Learn To Code: Traditional Bond Traders Now Being Overrun By Programming Quants
- Thread starter Banjo
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What coding languages, which platforms?!
Mql, ninjatrader... there are Not many platforms that allow retail traders to code and use financial algorithms...
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C#, Python, C++, Java. These are used by quants so you cannot compete with quants using some scripts. Algo scripting platforms like Ninjatrader and MetaTrader are also coded using these languages, doing just some backend work for you while limiting your ability to compete with serious algo traders, including retail.
Being retail trader doesn’t make a difference because quants are just as human as retail traders, with retail traders being less restricted and paying less for various data subscriptions. And you can write the same program using C# as using any script within Ninja or Meta Trader, just being less limited with C#.
You’ll have to spend more time to implement your own code for gathering and summarizing data, saving it, submitting orders, etc - but this is not more difficult than writing algos, just takes more time and is small price to pay to be able to compete. And once done then you’ll have as much power as quants, basically becoming one. Quants also do some advanced math, but it’s just an extension of algos and not always necessary, or you can use some external math functions created by mathematicians and other quants. Pro quants also reuse various functions just like you do in Ninja and MT. You can find various open source trading frameworks and pieces of code to help you get started.
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I work as a quantitative developer and honestly, retail traders shouldn’t be using algo trading in the first place. It’s simply too time-consuming and difficult to do. As a retail trader, constructing actual alpha factors appropriate for retail is almost impossible.
Many retail traders could (and do) come up with alpha factors that would be profitable for institutional investors though. Retail investors can’t get enough leverage or capital to make any of these strategies viable for themselves though.
If you really want to, you can use Alpaca[1] to trade on the IEX with no commissions. They have APIs in Python and C# I believe. If you just want to come up with some alpha factors, you could try quantopian[2]. You can win between $5-$50 per day by entering their contest. Also, they can select you for capital allocation if you’re really good. Keep in mind that there’s a bunch of constraints though:
Equity only, no ETFs
Must be market neutral (absolute difference between long/short exposure no more than 10%)
Must use their risk model
Beta exposure must be less than like 30%
Some sector and style exposure limits I can’t remember right now
5%-65% average daily turnover
And some other stuff
Very few people on this forum even have any discretionary alpha, even fewer would have any algo alpba. And the access to data sources for retail is extremely limited. Good luck affording anything besides vanilla minute price data.
The only alpha left for 99% of all retail is trading on news, and even that is getting eaten by institutional quants nowadays. In short, don’t algo trade in retail, it’s a waste of time.
[1] https://alpaca.markets/
[2] https://www.quantopian.com/
Start with TradeStation. Easy Language has a complete library of mathematical functions which can be cut/pasted into a strategy or indicator. The only qualification is that you understand what the function does and how to use it properly. Other than that, it's the most complete platform for a beginner. When you have mastered that, move on to Python and C.
Some places to start:
https://blog.quantinsti.com/python-trading-library/
https://www.tensorflow.org/
T-bills go up and down just like any other asset. The yield of a T-bill is the coupon divided by the spot price. The market does not allow the fixing of prices. Despite this, many a government have tried (and failed).
based on IB tws, T-bill moves very very slowly even if it moves anyway. I tried to buy at the bid, sitting there whole day with no one hitting me, in the end, I had to hit the ask price to buy t-bill. how can anyone trade this?
Trade around rate changes and monetary policy. Also maybe you could trade around yield curve shenagians.