Better System Trader

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.

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

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.

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