April 26, 2015

004: Nick Radge discusses system design, the best type of trading systems, handling a bear market, measuring performance and the difference between successful traders and everyone else.

1 hour 1 minute

In our chat with Nick we discuss system design, the best type of systems to trade, how observations can lead to better strategies, the best way to handle a bear market, measuring system performance, survivorship bias and the difference between successful traders and everyone else. Topics discussed:

The trading style most people should try first
Systematic ways to determine a trend
Why simple systems are the best
Why broker consensus is a poor indicator
The best type of stocks for trend following strategies
What you need to know about a system to be able to handle the drawdown
How observations can lead to better strategies
Why buy and hold offers average returns and the best approach to handling a bear market
How trading can take less than 5 minutes per day
Measuring the performance of a system
The difference between very successful traders and everyone else
The types of survivorship bias that could be ruining your backtest results
The warning signs of over-optimisation
Coping with drawdown and personal doubts
2 basic strategies you can start testing today!

Disclaimer: Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.

...more

View all episodes

By Andrew Swanscott chats with professional traders Larry Williams, Ernest Cha

4.8

260260 ratings

April 26, 2015

004: Nick Radge discusses system design, the best type of trading systems, handling a bear market, measuring performance and the difference between successful traders and everyone else.

1 hour 1 minute

The trading style most people should try first
Systematic ways to determine a trend
Why simple systems are the best
Why broker consensus is a poor indicator
The best type of stocks for trend following strategies
What you need to know about a system to be able to handle the drawdown
How observations can lead to better strategies
Why buy and hold offers average returns and the best approach to handling a bear market
How trading can take less than 5 minutes per day
Measuring the performance of a system
The difference between very successful traders and everyone else
The types of survivorship bias that could be ruining your backtest results
The warning signs of over-optimisation
Coping with drawdown and personal doubts
2 basic strategies you can start testing today!