042 – Intermarket Analysis with Murray Ruggiero

Murray Ruggiero is Consultant for System Development at Tuttle Tactical Management, with around 200 million dollars under management, and also Vice President of R&D for TradersStudio.

He is one of the world’s foremost experts on the use of intermarket and trend analysis in locating and confirming developing price moves in the markets.

He is also a speaker, author and has been a contributing editor to Futures magazine since 1994, producing over 180 articles.

In this episode we discuss various aspects of system development, including optimization, curve-fitting and creating robust strategies. We also discuss why trading strategies must have a premise, the importance and applications of intermarket analysis, cycles and a bunch of great questions from the audience.

In this episode we discuss

  • Factors to success in system development
  • Why it’s important to understand the underlying premise of a system
  • Techniques to reduce or avoid curve-fitting and develop robust strategies
  • Why Intermarket Analysis is so important and how it can be used to create profitable trading strategies
  • How to get started with intermarket analysis and common issues traders face
  • Using cycles to detect market breakouts and other applications

PLUS questions from the audience on…

  • How to determine if a strategy has broken down or is just in a normal state of drawdown
  • The relationship between drawdown and time
  • Creating robust strategies and which ones have stood the test of time
  • Performance of Tuttle Tactical Management and the differences between managing money for others and trading your own money
  • Exits and how to choose the correct exit for your entry method
  • Effective uses of AI in trading
  • Regime switching between strategies
  • The future of trading

Sponsor

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Resources

  • You can download the free Tradestation code Murray mentioned in our chat from usingeasylanguage.com
  • Also check out his trading system platform on the website tradersstudio.com
  • Recommended books:
Book-CyberneticTradingStrategiesPerryKaufmanBookJohnMurphy-IntermarketAnalysisLeverageSpaceTradingModelEhlers-Cycles

Top tips from this episode

  • System premise – One of the key points Murray came back to a number of times was understanding the premise of a system. In fact, Murray said ‘I think the premise is the most important part of a system’ and that there’s lots of methods that can be robust as long as there’s an underlying strong theory, so when you build a trading system you need to have a valid premise, you need to understand the underlying theory of things and you need to understand your methodology enough to trust it.
  • Intermarket analysis – Another component Murray focused on was intermarket analysis because he said ‘I think one of the most important areas in trading is intermarket analysis’. In his book he covered intermarket analysis, that book was published 20 years ago and the strategy still works today so it’s a very robust method.

Quotes

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