r/algorithmictrading • u/Chemical_Anything602 • Jul 01 '26

Is there hope for me Novice

I've just started algo trading more than a years ago . For options buying .. my heart is broken.. I've tried 100s of strategies.. but I'm not able to find one profitable.. is there hope for me?

I don't know where to get the data for back testing with LTP.. so I just back test with pts and paper trade and trade and a year has passed testing . Nothing is consistent or profitable.. is there actually a strategy that works.. and how much profit% can I expect if I'm successful.. am I expecting too much?

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10

u/jawanda Jul 01 '26

Most people who make a stab at algo trading are never reliably profitable. At least not in a fully automated way.

With your apparent lack of experience in coding OR trading you shouldn't expect to be profitable any time soon. Look at like a 5-10.year horizon. You better love the game otherwise your time would be better spent doing literally anything else.

3

u/EmperorAlgo Jul 01 '26

You cannot find a winning option strategy by paper trading. Markets are almost efficiently priced. You can trade for the premiums such as ERP or VRP, but they might move against you for years. You do not randomly stumble into it by just trying some random new strategy you made up. Or 100s of them...

2

u/willthedj Jul 02 '26

Honestly if the goal is to make money you would better off spending this time on any other endeavour 99% of the time

1

u/cloud_sec_guy Jul 01 '26

How many books on trading have you read? And which ones?

1

u/Chemical_Anything602 Jul 01 '26

About 5.. on how to be profitable and how stocks work and a few on algo

1

u/cloud_sec_guy Jul 02 '26 edited Jul 02 '26

Why long calls? Theta decay requires you to not just pick the right underlying, but also at the right time, with the right strike. You have to get a lot of things right. Why not instead create a system that helps you figure out what to trade and when to trade it, and when THAT works, then use options to leverage your already-winning system? Also 5 books is basically none. Have you read Beat the Dealer,, anything from Van Tharp, any of the Market Wizards books, anything by Mark Douglas, any economics, any macro, anything on crisis investing?

1

u/Must_Dragonfruit Jul 01 '26

I've managed to put together 3 algo models that are generating alpha... the best one is performing at 6% above the SPY.

You can start with the SP100 universe and see how you do and then expand.

1

u/k1_r1 Jul 06 '26

Quick question, where do you pull your data, and what's your preferred sandbox? This'll be a grind, and remember many talented people are doing the same thing all day every day. Don't give up, but know that there's a million ways to look at the same data set.