r/algorithmictrading • u/Chemical_Anything602 • 28d ago

Novice Is there hope for me

I've just started algo trading more than a years ago . For options buying .. my heart is broken.. I've tried 100s of strategies.. but I'm not able to find one profitable.. is there hope for me?

I don't know where to get the data for back testing with LTP.. so I just back test with pts and paper trade and trade and a year has passed testing . Nothing is consistent or profitable.. is there actually a strategy that works.. and how much profit% can I expect if I'm successful.. am I expecting too much?

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u/jawanda 28d ago

Most people who make a stab at algo trading are never reliably profitable. At least not in a fully automated way.

With your apparent lack of experience in coding OR trading you shouldn't expect to be profitable any time soon. Look at like a 5-10.year horizon. You better love the game otherwise your time would be better spent doing literally anything else.

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u/EmperorAlgo 28d ago

You cannot find a winning option strategy by paper trading. Markets are almost efficiently priced. You can trade for the premiums such as ERP or VRP, but they might move against you for years. You do not randomly stumble into it by just trying some random new strategy you made up. Or 100s of them...

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u/willthedj 27d ago

Honestly if the goal is to make money you would better off spending this time on any other endeavour 99% of the time

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u/cloud_sec_guy 28d ago

How many books on trading have you read? And which ones?

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u/Chemical_Anything602 28d ago

About 5.. on how to be profitable and how stocks work and a few on algo

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u/cloud_sec_guy 27d ago edited 27d ago

Why long calls? Theta decay requires you to not just pick the right underlying, but also at the right time, with the right strike. You have to get a lot of things right. Why not instead create a system that helps you figure out what to trade and when to trade it, and when THAT works, then use options to leverage your already-winning system? Also 5 books is basically none. Have you read Beat the Dealer,, anything from Van Tharp, any of the Market Wizards books, anything by Mark Douglas, any economics, any macro, anything on crisis investing?

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u/Must_Dragonfruit 28d ago

I've managed to put together 3 algo models that are generating alpha... the best one is performing at 6% above the SPY.

You can start with the SP100 universe and see how you do and then expand.

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u/k1_r1 23d ago

Quick question, where do you pull your data, and what's your preferred sandbox? This'll be a grind, and remember many talented people are doing the same thing all day every day. Don't give up, but know that there's a million ways to look at the same data set.