Break Down Your Algorithm Plan into Smaller Parts

Written by Michael Bigger. Follow me on Twitter.

 

 

Google La Tuque, Qc, Canada, and you will know where I come from. When I was a teenager, my goal was to move to the United States. Coming from a small town in Quebec, this was a big goal. Although I did not have the wisdom of how to accomplish my goal, I knew how to improve my position. I broke down the big task into small chunks. I climbed one step at a time. When I met insurmountable resistance, I backed off, iterated, and went at it again. I arrived in New York in 1994 and began working for Citibank, where I ran the single stock derivatives book.

What does that have to do with algorithm, finance, and trading? When I work on my trading algorithm, I have a sense of where I want to go, but the path to success is never clear. I come up with an initial concept and test it in the sandbox. Then I simplify, taking one small step at a time, and I iterate if things don’t go my way. In short, I use the same model I used to get to New York, and it works for me.

What is your strategy for achieving your big trading goals? Mine is to simplify, break it down, and iterate.

Comments

[Arthur V.]

You got an interesting blog and actually write something of substance I don't understand why there is not much following here. In fact you are the lonely naked guy dancing here :) I got wave in friends here.

[Michael Bigger]

Thanks for the kind words. I have been very fortunate in my professional life. My goal with this blog is twofold. Capture my fresh ideas so my kids can read about them if they ever have an interest in finance. Also, since I benefited from the kindness of so many people throughout my career, I am happy to share my knowledge. I love writing about finance and I would not hesitate doing this even if no one comes to dinner. I love it.

[Arthur V.]

I think I figured out the mystery of iPad sales. Went to the store on 5th Ave. spend the whole day there asking people why would they buy more than one. The answer didn't surprise me, because the same thing was happening to iPhones. Because iPads didn't come out in China or in Russia (I am Russian, so it was easier to speak to those buyers) people there are willing to pay double of what they cost here (in Russia having or not having a new gadget is a social symbol). So now it doesn't surprise me that they sold more than expected in US.

[Michael Bigger]

Interesting. Makes sense to me now.

[Joe]

Read the Art of Learning The Art of Learning: A Journey in the Pursuit of Excellence [Kindle Edition]
by Josh Waitzkin ... very similar theme

[Michael Bigger]

Joe,

I will do. Thanks for the recommendation.