Serious Algorithmic Trading Series – Introduction

13 March 2017
The Market Bull

You’ll learn how algorithmic trading differs substantially from “automated trading using technical analysis”. The two are in fact entirely different disciplines, as this series will demonstrate.

You’ll also learn that contrary to popular opinion, algorithmic trading is not synonymous with “automated trading”, though a large percentage of algorithmic trading systems today are indeed automated. We’ll shed more light on this as we go along.

Each part of this series will be written in a manner that allows us to write additional “series of posts” under each “part” down the line, thus creating a pathway of sorts for traders to dig deeper and expand their knowledge base as they progress through this content.

What’s inspired this algorithmic trading series?

The Darwin Exchange has observed a steady rise in the number of listed DARWINs producing competitive risk-adjusted returns over time, where the underlying strategies employ techniques found in institutional algorithmic trading circles, e.g. in Quant hedge funds and prop desks.

Some of these DARWINs experience risk-adjusted returns that demonstrably outperform those of discretionary strategies consistently.

This is a VERY welcome development, and we hope to help it along by publishing content that helps more traders start in the right place in their quantitative trading journey.


Darwinex - The Open Trader Exchange

Darwinex – The Open Trader Exchange

What’s in it for Darwinex, Traders and Investors?

  1. Darwinex pairs traders with competitive risk-adjusted returns, with savvy investors looking for competitive risk-adjusted returns. Therefore, the more strategies there are on the Darwin Exchange – that offer competitive risk-adjusted returns – the greater the number of savvy investors who will be motivated to back them, leading to potentially greater AuM for traders and hence the potential for greater performance fees.
  2. Since traders get 20% performance fees on a high watermark basis, their interests are aligned with those of Darwinex Investors, i.e. both need to experience profitability to survive. Robust algorithmic trading techniques generate robust risk-adjusted alpha – this series will therefore identify a clear academic and practical path for traders to follow in their hunt for algorithmic alpha.
  3. It’s in Darwinex’ interests to provide both traders and investors with the necessary tools and resources to aid successful trading and investing respectively.

The four constituent parts of this series are defined below. Future posts will then focus on each part individually.

These are:

  1. Can individual traders really compete with institutions? — (Click here to read this post)
  2. Serious Algorithmic Trading – Advantages & Disadvantages — (pending publication)
  3. The Quantitative Approach to Algorithmic R&D — (pending publication)
  4. Software & Hardware Requirements for Algorithmic R&D — (pending publication)


Kindly bookmark this page as we’ll be posting updates here as and when new content is published.

Lastly, please do share this post using the buttons on this page, with anyone who may find this series useful!

Trade safe,
The Darwinex Team

Do you have what it takes? – Join the Darwinex Trader Movement!

Darwinex - The Open Trader Exchange