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.
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