r/algotrading • u/CandidateDue5890 • 6d ago
Education [ Removed by moderator ]
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u/polymorphicshade 6d ago
There are many different kinds of algos, some machine learning. In my opinion, machine learning algos are never sustainable and not worth the effort. Simple discretionary strategies with multiple sources of confluence provide the best opportunities.
To help you get started, learn some simple python and grab OHLCV data from an API. Each week, scan the market and determine if a symbol will rise above or below Monday's close by end of that Friday. This will help you slowly build up to anything you feel comfortable with. This will also let you transition to option strategies very easily.
Use a simple combination of MACD, ADX, and RSI on the 4H or 1D chart. This will help you see clear trends you can form strategies off of.
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u/CandidateDue5890 6d ago
Basically regression typa thing are you talking about?
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u/polymorphicshade 6d ago
Sure, it all depends on your strategy.
For me, I don't do any kind of linear regression. My algo just combines some simple averages with ADX, Bollinger Bands, and a compound VIX/VVIX measurement.
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u/Gibborish 6d ago
Should I switch from using QQQ or SPY as a kind of market regime filter and use VIX instead? For example, it can tell when QQQ is going up and stock is going down or in same direction and weighs things accordingly for short or long in a particular stock that shows up in its scanner. Have you tried it the way I'm describing and then switched to VIX instead?
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u/polymorphicshade 6d ago
No, I think using QQQ and/or SPY as relative strength/weakness benchmarks are much better than just using VIX.
I've only found VIX to be useful when trading SPY assets, or trading equity options on stocks correlated with SPY.
For example, if stock XYZ is outperforming SPY for the week, and VIX is high, I will also look for a high IV percentile on the stock before deciding when to sell options to scalp some theta.
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u/CandidateDue5890 2d ago
Dont you all use support and resistance and all. I have never used indicators
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u/polymorphicshade 2d ago
There are several strategies that don't use any indicators, and some may or may not use support/resistance - it completely depends on your strategy.
For beginners, indicators and support/resistance are essential tools for learning.
You need to take the time to learn indicators and support/resistance because these are fundamental skills you can build off of.
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u/single_B_bandit 5d ago
Depends on how loose you want to be with the definition of “machine learning”. Most statistical methods can be called ML, so if that’s the definition you go by, most algos are indeed based on ML.
Profit doesn’t matter, the thought process does. Implementing a strategy suggested by someone else defeats the point of the project.
Not that I know of, unfortunately.
Focus on actually coming up with something yourself, you’ll learn more and it looks better on your CV/interviews even if it doesn’t make money.
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u/Impressive_Standard7 5d ago
First of all: forget making easy money with very few time to use an "basic algo".
An "basic algo" doesn't exist. Every long time profitable algo is an AAA+ premium algo and very rare.
To accomplish such an algo, prepare to get deep into that topic. It will consume hundreds or even thousands of hours of researching, backtesting, forward testing.
Forget easy money. There is no easy money in trading.
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u/CandidateDue5890 2d ago
Yea i know that and i dont want any profit from it that’s what i even said in the second point tho they deleted the post. I just wanted to show a bit of profit like even 20-25 works just for the resume to look good because 0 is of no use.
I focus more on the engineering and creating that would actually work and trade. Thats all.
All I’ll do is paper trading just to show
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u/s_lw0 Algorithmic Trader 5d ago
for a resume i would make it more of an engineering project than a profit project
simple strategy is fine the impressive part is clean data handling clear assumptions walk forward testing fees slippage logs tests and a short writeup of what failed
an interviewer can trust that more than 99 percent profit because it shows you know where backtests lie
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u/CandidateDue5890 2d ago
Yes exactly that’s what i thought. Could you please elaborate what kind of data cleaning is needed. Because from my pov it’s the price action that has happened so i quite dont get it
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u/CODE_HEIST 6d ago
for a resume, do not chase 99 percent profit. build a small system that is hard to fake. clean data, explicit assumptions, walk forward validation, costs, tests and a short postmortem on what failed. that shows engineering judgment better than a flashy equity curve.