Algorithmic and automated trading: 13 books on the subject

We recently published material from our readers about the terminological confusion that surrounds algorithmic and automated trading. In continuation of the topic today we will talk about how this confusion affects professional literature (and here is another material on books and educational resources on the topic).

The term “Algorithmic trade” itself is now so widely heard that some careless authors take advantage of this and wedge it into the name of their books in order to attract readers' attention.
')
The reader sees such books and makes sure that he reads about algorithmic trading, when in fact he is told about automated.

A request to Amazon.com according to “ Algorithmic trading ” issues more than 900 books, and several dozen have this phrase in the title. Consider some of these books in more detail:

(2008) The Evaluation and Optimization of Trading Strategies, 2nd Edition (ISBN 0470128011)
Robert Pardo

Book for individual traders. How to develop your trading system, how to test it and how to use it.

---

(2009) Quantitative Trading: Your Own Algorithmic Trading Business (ISBN 0470284889)
Ernest chan

The book is intended for proprietary individual traders (retail investors). Which Chen recommends starting his business, test his abilities and strategies, and then threaten the profession of a trader in a prop firm or in some kind of foundation

The book is not about algorithmic trading despite the close title. The author in the text mentions algorithmic trading, but it implies ordinary simple automated trading.

---

(2011) An Introduction to Algorithmic Trading: Basic to Advanced Strategies (ISBN 0470689544)
Leshik, Cralle

The book, although it is called “Algorithmic Trading”, actually tells about automated trading.
It is ridiculous to read how the authors promise to tell about the algorithmic execution of orders, although they themselves are going to tell how they were engaged in automated trading.

A typical case of confusion. Jump from the term "algorithmic" to "automatic" freely, right in the middle of a paragraph. Making no distinction. As if by itself, everything is clear.

At the end of the book, they simply list the algorithms of brokers that they use to execute orders. This is a bit interesting for those who really work on algorithmic engines.

The book is intended for individual traders who are trying to make money with the help of automated trading, automation is done by the authors in Excel. Water about the algorithms twap, vwap, inline, pov here is completely out of place and has no relation to the topic of the book.

---

(2013) Algorithmic Trading: Winning Strategies and Their Rationale (ISBN 1118460146)
Ernest chan

The title of the book is misleading. This book is about automated trading, and not about algorithmic trading. Designed for quantitative trading proprietary trading. Not about the execution of orders, but about a statistical analysis of the market for making money through the development of investment strategies and their automatic execution

Matlab is often used in examples.

---

(2014) Building A Carrier Simulation to Live Trading, + Website (ISBN 1118778987)

Despite the title, the book is not about algorithmic trading, but about automated trading.

---

(2013) A Guide to Quantitative and High Frequency Trading (ISBN 1118362411)
Rishi narang

The book is recommended for reading proprietary traders who want to create their automated trading system or plunge into the world of high-frequency trading.

After reading it, you will understand that in the real world high-frequency trading is ruled by deep pockets, and lonely guerrillas with their MQL4 scripts have nothing to do in this business.

---

(2007) Statistical Arbitrage: Algorithmic Trading Insights and Techniques (ISBN 0470138440)
Andrew Pole

The title states that the book is about algorithmic trading, but nothing is said about the algorithms. This is a strong book about statistical arbitrage and automated trading based on it.

---

(2010) Algorithmic Trading and DMA: ISBN 0956399207
Barry johnson

The most correct book about algorithmic trading in its strictest sense is algorithmic execution of orders.

It is highly recommended for reading to anyone who is engaged in the development of algorithmic engines in brokerage houses, investment banks, or under the investor wing. This book is not about automated trading. There is not a word about “robots”, “Japanese candles”, “Elliot waves” and “Fibonacci numbers”.

---

(2013) 2nd Ed (ISBN 1118343506) High-Frequency Trading: A Practical Guide to Algorithmic Strategies and Trading Systems
Irene aldridge

Good strong book about high-frequency trading.

---

(2013) The Science of Algorithmic Trading and Portfolio Management (ISBN 0124016898)
Robert Kissell

The book is so full of mathematics that it is just hard to read. So far I have no opinion on this book, simply because I have not mastered it yet.

---

The following is a list of books for general development in the field of finance and securities trading. It is useful to read as future traders, and programmers who dream of working in the field of finance.

(2009) The Practical Guide to Wall Street: Equities and Derivatives (ISBN 0470383720)
Matthew tagliani

The book , written by an experienced trader, is designed for those who want to find work in the field of finance, but at the same time do not have much experience in the field of trading on the stock exchange.

---

(2006) The Complete Guide to Capital Markets for Quantitative Professionals (ISBN 0071468293)
Alex Kuznetsov

A good introductory book about finance and securities trading. There is a small section on how and what a programmer can earn in financial companies.

---

(2006) Practical .NET for Financial Markets (ISBN 1590595645)
Yogesh Shetty, Samir Jayaswal

A very good introduction to how trading machines work. Let the code be written on .net, it is very useful to read about common concepts.