I've been algorithmic trading for 5 years.

In that time, I went from 0 to 10+ live algo strategies making multi 6 figures.

Here are 12 things I wish I knew on day 1: Context:

I've been trading for 6 and bit years. My first year was a disaster.

Then I discovered I could use coding and data for trading. Since then, it's been up year-over-year, but I've made tons of mistakes.

Here are the lessons learned (the hard way) so you don't have to:

Expected returns.

An Investor's Guide to Harvesting Market Rewards.

I've read it more than I can count, and it will change how you think about trading.

Here’s a full breakdown - so you don’t have to read all 979 pages: 1. Most returns come from risk (or mispricing).

If you think you’ve found alpha, it’s usually just a disguised risk premium.

The key is knowing which risk you’re being paid to hold.

It could be:
• Bearing a risk others avoid
• Providing liquidity
• Exploiting behavioral bias

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.

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.

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.

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.

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.

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:

I don't care how well you trade - if you don't have an edge your lucky streak will run out.

No edge is the #1 account killer.

I used to trade aimlessly. Now i just look for edges.
Here's how I eliminated guesswork for good: 1. Most traders confuse luck with skill.

They hit a winning streak and think they've "figured it out."

But here's the harsh reality: random outcomes can produce impressive short-term results.

Without a real edge, those profits are just borrowed.

Gun to my head if I had to choose three tools to be stuck with, one of them would be:

Parameter Sensitivity Analysis

An elegant tool that helps separate working strategies from garbage.

A comprehensive guide on one of the best backtesting tools: 1. What is Parameter Sensitivity?

It measures how changes in input parameter values affect a trading strategy's performance metrics.

These metrics could be:
- Total return
- Sharpe ratio
- Max drawdown

The primary objective is to tell how sensitive the strategy is.

A hill I'm willing to die on:

Simple strategies will outperform 90% of traders.

After backtesting 1000 strategies, the pattern is clear: the winners are embarrassingly simple.

Let me break down why complexity kills live results (and what you should focus on instead): 1. Complex Strategies Fail Because of Overfitting.

Most traders think more complexity = better performance.

Reality: Complex strategies often look amazing on a backtest but lose you money when live.

The more parameters, the more you're fitting to noise, not signal.

If you give me 2 minutes,

I'll show you exactly how I automate my trading strategies.

No emotional execution, no guessing—just a process that has made me $100,000.

Here's how it works: There are THREE main ways to trade:
• Manual
• Hybrid
• Full Automation

Each has its own process and ideal use cases.

Let’s break them down so you understand which makes sense for you.

Stop trying to trade every move.

I spent months doing it,
It trapped me in a losing cycle, throwing away weeks of PNL.

Then I focused on ONE principle & finally made over 6 figures.

Here's how: The Principle: To make money in trading, you need an EDGE.

But most traders are obsessed with entries and exits while completely ignoring if an edge even exists.

Without it, you're just doing "sophisticated" gambling.

Here's how to solve that.

Evidence–Based Technical Analysis.

David Aronson's Evidence–Based Technical Analysis will change how you see trading.

Here’s a full breakdown - so you don’t have to read all 544 pages.

Be sure to save this thread: 1. Subjective vs objective analysis.

Most traders draw lines on charts and trust their gut.

This is purely subjective analysis.

Objective analysis is where you can confirm or deny ideas with real data.

This is why data is so important.

I run a $100,000+ portfolio of automated trading strategies.

I execute 0 trades manually.

Here are 7 tools I couldn't live without: 1. Ninjatrader.

This is where I run the majority of my automated strategies for futures markets.

They have backtesting and automation capabilities and solid infrastructure.

It's always an easy recommendation.

I wasn’t a bad trader. I just couldn’t execute the trades I knew I should.

I'd freeze up, overanalyze, and watch winning trades move on without me.

Then I made ONE change that erased all doubt & turned those profits into reality.

Here's what I did (so you can copy me): Finding a strategy has rarely been a problem for me,

But consistently executing and managing positions,

That's where it all fell apart.

Every. Single. Time.

The 6 math formulas every trader needs to know (explained simply):

1. Expected value The backbone of trading.

Positive EV is what you're after if you want to succeed in trading.

You will want to calculate this for every strategy.

Me in 2019: Losing $3,000+ per year.
Me in 2024: Making $100,000+ per year.

Here are 6 trading skills that made it possible: 1. Systematic over discretionary.

When I first started, I made emotional decisions based on gut feelings and the illusion of having "intuition."

Now I have clear, defined criteria for every trade my strategies take.

This by itself was the most pivotal skill to learn.

Direct Market data can cost $34,000 a year.

But you can get it for free.

Here are 6 data providers you should know (it'll save you $34,000): 1. yfinance

The classic choice for newcomers to financial data.

It's the lazy go to and easiest way to pull daily data.

It covers equities, forex and crypto.

However data quality can be spotty, so be sure to double check.

Five years in the markets taught me some brutal truths about trading:

1. Read all the psychology books you want - It's impossible to beat the market with that alone 2. Your ego is the most expensive position.
3. Past performance is the best predictor of success we have.
4. Your win rate means nothing on its own - It could be 10% or 90%.
5. Your first profitable strategy is often only the start.

The biggest scam in the trading industry:

"You just need ONE perfect strategy."

It's marketed to retail traders as the key to profitability,

But hedge funds make BILLIONS doing the opposite.

Here's what they're not telling you (the "holy grail"): 1. The myth of the perfect strategy.

Most traders waste years looking for a single strategy that works in all market conditions.

This doesn't exist.

The real edge comes from a different approach entirely.