How Financial Firms Actually Make Money

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Today we discuss the common misconceptions of retail traders regarding the algorithmic trading or more commonly termed ‘algo trading’. Here we dive into why finding alpha in today’s financial markets is non-trivial, and conflicts of interest present in financial markets.
Later in the video we discuss 3 trading strategies that are used as the foundation of most financial companies that participate in the financial markets. These strategies consistently make companies money and are the bedrock of companies providing financial services, or products in general.
Let’s aim to be pessimistic when people online promise that someone/anyone with a novice level of python experience can create an algo trading strategy that consistently makes money. I will endeavour to never give in to this fallacy and aim to point it out to my viewers on this channel.
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Опубликовано:

26 сен 2024

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Комментарии : 517

@andresbonelli Год назад

Every trading educator ever: -"Every other Strategies out there do not work. Read my book/take my course instead"

@beolbeol8025 Год назад

TLDR; He doesn't talk about winning strategies. He talks about fees and bid-ask spread.

@omairtech6711 Год назад

So is it not that impossible to make money algo trading as this guy has us believe.

@tea.dubs8532 Год назад

@@omairtech6711 its 100% possible. Banks dont trade manually. they trade our money with bots.

@MRT-co1sd Год назад

That’s why he gave you the warning why RU-vidr Traders are fakes.

@williammorris1763 11 месяцев назад

Bad info, bad analogy. Maybe learn more about both before you make a video giving bad info on stuff like this. It almost amounts to a red herring.

@mobeenhussain1866 10 месяцев назад

His secret Alpha was to entice us to see the video from start to finish to avail RU-vid monitization.

@MW7-Mark Год назад

This reminds me of the old story about how selling shovels and mining tools to the gold miners in the 1800s offered more guaranteed success than to actually mine for gold. I suppose the same could be said for many industries: Publishing companies earn more money than authors, youtube as a media platform probably makes more money and has a more sure thing business model than an individual who starts a youtube channel.

@tashkronayt1273 Год назад

brokerage firms earn more money than most successful traders

@nwoksh Год назад

So your advise is for all of us to either open brokerage firms or quit trading and starve the brokerage firms into insolvency

@GlobusTheGreat Год назад

@@nwoksh It's an insight, not a call to action

@treadaar Год назад

RU-vid has always lost money actually.

@currencynews2045 Год назад

How The Bible led me to Islam ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-aFMHH9Hp-OM.html

@jamisonmunn9215 Год назад

An interesting rabbit hole is the channels financial incentive is RU-vid Ad revenue. If a video including "algo trading is fake" gets more views than an algo trading strategy video, you have to wonder are the strategy videos fake, or does calling them fake get you more views therefore more ad revenue?

@buyhighselllow8398 Год назад

Thats a pretty good fucking question. After watching half-way through this video I realised that I shouldn't be listening to people talks so much. I should spend more time working on my trading. Only experience and time will tell you what is the reality of trading algos. I will continue to develop my algo no matter what shit head on youtube says and see what happens for myself. I'm taking this video with a single grain of salt.

@RyeBreadSucks Год назад

@@buyhighselllow8398 Seems like you're taking it with a whole mouthful of salt lol. Why so mad?

@buyhighselllow8398 Год назад

@@RyeBreadSucks I'm not mad, just frustrated that I haven't progressed with my trading because I'm always in the search for answers on RU-vid and end up wasting my time watching videos like these that discourage me to do my own due diligence. The main message I got from this video is that algo trading is extremely hard and that there is almost zero chance of making a decent algo that gives you consistent returns unless you're an institution with big pockets.

@johnnycash1933 7 месяцев назад

I hear you it takes alot of time trying to figure out and decide what to do and what to believe is a true way to make money and not a scam kind of scheme to get money from you

@AelfricLake 3 месяца назад

It is possible it's just really hard it took me 3 years of learning reading coding testing and retesting to create a reliable system that makes decent money in the long run. There is just too many factors and most people give up early and overwhelmed pretty fast.

@kortyEdna825 Месяц назад

Beginning 2024, I think we'll start to see more market diversification. I'm hoping to invest about $300,000 from a recent home sale into the financial markets, but I'm still not sure how rates will effect the market just yet, which worries me a lot. Like how long will the bull rally last before the reset?.

@Justinmeyer1000 Месяц назад

You see in the stock market, bigger risk begets bigger results that can work in the bulls' favor. I think investors who are wary of the changing market trends should seek out bear/bull mrkt directions from certified strategists.

@brucemichelle5689. Месяц назад

You're right mate! I’ve been using a fin-market expert for two years now and I own a 7figure diversified portfolio from investing in stocks. Currently, my portfolio is worth over $1m.

@PatrickFitzgerald-cx6io Месяц назад

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?

