Algorithmic trading is perceived as a very complex area for beginners. There’s simply way too much to learn as it covers a wide range of disciplines that require a considerable degree of mathematical and statistical maturity. Simply put, if bogged down with the wrong resources initially, it can be very demotivating to understand or learn algorithmic trading.
With the right go-to sources of information, algorithmic trading can be pretty straightforward to understand. While it requires iterative learning in an ongoing manner, getting the basics in place is the trick to succeeding.
To get you started on algorithmic trading, we decided to put together a comprehensive list of resources – comprising of blogs, ebooks and online courses that you could get started with right away.
Blogs
If you’re just getting started with algorithmic trading, blogs are the best way to introduce yourself to the technology, its importance, best practices, and trading strategies.
1. QuantInsti’s Blog
One of the most active blogs on algorithmic trading is QuantInsti’s Blog. They share beginner to advanced level guides on the topic, best practices and strategies for successful trading. The blog also shares case studies and career advice.
Check out the blog, here.
2. Experfy Insights
With insights from experts across the world, the Experfy blog serves as a go-to resource for beginner to advanced level enthusiasts and professionals interested in algorithmic trading.
Check out the blog, here.
3. QuantStart
With a mission to help people become financially independent, QuantStart provides detailed educational resources on algorithmic trading. The strong community of algorithmic traders helps you learn systematic trading, sharing their experiences, tips, best practices and strategies.
Check out the blog, here.
4. Quantocracy
Combining blogs, articles and conversational threads, Quantocracy is another one of the popular go-to sources to learn algorithmic trading. It is pretty similar to Reddit for those interested in trading.
Check out the blog, here.
5. Quantpedia
Also known as an encyclopedia for algorithmic trading, Quantpedia turns academic research into financial profit tips, best practices, and strategies.
Check out the blog, here.
Courses
The best way to complement what you have read online is to see a real application of algorithmic trading and understand how it is done. That’s where taking an online course comes handy – especially one that is designed by an expert with hands-on experience.
1. Algorithmic Trading 101 by AlgoTrading101
Designed to help professionals understand the basics of algorithmic trading, the course is application focused. The expert, Lucas Liew previously worked at a trading firm, hedge fund and taught financial programming to the Government of Singapore Investment Corporation (GIC). He is also very active on Quora, answering questions about algorithmic trading.
Learn more about the course, here.
2. Algorithmic Trading Strategies by Experfy
With 20 years of experience in the finance industry, Nick Firoozye has worked on both the buying and selling sides of the firm. The six-hour long course covers the underlying principles behind algorithmic trading, analyzing trend following, carry, value, mean-reversion, relative value and other obscure strategies with short-gamma.
Learn more about the course, here.
https://www.youtube.com/watch?v=I7CxWhwCdBw
3. Learn Algorithmic Trading by QuantInsti
A six month long comprehensive course, this course designed by QuantInsti is for working professionals who want to grow their careers in the field of algorithmic trading. The course also dives deep quantitative trading.
Learn more about the course, here.
Books
If you’re the kinds who prefers reading, there are plenty of book in the market that help in understanding and implementing algorithmic trading practices. So we listed down those that are trusted by students across the world.
1. Quantitative Trading by Ernest P. Chan
Swearing by it, a lot of students and professionals have this book on their shelves already. The book provides an overview of the process of setting up a retail quantitative trading system using MatLab or Excel. Dr. Chan discusses alpha generation, risk management, automated execution systems, and algorithmic trading strategies.
You can buy the book, here.
2. Inside the Black Box by Rishi K. Narang
This book is a must-have for understanding how a professional quantitative hed fund operates. While the book’s storyline revolves around an investor’s interest in investing in a ‘black box’, it consists of a lot of important information on how a proper quant trading system should be working – right from the importance of transaction costs to risk management.
You can buy the book, here.
3. Algorithmic Trading & DMA by Barry Johnson
A quantitative software developer himself, Barry Johnson’s book is an in-depth look into the quantitative side of algorithmic trading. He dives deep into the understandings of how exchanges work and the market microstructure.
You can buy the book, here.
4. Algorithmic Trading by Ernest P. Chan
Another one from Dr. Ernest P. Chan, the book discusses trading strategies in depth and provides details on implementation. It is a level up from the basics explained in his other book, as it comes including more mathematical complexities. The book also further provides updates on market behavior.
You can buy the book, here.
5. Trading and Exchanges by Larry Harris
Concentrating on market microstructure, this book is great for understanding the beginning of quant trading. It explains the science behind how market participants interact and what happens in the process, helping you visualize how actual trading takes place. This book is a go-to for getting up-to-date with the execution systems.
You can buy the book, here.
With an evolving market and the advance of technologies in trading and finance, algorithmic trading is being welcomed by exchanges across the world. In fact, algorithmic trading has become very common within the last decade and is rapidly spreading even in the developing economies.
Simply put, if you’re interested in trading, it is essential to learn algorithmic trading to trade markets in a profitable manner. And we got 100+ other resources lined up just to help you get ahead of your competitors.
