Interesting.. I expected a fancy algo, written in Python and powered by machine learning.

@sebastianpineyraq1998

14 күн бұрын

i think that a fancy algo can be found on C++ in a firm that do HFT

@CodingJesus

14 күн бұрын

That's exactly why I thought it was important to make this video, despite it being (potentially overly) simplistic and unexpected. People don't realize just how much time and effort goes into ones work in the world of quantitative trading. Firms literally have entire teams of 50+ people, each putting in 8 hours a day at least, to compete on a global stage against other firms that have virtually unlimited time, money, and resources to invest in squeezing out as much alpha as possible. Not only that, but each software engineer, as they develop in their careers, starts specializing in various subdomains of applications in the organization. You can be a software engineer that specializes in risk systems, which sit primarily in the pre-trade (risk mitigation) and post-trade (risk reporting, aggregation) phases of the trading process - in theory you can have 10+ years of experience as a software engineer in quantitative trading and never work on anything related to order-entry (strategies). I'm fortunate enough to have worked on many services spanning from order execution, to market data, to internal tooling, to risk systems, but that doesn't mean that I i) want to spend my time outside of work building these systems from scratch and ii) am arrogant enough to think that I can outpace firms who have dozens of employees working around the clock. Questions like "Why don't you just be a one-man-band / implement quantitative strategies on your own" are rooted in ignorance. The more you know, and the more you work on critical systems in conjunction with other bright individuals, the more you understand just how futile it would be to compete on the same playing field as an individual. It's also important to note that, just as traders don't necessarily understand the code that runs behind the algorithms they control, so too do developers not necessarily have a detailed understanding of the model development, and trade execution that is involved in controlling the algorithms that they work on (to the point where they can simply replicate them, and iterate on them, outside of the workplace; neither do I think this is legal). I'd personally rather pursue something simple and time-tested, knowing that over time I'll at most have a humble outperformance (and at worse, match the markets performance, which is still a feat that most hedge funds cannot achieve), than waste hours of my free time throwing money down the drain trying to compete with the titans of the industry. Smart people simplify, clumsy people 'complexify'.

@jacobramis6203

14 күн бұрын

This comment should be required reading for anyone who thinks algo trading at home will be consistently profitable longterm

@cssensei610

14 күн бұрын

⁠@@CodingJesusI've been trying a "similar" strategy:-- an ETF sampler with "probabilistic risk"--> say --> [META, MSFT, GOOG, PLTR] now probability of sampling market = 0.75 probability of not sampling market = 0.25 (PLTR is risky but has low probability too) We keep a pool of funds say $10 everyday to cost average across this probability distribution And we can buy on Mondays and Sell any equities in Profit on Fri (for losses we'll keep them as unrealized loss aka "hold") This yields a sharpe ratio of 10% on avg & is also non-deterministic. I published on quant connect too Ultimately I call it probabilistic betting it's fun haha

@cssensei610

14 күн бұрын

why are you deleting my comment?

When you have a clearly intelligent HFT software engineer saying that he buys and holds ETFs, you know it’s not bullshit

@SebastianCoetzee

14 күн бұрын

Well one of the reasons is that if you work for an HFT you have to get your trades approved by compliance

For people asking, if he did have an advanced custom trading algo, KZread is the last place he'll post it

Thanks for the video and for sharing the information, much appreciated 🙏

Very interesting video, thank you so much! All the best.

Would love to hear a breakdown of cost of living/budgeting. I noticed at the end you said you invest about 15% of your paycheck, what else do you prioritize?

Can you describe why you pick VONG over VGT, MGK, VUG ? and thank you

Glad to see you're back and love the videos. Random investment thought but I think TLT and YINN are interesting ETF plays right now. YINN is obviously very high risk but you said you have an appetite for that :)

Awesome vid! Can you do a video on how you got ideas when you were picking stocks?

Do you invest in QQQ and if so how does it compare in your portfolio to VONG and VOO

Ive got a question. I’ve been coding strategies for a little while now and my algo portfolio has just got a 2.7 sharpe ratio. I’m hitting about 3% per month (2004-2023 backtests). I just turned 20 and I don’t have any formal education about quant finance, just what I’ve taught myself at the local library. Would it be realistic to try to and get investors like a hedge fund, or should I just focus on improving my strategies and increasing my own capital.

@SupremeScorpion

14 күн бұрын

Im beating the market this year by 6%. Not nearly as much as you but I’ve got a lot to learn

@vibinpenguin7021

14 күн бұрын

i hope you've been out of sample testing? the backtest period seems extremely wide

@SupremeScorpion

14 күн бұрын

@@vibinpenguin7021 i had it do demo for 3 months and now I’m 5ish months into live trading. It’s pretty consistent

@bilalshaikh6603

5 күн бұрын

I am 19 and doing my degree in data science i also want to start developing my own algo can you please share some resources. Rn i just sell covered calls on my portfolio.

