• iTunes
  • Twitter
  • Facebook
  • Google+
  • Instagram
  • Youtube
  • Email
  • Home
  • Courses
  • eBooks
  • Library
  • ET Club
  • BST LIVE
  • Leasing
  • About
Better System Trader

Better System Trader

The #1 site for systematic traders

006 – Trading System Development – Dr Howard Bandy

http://traffic.libsyn.com/bettersystemtrader/BetterSystemTrader-Ep6-HowardBandy.mp3
Play in New Window|Download
HowardBandyPhoto

Dr Howard Bandy has university degrees in mathematics, physics, engineering and computer science, completing graduate studies and research in modelling and simulation, statistics and some of the early work in artificial intelligence.

He has over 50 years experience in research and applications of modelling and simulation of financial systems.

Howard has previously worked as a senior research analyst for a CTA firm and as a consultant to trading companies and individuals.

He is a speaker at international conferences and is the author of 5 books on quantitative trading systems.

In this episode we talk about major changes occurring in the fields of trading system development, trade management and technical analysis. We also discuss why trading is becoming increasingly difficult, what causes trading systems to experience periods of poor performance, how to identify and manage a trading system when it is out of sync with the market and the 2 most important skills in system development.

‘The period of time over which an inefficiency exists is growing shorter and shorter’ – Howard Bandy
Click To Tweet

Topics discussed

  • The major changes occurring in the fields of trading system development, trade management and technical analysis
  • Why trading is becoming increasingly hard
  • How to compete with the professionals
  • What causes trading systems to experience periods of poor performance
  • How to identify and manage a trading system when it is out of sync with the market
  • The shift towards machine learning and pattern recognition
  • The importance of data mining in the system development process
  • The 2 most important skills in system development

Resources mentioned in this episode

  • To learn more about Howard and his work, checkout his main website blueowlpress.com
  • His other websites are:
    • Mean Reversion Trading Systems
    • Modelling Trading System Performance
    • Quantitative Trading Systems
    • Quantitative Technical Analysis
  • Books:

FREE DOWNLOAD: ‘Introduction to AmiBroker’ book by Dr Howard Bandy

The importance of being stationary  
https://youtu.be/iBhrZKErJ6A

Focal points in quantitative trading
https://youtu.be/oN10-9oIsDY

Quotes

The easy inefficiencies have pretty well been discovered.
Click To Tweet
Other people are using more powerful trading tools, we need to do that as well.
Click To Tweet
Data mining is important. The question is whether what’s been learned will persist into the future.
Click To Tweet

We need to use correct modelling and simulation techniques to identify whether we have found valid signals or not.
Click To Tweet

Withhold prejudgment, think of an idea and test it.
Click To Tweet

Top tips from my chat today

  1. Trading is hard – all the easy inefficiencies are gone and any new inefficiencies that get discovered are being arbitraged out quicker,
  2. The competition in the markets is fierce, they have better tools, more resources, are well funded and well educated, however we can compete,
  3. Systems fall in and out of sync with the market so we need to be able to identify the level of synchronisation and adjust position size accordingly,
  4. Data mining is an important step in the system development process so the question on data mining should really be whether the signals identified during the data mining process could persist into the future.

Get the Transcript


  • facebook
  • linkedin
  • twitter
  • google+
  • pinterest
  • stumbleupon
Are your backtest results foolin...
007 - How to get unlimited tradi...

Related Posts

  • 156 – Where is technology taking us? – Dr Tom Starke
  • Sharpe Ratio – the right answer to the wrong question?
  • 012 – Quant Trading Models – Ernest Chan
  • 082 – Machine Learning with Kris Longmore
  • 005 – Building Trading Strategies – Kevin Davey

Want all the trading knowledge of 100+ episodes in a handy ebook format?

Learn how successful traders approach their trading and save time with these handy eBooks of interviews compiled from the Better System Trader podcast.

Click for more info

Want to build robust trading strategies that actually work in live trading?

Click for more details

Want all the trading knowledge of 100+ episodes in a handy ebook format?

Learn how successful traders approach their trading and save time with these handy eBooks of interviews compiled from the Better System Trader podcast.

Click for more info

Trading stocks, options, futures and forex involves significant risk of loss and is not suitable for everyone. Past performance is not necessarily indicative of future results.

© 2015 Better System Trader · Disclaimer & Terms · Privacy Policy · Sponsor

https://bettersystemtrader.com/wp-content/cache/breeze-minification/js/breeze_8dbb98989997065ffcee8196e557c170.js