So it's been about a year since I left the quantitative analyst job to trade full time, here are some things I've learned.- It's pretty easy to find inefficiencies for profitable trading, it just takes a ton of work finding the MOST profitable trades.
- A good trade must always start with robust theory, therefore when the discovered inefficiency erodes, it would be simple and cheap to stop investing capital into it.
- Back testing historical data has only 1 real purpose: Estimating transaction costs, explicit and implied, to determine whether the fundamental edge is large enough.
- About code writing for automation. It more often adds another layer of liabilities than value; therefore unless the trade absolutely requires it, it's better to do everything by hand.
- Commodity futures/options are the way to go as a self employed trader due to leverage available.
- Even with profitable trading, life still gives you plenty of other challenges. It never gets easy.
- There's still a ton of stuff I have to learn.
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