Project Overview
Behind all my Python skills and data science knowledge lies a secret. While most people think I’ve just stumbled into these skills through conventional means, the truth is, it all stems from my bizarre obsession with algorithmic trading. My journey began with the simplest idea: to safely invest in the S&P 500 and watch my wealth grow. But, as my curiosity grew, so did my fascination with the endless world of strategies, backtesting, and theoretical infinite money glitches. This obsession led me down a path where I constantly tweaked and tested new ideas, all while my Python skills and data science knowledge were steadily improving without me even realizing it.
I never made a real trade (on algorithmic), but the countless hours spent backtesting in Python, creating complex data pipelines, and delving into machine learning have shaped me into a self-taught tech enthusiast. The whole "trading" thing? Well, that was just an excuse to learn and experiment. All that backtesting, simulating, and fine-tuning strategies helped me master tools and techniques that I use every day, whether it’s analyzing data or navigating through Linux. So, in the end, the secret isn’t about making money it’s about the journey of learning and building, fueled by my one true passion: the wild world of algorithmic trading.
Along the way, I also dove into connecting securely with the IBKR API, driven by the idea of one day running my own trading bots in the real world. Setting up java containers, handling authentication, and figuring out how to talk to the API over secure channels became another rabbit hole of its own. Even though I never placed a live trade, learning how to build safe, encrypted connections and manage credentials responsibly turned out to be a valuable skill far beyond trading. It’s crazy how tinkering with finance APIs taught me so much about cybersecurity and proper software practices, all because I couldn’t resist the thrill of algorithmic trading.
Technologies Used
- So much python
- Almost every other tech I have stumble upon
- Imagine were my fascination of calling things kitty come from
Story
Ah, yes, let me take you on a journey of my trading adventures. Buckle up, because I’ve been riding the wave of the financial markets, and I’ve never actually put a dollar in the bank. Not a single one. Ever. But boy, do I have stories.
Let’s start with the caution trader version of me. From an early age, I’ve been enamored with the markets. I mean, think about it an abstract concept that lets you own a piece of Coca-Cola. Coca-Cola! That little can of sugar water that has been giving people diabetes and life satisfaction for decades. To own a piece of that... It’s a concept that blew my mind. So, naturally, I dove deep into the world of investing.
And you know what? I’m an extremely cautious guy when it comes to money. I’m basically the equivalent of the "don’t go too fast" guy in every high school driving class. So what’s my strategy? The S&P 500. It’s like, why would I ever pick anything else? Sure, you can try to play with individual stocks or trade options or whatever, but I’ll just buy this little slice of the market and watch my money grow over time. Seems like the safest bet, right? Not even Treasury bonds come close. You can’t convince me that some random 2% yield is worth the risk of something going wrong. But the S&P 500? History shows it’s basically invincible.
Oh, and by the way, if you’re in Europe and you want to make some serious money, you better be using a common fund. Forget about ETFs, those are for people who like to pay taxes. A common fund is where the magic happens, trust me. Tax benefits, the whole shebang. You can almost feel like you’re cheating the system, but in a totally legal, probably-approved-by-the-EU kind of way. But it doesn’t matter if you have all this knowledge. When you try to create your own fund in Europe (yes I have tried, you will be amazed by how many fund managers in my country come out stray from twitter, and those commissions are too sweet), the regulations come at you like a horde of angry bureaucrats wielding a thousand-page rulebook. Don’t even try it, unless you’re prepared to spend your life filling out forms while wondering why you didn’t just buy the S&P 500 in the first place.
So there I am sitting pretty with my safe, reliable S&P 500 investments, watching the world go by. But deep down, I’m also that guy who can't help but think there’s more out there. What about those crazy traders who get rich quick, like the ones you see online talking about infinite leverage? My inner rebel had to test this.
And so I evolved into the crazy backtester.
Imagine this: I’m hunched over my laptop, typing out Python code like some sort of financial wizard. I start testing everything. I’m running simulations, I’m backtesting strategies, I’m adjusting parameters like a mad scientist. It’s beautiful. What if there’s some “infinite money glitch” I’m missing out on? You know, the kind that funds the cure for aging while simultaneously funding my luxurious beach house in the Caribbean? Yeah, it could be out there. It could be just a few tweaks away.
