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Pitfalls of algorithmic trading


crastogi

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Well, I think that most people doing it are thinking a lot about this problem. A strategy should be reasonably robust over different parameters.

 

Do we have any quants here?

 

I have been experimenting some with backtesting pairs, baskets and other price driven situations but the possible result are always disappointing when adding transaction costs and the work needed to implement and babysit the algo.

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What system or platform are you using

 

I used data from yahoo and Interactive brokers. Did the backtesting in the R programming language but I think Excel would have worked almost as fine and probably is a lot quicker to get started in if you don't have a programming background.

 

 

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  • 3 months later...

What system or platform are you using

 

I used data from yahoo and Interactive brokers. Did the backtesting in the R programming language but I think Excel would have worked almost as fine and probably is a lot quicker to get started in if you don't have a programming background.

 

I am using Portfolio123.  It has a fantastic back tester.  Though I have yet to fully use the other options

 

Best,

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