Better System Trader

Rob Hanna has been a full-time market professional since 2001. 

He first began publishing his market views and research in 2003.  From 2003 to 2007 his column “Rob Hanna’s Putting It All Together” could be found twice a week on TradingMarkets.com. In 2008 Rob began Quantifiable Edges and in 2012 Rob opened his 2^nd website, Overnight Edges. Overnight Edges is now part of the new InvestiQuant site. Both sites use historical analysis to assess current market action and odds.  Rob utilizes price action, volume, breadth, sentiment, seasonality, liquidity flows and more to conduct his research.

In 2010, Rob published his book ‘The Quantifiable Edges Guide to Fed Days” receiving high acclaim from many in the industry.

His work has been widely referenced and quoted over the years, and is often linked to in blogs, tweets, Stocktwits messages, magazine articles, books and more. He has also served as a guest speaker at a number of speaking engagements.

In todays chat we discuss how he comes up with so many trading ideas, the type of market behaviours to look out for and his favourite piece of information in a backtest report (clue: it’s not a number). He also discusses how a confluence of ideas can improve trading results, how to look at market behaviour from different angles, some simple market timing techniques, adjusting strategies based on market conditions plus loads of ideas we can test ourselves.

Topics discussed

• Where to find trading ideas
• The types of market behaviour to look for and what to ignore
• The most important piece of information in a backtest – it’s not a number!
• How to handle an edge that is performing poorly
• How a confluence of ideas can improve trading results
• Looking at market behaviour from different angles
• Simple market timing techniques
• Where to find the biggest edges
• Adjusting strategies based on market conditions
• How Fed meeting days impact the market and how it can be traded
• PLUS loads of ideas to test!

Resources mentioned in this episode

• • To learn more about Rob and his work, checkout his websites:
    • OvernightEdges.com
    • QuantifiableEdges.com
    • InvestiQuant.com
  • You can catch him on Twitter @quantedges, @overnightedges or by email support@quantifiableedges.com or rob@investiquant.com
  • Recommended Books:

NOTE: You can get “The Daily Trading Coach” or “Market Wizards” as a FREE audiobook here

• Other resources mentioned in the interview:
  • Study of volume in breakouts
  • First day of the month study
  • Rob’s proprietary CBI indicator
  • Market timing – Nasdaq-SPX relative strength model excel worksheet and tradestation worksheet/indicator/strategy download

Shorting on Extremes
We test the ‘Shorting on Extremes’ study Rob mentions in the chat

Overnight Edges video comparing SPY performance during the day session vs overnight

A webinar Rob presented to the MTA
http://media.mta.org/videos/2013/educational-web-series/rob-hanna/rob-hanna.html

Quotes

Top tips from this episode

• Making little observations about the market can give you ideas to test. You can learn alot from simple ideas.
• When looking for ideas, pay attention to extremes in the market action, they’re normally going to have more extreme edges
• Looking at the market from different angles, like price action, internals and seasonality, and combining studies into an ‘ensemble system’ you can be better off than just following a singular system
• The money that we make in the markets is really made in the research and preparation completed days/weeks/months before we enter the markets, it’s very difficult to beat Wall Street if you’re unprepared.

Transcript

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Episode Released:

17 May 2015