2020-02-12
I won't sugar coat this: crypto markets suck. Many are unregulated. They pump up their volumes. There's rampant price manipulation.
What's the real value of a Bingocoin? Do you know? Can anyone know?
Sometimes you rise 200% in a few hours and back down -400% in half that time.
What's the silver lining, man?
Competition!
Well, it's more fair to say it's a LACK of competition. So what does that mean for you?
Like the usual suspects, markets for stocks, options, futures, crypto markets are chocked full of people looking to get rich quick. And, like the regular markets, these discretionary goodie bags trade with their guts. For you and I, well, we are very thankful they're still doing this. Why?
We can exploit them.
Some of the easiest money to be made in algorithmic trading is in chasing the pockets of fools. Crypto, in this regard, is like the stock market on steroids. The barrier to entry is so low that everyone and her mother is pouring dollars into digital collectibles right now, trying to get rich.
What does this matter to us?
Well, we are sensible, algorithmic traders. We backtest. We forward test. We monitor the risks of our portfolios and we swap out petering alpha with fresh new alpha as often as necessary.
Oh, you didn't know all that? Educate yourself, buddy.
Pick up a copy of Ernie Chan's great work below.
https://www.indicativequant.com/offers/algorithmic-trading-chan