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For those of you who know what you're doing.
- Thread starter thealphapirate
- Start date
Looking back:
Hardware based:
I would have gone rack-mount WAY sooner, would have started to play with Linux sooner, would have started on gigabit hardware vs. 10/100 and "upgrading later". (gigabit just makes remote desktop and file transfers easier, no real trading impact IMHO), would have built out my BackBlaze 2 years ago... this thing is awesome. Also, learned the hard way that Hardware RAID > Software RAID. Going up to 8GB RAM per machine only helped in simulation boxes - 4GB RAM is just fine for execution boxes.
Software Based:
Learned the hard way that SOFTWARE based RAID is not hardware based RAID. W7x64 is awesome, stayed on XP & XPx64 way too long. Excel 2007 is worth every penny and is far superior to 2003. Paying for software is always a must - torrenting is not legal and WILL come back and bite you (a good friend learned the hard way). Paying for Matlab is dumb, decent programmers can use R (free, open-source) just as easily.
Trading Based:
Execution speed games are for big boys. HFT is for big boys. Leave the big-boy trades to the big boys. Arbs/Market Neutral (attempts at riskless trading) exist but go away quickly, it is very hard to build a career/steady income on trades that last 6 months to 2 years then go away.
Happy about:
Happy I had to learn/DIY hardware & networking. I now know/understand a lot about computers hardware and I'm much better off for it. Good, clean tick data is priceless, do it right, pay for it and protect it. I got lucky on the tick data front.
In my experience, partnering with other traders has been a very good thing. Trust is hard but if you can trust someone then two sets of eyes & experience is always better than one. Also, its good to diversify as much as possible - going it alone is a losing uphill battle IMHO.
Hardware based:
I would have gone rack-mount WAY sooner, would have started to play with Linux sooner, would have started on gigabit hardware vs. 10/100 and "upgrading later". (gigabit just makes remote desktop and file transfers easier, no real trading impact IMHO), would have built out my BackBlaze 2 years ago... this thing is awesome. Also, learned the hard way that Hardware RAID > Software RAID. Going up to 8GB RAM per machine only helped in simulation boxes - 4GB RAM is just fine for execution boxes.
Software Based:
Learned the hard way that SOFTWARE based RAID is not hardware based RAID. W7x64 is awesome, stayed on XP & XPx64 way too long. Excel 2007 is worth every penny and is far superior to 2003. Paying for software is always a must - torrenting is not legal and WILL come back and bite you (a good friend learned the hard way). Paying for Matlab is dumb, decent programmers can use R (free, open-source) just as easily.
Trading Based:
Execution speed games are for big boys. HFT is for big boys. Leave the big-boy trades to the big boys. Arbs/Market Neutral (attempts at riskless trading) exist but go away quickly, it is very hard to build a career/steady income on trades that last 6 months to 2 years then go away.
Happy about:
Happy I had to learn/DIY hardware & networking. I now know/understand a lot about computers hardware and I'm much better off for it. Good, clean tick data is priceless, do it right, pay for it and protect it. I got lucky on the tick data front.
In my experience, partnering with other traders has been a very good thing. Trust is hard but if you can trust someone then two sets of eyes & experience is always better than one. Also, its good to diversify as much as possible - going it alone is a losing uphill battle IMHO.
Quote from thealphapirate:
Are there any lessons that aspiring programmatic traders can learn that you wish you had when you were younger and less wise?
I am certainly a lot older, but not sure much wiser. fyi.. I am a swing and intraday trader, not a HF trader.
-- I wish I was exposed to proper walk forward testing software like grail etc from day one. Proper robustness determination of parameters is critical.
-- must trade a portfolio of stratergies in different time frames both are important lessons learned the hard way. Acrary a long time ET poster had a lot of wisdom. If you like to read his posts.
http://www.elitetrader.com/vb/showthread.php?s=&postid=1096099#post1096099
-- believe in the power of ideas. There are unique edges one can find that will make you a lot of money before they vanish.
-- the most important (drumroll please), 100% mechnical automated trading will NOT save you from bad trader psychology. Must resolve all psychological impediments. I found myself constantly second guessing the signals, turning systems on/off, constant tinkering.
Bernie was around as long as he was and protected on PURPOSE......he was used to funnel AIPAC money to politicians for years (up until he started improperly handling the WRONG funds.....you can't play with the crinimal syndicates money for long and get away with it.....nope!)Quote from jack hershey:
A recent documentary on the leading scammers of our time featured a retired licensed broker who lead three generations of her relatives to utter investing failure by letting one person handle their money. She read every publication of Bernie Madoff for as long as he released publications. She is mad at him for being untruthful. another person informed the SEC for a decade on Bernie's shennanigans. He figured it out in four hours in his first attempt.