Writing a secure data transfer Algorithm. How does it work?
Take the following text into account :
"Buy BankNifty 32000 CE @ 88"
Say you want to transmit this message to your friend and in between, if someone interprets and changes the message, your friend should know.
You build a spreadsheet of the message by breaking it down into Sr. no, each character (2nd column), and finding it's Ascii code (3rd column). You then encrypt this by multiplying it with a constant - say 22/7 (4th column)
You will get something like this:
Dec 7, 2021 • 4 tweets • 2 min read
How To Get Started Into Algo Trading
a. Algo Trading comprises two words, Algo and Trading. Algo means set of rules. Trading means Trading (verb) i.e. buying and selling
b. Before becoming an algo trader, become a trader. Read "Market Wizards" by Jack Schwager, find who are as
a trader or person
c. You may realise at some point that you don't want to become a trader, which is great place to be in.
d. If you do find that trading is what appeals to you and is a natural calling, learn back-testing in Pinescript (TradingView).
e. Build systems and
Oct 1, 2021 • 20 tweets • 4 min read
System or Algo based trading started gaining prominence in US in 80s, picked up in 90s, and exploded from 2000 onwards. Over 80% volumes in these markets are driven by Algo. In April 2008, SEBI releases a policy allowing DMA (Direct Market Access) and opens the floodgates here
DMA simply means that a trade can now be originated by a computer and order execution can happen automatically. in an automated fashion via computers, without manual (human) intervention.
The truest technology revolution in India is the invention of ATM. A person with more
Aug 10, 2021 • 12 tweets • 3 min read
Drawdown- The D Word
Trading and Investing is simple. In investing, buy “quality” stocks, hold them till ever. Even if you bought them at the peaks of market like 2007, 2017, you may have to wait 3-5 years before seeing you get back a return on your investment.
In trading,
where typically people leverage, you want to cut the losing trade and ride the winning trade.
Well, simply put these things look great in practice and sounds intellectually stimulating. Aah, once one reads this and understands this, one is ready to be the next millionaire on
Jul 11, 2020 • 10 tweets • 3 min read
Trend-Following combined with Non-Directional Options trading is perhaps the best of discoveries we have found over the last few years in systematic trading. Notice how, when Trend Following loses, Options makes money. It's probably a bit early in the day, but my sixth
sense tells me this is going to give us the big boost we have been looking for. There have always been some of the Arguments against Trend-Following and critics of Trend Following are rather more judge-mental and who live less in the present moment.
Mar 9, 2020 • 24 tweets • 6 min read
Position Sizing and Trading Performance
What is the value of the position you are carrying? When we say value, it has nothing to do with margin, risk, where your stop loss is, etc. When we are talking about the world of cash equities, this is quite clear. The importance
arises when we are trading futures and options, which is more the case. Let us see this in context of Cash equities, Futures and Options.
Let us say we are buying 1000 shares of XYZ Ltd. For Rs. 500/- a share. The exposure totals to Rs.500 (The price)
Nov 25, 2019 • 19 tweets • 4 min read
Emotions, Feelings and Systems Trading
Many of us feel system trading is removing the emotions from Trading. Nothing could be further from the truth. A Robot may not have emotions. This again is debatable. How does system trading help, if at all, then, in trading?
Our emotions are layered, just like the various peels of an onion. Many are at the surface, and maybe visible to ourselves and to others. A deeper layer of emotions though, is invisible. It is layered so deep and entrenched so much within us, that it may not be accessible to
Sep 23, 2019 • 11 tweets • 3 min read
Multi-Time Frame Analysis
Think of Price Action in terms of waves. There are some waves which are large, and some are small. If a large wave is flowing towards the shore, and a small wave is going away from the shore, what will happen to the small wave when it meets the large
wave? Obviously, it will start flowing back towards the shore, in line with the large wave. There is no small wave capable to turning the course of the large wave, atleast in the now.
Now think of Candles in terms of waves. If the Weekly Candle (large wave) is Up, and Daily