I get a kick of following Twitter user and algorithm expert @milktrader. I enjoy reading his blog. Recently, Milk Trader wrote a great blog post entitledrobot (SPX) = $. It got me thinking about what skills one must have to become a great trading algorithm designer. In the second paragraph, he says “Skill acquisition involves getting re-acquainted with higher math and getting some solid programming proficiency under your belt.”
From my experience, math and programming skills are not enough to turn you into an algorithmic trader. Sure, they are important, but if you lack those skills you can always purchase them. What you need are algorithmic trading design skills: you must be good at creating algorithms from trading methods. I wrote a blog post about this topic entitled Financial Artistry, not Financial Engineering.
Be creative, experiment, observe how nature works and how humans behave, and apply your findings to the market. In our search for a great algorithm, we should heed Frank Oppenheimer’s philosophy: “Oppenheimer stressed the importance of play, courage, and guesswork Science.” Something Incredibly Wonderful Happens: Frank Oppenheimer and the World He Made Up (Amazon affiliate link).
There is no need for the creative algo trader to go back to making cheese. Iterate until you succeed. Will you?
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