Kevin Davey has been developing, analyzing, testing and creating trading strategies for over 25 years, in every futures market from the e-mini S&P to crude oil to corn to cocoa.
He placed in the Top 2 of the World Cup Championship of Futures Trading ®* from 2005 – 2007 with the results:
- 2005 – 2nd place with a +148% return,
- 2006 – 1st with a +107% return,
- 2007 – 2nd place with a +112% return.
He now trades full time for his own personal account and coaches small groups of traders to significantly increase their trading results. He’s written a book on building algorithmic trading systems and has been featured in a number of other books and magazines.
In our chat he talks about how we went about winning the trading competition, the type of systems you want for the future, some very important aspects of system development that will cost you money if you ignore them, what you need to do before you start trading a strategy and what skills you need to be a good system developer. He offers some really valuable insights and provides an excellent process to system development so you do not want to miss it.
Topics discussed
- Why goals and objectives are so important in trading
- How to use “the monkey test” to validate entries and exits
- Which type of systems adapt better to future conditions
- Why walk forward testing is so important and when you shouldn’t use it
- How often should you re-optimise your systems
- Why ignoring Monte Carlo testing can cost you money
- Why you shouldn’t start trading a strategy immediately after you’ve finished testing it
- How to eliminate bad systems before risking your money on them
- Adding or removing systems from your portfolio
- Why you need to determine when you will stop trading a system BEFORE you start trading it
- What skills are required to be a good system developer
Resources mentioned in this episode
- To learn more about Kevin and his work, checkout his website at www.kjtradingsystems.com
- You can catch him on Twitter @kjtrading or by email [email protected]
- Learn to create your own strategies at the Strategy Workshop
- Recommended Books:
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NOTE: You can get “Market Wizards” as a FREE audiobook here
Create your own strategies
Learn how to create your own trading strategies from trading champion Kevin Davey!
His ‘Strategy Factory’ workshop is not your typical trading course: This is a complete workshop on proper strategy development, taught by award winning full time trader and best selling author Kevin Davey, followed by 6 months of one-on-one e-mail support. PLUS, you’ll also receive fully disclosed code for 3 profitable strategies – strategies that Kevin actually trades.
Check out this exclusive offer for Better System Trader listeners
Here is a webinar with Kevin discussing the Strategy Factory concept
http://youtu.be/mmJNzLE12_c
Quotes
Top 5 tips from my chat today
- Why goals and objectives are so important in trading
- How to use “the monkey test” to validate entries and exits
- How often should you re-optimise your systems
- Why you shouldn’t start trading a strategy immediately after you’ve finished testing it
- The importance of Monte Carlo analysis