@brucemichelle5689. Месяц назад

‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.

@PatrickFitzgerald-cx6io Месяц назад

Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.

@freddy8873 3 года назад

Love your work. This is the first video that prospective traders should be watching.

@HitAndMissLab Год назад

Yet another guys saying "everybody else is lying, but, come buy my stuff, 'cause I'm the only one who's telling the truth"

@tylerschon900 Год назад

Really good and instructive video on financial services as a whole. That being said, I think the algorithmic trading tutorials you're referencing are still useful for getting from 0 to 1. That is, how can one get to a point where you're actually analyzing data and coding primitive trading strategies. Once you get from 0 to 1, then you have the tools you need to research deeper and more complex machine learning strategies.

@astroganov 11 месяцев назад

Thank you for the video. It's always good to remember that the financial market does not generate the money, it redistributes it. And if you don't see the one who is going to lose their money in the deal, it's probably you.

@abharani9265 2 года назад

Love this video, I was searching for SOR and algorithmic trading on internet, thanks for sharing reality.

@davidabner8885 Год назад

I am currently living off of my Algo trading gains. Took close to a year and around $27,000 in losses before I figured out how to become profitable. It's not as easy as it seems, but it's not entirely impossible

@C-ly-de Год назад

Thank you you're giving me hope I'm currently looking forward to learn python probabilities and finance to get an algorithm working. Can I ask about your studies or how much time did it took to be successful ?

@paulnyagini 11 месяцев назад

@@C-ly-demathematical when person claims he is profitable in reality means he is not.

@C-ly-de 11 месяцев назад

@@paulnyagini yeah ig sooo...

@arthur.monticelli Месяц назад

Are you using MetraTrader 5 to trade or is it some other software?

@FxMaster-h5y 29 дней назад

@@C-ly-dehi I am also in the process of program an algo trading system I think we could do it together

@kengc3 Год назад

An additional benefit to “quant” trading that has nothing to do with Alpha is the elimination of emotion: as long as you can truly follow your systems. Having a system can be as simple as never going long when the asset you are looking at is below it’s 200 day moving average. This sounds almost idiotic in it’s simplicity, but I would say that 90% of all people I have shared this technique with have been unable to follow it, let alone anything else that is more complex. Following a simple 200 day rule could be the first step in reducing volatility and drawdown in your portfolio, thus making it more emotionally easy to actually stay invested. I’ve used this technique (along with a lot of more complex ones) as part of my toolbox for over 30 years and it has helped me out significantly.

@cooltrades7469 Год назад

Significantly in trading = ££££. 30 years , wow. You should be in millions , at least.Or managing tenth of millions.Yes , the 200 is a known thing and actually 300 seems to be more accurate. But there is also let's say market structure, that can offer you opportunities. Trading is a complex thing and people are different so there's no universal solutin .As about algo trading , I think a statistic several years ago showed how ''human'' traders had better results. Also saw a docu about an algo firm with some very bright guys that somehow went bust .

@bubbleboy821 Год назад

That's funny because I'd say buying below the 200 day moving average means that you're buying at a fire sale.

@dakaodo Год назад

@@cooltrades7469 A couple different studies I've seen found that most technical indicators slightly improve performance when using longer period inputs. Market regime changes are what mess up most traders when they try to apply a single tool or toolkit to all situations. Re: algo firms going bust, there are plenty of them in the past two decades b/c most of them create and test a methodology that works at inception, but that market edge is perishable and erodes over time if they cannot sufficiently adapt and update their methodology to follow market conditions over longer timeframes. It's the same tool limitation problem, writ large with hundreds of millions of dollars on the line.

@dakaodo Год назад

@@bubbleboy821 Depends on whether the slope and concavity of the MA are positive or negative. If your MA is sloping upward, and especially if concavity is positive (showing upward acceleration), then yes, buying the dip is great. Downward slope and especially negative concavity would mean buying below the MA into an accelerating downtrend -- better to sell. John Maynard Keynes himself said the markets can remain irrational longer than you can remain solvent. :P (I take issue with that quote though, since the main part of the fault lies with us for irrationally pitting our ego against the market's direction in the first place)

@dakaodo Год назад

@@marekan1410 Over any large sample size of price data, I've found this to be true. But in my experience price data sets constantly see localized inefficiencies that demonstrate significant kurtosis in distribution. That is, price data is "streaky" and has both disproportionately larger and longer outlier tails AND narrower and more concentrated middle peaks. That kurtotic distribution represents an opportunity that is surprisingly easy to capture. Understanding time-volatility also helps, but is secondary. It may not be a viable model for you, but it has definitely been viable for me. There are a number of both traders and investment firms that have used this to build long term edges. Doesn't affect what I do, but it's a bit reaffirming to know that I'm using an established concept. But hey, I'll only have the final score in at the end of my life, and there'll still be a non-zero chance that it was just luck of the draw on my life's random walk.

