10 Algorithmic Trading Mistakes to Avoid!

In this video, we're going to look at 10 of the most common algorithmic trading mistakes. Avoiding all these mistakes can lead to a significant improvement in your trading performance.

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[deemo]

What helped me tremendously was creating a playback engine in Python that uses recorded data to perform a "walkthrough", but without the restrictions of real time. So I record 1 sec data, and then play it back by reproducing the data flow as though it was real time. With this method, you can replay a full day as fast as your computer can rip through it. For me it is about 1-3mins depending.

[mr.takethingstooseriously]

I'm happy I developed a trading strategy for what I want my algo to do before I even started learning. Learned alot from this. I just started my algo trading journey and appreciate all your videos

[jul]

This is not what walkforward testing is! This is live (paper) trading testing. Walkforward testing is backtesting with a sliding window.
Other mistakes to avoid:
- relying on a single strategy vs a portfolio of not-too-correlated strategies
- not monitoring the live strategies

[fxsurgeon]

Not trusting your algo -- that's the biggest one for me, mainly due to psychological reasons. You need to make algos that fit your psychology.

[trustfultrading]

One of the best videos on this topic! Cheers

[William_sJazzLoft]

Hello. This was a very good expose on the pitfalls of algorithmic trading. Here's my question: what if one's broker doesn't charge any commission and/or trading costs? What are costs that are still left to consider? Thank you in advance

[rosaavalz]

Merciiii for sharing this! Really valuable

[javiermonroy]

Such valuable and honest content. Keep up the good work, man! Quick question, what video software do you use? Is it doodly? Regards.

[isaacelijah]

I enjoyed your honest truths about Algorithmic Trading. Good work.

[christophera]

I would disagree that walkforward testing is a must. Instead I start out small but with real money. Every loss hurts and you analyze the trades much more. It also motivates you to continue when you earn real money.

[tullochgorum]

Walk Forward testing is a technique where you backtest with staggered periods of optimised and out of sample data. I think what the OP meant to say is Forward Testing.

[GeeNee]

That's quite useful! Thanks, mate!

[GanovAlex]

very good explanation, thanks a lot for your job

[hwfrfrq]

Any recommendation to learning the Financial side? I have tons of experience with data science algorithms (specialization) and computer science (major), but have little knowledge toward terms used.

[veliem]

Yep I agree, Demo accounts have lower spread than real accounts.. Plus some live accounts have floating spreads👆🏽

[jessewadai]

I creat a robot on fxdreema can I back test it on quantconnecct?

[taiyidffd]

Can you tell me what is the ideal server to try algo

[dinnerplanner]

what if we have 10 years of data and we backtest on 8 years and forward test on the remaining two?

[taiyidffd]

I made my own trading robot and tested it on old data and found that it was 80% effective, but when I tried it on real data, I noticed that it was not working, I don’t know why, even though I use a good server with a fast speed

[bigs]

Can you give us any EA out there that work well we can use?