One of the main reasons why algorithmic trading has become very popular is due to its advantages over manual trading. These include its ability to perform faster and more accurate trading, as well as lower costs.
There are numerous individuals who are literally ruling the markets using technology. They are known as professional algorithmic traders. The number of these individuals is growing each day.
For instance, Albert Mate, a Montreal-based trader, has been able to consistently outperform the S&P500 over the past couple of years. His average yearly return is 23.5%, which is significantly higher than the returns offered by financial instruments.
According to Albert, 85% of portfolio managers don’t have the necessary skills to beat the S&P 500. He started his career as a scalper before eventually switching to algorithmic trading. He said that this is the biggest turning point in his trading journey. Since he started using technology, he has never looked back.
The path to being a professional algorithmic trader
After having thoroughly studied the various aspects of algorithmic trading, it is now time to start thinking about how to improve your professional knowledge. One of the most effective ways to do this is by taking advantage of this industry’s multiple opportunities.
One of the most challenging aspects of algorithmic trading is learning how to use statistical and mathematical knowledge. This is because most of the time, people are not able to understand the concepts of automated trading. However, through books, learning how to use an algorithmic trading system can be very straightforward.
Although there are numerous books that cover the various aspects of algorithmic investing, it is important to avoid complex mathematical concepts in order to fully understand the system. One of the most popular books that can be used for this purpose is “Options, Futures, & Derivatives” by John C. Hull.
Once you know the basics, another important step that you should take to start developing a successful trading strategy is learning how to use an algorithmic trading system. In this book, Ernest Chan talks about the various aspects of algorithmic trading.
Aside from books, you can also take advantage of the various free resources that are available online. These include videos, blogs, and online courses. Some of these platforms include edX, Udacity, and Coursera.
Although there are many free resources that can be used for this purpose, it is also important to note that some of these may not provide the necessary knowledge to start trading. For instance, although algorithmic books may teach you how to use the system, they may not provide you with the necessary background knowledge.
In this regard, consider diving into special trading communities to learn from other traders and get industry insights without sacrificing your own means. One of the most popular trading communities is the MQL5.community, where users can connect with hundreds of freelance developers who are working on various projects related to algorithmic trading.
Through this platform, one can easily find the ideal software that fits their needs. In addition to being able to hire experienced developers (“more than 1 200 MQL5.com freelancers are working on custom orders in seven languages”), the platform also provides the ground for knowledge sharing and networking via an in-built chat.
One of the fastest ways to improve a skill is by learning from an expert. In addition to being able to learn from a professional, this process also allows you to interact with the expert. One of the most important factors that you should consider when it comes to learning about algorithmic trading is the use of programming languages such as Python.
Notable resources for algorithmic trading professionals:
- The Robust Trader: a trading tool that provides retail traders with the necessary knowledge to succeed in the financial markets. It has numerous educational features that help them make more informed decisions.
- KJ Trading Systems: Strategy Factory Workshop: a course aimed to help intermediate to advanced traders improve their trading skills. It features a live class, 25 hours of supplemental videos, and access to the Strategy Factory Club, where members can exchange ideas and strategies. One of the most amazing features of this course is that you will receive e-mail support from the course creator.
- The Experfy blog: a place where investors and experts can gain insights on all things algorithmic trading. It features a variety of articles and podcasts, as well as discussions with prominent thought leaders and experts in the field.
- DataDrivenInvestor: a Blog plus a Medium publication that aims to provide a variety of ideas and concepts related to data science. It is also a place to share your expertise in programming and machine learning.
- MQL5.com – a platform that brings together the knowledge and experience of traders from around the world to create their own trading robots and technical indicators. It features a huge database of articles that are written by experts. Its users can also ask questions and discuss their trading systems via forum threads.