@SupremeScorpion

5 күн бұрын

@@bilalshaikh6603 I just turned 20 a couple days ago and I’m a business major, everything I’ve learned is just from arriving at an issue, guessing and googling, and asking chat gpt 😂 I’m not the person to ask

did you calculate your own alpha/beta for ETFs

Would love to know why did you pursue quant dev instead of quant trading, (if you have no problem answering). I see most of your videos and you seem more interested by the trading side than the dev one. Is it because it is way harder to get in? Or simply because dev is safer since it is more like a traditional job and there is wayy (way) more job abundance? Or because you prefer it maybe?

@percy9228

13 күн бұрын

watch his earlier videos, he's smart. learnt C++ and landed a dev job working in quant's. With no disrespect to him but he's more like codes up the theory the quants tell him. He's not had any formal education in quant theory. They are not the same job. the pay and skill difference would be order of a magnitude

Why do you benchmark your portfolio to the market? I guess it makes sense if those are your only two options, but don’t most quant strategies act as diversifiers to market returns?

When will you sell? Planning to hold for 30 years?

awesome vid man. could you make another one about culture in HFT for quants? specifically, how strict is it? how lax? are people like super "on job" when it's time to work, but love to goof around outside of work hours? i'm gearing up to start applying to quant soon, one of the things i think about is "should i cut my hair?". i'm an ethnic dude, my hair (when long) is often seen as unprofessional, literally just because it's not a white dude's hair lol. is this sort of environemnt something you see as common in quant?

Apparently there's only one person beating the market 😮😮😮😮

By revealing how much you have lost on each, you revealed your position size on each and based on the number of digits and size of the black blur, the number of digits of the other positions can also be estimated.

i was loosing money 2 years and then became profitable in 2 days with big big luck. all in one stock, one smaller position yet in one another.

As an employee of a hedge or quant trading firm, how are you making these frequent trades? Aren’t you required to buy and hold for 90 days and get permission from your compliance dept before every personal trade? I am even surprised that Robinhood is an approved broker by your employer.

Do you recommend any robo-advisors?

Glad to hear you’re in Chicago. I think some of the best trading firms are here.

@omgbaxtergames

14 күн бұрын

All the best trading firms are in Chicago. At least in terms of market making

@mattportnoyTLV

14 күн бұрын

My neighbor runs a large firm on Jackson. I work for a data analysis firm that’s on S Michigan Ave just around the corner. We handle analytics for forex and futures markets.

@japan8994

14 күн бұрын

​@@mattportnoyTLV Iam learning forex. And neww do u find anything that is algorithm and sl hunting

Coding Jesus what career should i pursue if I have high verbal Iq (130+) but really low performance iq (108) ? I work at a consultancy but fail many logic/numerical based tasks...

@Revolution3030

13 күн бұрын

Ay, that's me too. 😅

Since you invest 15% of your pay check are you constantly buying more of the same stocks are does it vary based on what you believe to be another good investment. I.e. you have 1000 in Russell your 15% is 500 do you put that whole 500 into Russell or 100 russell 100 spy 100 etsy 200 nvidia

Why don’t you try out some complex strategies that you’ve seen in the industry?

@kashyap5551

12 күн бұрын

Its probably because they don't work at his account scale, nor does he have the execution speed. If he works at a HFT then they probably market make/take and you cant do that with little liquidity and retail brokerages. The "complex strategies" are not complex in themselves (you can literally read about them in books) its the execution part that's hard and beyond an average persons reach think capital, permits to be a MM, access to exchanges at sub-millisecond latency, software engineers etc...

i glad i find you

whats your exit strategy?

Beating the market index is very good these days

1.5x/year is pretty good. How long until billionaire status?

@bilalshaikh6603

5 күн бұрын

Only 1year if you start with 666mil.

Can you make a video showing your CV... and your advice to build a good one

how do you feel about Tesla

Why is this comment section full of bots? Show your all time portfolio performance. 1 year of data is nonsense.

@luckylanno

15 күн бұрын

He kinda lost me when he started talking about short-term alpha. The S&P has only done ~7% since Jan 2022. So what if you do 100% YTD if you were down 50% last year. That's just breaking even.

@_coasthero

15 күн бұрын

Using robinhood gave it away, stay away from bro.

@user-ob7tm6vi4e

14 күн бұрын

dont need to see that based on his words. he sounds like the dude who randomly bought tesla early on a gut feeling, then uses that one performance to give his "investing genius" beating the market speech

@tr0wb3d3r5

14 күн бұрын

Yeah that is pretty sussy for someone like him who clearly understands 1 year performance doesnt have enough data points

@dolevmazker736

14 күн бұрын

Yeah 1 year return only , No actual percentages shown on individual stock picks he chose, Too much red flags for me

How much you pay for your colocation rack?