@sammclennan3661 2 года назад

Thanks for keeping it real bro and not trying to sell me anything!

@dawei6697 Год назад

Thank you for the great video. This is one of the clearest summary about the business models of the large institutions. I’m subscribing because I want to look at your older videos on python and ML. But I agree with Sarahvandistel though, the difference in target niche between institutional and retail traders means different decision-making strategies, hence computational models, should be used. I still think that algo trading for retail traders is a viable method. We just need to find the right strategy. Once we get rich we remain quiet about how we get rich 😂, like those who already figured it out

@foto21 Год назад

Interesting video. I've been trading 3 years, and I find it interesting that you and others think it's impossible to find reliable alpha. Nothing is absolute, but direction is still a 50/50 break, which is better odds than many places. Plus, there are many different areas in the market, all of which follow patterns. However, what is scary is the ability of market makers to swill in the info of retail buyers before essentially going against the majority of them. That does seem to possibly be a bridge too far.

@ShubhamKapoor Год назад

What most retails traders think that Alpha is just the excess return over the benchmark, whereas you have to consider risk adjusted return to compare it to benchmark. It is not alpha, if you beat the benchmark with over exposed and leveraging into riskier positions. And yes, it is not consistent as well.

@ScottHz Год назад

Very much agreed! So many algo-Tubers never show the MAE of their trades, nor show e.g. Sharpe Ratios.

@axe863 11 месяцев назад

Estimating Alpha is an ML problem.

@albertociampini6473 2 года назад

Im sorry but referring to econometrics as 18th century tech just because (some) techniques involve inverting a 'simple' covariance matrix is a bit of a stretch. Most of what people label as machine learning nowadays is actually based on 18th century math, eg. PCA. The author of that book is openly against the use of econometric techniques (against ML) which is only one side of the story... peace.

@patite3103 3 года назад

Congratulations for your work! Could you do a video diving on market making? I put a series of questions under your video "understanding market makers" that you could use to make another one diving into this subject. How can a market maker (MM) make money with the bid-ask spread when you have many market makers acting in the market? How can the information of the order book be used to make money for MM? Why should they buy order books from other brokerage firms if they have already access to the order book of the stock exchange? This is still unfortunately a big black box! Thanks

@QuantPy 3 года назад

Yes, I’ll make a video on all things market markers at some point

@NightLight-q9k 10 месяцев назад

Your videos are like a rocket ship to success! Thank you for guiding us on this journey.😄

@Silver_Recaps 8 месяцев назад

Man I love this video man! you are truly good at explaining what a lot of people think is complex.

@incremental_failure 2 года назад

You absolutely can find alpha as retail. Especially true for liquidity constrained strategies. Large funds are not going to bother making 200-500k annually from a strategy, it's way too small for them. For single trader retail it's worth it.

@jonsmith7667 Год назад

you are 100% correct I am a small retail trader and I only trade alpha, this guy doesn't understand direct access brokerages as well it seems, I have only watched a few minutes but its enough, changing the channel after this post

@jerryc5743 Год назад

So, in other words, if you go into business for yourself and learn the business, to use the analogy from the book this person references, you can metaphorically mine a small portion of gold dust but, for a one person shop, that profit is worth it? (That is a genuine question, not a back-handed rebuttal)

@incremental_failure Год назад

@@jerryc5743 Exactly. Not everyone in the marketplace is in direct competition with everyone else.

@jerryc5743 Год назад

@@incremental_failure thanks 😀

@Eijgey Год назад

Are you speaking from personal experience?

@IIIIALBYIIII 3 года назад

Love your video! Much appreciated. I also love that book. BT overfitting and ML. Backtesting is like cash

@fromzerotospyro 2 года назад

those were not profitable trading strategies those were profitable business models..misleading title

@wayneflint8077 Год назад

Andrea Unger 4 time world trading champion. Kevin Davey also world trading champion, Bob Booker, Jarrod Goodman are all full algorithmic traders. Any comment on how that lines up with Alpha!

@ChrisosIDK Год назад

Exactly... this guy doesn't know how far off the mark he is. There is huge alpha to be found via algo trading (for the small scale retail trader). I personally have found it... and it is vast.

@maxg9680 2 года назад

Title is misleading. The 3 strategies proposed to make money have nothing to do with alpha. But OK to know.