But here’s the kicker. I keep telling myself that the safest investment is still the S&P 500, but with Python, everything is different. Backtests, data, stats, graphs oh my! I was like a trader on steroids, except I wasn’t trading anything in real life. Nope, I was just running some very, very elaborate simulations in Python. But those simulations were telling me something not to actually trade. It’s funny how the data works. Every time I thought I’d found the perfect strategy that would make me millions, the backtest would give me a little warning. A little pop-up, if you will. “Hey, uh, this is a terrible idea. Just stick to the S&P 500.”
Fine. I’ll listen to the backtest. And so, I never actually put any of my “insightful” strategies into action. Not once.
Now, let’s talk about my foray into options trading. Oh, the allure of infinite leverage! You borrow money, trade on margin, and boom, you’re swimming in cash, right? That’s the dream, isn’t it? Well, I loved the idea of options. “I can control a massive position with just a small amount of money? I’m in!” I found all sorts of strategies bull spreads, straddles, butterflies you name it, I tried it in my backtests.
You know what I learned? Infinite leverage is kind of like playing with fire while wearing gasoline-soaked pajamas. Sure, the backtest could says you’re going to make money in the long run, but the moment you try to execute in real life, your entire portfolio goes up in flames. I mean, who knew that those Greeks Delta, Gamma, Theta weren’t your friends? They just mess with you. One bad move, and you’re looking at a margin call before you can even say “purchasing power.”
But futures? Oh no, that’s a whole new level of scary. You want me to trade an asset that can swing by thousands of dollars in a single day? Not a chance. I’m not trying to get a panic attack just by checking my phone. Futures are for crazy people, and I’m just not ready to go full-on insane yet. I’ve seen those charts. They look like roller coasters. Not my style.
And then there’s the machine learning. Oh, my sweet, sweet dreams of using machine learning to predict the markets. The problem? All the “free” data out there is garbage. I mean, it’s like trying to get accurate weather data from a guy who’s been living under a rock for 10 years. I spent hours searching for decent, clean market data to run my ML models on. But, no, it’s all either too noisy or too expensive, so I’m left crying into my code, wondering why I even bother.
And yet, I have never lost money. Not once. Why? Because I never put my strategies into action. If the backtest says it’s a bad idea, I follow it. I’m like that responsible friend who tells everyone, “No, no, let’s not go to that sketchy bar, trust me,” while everyone else is out there getting smashed on the risky trades.
So, that’s my trading story: a journey of endless backtesting, infinite leverage dreams, and extreme caution. But not a single dollar in the bank. At least I can rest easy knowing that my money’s safe... in the S&P 500. Because, you know, that’s still the safest investment.
I’ll just stick to pretending I’m a millionaire in my backtests.
Ah, and here’s the thing even today, when I find myself bored (which, let’s be honest, happens a lot), my mind starts going into overdrive, constructing brand new trading strategies out of thin air. Like, I’ll be sitting there, staring blankly at the wall, and suddenly it’s like a lightbulb goes off. "What if I create a strategy that’s a mix of momentum, mean reversion, and some AI magic sprinkled in?!" And before I even realize what I’m doing, I’m back at my laptop, knee-deep in Python, coding away like my entire financial future depends on it. I can’t help it. My brain just does this automatically now. It’s like an involuntary reflex, and the best part is, I don’t even need to trade to feel accomplished. I’m more about the backtest results than the real-life outcome who needs actual money, right? But all of this crazy obsession has done wonders for my skills. I mean, I’ve gone from barely knowing how to run a script to being able to whip up Python algorithms and navigate Linux like a pro. I’m talking about creating complex data pipelines, backtest frameworks, and even figuring out how to download market data from the depths of the internet without getting lost in the sea of APIs. So, while I’m not exactly raking in profits, at least I’ve gained serious technical knowledge. And that’s probably the one thing that I actually can bank on besides the S&P 500, of course.