Transcription
Introduction to Algorithmic TradingA Beginner’s Guide to Automating Investing Strategieswww.quantconnect.com
Outline What is QuantConnect? What is Algorithmic Trading? How can it help? Algorithm Development Process Creating An Investment Hypothesis Testing Our Hypothesis with QuantConnect Research Coding and Backtesting A Strategy Deploying LiveOctober-2017QuantConnect – An Introduction to Algorithmic TradingPage 2
What is QuantConnect?We empower investors with powerfulinvestment tools and connect the brightestminds from around the world with capital they need.
What is QuantConnect?QuantConnect is a community of 40,000 Engineers, Data Scientists, ProgrammersFrom 6,100 Cities and 173 CountriesOctober-2017QuantConnect – An Introduction to Algorithmic TradingPage 4
Building Thousands of Algorithms Every DayOctober-2017QuantConnect – An Introduction to Algorithmic TradingPage 5
How do we do it?FINANCIALDATALEAN ALGOTECHNOLOGYPOWERCOMPUTINGWe’ve built a web algorithm lab where thousands ofpeople test their ideas on financial data we provide; for free.October-2017QuantConnect – An Introduction to Algorithmic TradingPage 6
What is Algorithmic / Quantitative Trading? Using code for the implementation of your investment strategies. Wide variety of investment time horizons. Using math or scientific techniques in the investment process.October-2017QuantConnect – An Introduction to Algorithmic TradingPage 7
What Algorithmic Trading Is Not Get rich quick vehicle, or quick pathway to retirement. Not Solely HFT. High Frequency Trading is one type of algorithmic trading.October-2017QuantConnect – An Introduction to Algorithmic TradingPage 8
Why is Algorithmic Trading Useful?#1. Using computers to do things people find boring and time consuming.October-2017QuantConnect – An Introduction to Algorithmic TradingPage 9
Why is Algorithmic Trading Useful?#2. Enforce discipline in your investment strategy through automating execution.October-2017QuantConnect – An Introduction to Algorithmic TradingPage 10
Why is Algorithmic Trading Useful?#3. Monitor portfolio 24/7 and control your risk.October-2017QuantConnect – An Introduction to Algorithmic TradingPage 11
Development ProcessResearchQuickly test ideas in a commandline environment.ResearchIdeasLive TradeDeploy the strategy live in areal money y and run full simulation in theAlgorithm Lab.PaperTradePaper TradeRun idea on live market data.October-2017QuantConnect – An Introduction to Algorithmic TradingPage 12
Creating Our Investment HypothesisExamples of an Investment Hypothesis Will rise of electric cars will make solely traditional manufacturers fall in value? Does the elected political party impact market stability, dynamics? Does consumer discretionary income and savings indicate better retail sales?For Our First, Lets Keep It Simple The markets are smoothest when they’re going up; and higher volatility is normally from panic. Should wewait on sidelines when there’s panic?October-2017QuantConnect – An Introduction to Algorithmic TradingPage 13
Our Research EnvironmentOctober-2017QuantConnect – An Introduction to Algorithmic TradingPage 14
Coding the Idea, The Algorithm LabOctober-2017QuantConnect – An Introduction to Algorithmic TradingPage 15
Going Live, Deploying to Live TradingOctober-2017QuantConnect – An Introduction to Algorithmic TradingPage 16
QuantConnect – An Introduction to Algorithmic Trading. Page 4. QuantConnect is a community of 40,000 Engineers, Data Scientists, Programmers. From 6,100 Cities and 173 Countries. October-2017. QuantConnect – An Introduction to Algorithmic Trading. Page 5. Building Thousands of Algorithms Every Day. We’ve built a web algorithm lab where thousandsof.File Size: 2MBPage Count: 16