@Smarttradingchannel Год назад

You can’t tell that hedge funds are juste interested by managements fees If they manage people money that because their performances and alpha are positive, that what bring more customers to trust them. So anyway, they have to trade with people money and have a great trading strategies to make return. What you can say, that those companies used others technics rather then juste predicting stock price. Some example are : hedging, statical arbitrages, means reversions, factor based models (using fundamentals).. and all of this drived by risk management So yes even big companies have strategies and trade on market and make money with that

@amj864 3 года назад

Good work. Pretty much agree with you. Finding alpha is hard but not impossible. Technically speaking retail can do market making in the crypto.

@xunningliu Год назад

How do you get initial liquidity for the AMM and compete against other big players such as uniswap?

@amj864 Год назад

@Xunning Liu I was talking about market making in centralized exchanges like binance. Making AMMs are not retail friendly.

@ScottHz Год назад

If you’re paying ‘gas’, you’re not market making😂

@MADgamer9212 3 года назад

Great video. You should make a video or series about the history of alpha. What sort of alpha strategies have been used in the last 10 years compared to the last 50 years or something.

@QuantPy 3 года назад

Great suggestion, I will try and work this in soon!

@vishalnangare31 Год назад

@@QuantPy thanks you for your great work 🙏

@Sciptopia Год назад

@@QuantPywhere is the video? Have you made it?

@pozloadescobar 2 года назад

Thank you for the thoughtful content! Very refreshing. I was beginning to think nobody but gurus and quacks created videos in this niche

@askelyk384 2 года назад

If you look at the most successful hedge fund manager, Jim Simon, who has outperformed the market with an annual return of 66,1% before fees for his medallion fund from 1988 - 2018, it clearly shows that it requires the brightest minds in the world of mathematics, computer science and physics. The point is that most retail traders don’t have the necessary skills to analyze the right data and the right amount of data in order to produce strategies that can make alpha. Of course, that’s just how I analyze the situation. But most retail traders should definitely not use basic algo strategies like SMA 50 crossing the SMA 100

@merseyviking Год назад

I got tangentially interested in algo trading through a random video suggestion a few weeks ago. I watched a bunch of videos and I came to the realisation that the only guarantee is that the house always wins, and this video confirms that. Sure you *can* make money on the markets, but it's not a get rich quick scheme unless you're a) very lucky (and then it seems people try to ride the luck and lose it all), or b) a very talented risk-aware person.

@daveb4446 Год назад

I had some time and tested out several HUNDRED financial theories, and not one of them worked as advertised, which should be expected. Why would anyone release an effective algorithm? Ironically my only working bot was the first project I worked on when I knew nothing. I saw a potential pattern while watching some chargers, and it turned out to be surprisingly effective.

@algotradrr Год назад

So basically your bot is an algo that works.

@chillbackground4935 Год назад

can you share with us your pattern

@dawei6697 Год назад

@@chillbackground4935😂😂 I’m sure everyone has the same thought as you… and I’m sure he won’t. Reason one, he spent all the time and money to test the algos, he deserves to be rich. Reason two, once it’s public it won’t work any more. But he already gave you plenty of information, right? From his brief description, you can reduce your search for a working algo by almost a HUNDRED fold. All we need to do is to figure out his hidden message and do one-tenth of his work.

@C-ly-de Год назад

Hey I won't obviously ask you for the algorithm but I'm looking to use python for trading and wanted to know how much time and/or what study did you do to get where you are. Have a great day

@daveb4446 Год назад

@@dawei6697 what I will say is that you have to check out the failures to see why they fail. And always always always use a benchmark. It’s near impossible to develop a working boy without a benchmark.

@Frootyloops629 Год назад

i left when you claimed you have guaranteed strategies to make mony

@andreasw665 Год назад

Well algo trading and alpha discovery are two different things in my opinion. The first can be as simple as, buy at price x and sell at price y. The latter indeed is not as trivial and has high barriers to entry. Good video, really enjoyed it!

@piotr780 Год назад

no...

@ScottHz Год назад

True, Interactive Brokers will let you as a retail trader use about six different ‘algo’ methods to buy/sell, but they really have nothing to do with alpha, only with different ways to enter/exit the market, e.g. not showing your full order size (‘iceberg’), attempting to buy below VWAP, etc.

@cyberfunk3793 11 месяцев назад

@@ScottHz How would IB limit the kind of algos a trader uses? You are confusing some entry methods IB calls algo and not understanding what the word means in the context of typical algo trading.

@ScottHz 9 месяцев назад

@@cyberfunk3793who said anything about 'limit'? By 'let you', I mean IB provides them as part of their trading platform. That's why I put 'algo' in quotes, I know they're not the same ;)

@sinan_islam Год назад

You are recommending a book written by Marcos Lopez De Prado. Marcos write very advanced books for audience with PhD. Most of the traders don't even know how to spell their name.

