The 21 cognitive biases that will sabotage your trading (and how to beat them to improve your results):
Put your ego aside and attribute early trading success to luck.
The first rule of finance:
No risk, no reward.
Trading is not eliminating risk, it's managing it.
No risk, no reward.
Trading is not eliminating risk, it's managing it.
Rigorously test your systems and seek to disprove your hypotheses.
When building systems, use walk-forward analysis to test your strategies against different markets.
Make of list of facts then go back and weigh each one.
Markets change every second. The winners embrace the change.
You only control your strategy hypothesis, testing framework, and execution.
The market controls the rest.
The market controls the rest.
Buy on the rumor. Sell on the facts.
Traders and their strategies are rewarded for non-conforming views.
Test your strategies over time in many market regimes.
All humans are irrational—even you.
Automate your trades to remove the human element.
Automate your trades to remove the human element.
...but always audit them.
Build trading ideas as fast as possible.
Work to disprove your hypotheses and discard ideas just as fast.
Work to disprove your hypotheses and discard ideas just as fast.
Always assume you're wrong and your success is due to luck.
Most of the time, it's true.
Most of the time, it's true.
Past performance is not an indication of future results.
(Sound familiar?)
(Sound familiar?)
Just because you spent time building a strategy, doesn't mean it will work.
Create a framework to build, test, and discard ideas fast.
Create a framework to build, test, and discard ideas fast.
Treat trading like a scientific endeavor.
Use testing and data to support your conclusions.
Use testing and data to support your conclusions.
Trade market anomalies.
Don't mine data.
Don't mine data.
Focus on managing risk first.
Work backward from your exit.
Work backward from your exit.
Treat every trade independently.
Success does not beget success.
Success does not beget success.
Join communities, talk about your process, and read.
Seek to improve every day.
Seek to improve every day.
Cognitive biases will destroy your trading results.
The best way to conquer them is through systematic, automated strategies.
If you're ready to get the information, libraries, and step-by-step structure you need to get started, join the March cohort.
gettingstartedwithpythonforquantfinance.com
The best way to conquer them is through systematic, automated strategies.
If you're ready to get the information, libraries, and step-by-step structure you need to get started, join the March cohort.
gettingstartedwithpythonforquantfinance.com
@SachinRamje is the Hyper Visual guy behind the illustrations.
The best way to remember these is to retweet this thread so it's at the top of your timeline.
The best way to remember these is to retweet this thread so it's at the top of your timeline.
Avoid the information overload.
Go from beginner to up and running with Python for quant finance in 30 days.
• Community
• Frameworks
• Live sessions
• Special guests
• Jupyter Notebooks
January cohort is open - limited spots.
gettingstartedwithpythonforquantfinance.com
Go from beginner to up and running with Python for quant finance in 30 days.
• Community
• Frameworks
• Live sessions
• Special guests
• Jupyter Notebooks
January cohort is open - limited spots.
gettingstartedwithpythonforquantfinance.com
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