My trading days continue to be filled with coding up trading strategies and then evaluating back-testing results. As mentioned previously, I am doing this using EasyLanguage on the TradeStation platform, a US broker.
Leaving hedge fund office in a fortnight
Am still working in the office adjacent to the small hedge fund that is run by a friend of mine. That said, in two weeks’ time, I will be moving back to the trading office where I worked from 2014-2016, as the trader that I have had the most interaction with here at the fund, has moved across the Atlantic. The remaining traders are very systematic based (as opposed to being discretionary) – hence the overlap is somewhat limited – even with me getting into coding strategies. The dialogue with the funds’ traders is likely to continue going forward in any case, regardless of where I am based.
The nine months working right next to a hedge fund has been very interesting and I have learned a great deal. It’s great that my friend provided me with this opportunity!
The old trading office currently does not actually have any traders in it. So it’s more an office, rather than a ‘trading office’!
Trading Strategy Ideas
I have created a collection of trading strategy ideas, which I saved in a simple spreadsheet list. Many of the ideas have actually ‘been with me’ for a long period of time. The ideas have come from various sources: Trading books, trading websites, trading forums, conversations with colleagues and fellow trades, Twitter and my own observations whilst looking at the screens.
Following that, I short-listed several ideas by contemplating several factors about each strategy:
- Am I likely to be working on my own on the strategy, or is there somebody that I can work together with? A “partner in crime” [Incidentally, this has already led to strong working relationships with two traders.] [Remember, don’t try this alone!]
- Can the strategy be back-tested? If so, how easy/difficult is the associated coding in EasyLanguage likely to be?
- Does the idea provide a niche to retail traders? In other words, larger players are not likely to be interested in trading the strategy even if it has an edge – most often because it could not be traded in large volumes.
- Are transactions costs likely to be high or low with the strategy? Strategies on lower timeframes with tighter stops tend to have proportionally higher transaction costs.
I am continuing to add to the list of ideas as I come across new ideas during my working day. The list is already approaching 70 ideas!
Coding in EasyLanguage & Networking
Following this, I have begun the process of coding up some of the ideas, as well as individual indicators that I am finding useful. There is quite a bit of a learning curve, however every bit of code can be used again and again in future strategies. The coding is a lot of fun – and progress seems good. It is amazing how quickly one is able to test and investigate ideas, and do so over a longer period of time and over a good number of markets.
Am continuing to network with other traders and maintaining regular contact and working sessions with my trading buddies.
60 hours a week
As planned, I am splitting my working week around 40 hours on trading and 20 hours on non-trading work. Without actually advertising, so to speak, I have had the odd request/inquiry for work from a couple of people. so that has been encouraging.
Trade well everyone!