@csilipo Год назад

Thank you for this video. There so many brokers out there - only selling crap! I’ve seen so many trading academies selling some of special platform (only theres) are able to make money. There business model are just selling a "crap education packages" starting at around $2k to $15k. Carlo

@FreeMarketSwine Год назад

Curious what you think of guys talking about support/resistance, breakouts, scalping, etc. A lot of it seems harder to condense down to a fixed set of rules (and therefore difficult, if not impossible, to backtest), but you hear a lot of the same ideas coming from different people.

@James-og6cx Год назад

He literally talks about how RU-vid videos about trading strategies are bullshit and then in the next breath offers trading strategies, without even missing a beat! 😂

@AlessandroBottoni 2 года назад

Great video, kudos! I totally agree with you. If you are trying to use algorithmic trading tools and techniques to get alpha, you are probably wasting your time (and money). These tools and techniques seem to be much more useful for 1) monitoring the market (think TradingView alerts, e.g.) 2) managing risky situations (think stop losses) and 3) automating certain processes (such as re-balancing portfolios).

@incremental_failure Год назад

What's the basis for your opinion?

@ScottHz Год назад

@@incremental_failureThis video (he says he agrees with the video). 😉

@Mayor1248 7 месяцев назад

I HAVE INCURRED SO MUCH LOSSES TO TRADE ON MY OWN,I TRADE WELL ON DEMO BUT I THINK THE REAL MARKET IS MANIPULATED.

@wendyrosee 7 месяцев назад

Should I give up on Trade? What should I do? How may I do better? What I'm I doing incorrectly?

@wendyrosee 7 месяцев назад

here is my problem I have been making losses trying to make trade. I thought to trade demo is just like the real..can anyone help me out or at least tell me on what to do.

@maureen... 7 месяцев назад

I always advice new members to have an orientation on how it works before getting involved. Trade offers more benefits than just holding.

@maureen... 7 месяцев назад

Google " katefxfloretta " anywhere take classes to learn to trade.

@vincentstewart1843 7 месяцев назад

The wisest thought that is in everyone's minds today is to invest in different income flows that do not depend on the government, especially with the current economic crisis around the world. This is still a good time to invest in gold, silver and digital currencies (BTC, ETH. stock,silver and gold)

@sriveralopez 21 день назад

My biggest alpha has been finding your channel.

@fundvantage Год назад

Your information is very comprehensive, and I have learned a lot. I am in the retail trading business, but I know very little about investment banking. Thank you for sharing, I'm starting to understand a bit more.

@csilipo Год назад

I would like to see maybe how these python ML products work? Just a simple demonstration. Can you find the ‘alpha’ with python? It is a curious question - can statistic modelling produce the desired outcome? Carlo

@eieihan2302 2 года назад

So you saying is that brokers take retail traders data and provide that information to the market makers.

@ssj4vrn Год назад

The big question is, why would anyone share alpha? If alpha is shared , the participants would use it and it probably would not be alpha anymore.

@tvviewer4500 Год назад

People are dumb. They don’t ask big questions. These programs are to make herds of dumb investors for the financial companies to use to move markets.

@don_huzan Год назад

Would it become beta then?

@tvviewer4500 Год назад

@@don_huzan It becomes Pi. Pi for the financial companies to eat.

@don_huzan Год назад

@@tvviewer4500 haha good one

@FellowOfHammer Год назад

This is exactly true…..I find it funny that people want to open trading academies to “teach everyone” thinking their edge will still maintain. The painful truth is not everyone CAN be successful….there needs to be losers for there to be winners.

@Penfold__ Год назад

What do you mean that you can't create a strategy that spits out a sharpe ratio of 10 in 3 lines of code? But...what about my moving average crossover idea???

@malviyaprashant 2 года назад

The video is hard truth I guess for retail traders. But then in your view, do Retail traders have no hope? I have seen successful retail traders making good wealth? how to reconcile it? Thanks

@realtimeforextraderthebrut8571 Год назад

Fascinating video... Thank you for sharing... Always good to share knowledge and bring light to a topic...

@trustfultrading 2 года назад

I can only disagree. It's possible, it's not easy, but it's definitely possible.

