065 – The Top 10 Trading Lessons for 2016

So here it is: The Top 10 Trading Lessons for 2016!

I have to admit, creating this list was really fun. Not only because I got to look back and remember all of the great episodes we released and the knowledge that these fantastic guests shared with us, but also because I had the chance to think about the impact these episodes hopefully had on your trading too.

This Top 10 List was chosen based on a few factors, including download stats, feedback from listeners and some of my own personal favorites. So although this list is not solely based on analytics, each episode was chosen with the intention to offer powerful trading insights as you move into the new year.

So if you missed any of these episodes, make sure you listen to them before we ring in the new year!

Also make sure to download the FREE BONUS audio package — This audio contains the biggest trading lessons from each of the guests in this Top 10 list and I compiled them to make sure we all learn from their insights. It’s only short but it’s packed with valuable info!

One last note: NONE of this would be possible without you and your support. So I want to THANK YOU for a fantastic 2016!

So (drumroll please…..) here they are: My Top 10 Trading Lessons for 2016 (in chronological order)

#10 Look for clues in other markets (Episode 42)

042: Murray Ruggiero discusses intermarket analysis.

You’ve probably heard the saying “Sometimes you need to look at life from a different perspective”, well I think it applies to the markets as well and intermarket analysis definitely falls into this category.

Murray Ruggiero has been working with intermarket analysis for 20+ years, in fact, one of the strategies he published in 1998 is still profitable even today! How’s that for robust?

After recording this podcast episode Murray showed me more of his intermarket work and I did some of my own research too and I think intermarket analysis is a very powerful and robust trading approach.

If you’re interested, you definitely have to check this episode out.

#9 Breakout trading strategies can be simple to build (Episode 43)

043: Tomas Nesnidal discusses how to create profitable breakout strategies

If you’re interested in building breakout trading strategies or are already a breakout trader and are looking for more ideas, then this episode is for you because Tomas walks us through the process he uses, step by step, including:

The 4 key components to building profitable breakout strategies
How to use filters to improve trading results
Adapting breakout strategies to market conditions
The best timeframes and markets for breakout strategies

If you want to learn a simple process to building breakout strategies, using the same framework that Tomas actually uses, download the FREE Breakout strategy toolkit here (includes ebook, cheatsheet plus 2 breakout strategies in EasyLanguage).

#8 Look at trade entries in a different way (Episode 45)

045: Andrea Unger discusses Entries.

Entry techniques are probably one of the most popular aspects of a trading strategy. It’s like the hot girl at school that everyone wants to talk about, however have you ever considered that perhaps the traditional approach to entries could be limiting our ability to read the market?

4-time World Cup Trading champion Andrea Unger explains how he’s modified the standard approach to identify entry opportunities, including:

Why starting an entry with a setup can limit your ability to read the markets
The grouping of setups and how the style of trigger you use can determine the most appropriate setup
Combining intraday and daily timeframes for better entries
How Daily Factor can be used to determine the type of move to expect next

This is a great opportunity to hear how a trading champion thinks differently about trade entries, so take a listen.

#7 Adapt or die (Episode 49)

049: Linda Raschke on trading edges, modelling the markets, market behavior, trade management and day trading techniques.

There are countless stories of traders that didn’t make it and not so many of traders who have experienced real long-term success, and that’s what makes this episode so special.

Linda Raschke is a name we all know. She’s been trading for over 35 years and ran her own top-rated Hedge Fund.

Linda stands out from the crowd for three factors: Performance, Longevity and Consistency, so what does it actually take for a trader to experience the type of success Linda has achieved?

Well Linda tells it straight, including:

Some of the changes she’s experienced over the years and what it takes to overcome these challenges
How she models the markets to understand market behaviour
Reading the markets for better trade management
Tips and factor to consider when daytrading

Linda is a true legend in the trading community, with so many valuable insights to share, don’t miss this one.

#6 It’s easy to fool yourself (Episode 51)

051: Strategy evaluation techniques, flaws and solutions with Dave Walton

I’m sure we’ve all heard of data mining bias, over-optimization and curve fitting and the impacts this can have on our trading accounts.

