Are you someone who’s really good with math and complex numbers? If you are, then you may be interested in the field of algorithmic trading. This subject can be difficult for some because it uses incredibly complex formulas and also uses human oversight alongside mathematical models to create a plan for buying and selling.
For those who get involved with this process or who might be interested in it, knowing how to algorithmic trade is essential. This type of quantitative technical analysis is not for everyone, but it could be the right thing for you.
If you want to just get back to studying, get our top choice for algorithmic trading book here.
Last update: 2024-04-29
Our Favorites for Best Algorithmic Trading Books
Let’s start with the books that we think are the absolute best. These are books that will help you get into the field and will teach you most (if not all) of what you need to know.
You’ll get a good foundation of algorithmic and high-frequency trading here, and maybe you won’t even need the rest of the books on our list (though you won’t go wrong checking out several books).
Algorithmic Trading: Winning Strategies and Their Rationale by Ernie Chan
Written by someone who has firsthand knowledge of algorithmic trading, you’ll find a great deal of content here. Algorithmic Trading offers quantitative trading information, including real-life trading strategies, to really make the concepts more relatable. Chan shows traders how to create their own systematic strategies and also the rationale behind using different strategies within your system.
Algorithmic Trading offers strategies that can be implemented immediately and uses quality research to back it up. Choosing the right platform, following through on statistical techniques, and even monitoring some of the more simple techniques are all things that you’ll find described in Chan’s book.
What Makes it Unique:
- Written by someone with firsthand knowledge of the topic
- Offers example strategies throughout to make learning easier
Why Choose This Algorithmic Trading Book:
- Explores how to create your systematic trading strategy
- Offers code examples in both Python and Matlab
- Hardcover Book
- Chan, Ernest P. (Author)
- English (Publication Language)
Last update: 2024-04-29
Algorithmic Trading Systems: Advanced Gap Strategies for the Futures Markets by David Bean
Algorithmic Trading Systems evaluates some of the more advanced trading strategies available for the futures market and even shows you how to trade in several different markets. You’ll learn how to carry out trend filtering and multiple exit strategies. On top of that, Algorithmic Trading Systems will show you coding logic and give you access to instructional videos that are available on the website.
If you are an experienced trader, you’ll find more use out of Algorithmic Trading Systems, but even novice traders can learn a good deal. If you’re looking to set up a platform and get the coding taken care of entirely on your own, you will be able to learn all about it with Bean and Algorithmic Trading Systems.
What Makes it Unique:
- Offers more advanced information that can be applied to existing trading strategies
- Learn the coding to create your own platform
Why Choose This Algorithmic Trading Book:
- Develops more of the philosophy, psychology, strategies, and statistics
- Presents information in a straightforward manner for those with little time
- Amazon Kindle Edition
- Bean, David (Author)
- English (Publication Language)
Last update: 2024-04-29
The Ultimate Algorithmic Trading System Toolbox: Using Today’s Technology to Help You Become a Better Trader by George Pruitt
The Ultimate Algorithmic Trading System Toolbox will show you how to make the most out of trading without having to go back to school. You can learn more about how to evaluate trading systems to find out about their strengths and weaknesses as you go. Not only that, but you’ll be able to learn more about creating your own trading solution with the information in The Ultimate Algorithmic Trading System Toolbox.
Pruitt shows you how to use coding to create the solution you’re going to need as you get going. With The Ultimate Algorithmic Trading System Toolbox, you’ll learn how to use some of the latest and greatest information when it comes to trading. There’s even a companion website that you can use to get more information related to trading and improving your skills as you go along.
What Makes it Unique:
- Website allows for even more development and advancement
- Advice offered on some of the most popular software options
Why Choose This Algorithmic Trading Book:
- Learn the coding to create your trading system
- Offers math and examples to make it easier for you to understand
- Hardcover Book
- Pruitt, George (Author)
- English (Publication Language)
Last update: 2024-04-29
Runner Ups for Best Algorithmic Trading Books
Are you looking for a little more information and some help learning about algorithmic trading? Well then, you might want to take a look at these runner ups. Each of these books will give you a lot of information but might be a little more focused on specific areas. So, take a little time to look over each of these books and see which ones might be the best option for you.
Building Winning Algorithmic Trading Systems: A Traders Journey by Kevin J. Davey
In Building Winning Algorithmic Trading Systems, you’ll find information about real systems that have worked for real people. You’ll also learn how to create your own algorithmic approach from any software program you want to use. The system that you create can even be tested using data that’s currently available through Building Winning Algorithmic Trading Systems.
Building Algorithmic Trading Systems offers updated information about the most recent systems. There’s a companion website available that will let you apply and test out some of the techniques you’ll learn with Davey. Davey himself is a world trader champion and provides some of his own techniques that have been used in real life to create a secure system.
What Makes it Unique:
- Updated information related to more recently developed systems
- Learn how to test out your own strategies and systems
Why Choose This Algorithmic Trading Book:
- Use the website to get even more content and information
- Create your own approach starting with any software program
- Davey, Kevin J. (Author)
- English (Publication Language)
- 288 Pages - 07/11/2014 (Publication Date) - Wiley (Publisher)
Last update: 2024-04-29
Advances in Financial Machine Learning by Marcos Lopez de Prado
Advances in Financial Machine Learning will teach you just that, how to use machine learning to improve your skills in finance. You’ll learn how to use big data as well as how to conduct proper research. You’ll even be able to develop an understanding of supercomputing methods, backtesting, and more. You’re also going to have the ability to look at real-life problems that you might face.
If you’re in need of additional support and help with coding, you can learn about it from Advances in Financial Machine Learning. It can be a little challenging to understand some of the content the first time around, but as you continue to read, you’ll learn a great deal. There are a total of 7 different core ideas throughout Advances in Financial Machine Learning and also the information you need to learn more about them.
