How I made $500k with machine learning and high frequency trading

Re:How I made $500k with machine learning and high frequency... by dschiptsov on Tuesday November 06, 2012 @11:30AM (#4749117)

Basically this is a story about a guy who was smart enough to script up his trading tool (he discovered that there is an API and wrote some code to use it).

He trade other people's money, using other people's (probably employer's) account and resources, I suppose.

His employer have paid all the fees, and, took all the risks - if there is profit - it is mine, if there is a lose - it is theirs.)

The essence of trading is about having a special (insider) position of even being a market maker, who just collecting fees from every trade other people do.)

But this is just my guess.

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Re:How I made $500k with machine learning and high frequency... by mattyppants on Tuesday November 06, 2012 @11:43AM (#4749196)

This is not even close to an accurate summary. He never stated that he had any employer backing, and he wasn't collecting market making fees. In fact he was paying brokerage fees which is the exact opposite.

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Re:How I made $500k with machine learning and high frequency... by dschiptsov on Tuesday November 06, 2012 @11:51AM (#4749231)

He used his own money to test his algos? Come on.

Taking a Machine Learning and Statistics course does not make you a trader. You need something else - access to the system.

This is why my guess is that he was an employee.

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Re:How I made $500k with machine learning and high frequency... by oijaf888 on Tuesday November 06, 2012 @12:58PM (#4749551)

An employee of what? He states above that he was paying roughly $200/month for a server and $1800/month for the software/data connections to his broker.

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Re:How I made $500k with machine learning and high frequency... by dschiptsov on Tuesday November 06, 2012 @02:13PM (#4750053)

Prior to setting up my automated trading program I’d had 2 years experience as a “manual” day trader. - mom's and pap's 401k?

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Re:How I made $500k with machine learning and high frequency... by mattyppants on Tuesday November 06, 2012 @01:41PM (#4749804)

No, he said he backtested them against data he collected from the feeds. He paid for the feeds just like everyone else does with his own money.

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Re:How I made $500k with machine learning and high frequency... by dschiptsov on Tuesday November 06, 2012 @02:18PM (#4750090)

For me it all looks like a bad-written fiction, and the source is just a blog post.

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Re:How I made $500k with machine learning and high frequency... by rafkin98 on Wednesday November 07, 2012 @04:25PM (#4755265)

And that's the beauty of it - take it or leave it.

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Re:How I made $500k with machine learning and high frequency... by curationary on Wednesday November 07, 2012 @01:29PM (#4754518)

Basically this is a guy who does what many other have done, look no further than elitetrader.com, but smart enough to add "machine learning" to his story headline, which is the hottest buzz term on the street this year, everyone and his mom talks about machine learning last I checked.

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Re:How I made $500k with machine learning and high frequency... by dschiptsov on Thursday November 08, 2012 @05:32AM (#4757223)

So, it is just plain SEO for his startup - a primitive on-line course aggregator.

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