Algorithmic

Trading.
 Introduction

Algorithmic Trading (also called automated trading, black-box trading, or algo-

trading) uses a computer program that follows a defined set of instructions (an
algorithm) to place a trade. The trade, in theory, can generate profits at a speed and
frequency that is impossible for a human trader.

The defined sets of instructions are based on timing, price, quantity, or any
mathematical model. Apart from profit opportunities for the trader, algo-trading
renders markets more liquid and trading more systematic by ruling out the impact of
human emotions on trading activities.
Top 12 Essential Beginner Books for Algorithmic Trading
 1. LIAR’S POKER by MICHAEL LEWIS
Liar's Poker is a non-fiction, semi-autobiographical book by Michael Lewis describing the author's
experiences as a bond salesman on Wall Street during the late 1980s.

2. FLASH BOYS by MICHAEL LEWIS

This book tells about high-frequency trading in a simple and understandable language.
The author talks about such trifles as sigma and its role in trading, a hilarious story about how banks
paid big money to have their “black boxes” closer to the server than from competitors and they would
get the advantage in centisecond.

3. ALGORITHMIC TRADING AND DMA by BARRY JOHNSON

The most right book about algorithmic trading in its strictest sense is algorithmic execution of orders. It
has a standing offer on the table for reading to anyone who is engaged in the development of
algorithmic engines in brokerage offices, investment banks, or under the investor’s wing.
4. HIGH-FREQUENCY TRADING by IRENE ALDRIDGE
There are general characteristics of the markets, the basics of the microstructure of the market, the
classification of high-frequency algorithms, risk management, backtesting, and analysis of the
programs.Everything is on a technical level, to understand what is useful; you have to wade through a
bunch of generalized information.

5. QUANTITATIVE TRADING by ERNIE CHAN

This book deals with automated trading in general, without focusing on high-frequency
strategies.However, the separation of algorithms is carried out – pulsed-type (momentum) and
bidirectional (mean reverting), which is essential for HFT.

6. BUYING AND SELLING VOLATILITY by KEVIN B. CONNOLLY

Those who want to build automatic algorithms using options are going to need a good understanding of
the strategy of trading volatility.In the book, you will find all the theoretical foundations of this type of
trading, and there is enough information in it to build HFT algorithms.
7. ART OF WAR by SUN TZU
The book is the perfect guide to beat the opponents in various conflict situations.
The main idea of ​the book is that only methods of warfare change, the nature of man and the laws of
war remain unchanged. According to the author, the art of war is based on the two most important
instruments of warfare, which are tactics and strategies, applying which you will win before the “boiling
point” of the conflict.

8. WAY OF TURTLE by CURTIS FAITH

Richard Dennis was the initiator of the experiment.
Two traders in the 1980s argued with each other for $ 1, which can be taken from the street person
(“turtle”) and teach him to trade.There was a contest of 1200 people. Of these, 24 people were selected.
They were showed one model.
For two years, these people earned 200 million dollars, in 1986, not having a computer, not having
almost nothing.
All transactions are carried out by voice only.The model involved a trade in which it was possible to be
wrong 11 months a year, 10% of positive inputs, and they earned them.
9. TRAINING WITH DR. EDLER
It is just a bible for traders.The book consists of three sections describing various aspects of trading.
The primary focus of the book is money management and the psychology of trading.You will also learn
how to control your risks in the market.You can find detailed answers to popular questions of newbies
in trading.

10. THE PETER LYNCH APPROACH by PETER LYNCH

The book was published in 1989, which is why some ideas described in it have become rather old.
However, it is an excellent resource of information, especially for those who invest in cryptocurrency
playing a long game.
The book will teach how to recognize the future market winners.
Peter Lynch preferred the humanities before heading the Fidelity Magellan Fund, one of the most
successful investment funds in the history of financial markets.Experience in the study of the humanities
allowed Lynch to try himself in several directions, developing the ability to multidisciplinary thinking.
He was the first to find stocks with the potential for future long-term growth.Of course, much has
changed since then, and Lynch himself admits that he is a technophobe and hates computers, without
which it is impossible to imagine modern trading.
11. TECHNICAL ANALYSIS AND STOCK MARKET by RICHARD
SCHABACKER
Another book that was released long before cryptocurrency.
It is worth noting that this is the only technical analysis book recommended by Peter Brandt, a
legendary trader with 40 years’ experience.Although Brandt himself has strained relations with some
representatives of the crypto-community, who consider him a deceiver, because he called the crypt
market a bubble, Brandt correctly predicted the growth of Bitcoin when his course was only around $
800.He managed to sell his cryptocurrency at the rate of $ 18,000 for Bitcoin, proving the power of
classic charting.

12. INSIDER BUY SUPERSTOCKS by JESSIE STINE

Stine was able to make a fortune in a regular market, which is rarely found outside of modern forex and
crypto banking.
In this book, the author describes in detail the psychology of traders during the first ups and downs and
examines the problems of emotional volatility associated with huge risks.
Stine also provides examples of graphs in which he considers the work of both fundamental and
technical analysis in practice.
In conclusion, the author also tells how to sell assets, which are not so much devoted to financial
publications.
CONCLUSION

All this books contains best material over the study of subject. One can
learn a lot from this books, and need to practice it to be perfect in
achieving results. This way you can have the knowledge and use the
studies in practical life situations.

TECHMOON
THANK YOU