@mknight3488 Год назад

copying others algorithimics and standard code is too risky

@mknight3488 Год назад

its mentioned in step 1 at conflict of interest

@lennard4454 Год назад

@@mknight3488 no! 1. the publishes could publish without making money - like a community where people share knowledge so everybody wins 2. the publisher could make money and still publish good stuff - like when u buy a math book or whatever 3. its doesn't have to be "too risky" - nobody said u have to follow blindly ... u can still run backtests and judge the results on u're own

@godcipherz696 Год назад

@@lennard4454 Super naive take.. Publishing costs money. Who incurs costs without expecting profit? There's a fundament difference in market psychology that you are missing. People that engage in the market are greedy as fuck - they like money, hence they enter the market where they can *hopefully* make money without working a 9-5 for some corporation and losing your soul. It's the exact same allure as gambling. Do you go up to professional gambler and expect them to tell you how they beat all the casinos? No, because the casino can see all the data and easily see what you are doing and then change their model to take advantage of the new trend, thereby making your winning strategy a losing one. If only a handful of people are using said strategy and no one knows, its not enough incursion on their current profitable strategy to motivate them to change their model. So, this greedy nature is mutually exclusive to sharing your profitable ideas with others that are going to exploit them to the point that they aren't usable any more and just moving on. I do algo trading myself but it's all custom built and does not use a standard static ruleset like most algo videos show. It's not good yet but its not losing money now and gets better over time (when I started it was losing badly in paper trading but its learning.) In a couple years working on it, I'll probably feel comfortable live trading it. But I'll NEVER share the algorithms with anyone. I'd just be throwing away nearly 10 years of work.

@ScottHz Год назад

19:44 he explicitely states that it is possible.

@StevenSmith68828 2 года назад

Why would anyone publish a money printing machine. Just motive alone is enough for me not to believe. Also there is no libraries that do time series forecasting with random forests (not a quant) maybe you guys know of some in python.

@jjones503 8 месяцев назад

Too good to be true? I'm pushing 4.3% a week with my current implementation. Aiming for 5.

@itssardine5351 8 месяцев назад

I'm doing 15 morbiliion % a day with my current implementation

@cavesalamander6308 Год назад

I especially like trainers who talk about their crazy earnings and... encourage you to pay for their courses. It looks strange: usually those people who have money are not particularly interested in attracting all sorts of beggars and teaching them something.

@vasanthpragash854 8 месяцев назад

Don't you like the RU-vid crypto or investments scam bot thread? Oh the markets are really hard and growth but I'm really glad I'm still able to make $xxxx a week. Then some one asks how and they name drop some unicorn guru with an email id or Whatsapp number in a funny format.

@pfdoran Год назад

If you find a high beta stock (3>) and buy in a bull market or sell in a bear market (according to federal spending), surely you will find a significant annualised alpha since you are essentially playing 3x whatever the according market is.

@resa574 11 месяцев назад

- “Just time the market bro”

@kaelsutcliffe2914 Год назад

This guy said “People telling you how to make money online are lying”, “let me tell you how to make money online”

@TheIrkenSIR Год назад

Thank you for being the voice of reason. I only wandered down this rabbit hole because I work in the sector and the implications of algorithm and api programming calls is an interesting subject.

@dima6488 Год назад

API programming calls? First time I hear someone talk like that lol

@dataanalystbynight4375 Год назад

@@dima6488what surprises you about him saying that, I guess it is not technically correct?

@dima6488 Год назад

@@dataanalystbynight4375 Because no one who actually works "in the sector" (i.e developer) talks like this, since "Application Programming Interface Programming" doesn't make the slightest of sense

@currencynews2045 Год назад

How The Bible led me to Islam ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-aFMHH9Hp-OM.html

@eyazdani4537 Год назад

Any business is set up to make money by offering services. Financial services offering opportunities to make money same as a corner shop. It's a buyer's responsibility to be educated and knowledgeable in order to make money. Algo trading key benefit is to take away human emissions in decision making and follow trading rules.

@Maximus18.6 7 месяцев назад

Algorithmic trading is useful to show possible entrance positions. Do not expect a bot will make hundreds not even thousands for you

@tullochgorum6323 Год назад

Sorry, but this is nonsense. We make excellent money with simple price action strategies at the retail level - and we know many others who achieve this too. This guy doesn't understand that small retail traders can profit off action that is too small to be worthwhile for institutions. Warren Buffet states very strongly that the larger you are, the harder it is to find alpha, so using large institutions as an example simply isn't relevant to people trading at our scale. Don't believe me? Take the S&P index of the top 500 US equities. Buy every time the price closes above the 10 month SMA. Go flat every time it closes below. This brain-dead simple strategy has produced solid results every year for over a century, outperforming the market, minimising drawdowns in bear markets, and beating most of your fancy investment funds. People with quant training simply can't live with the fact that simple price action can out-perform their fancy equations.

@hpt08 Год назад

210 period MA on the daily you mean? I was thinking this guy hasn't read the starter books - Trading for a Living etc.

@C-ly-de Год назад

@@hpt08 sorry but what is MA ?

@tullochgorum6323 Год назад

@@C-ly-de It's a Moving Average - the simplest and most useful kind of trading indicator.

@bilgisever_kullanici Год назад

I make money with python and mql. It’s not easy to develop a stable strategy but still possible at least I did it.

