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Shravan Venkataraman 🎡 Profile picture
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4 Nov, 5 tweets, 1 min read
If I were to start my trading journey in the markets from scratch now, this is what I would do:

1) Learn market microstructure.

Trading & Exchanges - by Larry Harris

2) Learn the basics of price, volume, volatility.

Price Action by Laurentiu Damir
3) Learn Python

- Udacity, Coursera courses.
- TutorialsPoint
- Python Docs
- Books

4) Learn Pandas, Backtrader, and other requisite libraries (numpy, scipy, ta-lib, etc) using relevant documentation.
5) Build a proper backtesting engine with scalability in mind.

6) Scour through forums, books, papers, fintwit, etc., for strategies and test everything I can.

7) Learn and pick up skills related to backtesting and statistical analysis along the way.
8) Learn about derivatives

Options, Futures, and other derivatives - John Hull
Options Volatility and Pricing - Sheldon Natenberg

9) Whatever good strategies I have arrived at - I'd manually backtest them.

10) Live test for 50 trades.

11) Deploy the system.
12) Will repeat this process until I have ironed out all execution issues and perfected trading one system and then move on to adding the next.

13) Automate (if possible) the system before moving on to the next one. By the virtue of it being testable, it should be automate-able.

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More from @theBuoyantMan

Shravan Venkataraman 🎡 Profile picture
5 Nov
If your stop losses are getting hit and market goes back in the original trade direction regularly:

Don't place your stop losses based on how much money or points you're willing to lose.

Place your stop losses where market would signal you that your trade thesis has failed.
Once you decide your stop loss based on where market would show that your thesis has failed,

then decide how much position you can put on, based on the % of risk you're willing to accept.
If you have 1 crore, and you want to trade 100 lot nifty futures:

You can't decide you will set a 20 point stop loss, coz you're willing to lose only 1500 rupees per lot. (1.5 lakhs in total)
Read 4 tweets
Shravan Venkataraman 🎡 Profile picture
4 Nov
Pidilite is a sticky business.

- Very few products.
- Growth at scale
- Very little debt required to keep growing
- Strong cashflows.
Based on this framework ->

Pidilite has the following:

1) Sustainable competitive advantage: it is the market leader in the segment. The products are synonymous with the brand names.
2) Consistent (better if increasing) and high gross margins.

The gross margins are well above 40% (in recent years well above 50%).
Read 11 tweets
Shravan Venkataraman 🎡 Profile picture
3 Nov
Currently, there's a message all around social media that college is for suckers.

India hasn't improved all that much to accommodate people with skills but without degree in the job market. It's very rare to find companies like that.

Moral: You're better off going to college.
If you can afford to, go to US/Canada or Europe for your bachelor's. Otherwise, do a master's degree abroad after bachelor's.

Treat the degree as a milestone that gets your foot in the door. Make sure the degree matches what you are interested in.
If you're an average joe, your life can get better through incremental improvement. Don't depend on your college for a job though. Build the skills in the field of your choice while pursuing your degree (hopefully both are aligned) and go vertically deep.
Read 6 tweets
Shravan Venkataraman 🎡 Profile picture
3 Nov
The scenario in trading today is not as it was 20 years back. 20 years back systematic or algorithmic trading was almost non-existent. Today it's growing in numbers.

Throughout the last 20-30 years, traders have had to evolve to adapt to the changing technology and market.
It's clear what the next 20 years look like. By next 20 years, almost 90% of global markets will become algorithmic and systematically driven. Already we see discretionary prop funds withering away. Very few are surviving and barely scraping to get by.
How do you prepare yourselves for trading as a lifelong career?

No other go. You have to learn programming, learn math, statistics, and adapt to the moving technology goalposts. Otherwise you will face competition from those who do learn those things.
Read 16 tweets
Shravan Venkataraman 🎡 Profile picture
2 Nov
To truly learn how to deal with data at scale,

Get a regular 4-8gb ram laptop/desktop with a good fibernet connection.

Your task is to

- Fetch live tick data from the broker
- Store all the ticks you're able to receive
- Design the storage for efficiency & ease of use
- Also design a separate data store of the same tickdata optimising for speed
- Collect tick data of one instrument and do this.
- Find a way to collect live tick data of multiple instruments.
- Use the stored tick data for backtesting
- Optimise the backtesting process & speed
This also involves optimising the data store. If you're able to accomplish this at scale with your laptop, with say 400-500gb of data over a period of time maybe, you'll acquire the relevant skills along the way to appear for a HFT firm's interview.
Read 8 tweets
Shravan Venkataraman 🎡 Profile picture
2 Nov
The bikes I remember fondly from my childhood:

1. Bajaj Caliber - hoodibaba ad
2. TVS Victor - Actor vijay's vehicle in a movie
3. Yamaha RX100 / Suzuki 100
4. TVS Star Sport - Surya's vehicle in Sillunu oru Kadhal
5. Yamaha Enticer / Bajaj Avenger
6. Hero Honda Splendor
The bikes I remember fondly of, since I rode them

1. Bajaj Discover
2. Bajaj Pulsar 180 (back when it was introduced, a friend's).
3. Hero Honda Karizma
4. TVS Apache
5. Hero Honda Street
6. Bajaj Sunny
Bajaj used to lead the market in performance oriented vehicles and also had Discover, CT100 and Platina lead the budget segment.

TVS and Honda captured the unisex models market (Activa, Jupiter, Scooty, Pep, etc.,)

After Hero split, they captured the budget bikes market.
Read 4 tweets

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