Ernest P. Chan Books

In the early decades of modern trading, success often depended on a trader’s intuition—the ability to read patterns, understand the pulse of the market, and act swiftly. But as computing power expanded and data became abundant, intuition was gradually replaced by code. The machine, once a tool for r...

From Machine Trading: Deploying Computer Algorithms to Conquer the Markets

Once your infrastructure is in place, the intellectual heart of machine trading begins: designing and testing strategies. Every algorithm starts as a hypothesis—often a simple observation of market behavior. For example, perhaps a stock that drops sharply tends to rebound within a few days, or perha...

From Machine Trading: Deploying Computer Algorithms to Conquer the Markets

Quantitative trading has its roots in the gradual integration of technology into financial markets. I trace the path from discretionary trading—dominated by human intuition—to the mathematically driven world we now inhabit. In the 1980s and 1990s, statistical arbitrage strategies pioneered by firms ...

From Quantitative Trading: How to Build Your Own Algorithmic Trading Business

Successful trading is not a one-off strategy—it’s a business. I lead readers through the components required to operate like a professional firm: computational infrastructure, data management, brokerage arrangements, and workflow organization. The backbone of any quant business is reliable data and ...

From Quantitative Trading: How to Build Your Own Algorithmic Trading Business