Better System Trader

029: Alan Clement discusses Rotational trading, alternatives to stop losses, measuring system health, dynamic position sizing and anticipating trading signals.


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Alan Clement is a Certified Financial Technician, full time independent trader, quantitative trading systems designer and private investment consultant.

He is also a councillor with the Australian Technical Analysts Association and contributes to the technical analysis articles for Fairfax press.

In this episode we talk about Rotational trading systems, the impact of stops on results and alternatives to managing risk. Alan also shares some interesting tips into measuring system health, dynamic position sizing and anticipating trading signals.

Topics discussed
  • Rotational trading - entries, exits and managing risk
  • Methods to measure momentum in trend following strategies
  • The impact of stop losses in trading systems and alternatives to managing risk
  • Tips to position sizing without a stop loss
  • Using dynamic profit targets to reduce risk and increase return
  • Why drawdown is not a single number
  • Using Monte Carlo analysis as a dynamic position sizing tool
  • Methods to determining current system health
  • Factors to consider when creating a system health metric
  • Choosing the right Backtesting metrics and using them in live trading
  • Five factors to consider when choosing a strategy to suit your personality
  • Anticipating trading signals, the benefits, challenges and solutions
  • How to anticipate trading signals without reverse-engineering indicators

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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