdown very well.
Hi Joshua - yes can be right, sometimes you don't manage to beat the index, that's just how it works; on the other hand, as you pointed out, you want to get your drawdowns significantly lower which is what I personally aim for
NIce, what program and broker would you recommend to get an algo going? Im considering tinkering with one, seems complicated, but I actually know a little bit of code and think it could help
Hi Jeramy, are you thinking intraday algo? I would recommend starting on daily timeframes using software called Amibroker - it's definitely a steep learning curve but well worth it in the end
very good video David, thanks. In your mean reversion system do you use any non price filters (like interest rates etc?)
Hi Marty, no I don't, it's purely a technical strategy
This video made me subscribe to your channel!
1. Do you have a course for algo trading?
2. Does the strategies you teach on your supply and demand are automated, are you getting the signals from your algo?
I'm very interested in learning more from you. I can not find a video talking about your portfolio Performance using algo trading.
Also, why sell a course if algo trading is working. In my mind if I'm able to find an algo trading system that works then why to even bother in spreading the word
Hi David, not at the moment, but will be launching a systematic trading programme in April which will include hands-on support, community, 3+ strategies, daily signals, data etc. No, my Supply & Demand course is aimed at discretionary trading. I talk about performance of my algo portfolio in this video actually. Re the course - it's simply to A) diversify my income B) to help people; personally not too bother by spreading the word as my audience is very small and it's only a tiny fraction of people who take action anyway
Very interesting and useful. Thank you.-
Magnum
Negative Sharpe ratio 😳
Not negative, but below one - but agree it's not the strongest, however as I pointed out in the video, I look at my strategies on a portfolio level, where this particular system has a relatively low correlation to others which I why I trade it
@@CriticalTrading sorry I just checked my own and its -0.08