@C-ly-de Год назад

I'm glad to hear that besides python and mql what did you have to learn to be able to make money I'm completely new to algorithm trading

@pccrypto Год назад

It's easier to show how hard finding alpha is by looking at hedge funds and which ones actually make money in the end. They are primarily after alpha.

@HermanWillems Год назад

And they are all Quant based on massive super computers.

@pccrypto Год назад

@@HermanWillems not all, there are many 'stupid' hedge funds too ;)

@taylorbruening 2 года назад

good stuff, keep it up! looking forward to more of this high-quality content

@lamhkak47 Год назад

I love how there're many bot-liked comments getting pushed to the top in here

@Aussieguy72 Год назад

"Let’s aim to be pessimistic when people online promise that someone/anyone with a novice level of python experience can create an algo trading strategy that consistently makes money. I will endeavour to never give in to this fallacy and aim to point it out to my viewers on this channel. " As someone who wrote their own python trading script I can agree with that, while it doesn't lose money it often misses good trades because conditions were not met, I certainly wouldn't pay for an algo bot even if I didn't know how to code.

@jb_makesgames2264 3 года назад

New Subscriber - great video - a fellow fan of Dr, Prado

@Abdul-ku2qu 2 года назад

I started backtesting some strategies with years of data on a 5m ohlcv timeframe. Got some strategies which make me around 800% ROI each year. And like each month almost the same amount of winning percentage. Still developing as a side project a real stable live trading bot to take these strategies into the practical world but I am very curious what you think about it? Would there be a high chance of this being over fitted for historical data or could it actually work and make profit because I backtested it with lots of data?

@RedragonMedia 2 года назад

SO you can make 8X every year? I will wait until your Net worth be a Million dollar & you open A Hedge Fund Firm. Iff you can do that I will give you 1 grand for your Bullshit 😂😂😂

@C-ly-de Год назад

Hey I'm happy to hear that for you I want to get into algorithm trading and wanted to know what study did you do and how long did it took you to get where you are

@prithvidhyani2002 Год назад

800% ROI with consistent win rates each month? what's your sharpe ratio? 8? lol of course it is massively overfit.

@DianneVanderkooi 10 месяцев назад

Your trading strategies have helped me make consistent profits. Thank you for sharing them with us!

@patite3103 3 года назад

You didn't really talk about algorithmic trading but rather on the business modell of the two different groups (directional vs non-directional). Thanks

@MADgamer9212 3 года назад

He has to seek the alpha of the RU-vid algorithm somehow haha.

@algotradrr Год назад

Agree. Very misleading title. One doesn't have to know python. There is software out there that allows you to create your own algo and test it, which is far better than manual trading.

@zAngus 2 года назад

Good vid. Nice to see another Aussie. Subscribed.

@VenceslaoChaitanya 10 месяцев назад

firstly thank you very much for your tutorials. Can you indicate a book or training focused in technical analisys? I'm a beginner and I need to learn more about it to be a good operator on this market. Thank you!

@hasanx8317 8 месяцев назад

The gold analogy is very good. And yes, nowdays alphas can't be found with a seive, they need to be studied with academic high-level data science approach. Just the same way these new gold mining machinery is designed and developed

@pjakobsen 2 года назад

Excellent video, and thank you so much for your great channel.

@irvinrodriguez5360 Год назад

I love your videos. It's something the internet needs.

@danielfenollfreire3022 Год назад

So only, big players can make money in the market?

@mariokubala3247 2 месяца назад

thanks man, finally someone said that all straight:)

@pigachejean-eric8537 Год назад

So, guaranted IS not reachable by retails. Guaranted IS also u tube, as far as WE Can use infos. Tks.

@tehehe5929 Год назад

Why strategy #1 and #3 are not the same? They are the exact same thing for me: fee for a service.

@christianneller9499 2 года назад

aren't your "...Trading Strategies that Actually Work" conflict of interest too lol

@willowkonrad8893 Год назад

The best model is to simply control the market prices. That takes out all the guess work, Show them your stop loss so they can wipe out your trade.

@chadmagruder7728 9 месяцев назад

Stop looking at the markets the same way everyone else does while expecting anything other than the same results as everybody else that fails. Find your own thing...

@mikeparker444 11 месяцев назад

The caption on your video thumbnail was "youtube algo trading is fake" or something like that, yet none of this video actually substantiated that claim. I was hoping you would make points like "on backtesting you can buy/sell at any price, whereas on a live market you can only buy when someone is selling, and if you're trying to buy the low, especially on stocks, chances are nobody is selling".

@haibinweng5357 Год назад

What is the logic? Why these conflict of interests could draw conclusion that the public strategy is worthless?

