In this Algo trading review, it’s time to take a look back at the last year. There is much helpful content in the Darwinex YouTube channel, and who better than Martin to cherry-pick some of the most insightful pieces of content for you regarding Algo Trading.
This article intends to highlight the key points from the Algo trading for a living video series.
So let’s begin this Algo Trading Review.
In Episode 3 & 4, Martyn shows us the importance of being multi-skilled. There are numerous disciplines you need to be competent in to be a successful Algo Trader. These videos cover essential topics such as
- The importance of not over-leveraging.
- How not to over-complicate your trading strategy
- Getting your data feed in order
- How best to maintain your trading strategy for optimal performance
Trading isn’t easy; it’s actually very hard.
As Tom Hanks said, “It’s supposed to be hard. If it were easy, everyone would do it.”
Although Tom wasn’t talking about Algo Trading, it most certainly applies. But this difficulty is what makes it so rewarding when it does work.
Episode 5 talks about developing an Algo Trading System and is one of the most beneficial videos in this Algo Trading Review. This episode covers the core concepts of how to structure the creation of a Trading idea.
Get this step wrong, and everything downstream will be more complicated than it needs to be. That’s why taking an incremental agile approach can be so beneficial.
One topic that seems to be misunderstood a lot in Algo Trading and hence its inclusion in this Algo Trading Review is Psychology. Episode 7 covers this brilliantly.
Two scientists came up with an observation and named it the Dunning-Kruger effect. This theory forms the foundation of the idea and is entirely relevant, which is why we’ve included it in this Algo Trading Review.
The following 20 videos form their own mini-series—the topic.
The best practice use of indicators.
This mini-series dives into the most optimal use of a variety of different indicators. Often indicators are misused and abused and, as such, can provide negative results.
However, if you correctly implement these indicators, the rewards can be astounding.
Episodes 9 to 28 aim to do precisely that. If you use indicators in your trading, then watching and rewatching this mini-series will hopefully provide you with some fantastic insights into best practice use of the indicators available to you as an Algo Trader.
Then to keep you on your toes, Martyn moved away from Indicators and over to a higher level idea.
Portfolio Diversification and Correlation.
There are Fifteen videos covering a host of topics to do with reducing the overall risk on your portfolio. In addition, this mini-series on portfolio diversification and correlation covers four diversification techniques which are
1. Across asset classes
2. Within an asset class
3. Across different timeframes
4. Using different trading strategies
You can apply these techniques to any portfolio, whether you are an active trader trading forex CFDs or a passive investor who invests in stocks, ETFs, Darwins or every variation in between.
Episode 41 is incredibly beneficial, providing you with a correlation heatmap of 40 assets, all tradeable on the Darwinex platform.
Brought to you by Darwinex: UK FCA Regulated Broker, Asset Manager & Trader Exchange where Traders can legally attract Investor Capital and charge Performance Fees.
Content Disclaimer: The contents of this video (and all other videos by the presenter) are for educational purposes only, and are not to be construed as financial and/or investment advice.