Centennial Quantitative’s

Novice Algo Trading Rules

1. Only Invest Money You Can Afford to Lose: Your trading capital should be money that, if lost, won’t affect your financial stability. It’s crucial to understand that all investments carry some level of risk.
   
   
2. Accept Gains Early On: If you see positive returns on an investment, consider locking in those gains to protect against potential future declines.
   
   
3. Cut Losses Rigorously: Set predefined stop-loss limits. If an investment starts tanking, sell it at the set threshold to minimize losses.
   
   
4. Use Known Community Algorithms with a Good Track Record: Utilize time-tested strategies and algorithms that have been proven to work within the trading community.
   
   
5. Take a Long-Term View: Don’t get swayed by short-term market fluctuations. Focus on your long-term financial goals.
   
   
6. Dollar-Cost Averaging (DCA) into the Portfolio: Invest equal amounts of money at regular intervals, regardless of market conditions. This strategy can help balance out losses and minimize their impact on your overall portfolio.