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While the math behind a trading algo doesn't have to be extremely sophisticated a very good understanding of stats is necessary to characterize your algo.
I do a ton of work to understand the stat properties of my algo. I use all the classical performance measures like Sharpe, Sortino and so on. But also I try to fit the P&L to distributions, do Monte Carlo, measure performance on a continuous basis. I characterize the frequency and duration of the drawdowns and so on.
Another magnificent source is Sournette. Read everything from that man.
https://www.amazon.com/dp/B01M34NBM2/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1
There's a much better book that came out this year by the great Don Mackenzie "Trading at the Speed of Light". It doesn't have the cutesy narratives of a Michael Lewis book, but it's insanely informative
https://www.amazon.com/Trading-Speed-Light-Algorithms-Transforming-ebook/dp/B08NY31P1Z/
(Full disclosure: my work on agent-based modeling of financial markets is mentioned in there)
Literally the peak was driven by "number go up" so the crash was caused by "number stop going up".
If you want to read more:
https://www.amazon.com/gp/product/B01M34NBM2
His thesis is that bubbles can be analyzed as a risk premium on the possibility of a collapse.
Investors need to be seeing a super-exponential increase in prices because as the price decouples from fundamentals they are gambling that they can buy in at a stupidy high price and that it won't actually crash or that they'll be able to pull out before it crashes with a profit. But as it continues to climb it becomes more likely it is a bubble and more likely that it'll pop, and that actually causes the risk premium to increase, which demands that the price rises enough to meet the risk premium.
Eventually like all positive feedback loops it hits a point where it breaks because the price won't actually rise to infinity dollars.
Then since the number isn't going up it goes down and that risk premium in the price evaporates.
Well first, you want to learn the basics, which includes market structure, support and resistance, and price action. You have to have a solid strategy that you have back-tested and paper traded hundreds of times to get the feel of it before going live. You have to understand that trading is a mental game. The best way to control your emotions is to keep your risk low. For instance, with all of my trades, I accept that I could lose up to $300. I'm fine with that, so never risk more than you are comfortable with losing. Definitely start out trading the micros. You can start with a $1k account and do great with compounding. Small wins every day add up to something great, once you know what you are doing. Here's a book that I saw that has great reviews on Amazon to help you further with your journey. Hope that this helps!
https://www.amazon.com/dp/B07ZN6WZXL/ref=cm_sw_r_apa_6qMtFbY2B14YM
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