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Goshawk Trades

@GoshawkTrades

Aug 12

Algorithmic trading doesn't just solve execution.

It eliminates human bias, enables 24/7 trading, and
scales diversification.

If you care about consistency, scalability, and edge, read this:

Let's bust some myths:

Algorithmic trading is easy money with no effort.

Wrong.

It requires upfront work.

But that effort pays off with consistent and scalable execution.

1. Eliminates Emotional Trading Execution.

Often the destroyer of trading accounts isn't bad strategy—it's execution.

Code executes without emotion, following your rules exactly as backtested.

Read 11 tweets

Goshawk Trades

@GoshawkTrades

Jul 16

I've read Machine Trading more than I can count.

My favorite line:

"In trading, complexity doesn't pay"

Here are 6 lessons from the book you need to know:

1. Start with simple.

Ernest Chan emphasizes starting with the simplest technique, before moving to complex methods.

Most traders like to jump the gun to advanced machine learning thinking it guarantees them an edge...

It normally is the complete opposite.

2. Each parameter must fight for its place.

Chan warns that excess parameters are the easiest way to overfit a strategy.

Keep only parameters that show statistical significance and serve a clear purpose.

Whether generating returns or controlling risk.

Read 10 tweets

Goshawk Trades

@GoshawkTrades

Jul 8

I was a losing trader for almost 2 years.

Then a few small pivots in my process led me to be consistently profitable for these past 4 years.

Here’s what I changed:

1. Systematic thinking.

My discretionary trading was a mess - inconsistent entries, emotional exits, and second-guessing.

The shift: I started defining clear, backtestable rules for everything.

This removed 90% of the emotional decision-making that was killing my account.

2. Learned to respect risk above everything else.

I used to target returns first, then figure out risk later.

Entirely backwards.

This single change prevented me from over-leveraging and blowing up during inevitable bad streaks.

Read 12 tweets

Goshawk Trades

@GoshawkTrades

Jul 2

Poker is one of the most important cheat codes in trading.

Jeff Yass ($59B net worth) trains traders at his $500B+ hedge fund using poker for good reason.

Here are 5 poker concepts that will make you a better trader:

1. Position sizing is everything.

In poker, you don't put your life savings at risk even with pocket aces because "one out of five times you're bankrupt."

The same applies to trading - even great setups lose.

Size your positions so you can survive the variance.

2. Focus on process, not results.

There's a huge difference between making the right decision and having the right outcome.

Even correct decisions can lose money, and wrong decisions sometimes win.

You have to get comfortable with variance in your outcomes.

Read 10 tweets

Goshawk Trades

@GoshawkTrades

Jun 24

How to Build Your Own Algorithmic Trading Business

Ernest Chan's "Quantitative Trading" will change how you trade - for the better.

Here's a full breakdown - so you don’t have to read all 256 pages.

Be sure to save this thread:

1. You don't need a PhD to succeed.

Most people think automated trading requires degrees in math's to get started.

Chan proves this wrong. He shows that simple strategies often outperform complex ones.

The key is execution, not complexity.

2. Where to find strategies.

Chan reveals the best sources for trading ideas:
- Academic papers (ssrn, etc)
- Trading forums and blogs
- Twitter and financial media

The trick isn't finding ideas - it's modifying and management of basic strategies.

Read 11 tweets

Goshawk Trades

@GoshawkTrades

Jun 16

I tested 100 trading strategies, and I found this:

What makes a trading strategy work on live markets?

I used to assume it was all about discipline and market experience I didn't have.

But after backtesting 100s of strategies over 6 years,

Here are 2 surprising discoveries:

1. Simple beats complex, every time.

95% of failed strategies had one thing in common - they were overly complex with way too many parameters.

The profitable ones?

3-5 parameters maximum with clear, logical rules.