Wait what about the ICT strategy?

Why is no one talking about how fine he is? He's like model pretty

Can you explain alpha & underperformance again?

@CodingJesus

14 күн бұрын

😆

@CodingJesus Do you not own any crypto ?

Robinhood is very interesting to use. Not saying it's necessarily a bad thing but it's definitely not great

do you lump sum or dca etf buys

@CodingJesus

14 күн бұрын

Anytime I have money, I invest. If I get my bonus, I put the bulk of it in all at once (lump sum). When it comes to paycheque, I put a percentage of it in (DCA).

he is trully smart person. i believe hes work on HFT firm. but he's not just risk seeker person. sometimes jobs stay at works. he just treat stock just as a hobby i guess and just doing risk premia harvesting stuff. just buy what his senior or friends doing basically

Can you make video on HFT Arbitrage & Microwave.

Only 15% of your pay cheque gets invested? That seems extremely low especially for someone who should be making alot. Is the rest expenses?

@CodingJesus

15 күн бұрын

No, different portions go to different assets. Crypto, eccetera

@Nuns341

15 күн бұрын

@@CodingJesus can u make ur crypto video again like how to choose a project I know you had the video but i think it got deleted or maybe privated

@user-ob7tm6vi4e

14 күн бұрын

@@Nuns341 you will never make it in crypto if you think the project matters 😂

@Nuns341

14 күн бұрын

@@user-ob7tm6vi4e lol Sol mattered and i missed it

@tr0wb3d3r5

14 күн бұрын

wise words honestly ​@@user-ob7tm6vi4e

what about ibkr?

Nice, VOO

you look younger without beard!

so if i made 10x my port ytd then i'm the best or what

@mkay1388

14 күн бұрын

if you do it for 10 years in a row maybe

@kaj1543

14 күн бұрын

@@mkay1388 o not consistently

Considering the growth in the crypto market, do you see a future for crypto quants? Would you use your quant skills in this field?

Rear delt flys plz don’t block me

What’s your sharpe, scortino and IR ratios?

stop packing your hairs, we like the way you used to be. 💙

@CodingJesus

14 күн бұрын

What do you mean by 'packing your hairs'? How do you prefer my hair? Haha. If you mean let it down, sometimes it's frizzy. I need to prepare it better before videos if I'm to have it down.

@leofang2543

14 күн бұрын

@@CodingJesus great video coding Jesus! do you think the power of buy-and-holding-stock-strategy will diminish along with the rise of the passive investing? In an interview of David Einhorn he basically says that due to the rise of passive investing, the undervalued stocks will not be going back up to its intrinsic value because a lot of the big stock buyers have turned passive and thus won't drive up the the stock price anymore. I'd love to know what's your thoughts about it!

@victorolagunju

14 күн бұрын

@@CodingJesus yes, I meant you could let your hair down like you used to. It's totally up to you, but I think it gives a more relaxed vibe.

Coinbase? That one is questionable

No taking profits till 40-50 years old? 😶

u beat the day traders not only that u even BEAT SP500 and most of the HEDGE FUNDS with that return. WOW AMAZING! i mean u most be the best trader or investor in your FIRM.

There is a lot of research about avoiding stock picking because in the long run you will under perform the market with high probability, is there a reason for this choice? Moreover is there a reason to be 100% exposed to America and nothing else?

I felt like I watched a teaser man ngl. Get into the meat🥩

this video is not at all showing how you beat day traders and the market. all you talked about was your personal risk and investment horizon

Bro doesn’t has either Berkshir Hathaway nor Tesla

@mkay1388

14 күн бұрын

you wanted them 10 years ago, not so much now

my boy used to do uber eats hit a 300x he easy sweeps u sorry brah lever up

@mkay1388

14 күн бұрын

my toddler found a $100 note he easy sweeps you brah start crawling everywhere

@johnpulawski35

14 күн бұрын

@@mkay1388 on my hands and knees rn i will not turn down alpha if i can find it

you got rid of the steve jobs glasses you are no longer a quant. just joking

@CodingJesus

15 күн бұрын

I use both. My glasses portfolio is diversified.

Dude, don't put numbers in brackets ... that is the universal sign of a LOSS. . LOLZ

How old are you?

@CodingJesus

13 күн бұрын

Guess

@davidc4408

13 күн бұрын

@@CodingJesus 28

@CodingJesus

13 күн бұрын

@@davidc4408Thats right

@davidc4408

13 күн бұрын

@@CodingJesus good guess. Just out of interest, what do you consider enough to be financially free before 40 or 45. $5m. $10m. $30m plus?

