Algorithmic Trading is an exciting proposition. Who wouldn't like to create a machine that could earn while they watch? The honest traders will tell you upfront that there are easier ways to make (lose) money. There are big banks, some very smart/ well connected hedge funds and tech behemoths out there who would have, in all probability, done what you are trying to do on your own. So, does a retail algorithmic trader stand a chance? Honestly, at this point I don't know but I would like to find out. I will not be spending any large sums of money any time soon, as I would keep my learning path limited to reasonably priced books and courses (say, anything less than £100) and trading limited to demo accounts. I will chronicle my journey in this blog and hope that it helps other people take informed decision.
So far I am exploring options on online learning and books. Rather than dumping you with all results from Google search, I will write only about things I have completed myself, including any difficulties I faced. To start with I will write about the specialisation "Trading Strategies in Emerging Markets Specialisation" on Coursera. I targeted this as it had a section on trading algorithms and good reviews.
The course focuses on how to derive algorithms from research papers and does a good job of it. Over the specialisation they take you through 5 papers and teach you how to create an effective strategy using it. We also learn about key portfolio performance measurement techniques. These ideas are good as they are backed by some solid research and not rudimentary technical analysis. This alone makes it worth taking the course. Additionally, if you have a background in finance, the courses are fairly easy to finish faster. While this 5 course specialisation is supposed to run over 5 months, I was able to complete it in less than 2 weeks. Even if you take 2 months, this will cost you c.£80 (they charge per month). Good value for money.
On the flip side, the course has nothing about setting up computing or trading infrastructure, or how to easily get and process the data for the strategies suggested. Procuring latest research papers would also have a cost that a retail trader may not be able to bear. You can't get everything, can you?
So far I am exploring options on online learning and books. Rather than dumping you with all results from Google search, I will write only about things I have completed myself, including any difficulties I faced. To start with I will write about the specialisation "Trading Strategies in Emerging Markets Specialisation" on Coursera. I targeted this as it had a section on trading algorithms and good reviews.
The course focuses on how to derive algorithms from research papers and does a good job of it. Over the specialisation they take you through 5 papers and teach you how to create an effective strategy using it. We also learn about key portfolio performance measurement techniques. These ideas are good as they are backed by some solid research and not rudimentary technical analysis. This alone makes it worth taking the course. Additionally, if you have a background in finance, the courses are fairly easy to finish faster. While this 5 course specialisation is supposed to run over 5 months, I was able to complete it in less than 2 weeks. Even if you take 2 months, this will cost you c.£80 (they charge per month). Good value for money.
On the flip side, the course has nothing about setting up computing or trading infrastructure, or how to easily get and process the data for the strategies suggested. Procuring latest research papers would also have a cost that a retail trader may not be able to bear. You can't get everything, can you?
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