Lazy Trading

Learn Computer and Data Science through Algorithmic Trading

10 January 2018

The big idea about Lazy Trading

In this blog I would like to cover few ideas. I would like to cover what is the point of even to start looking at Financial Trading. I would also express my personal opinion about it. I think that Trading is non-productive and bad for society. Lastly I will want to actually tell you about my way of doing Algorithmic Lazy Trading and learn Computer and Data Science.

By the way, This is not a trading advice! so just relax and have a fun reading for the next 5 minutes!

Google that: “Hot to get rich?”

To start with, I would ask you to open any of your favorite search engines. Please try to type something like:

  • “How to get rich”,
  • “How to make money”…

I am almost sure that top search result will be not about how to develop the great idea, working hard, risking your own capital, start your own business, fail, resist, start again… Not! The top search will be certainly about Trading. More precisely about Algorithmic Trading.

Why people believe in Algorithmic Trading?

They believe that their winning expectancy will be dominating the loosing expectancy. These people would strive to create systems that will generate lot’s of trades. These trading systems would be ‘trained’ on the past data and typically tested on the independent data to verify the result.

Still, why it’s bad for society!

Typical situation: One person is risking 1 dollar, getting 99 dollars from the bank, instruct broker to buy or sell the asset, close the position after pre-defined sub-cent price move called ‘pips’, return 99 dollar, commission and get the few dollar profit or loss, repeat this many time during the day in the automated way…

Now, think about it. What is produced? What is the added value? Not speaking about the taxes. Do you know that few countries in the world [e.g. UK] does not tax income generated from such activities? You may of course argue that those people are sick and would loose their money anyway, yet phenomenon is really exists with very great extent. Trillions of dollars everyday that is the the volume of money involved…

Why it can give you value?

It’s probably the best thing to learn computer and data science!

Just a few comments why I believe that data and infrastructure can be used to scale up your skills:

  • Perfect data
  • Free software
  • You can implement your crazy ideas
  • You can see the result
  • Risk free using Demo accounts
  • Free basic education

In fact software and data that exists out there is available for free with a download click. Data is stored in the servers in the structured way, base functions and entire programming languages are created to manage all that! A lot of forums with information and often free articles and tutorials. More over it’s possible to try all that in a very risk free environment using Demo accounts at many available brokers… Brilliant! It’s just important not to loose your patience and to convert that gold into useful things

Why do I call it Lazy Trading?

I think that there would always be people who want to try algorithmic trading. However what I want to bring into the subject is to provide ideas for those people on how they can be more efficient with algorithmic trading. The idea is to use top level of supervision allowing to replace trader decision. My goal is to automate what can be automated leaving to the trader just possibility to supervise and maintain the trading systems. Giving to the trader psychological relaxation from the fact that Artificial Intelligence will take care about the situation…

The idea is to use building blocks and to create what I call “Decision Support System”. Lazy trading is the concept that would help anyone to set up the direction, build this Decision Support Ecosystem, improve it while keeping everything under Version Control

Why am I creating this series?

First of all this series was created to bring together series of tools that I created while researching the Algorithmic Trading. I wanted to keep this in the structured form to eventually bring that as a completed project one can reproduce. This is because by creating a course Instructor is almost obliged to follow predefined structure of the course. Well as reader may understand, this helping to the Author to be more disciplined and accurate - things that are so difficult to keep in mind!

Second reason is about the possibility to learn, practice and obviously share the concepts and methods with students in the transparent way.

Third reason is that concepts used in the course will be valuable for real value-added projects in the industry. Concepts that students can take and apply for the real world applications or at least being able to demonstrate competence to get a good job

What only benefit I can guarantee?

Even though no specific trading strategy or market inefficiency is being promoted author believes that these courses are bringing the entire framework trader can use to perform his/her own research. This framework can be expanded to suit more specific needs. On top of that valuable learning would appear naturally thought replication of proposed methods. These general purpose methods could be applied elsewhere to bring real value to society. This is the only benefit I can guarantee - is to learn Computer and Data Science through Trading.

Conclusion

Hopefully this little article has answered question about the idea of Lazy Trading. How to start with that? Make sure to read specific article about each course of the series.

Thank you for reading!!!

p.s. for those who are too lazy to read here is a little video trailer!


Interests: industry, teaching, science, history, travels. I also like to travel with family and watch/play ice hockey