@nima8830 3 года назад

Thanks a lot for this valuable video. What's your idea about algorithmic trading in Cryptocurrencies? They actually don't have intrinsic value and some economic terms are not applicable.

@marcelpost4052 2 года назад

Clickbait! This video is not revealing any 'Trading Strategies'. Content is mostly about business models and fees. Ridiculous waste of time.

@desertstormer7556 2 года назад

Made an entire set of algo scripts, backtested them and verified their results, fixed all issues that are hidden in the field and finally got a morning making machine so that a guy on youtube can tell me its all fake?

@bundandbarb8682 2 года назад

Discord??

@Unknowngfyjoh Год назад

Does it work for you to make profits in live trading?

@ChrisosIDK Год назад

Same!... I have good profits in live too.

@ABCDEFGHIJKLMNOPQRSTUVWXYZ1248 Год назад

I trade a manual algorithm the NNFX way and that works for me

@algotradrr Год назад

This extremely negative view. If you happen to read this, I urge all traders to do their own research and do take everything you hear on any channel with a pinch of salt regardless of who it is? Everyone is positioning themselves as an expert. I believe that one can still find alpha in today's markets

@ChrisosIDK Год назад

This guy is insanely wrong :)

@paulnyagini 11 месяцев назад

@@ChrisosIDKnot really he is super right

@lennard4454 Год назад

*BULLSHIT* I am in this scene myself. I code strategies myself and I occur u, that there are legit strategies. However that being said... I agree, that ON RU-vid there is lots of scam with this stuff... but its not like, that algorithmic trading can't work in general.

@jakemckinnon9411 Год назад

a bloke with his head screwed on! and he's an aussie too! awesome stuff mate

@denislavstoychev7240 Год назад

Good content, but misguided since none of the 3 strategies you talked about are actual trading strategies, but rather business strategies. So nothing relevant in terms of actual buying and selling of financial assets.

@virtualvessel0 Год назад

Indeed, selling onwards live retail-position information would be lucrative, "easy money" , however why is that not "insider trading" ?

@RetJim 5 месяцев назад

Wow very good video, POV I didn't think of. So far from trading, I see that there a strategies that can help get that edge, but the best strategies are the ones that keep you in the trade longer while managing low risk. So for me (and this can change after writing this) that would be Supply and Demand, why? because that is literally what moves markets! Thank you for the video

@navketan1965 9 месяцев назад

SEEK YOUR WISDOM SIR, I have 2 choices--1) buy one given forex pair every new day at the open at market price wth take profit(TP) 50 pips and stop loss(SL)50 pips on one ticket as one order 2) second choice is to buy same pair but order is placed as pending order at the open of every new day--buy the same forex pair 100 pips below the open price as pending order with take profit of 50 pips and stop loss of 50 pips all on the same ticket.And after one year of every day trading which strategy is more likely to make any money?And what answer SUPERCOMPUTER would give to my question?

@letmespeakthetruth1601 2 года назад

Right there "3 strategies that guarantee to make you money"..Fake video spotted..

@kebman Год назад

If you get into statistics, though... I mean _real_ statistics, and not a smoothed mean (a moving average).

@user-eh9jo9ep5r 4 месяца назад

Johnatan how is it possible to transfer cryptocurrency to your account for HFT traiding under your control?

@darcebrooks5409 9 месяцев назад

your work is highly informative. I always do ask myself though - are you speaking as though only quants make money in markets consistently? I would argue alongside math phd quants you have non-quant traders in existence - seems as though you are not acknowledging those

@merakshitrading9216 Год назад

Most indicators are trend following and fail in flat markets. They also not work consistently throughout all assets. I am searching for price patterns with a high win rate.

@SuperiorBeen Год назад

So you should identify the trend: long/short/flat and use the corresponding bots. For example, for a flat trend you can use a grid bot between resistance and support. For trending bots there are plenty of strategies using moving averages, lucid SAR, DCA etc. Once you identify the trend it's easy to make steady money just don't be scared to use stop losses: The trend is your friend until the end of the trend 😉

@teresapozancosdesimon7558 Год назад

entered here only for the title, since it's bullshit. i trade a fixed strategy and goes smooth like silk, algos don't work for people because: 1 they don't know how to do a proper backtest 2 dont stick to the strategy 3 have a bias 4 people cant get on a diet, you think they have the diligence, cold blood, consistency that it takes to make it in trading?

@zeksal9220 Год назад

why do you have to hate on others in order to make a point ? I didn't get that part tbh, what you explained was super basic stuff, so maybe you should look for better Algo content on youtube instead of using a misleading title like this, watched the whole thing in hopes you'd give any new insight, and ... NONE

@zeksal9220 Год назад

why is that middle lower teeth leaning all the way to the back btw?