Better System Trader is the podcast and blog dedicated to systematic traders, providing practical tips from trading experts around the world.
In this Thursday Trading Thought we’re going to consider the demise of price-based edges. With the explosion of computing power, more and more resources are being deployed to analyse the markets. Edges that used to work are being eroded away or destroyed as traders from all around the world get to work analysing the same…
In this episode we’re going to explore a topic we don’t cover much on this podcast and that is options trading. 2 of the mains reasons we don’t discuss options trading much, is firstly because I don’t trade options myself and have limited knowledge of how to use them, but also because there are some challenges…
In this weeks Thursday Trading Thought we’re going to inject some inspiration into the podcast. Trading is a really tough business and sometimes as traders we can get into a bit of a funk, no matter what level of trading we’re at. But we’re only human and we’re all trying to get better, so in…
Fear, Hope and Greed are 3 dangers that traders of all levels need to watch out for. They can have sometimes have a dramatic impact on our trading results, and even cause traders to quit trading or to blow up their accounts. And even if you think you’ve got them covered things can change pretty…
So here it is, the 2nd part of our conversation with Brian Miller from Optimized Trading. In the chat today we’re going to combine some new topics with an expansion on our previous conversation, including: The application of game theory in trading (it doesn’t just apply to HFT), The importance of letting the R&D process guide…
A common misconception with systematic and algorithmic trading is that it removes the impacts of human psychology on trading. But that’s really not the case. In fact, even when we’ve got trading platforms automatically executing trades for us, the mental aspects of trading can still have an impact on execution, model development, position sizing and…
You may have noticed over the past few weeks of ‘Thursday Trading Thoughts’ that we’ve been following a theme. In episode 113 we heard about a test Kevin Davey calls the ‘Monkey test’, which can be used to measure the effectiveness of entries and exits. Then in episode 114 we reviewed a technique that Dave…
Glad you could join us today for our chat about intelligent systems that maintain themselves. Sounds good doesn’t it? Well actually, that’s not all we’re going to discuss today, we’ve got so much more than that. Our guest for this episode is David Stendahl, from Signal Trading Group. David is a CTA with more than…
Last week we reviewed a technique Kevin Davey shared to measure the effectiveness of entries and exits using something he calls ‘the monkey test’. This week we’re going to look at entries and exits from a slightly different angle: How can we measure a trading edge after we’ve entered a trade, Is it possible to…
Today we’re going to have a quick chat about the effectiveness of entries, and a simple technique you can use to determine how good an entry or exit really is. I’ve been working on some breakout strategies lately and I’ve noticed in some of them that the entry really isn’t that important at all… That…
Glad you could join us today where we get to chat with Stefano Serafini – the current leader of the World Cup Championship of Futures Trading®* I met Stefano in New York at a trading masterclass a few years back and he’s been doing some great things with his trading. As I mentioned, he’s the current…
As systematic and algorithmic traders, we have a number of tools and processes we can use to test and validate trading strategies. For example, in-sample/out-of-sample testing, walk forward analysis, cluster analysis and a bunch more. (And don’t forget all the fancy named techniques that have been lumped in with Machine Learning…) Anyway, one of the…
Today I want to share with you one of my favourite Seinfeld episodes ever. It’s the episode where George Costanza realises that all of the decisions and actions he’s taken throughout his life have been the wrong ones. So he decides to do everything the opposite. He’s in the diner with Jerry and Elaine and…
The markets are in a constant state of adaptation. Conditions change. Strategies fall in and out of sync with the market, causing periods of good and poor performance. So what can we do to improve consistency by making our systems adapt better to changes in market conditions? Our guest for this episode, Brian Miller, is…
