Get Rich Slowly

Most trading systems are of the get-rich-quick type. They exploit temporary market inefficiencies and aim for annual returns in the 100% area. They require regular supervision and adaption to market conditions, and still have a limited lifetime. Their expiration is often accompanied by large losses. But what if you’ve nevertheless collected some handsome gains, and now want to park them in a more safe haven? Put the money under the pillow? Take it into the bank? Give it to a hedge funds? Obviously, all that goes against an algo trader’s honor code. Here’s an alternative. Continue reading “Get Rich Slowly”

Build Better Strategies! Part 3: The Development Process

This is the third part of the Build Better Strategies series. In the previous part we’ve discussed the 10 most-exploited market inefficiencies and gave some examples of their trading strategies. In this part we’ll analyze the general process of developing a model-based trading system. As almost anything, you can do trading strategies in (at least) two different ways: There’s the ideal way, and there’s the real way. We begin with the ideal development process, broken down to 10 steps. Continue reading “Build Better Strategies! Part 3: The Development Process”