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Master Algorithmic Trading Processes

by TradingDrills Academy

Mastering an algorithmic trading process is a vital component of becoming a successful trader. So how does a new trader execute an algorithmic trading system effectively and efficiently? The key is to work smarter and not harder, to hone these essential skills of becoming consistently profitable in the financial markets. In this video, we will continue our discussion on the second secret of professional traders’ success, which is the importance of mastering the algorithmic trading process of a profitable trading system.

Use a Trading System with an Edge:  

As we discussed earlier, using trading system with an edge assures that a trader stays profitable in the market in long run, even though the outcome of every single trade is not predictable. As a refresher, trading with an edge means that the trading system has a positive expectancy and is profitable.

define your  trading edge

The Importance of Coaching in a Profitable Trading System:

However, having an efficient, profitable trading system is just the beginning. One needs proper training with a trading coach to develop the skill of executing such a great system. That is how top performers in many fields turn their talent, time, and knowledge into desirable valued skills- by practicing patiently under the best coaching system.

master execution  of a profitable  trading system

This is similar to developing the driving skills. A person needs to use a safe vehicle, followed by acquiring the skills of driving by many hours of practice under a good mentor, in order to develop the intuitive reflexes of safe driving.

proper training with  trading coach  to develop  a profitable trading system
trading knowledge  and its relation on the success rate  of traders

As we emphasized earlier, a professional-minded person is skilled focused, and understands the importance of developing skills related to process and conditional knowledge, rather than just theoretical knowledge.

How Important are the Three Domains of Knowledge to Master Trading Processes?

Based on our experience in various markets, such as stocks, futures, options, and forex, to master trading skills, most traders require to learn the proportions of:

  • 20% Content knowledge
  • 30% Process knowledge
  • 50% Conditional knowledge
master trading  process with contribution  of knowledge

While the content knowledge of trading can be acquired through self-studying, the ability to apply process and conditional knowledge to specific market situations requires a significant amount of mentorship time and a trading coach.

Unfortunately, most amateurs are knowledge-centered, and invest their time and talent excessively only on the content knowledge of trading, such as reading books, watching vides, and attending webinars.

profesional traders  are skill centered
professional traders  focus on developing  precious Process  and Algo  Trading skills.

On the other hand, professionals are skill-centered and understand that knowledge does not turn into skill automatically.
They know that to master trading processes, they must know the value of process and conditional situations in trading. Professionals patiently focus on developing their algorithmic trading process skills, which requires lots of practice and coaching under deliberate practice. Understanding these concepts will have significant impact on an aspiring trader’s attitude and planning toward proper training. 

Professionals can develop their algorithmic trading process skills in many ways, such as:

  • Patiently taking numerous practice drills
  • Receiving immediate feedback 
  • Taking tests to determine their next level
  • Using Deliberately Practice with the guidance of an experienced coach
Professionals develop  their  trading skills  by Deliberately  Practicing under  the best experienced  trading coach!
master trading  process under  LMS

Learning algorithmic trading processes can be facilitated by using a well-designed smart drills under convenient modern Learning Management System, also known as LMS. This will  be discussed in further detail in the blog post "Smart Drills Under a Learning Management System for Trading"!

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