Books on algorithmic trading for beginners and advanced traders

Algorithmic trading is a method that allows information professionals to use their knowledge of the stock exchange and get the most out of it. In this article, we will look at the best books on algorithmic trading and investing, as well as useful online resources for learning about algorithmic trading.
The study of trading is a narrow field of study, so it is difficult to find truly high-quality and capacious materials. As a rule, the process of learning algorithmic trading comes down to studying:

• mathematical and economic models;
• various programming languages ​​for the international currency market FOREX;
• features of instruments (securities, contracts, etc.).

The best books on algorithmic trading for beginners: TOP-6

Alexander Elder – Trading. First steps

Who is suitable for algorithmic trading? What will be required for this? Is it a difficult area or is it within the power of everyone? The stock market requires self-discipline, but there are some nuances. This book edition will not tell about the methods of algorithmic trading, but will only give an idea about this profession, so that a person can understand whether this area is interesting to him or not for him. The author gives advice on the workflow, its features and gives questions that a person should honestly answer for himself. After reading this material, the reader will understand whether he is ready to try himself as a trader or his strength is not enough to withstand all the material. The book tells what it takes to reach the heights in the market. And if the reader understands that the necessary skills are available, as well as the willingness to try his hand, then he can delve into this topic.

Brett Steenbarger – The Psychology of Trading. Decision-making tools and methods

Brett in his book tries to convey to the reader that the life of a trader has a direct impact on his own business. Even minor stress can turn trading upside down. Making decisions based on emotions is a road to nowhere and a quick loss to your opponents. Self-knowledge and self-control are important strengths of a trader who is able to control the result of his work.

Mark Douglas Book – Zone Trading

In his publication, the author tells about all sorts of difficulties that a trader faces in the initial stages of the journey. Douglas proposes to fight them by the method of zonal trading.

Zone trading is the creation of your own trading strategy on the stock exchange. The method allows a beginner to quickly get involved in the field and avoid contacting brokers, which often provide inaccurate results.

In addition, the author invites readers to use their psychological abilities, which in the long run will work for the trader and lead him step by step to success. Even though Douglas does not provide a complete trading system, he does help the newbie by demonstrating the mindset that turns the average user into a successful trader. The publication will be useful to those who want to independently study the stock exchange and achieve heights on it.

Valentin Vitkovsky – Trading for beginners

The campaign of Valentin Witkovsky in the book consists in a mathematical strategy of three components: understanding the stock exchange, the psychological strengths of a participant in market trading, and the ability to competently manage capital.

Steve Nison Trading Books – Japanese Candlesticks

The main component of Steve’s book edition is the skills of identifying candlestick signals and candlestick analysis – a way to predict the charts of financial instruments. Knowledge of this method is an important skill for any market participant. By applying it in action, a trader can predict the movement of the exchange, entering into transactions without misses.

Timofey Martynov – Trading Mechanism. How to build a business on the stock exchange

The book edition is perfect for beginners in the market. The author, moving from easy to complex, tells the reader all the features of the profession. Timofey Martynov also talks about strategies, correct thinking and a clear algorithm of actions. Talks not only about success, but also touches on failures, giving illustrative examples. Martynov’s works will help a novice trader to delve into the field and understand what awaits him, and experienced market participants will definitely find something new for themselves.

2 best books on cryptocurrency trading

Michael Archer – Forex Trading for Beginners

The works of Michael Archer are recognized as one of the best manuals for novice traders who begin to study the FOREX currency market, where a lot of valuable information is told. The author tells not only about theoretical and practical material, but also provides detailed instructions that will help you first understand and understand the field, and then lead you to the beginning, to the start of this great world game. The reader will figure out step by step how to open your trading account, the illustrations attached to the text will clearly show the possible difficulties that you will face.
Michael Archer explains in detail how to place and close orders, thereby protecting the reader from failure. The methods of analyzing the stock exchange are also described in detail. In addition to all of the above, the theoretical and practical experience of the author, his thoughts and conclusions made over more than 40 years of active participation in the market are given. The book edition has a lot of valuable information about the FOREX portal and a terminological dictionary with phrases that are used by traders on the currency exchange.

Renat Valeev – The Art of Trading. Practical advice for experienced traders

The book edition is not aimed at experienced professionals with more than 5-10 years of experience in the market, but at relative beginners who have been studying the field for more than one year. The author focuses on the methods of competent money management and trading psychology, because it is these aspects of the profession that lead a person to success. Rinat Valeev has many years of experience in the financial markets, of which for five years he was a trader at the Central Bank of the Russian Federation, where he was a member of the team responsible for managing gold and foreign exchange reserves. The material provided in the book edition is based on examples from the currency exchange, but in fact it can be applied to any market. The advice given by the author is applicable in any market, from Forex to the cryptocurrency exchange.

TOP 3 books to consolidate the material and improve skills in algorithmic trading and investment

Ernest Chan – Quantitative Trading

In his writings, Ernet Chan spoke in detail about the formation of a “retail” trading system, which belongs to an individual, and not to the market, using the MatLab and Excel tool. After getting acquainted with the material, a novice participant in the stock market begins to understand how to solve the problems of making money on the stock exchange by developing special programs.

Quantitative Trading is a good guide to understanding how algorithmic trading works. It also lays the groundwork by introducing trader terms.

Rishi Narang – Inside the black box

In his writings, the author spoke in detail about how hedge exchanges function in the field of quantitative trading. Initially, the book is aimed at investors who cannot decide whether to invest in the “black box” or not. The book also raises questions about the importance of transaction cost accounting and risk management.

Barry Johnson – Algorithmic Trading

Author Barry Johnson, who published his precious works, is the creator of trading software in an investment banking organization. The material helps private exchange participants understand how the market works and assimilate the “market microstructure”, thereby increasing the level of effectiveness of the trader’s personal strategies.

Note! The literature is difficult to understand and read, but it contains very valuable information.

After you understand the basics of algorithmic trading, have mastered the concepts used in the stock market, it’s time to start developing trading strategies. It is not difficult to find one, but the effectiveness of the chosen strategy will also directly depend on the personal characteristics of the participant, positively or negatively affecting his business. https://youtu.be/nVoU4qaSP0A

Beginning Trader’s Guide: 2 Best Books for Going Deeper on Algorithmic Trading

Ernest Chan – Algorithmic Trading

This is the second major work by this author. The first edition deals with the topics of market impulses, and other aspects of the field, as well as effective strategies. In this work, Dr. Chan develops both old topics, only with greater depth, and new ones, introducing already more experienced market participants into the very nuances of the stock exchanges.

Larry Harris – Trading and exchanges

The main focus of this book edition is the microstructure of stock exchanges. This is knowledge about how traders communicate with each other within the order book. The material helps to understand how the market works and what happens when a market participant submits an order to buy or acquire securities and other financial instruments.
After a novice trader has studied the works of experienced specialists presented in this article, he will be prepared to start entering the stock market. It is important to familiarize yourself with each element before entering the market, so that when taking the first steps, you do not stumble on an obvious place that was inadvertently missed during training.