We may even be using specific techniques to reduce these issues however do they really work?

You may be surprised to hear about the dangers of some of the techniques we take for granted, and in this episode Dave Walton, system evaluation expert, explains:

How typical approaches to system development can introduce datamining bias without you even knowing
How the method of splitting out of sample data could be causing you to throw away good strategies
Out of sample, walk forward analysis and Monte Carlo techniques – do they actually reduce data mining bias? (the answer to this could surprise you!)
Better solutions to strategy validation.

Your strategy creation process could be fooling you but Dave is here to help, take a listen!

#5 Multiple exits can reduce drawdowns (Episode 59)

059: Reducing Drawdowns with Scott Phillips

As traders, I’m sure we all want a steadily rising equity curve that just keeps going up and up and up, but unfortunately it doesn’t usually end up that way and we have to cope with drawdown, which can be one of the biggest challenges traders have to face.

So what techniques can we use to potentially help reduce drawdowns? That’s exactly what we discuss in this episode, including:

Rapid prototyping to determine if a trading idea is worth more investigation
Enhancing trading performance by understanding market types
How to improve your trading results through better trade management and utilizing multiple exits

If you LOVE drawdowns, don’t listen to this. If you HATE drawdowns, this could be just for you! 🙂

#4 Building robust trading strategies is tough but it can be done (Episode 60)

060: Strategy Optimization with Robert Pardo

Creating trading strategies that perform well, not just in a backtest but also in real-life trading, can be downright challenging (to be polite)!

In my earlier trading years I created plenty of over-fit strategies that completely failed in real-life trading and even today it can be easy to do if you’re not careful.

The good news is there are techniques we can use to minimise curve-fitting and increase the chances of building robust trading strategies, and that’s exactly what we discuss in this episode.

Robert Pardo is the author of the book ‘The Evaluation and Optimization of Trading Strategies’ and pioneered the Walk Forward Analysis approach in trading.

In this episode Bob shares with us:

Common mistakes traders make that can cause strategies to fail in real-time trading
The dangers of traditional optimization techniques and how they can be reduced and even overcome
How to determine if a strategy really is robust, while keeping it fresh and adapting to market conditions

We also have a bonus interview available for download here, so if you’re struggling to build robust trading strategies or just want to know more to refine your existing process, check this one out.

Btw, we just finished up a 5-part LIVE webinar masterclass series with Bob and the feedback we received was awesome! It’s closed for registration now but we may open it again in 2017, so if you’re interested in learning how to build robust trading strategies from Bob you can join the waiting list here and we’ll let you know if we ever open it again.

#3 Mean Reversion trading is HOT! (Episode 62)

062: Mean Reversion strategies with PJ Sutherland

After releasing this episode I received quite a few comments from people saying this has been the best episode ever, so if you haven’t heard it, are interested in mean reversion trading or even trade mean reversion strategies, this is one you have to listen to, perhaps even a few times.

In this episode PJ not only gives us loads of trading ideas we can test, but he shares:

How to adapt mean reversion strategies to the market environment,
Powerful techniques to managing risk,
How to build a portfolio of strategies using parameter ranges across the mean reversion curve.

As a mean reversion trader myself, I’ve listened to this episode a number of times already and have learnt loads from it. This is not one to miss!

#2 Don’t get caught naked in the snow (Episode 63)

063: Market Regimes with Alan Clement

If it’s 100 degrees outside, would you go out wearing that thick jumper your aunt knitted you for christmas? Probably not.

What if it’s snowing outside, would you run outside to check your mailbox with no clothes on? Probably not.

So why would you trade strategies that don’t suit the market conditions?

Most trading strategies have an optimal type of market condition where they work at their absolute best, so having an understanding of market conditions and being able to detect and adapt to them can really have a huge impact on trading performance.

In this episode you will hear:

How Market Regimes can impact the performance of your trading strategies
The different types of Market Regimes and key aspects to consider when defining them
Indicators, market breadth and intermarket measures – which ones are the best for detecting market regimes?

Don’t get caught naked in the snow, listen to this episode and be better prepared for changing market conditions.