Algorithmic Trading-TECHMOON

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Algorithmic Trading.
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Introduction

• Algorithmic Trading (also called automated
  trading, black-box trading, or algo-trading) uses
  a computer program that follows a defined set of
  instructions (an algorithm) to place a trade. The
  trade, in theory, can generate profits at a speed
  and frequency that is impossible for a human
  trader.
• The defined sets of instructions are based on
  timing, price, quantity, or any mathematical
  model. Apart from profit opportunities for the
  trader, algo-trading renders markets more liquid
  and trading more systematic by ruling out the
  impact of human emotions on trading activities.

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Top 12 Essential Beginner Books for Algorithmic
Trading
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• LIARS POKER by MICHAEL LEWIS
• Liar's Poker is a non-fiction, semi-autobiographic
  al book by Michael Lewis describing the author's
  experiences as a bond salesman on Wall Street
  during the late 1980s.
• 2. FLASH BOYS by MICHAEL LEWIS
• This book tells about high-frequency trading in a
  simple and understandable language.
• The author talks about such trifles as sigma and
  its role in trading, a hilarious story about how
  banks paid big money to have their black boxes
  closer to the server than from competitors and
  they would get the advantage in centisecond.
• 3. ALGORITHMIC TRADING AND DMA by BARRY
  JOHNSON
• The most right book about algorithmic trading in
  its strictest sense is algorithmic execution of
  orders. It has a standing offer on the table for
  reading to anyone who is engaged in the
  development of algorithmic engines in brokerage
  offices, investment banks, or under the
  investors wing.

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4. HIGH-FREQUENCY TRADING by IRENE
ALDRIDGE There are general characteristics of the
markets, the basics of the microstructure of the
market, the classification of high-frequency
algorithms, risk management, backtesting, and
analysis of the programs.Everything is on a
technical level, to understand what is useful
you have to wade through a bunch of generalized
information. 5. QUANTITATIVE TRADING by
ERNIE CHAN This book deals with automated trading
in general, without focusing on high-frequency
strategies.However, the separation of algorithms
is carried out pulsed-type (momentum) and
bidirectional (mean reverting), which is
essential for HFT. 6. BUYING AND SELLING
VOLATILITY by KEVIN B. CONNOLLY Those who want to
build automatic algorithms using options are
going to need a good understanding of the
strategy of trading volatility.In the book, you
will find all the theoretical foundations of this
type of trading, and there is enough information
in it to build HFT algorithms.
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7. ART OF WAR by SUN TZU The book is the
perfect guide to beat the opponents in various
conflict situations. The main idea of ??the book
is that only methods of warfare change, the
nature of man and the laws of war remain
unchanged. According to the author, the art of
war is based on the two most important
instruments of warfare, which are tactics and
strategies, applying which you will win before
the boiling point of the conflict. 8. WAY
OF TURTLE by CURTIS FAITH Richard Dennis was the
initiator of the experiment. Two traders in the
1980s argued with each other for 1, which can
be taken from the street person (turtle) and
teach him to trade.There was a contest of 1200
people. Of these, 24 people were selected. They
were showed one model. For two years, these
people earned 200 million dollars, in 1986, not
having a computer, not having almost nothing. All
transactions are carried out by voice only.The
model involved a trade in which it was possible
to be wrong 11 months a year, 10 of positive
inputs, and they earned them.
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9. TRAINING WITH DR. EDLER It is just a bible
for traders.The book consists of three sections
describing various aspects of trading. The
primary focus of the book is money management and
the psychology of trading.You will also learn how
to control your risks in the market.You can find
detailed answers to popular questions of newbies
in trading. 10. THE PETER LYNCH APPROACH by
PETER LYNCH The book was published in 1989, which
is why some ideas described in it have become
rather old. However, it is an excellent resource
of information, especially for those who invest
in cryptocurrency playing a long game. The book
will teach how to recognize the future market
winners. Peter Lynch preferred the humanities
before heading the Fidelity Magellan Fund, one of
the most successful investment funds in the
history of financial markets.Experience in the
study of the humanities allowed Lynch to try
himself in several directions, developing the
ability to multidisciplinary thinking. He was the
first to find stocks with the potential for
future long-term growth.Of course, much has
changed since then, and Lynch himself admits that
he is a technophobe and hates computers, without
which it is impossible to imagine modern trading.
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11. TECHNICAL ANALYSIS AND STOCK MARKET by
RICHARD SCHABACKER Another book that was released
long before cryptocurrency. It is worth noting
that this is the only technical analysis book
recommended by Peter Brandt, a legendary trader
with 40 years experience.Although Brandt himself
has strained relations with some representatives
of the crypto-community, who consider him a
deceiver, because he called the crypt market a
bubble, Brandt correctly predicted the growth of
Bitcoin when his course was only around 800.He
managed to sell his cryptocurrency at the rate of
18,000 for Bitcoin, proving the power of
classic charting. 12. INSIDER BUY SUPERSTOCKS
by JESSIE STINE Stine was able to make a fortune
in a regular market, which is rarely found
outside of modern forex and crypto banking. In
this book, the author describes in detail the
psychology of traders during the first ups and
downs and examines the problems of emotional
volatility associated with huge risks. Stine also
provides examples of graphs in which he considers
the work of both fundamental and technical
analysis in practice. In conclusion, the author
also tells how to sell assets, which are not so
much devoted to financial publications.
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CONCLUSION
All this books contains best material over the
study of subject. One can learn a lot from this
books, and need to practice it to be perfect in
achieving results. This way you can have the
knowledge and use the studies in practical life
situations. TECHMOON
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THANK YOU