Robinhood is bad for validating returns. If I invest $1000, and go up 20% to $1200, then withdraw $600, it will show 200% returns.

@CodingJesus

5 күн бұрын

No it won’t. LOL

@TheErinoliver

5 күн бұрын

Yes it will. My account shows 1,108% returns simply bc I made a withdrawal. LOL

by working for HFT firm. salary is positive carry. your edge is in growing your salary

@relly793

15 күн бұрын

This… risk capital is a edge

You've got all this quant knowldge and you trade like a newbie, what gives?

@CodingJesus

15 күн бұрын

Since I know how difficult and resource intensive it is to run a quantitative trading operation and compete at that level (it’s a multi-person resource and time intensive business), I choose to keep it simple and stress-free.

@tr0wb3d3r5

14 күн бұрын

You can have a buy and hold strategy rebalanced monthly and for me at least that isnt pretty intensive work while still outperforming the market. Just takes 5mins a month, can just enter and exit positions without caring about the market price at all. We gotta adapt no way I'm gonna compete with HTF firms for example😅 ​@@CodingJesus

@yashrc2002

14 күн бұрын

he is a quant dev, not a trader, pretty sure he barely ever traded, and as far as i have seen this guy has taken the 99.5% statistic so far up his arse that pretty much never tried. bro is one of those person who reads a statistical data about how 99.5% startups fails, so he never does entrepreneurial ventures. im not saying everyone makes as trader or even beat the market but this guy is just soo risk averse about anything and is happy with his "Safe" avg life. sorry but statistics are mere averages. and bro is happy with being the average.

@vibinpenguin7021

14 күн бұрын

@@yashrc2002 idt he has an average life at all lol

G I love your content but why would you flex being better than 99% of day traders when most fail because of psychological issues?

@iPlatano07

15 күн бұрын

they fail because they suck period

@AnthonyBerlin

15 күн бұрын

Most fail because technical analysis essentially doesn't work. Their bad trading psychology just increases the size of the total loss. Their psychology does not determine whether or not they lose money.

@nathenkhan2336

14 күн бұрын

@@AnthonyBerlin This would be false because there are people who make even the worse TA work. It's clearly a psychological issue. Not saying it's just psychology I agree most TA is astrology but I feel comparing yourself to the failing majority of "day traders" is just not it.

@AnthonyBerlin

14 күн бұрын

​​​@@nathenkhan2336 I said essentially since there are exceptions where some people use TA in ways that approximate actual working models (albeit poorly). There are also people who have simply been lucky for long periods of time. Seeing as we have millions of day traders in the world, even if only 1% of them can show multi year record of consequtive years with alpha simply because of random chance, that is still 10000 day traders (if we assume 1 million in total) who have no edge yet happened to outperform. It is just the nature of random chance that there will be outliers. And you better believe most of them will boast about it, which incorrectly makes it look like they make up a larger portion of the total than they actually do.

@tr0wb3d3r5

14 күн бұрын

lol

nice 0 lenses

To be honest- this is super disappointing. I was expecting something interesting and sophisticated. The reality? Coding Jesus buys high beta stonks on robinhood. Maybe there is hope for me in quant trading after all...

u have made a bunch of money off of high beta tech stocks during an extremely bullish period... whoopee

So quantitative trading is just buying and holding stocks? Doesn’t sound like much of an edge. And I’m guessing you didn’t beat 99.5% of traders during 2022. There’s nothing wrong with buying and holding. It’s smart. But that’s no edge. 😂

@AnthonyBerlin

14 күн бұрын

Where did you get the idea that this is quantitative trading?

BTW HES HINTING TO BUY DOGE

@Deeb741

15 күн бұрын

Oh shit

You always talk shit about t.a but 148% doesnt come close to people competing in the U.S investing Championship. Yal keep following this guy though if you want low returns

@BC-0-0-0--0-0

15 күн бұрын

Lol, I hope this is satire

@mkay1388

14 күн бұрын

the highest people in the investing championship are moon shoting and getting lucky. There would be many more that you dont see because it didnt work for them

bruh are you jewish? you from israel?

lmao 98% pf traders fail so not hard to beat them lmao

you could start modeling. maybe you make more money with your face.

Jesus, you might have made 10x and 4x on Nvidia and Meta, by buying 1 stock, and Unity and Etsy and other loosing stocks by buying 1000each, hence hoe come did you reached to the conclusion that you beat 99.5% of day traders?

@huhuboss8274

15 күн бұрын

because he made 47% while most day traders lose money

@wonderer5101

15 күн бұрын

@@huhuboss8274 fair enough

@strategicandtacticalprocesses

10 күн бұрын

@@huhuboss8274 95% -99% of retail day traders lose money over a 2 year time horizon according to the retail trading brokers I know.