June 21, 2015

012: Ernest Chan talks quantitative trading, momentum, stop losses, minimising drawdown and maximising returns, automated trading and competing with the big firms

49 minutes

Dr Ernest Chan talks about many aspects of quantitative trading, including how market crises impact momentum strategies and how to manage the impacts, when to use stop-losses and when they don't make sense, automating trading, managing funds in a portfolio of strategies and a simple money management approach which aims to limit drawdowns while maximising returns.

Topics discussed

Where to find trading ideas
The first aspect of a market to identify before building a strategy for it
Momentum crashes and the performance of momentum strategies after a financial crisis
How to manage the times when momentum strategies aren't working
When stop losses should be used and when they don't make sense
How to limit drawdowns while maximising growth
Factors to consider when automating your trading
How independent traders can avoid competing with the big trading firms
When you need to worry about market microstructure and when it doesn't matter
Managing funds for a multi-strategy portfolio
The hardest part of trading

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.

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

4.8

260260 ratings

June 21, 2015

012: Ernest Chan talks quantitative trading, momentum, stop losses, minimising drawdown and maximising returns, automated trading and competing with the big firms

49 minutes

Topics discussed

Where to find trading ideas
The first aspect of a market to identify before building a strategy for it
Momentum crashes and the performance of momentum strategies after a financial crisis
How to manage the times when momentum strategies aren't working
When stop losses should be used and when they don't make sense
How to limit drawdowns while maximising growth
Factors to consider when automating your trading
How independent traders can avoid competing with the big trading firms
When you need to worry about market microstructure and when it doesn't matter
Managing funds for a multi-strategy portfolio
The hardest part of trading