What Makes it Unique:
- Focus on 7 core ideas about why machine learning fails
- Relates to machine learning in finance
Why Choose This Algorithmic Trading Book:
- Instructs readers on how to structure big data in machine learning
- Compact and concise information related to machine learning
- Hardcover Book
- Lopez de Prado, Marcos (Author)
- English (Publication Language)
Last update: 2024-04-29
Dual Momentum Investing: An Innovative Strategy with Lower Risk by Gary Antonacci
In Dual Momentum Investing, you’ll find a practical approach that Antonacci himself uses. The idea of momentum investing is one that’s been successful for many investors over the years, and it helps to decrease the losses during bear markets. Not only that, but it provides even more insight for those who are looking to get involved in investing overall.
Antonacci uses research to find different changes that occur within the market and related to marketing trends. Through Dual Momentum Investing, it’s possible to learn about price momentum, what it is, how it works, and how to use them for yourself. Likewise, you’ll learn more about increasing your own profits and decreasing the level of risk that you take on.
What Makes it Unique:
- Learn a proven strategy backed by research
- Provide protection during bear markets
Why Choose This Algorithmic Trading Book:
- Develop an understanding of price momentum and how it can affect you
- Short, concise and easy for new investors to understand without the background in trading
- INVESTMENT STRATEGIES
- Hardcover Book
- Antonacci, Gary (Author)
Last update: 2024-04-29
Value Picks for Best Algorithmic Trading Books
Our final book section is going to be the value books. These are books that are inexpensive and easy for you to pick up and read. If you’re looking to get a good amount of information without having to spend a lot, then you’re in the right place. We have two books that are going to make it easier for you to learn your own way of getting into algorithmic trading and the stock market.
Stock Investing for Everyone: How You Can Beat Wall Street At Their Own Game by Kevin J. Davey
When it comes to beating Wall Street, you’re going to need Stock Investing for Everyone. Davey teaches more about the tasks and skills that investors don’t know. Not only that, but you’ll learn how to open up an account and get started right from the top all the way to becoming an advanced investor. Learn how to create your own investment plans and wealth-building plan overall.
You’ll learn about the stock-picking pyramid from Stock Investing for Everyone. Even if you’ve been investing for a long time, you’ll be able to learn a lot from Davey because he explores content that even the most advanced professionals may not know just yet. You’ll also learn how to expand on anything you already know, and it’s all in one compact place.
What Makes it Unique:
- Learn about the stock-picking pyramid
- Provides introductory skills to get you started fast as well as advanced skills for current traders
Why Choose This Algorithmic Trading Book:
- Short and concise so you can read it while you’re on the go or have little time
- Written by a proven champion in investment trading
- Amazon Kindle Edition
- Davey, Kevin J. (Author)
- English (Publication Language)
Last update: 2024-04-29
Entry and Exit Confessions of a Champion Trader: 52 Ways a Professional Speculator Gets in and Out of the Stock, Futures and Forex Markets by Kevin J. Davey
Are you interest in learning how to get started in trading and how to get out of it later? Entry and Exit Confessions of a Champion Trader is all about exactly that. You’ll actually learn a total of 41 different entry options and 11 different exit options to make sure you can manage your trading just the way you want and with the type of system that you’re looking for.
Entry and Exit Confessions of a Champion Trader also gives you coding options in Tradestation and describes each of those coding options in ways that you can understand. You’ll have strategies that have actually been used by Davey, and you’ll get the step-by-step instructions you need to put them into place.
What Makes it Unique:
- Learn entry and exit options for trading
- Written by a professional in trading
Why Choose This Algorithmic Trading Book:
- Includes code that you need to create your trading strategy
- Offers step-by-step instructions on creating strategies
- Amazon Kindle Edition
- Davey, Kevin J. (Author)
- English (Publication Language)
Last update: 2024-04-29
How to Choose the Best Algorithmic Trading Book for You
When it comes to choosing the right book, you definitely want to know how to do it, right? You want to make sure that you are looking at several different books and that you know the critical factors in order to choose something quality. So, let’s take a look at the things you should know.
1. Learn to create your own system – While there are plenty of systems out there for algorithmic trading and more, you’re going to be much better off if you can actually learn to create your own system or customize something that’s out there, so it really works for you.
2. Learn coding – Coding can help you to create the models that you’ll need for algorithmic trading, which is another way to help customize your system. Learning the coding from the same book that you’re learning everything else can help you get a head start on what you need to know.
3. Updated continuously – You want a book that is updated with the latest information when it comes to trading. Trading can change in an instant, and you don’t want to be using outdated data, especially when it comes to algorithmic trading.
Wrapping Up the Best Algorithmic Trading Books
In closing, here is a table of the best algorithmic trading books we went over today.
Last update: 2024-04-29
Figuring out how to learn the basics to algorithmic trading can be a whole lot easier than you might think.
Algorithmic Trading is our favorite book of all of them and it will show you how to create your own strategy, which makes it great for those who want a personal approach.
Advances in Machine Learning is another great option that will teach you about the common flaws of machine learning and how to deal with them. If you’re into machine learning at all you’ll want to take a closer look at this process.
Stock Investing for Everyone is a book that makes trading easier. It’s designed to teach you the basics as well as more advanced skills so it’s good for any trader.
With any of the books we’ve mentioned above, you should be able to figure out how to get into algorithmic trading and quantitative technical analysis in no time, with or without the Finding Alpha book.
Looking for more financial-related books? Check out our guides of other professional and financial book reviews here.
Here are a few other interesting financial and investment books to read:
> The Best Swing Trading Books
> The Best Investment Banking Books
> The Best Series 7 Study Guides
