Better System Trader

In this podcast episode we're going to be talking about something incredibly fundamental to traders.

It's something we have to do all the time as traders, and it can have such a huge impact on our trading performance. In fact, it doesn't just impact trading, it can impact ALL aspects of our lives.

So, what is it? Any ideas?

It's decision making.

Now I don't need to explain the importance of decision making, it's pretty obvious… I'm sure we've all made good and bad decisions over time and had to live with the consequences, but as traders, what can we do to improve our decision making?

Well, in this podcast episode we're joined by special guest Agustin Lebron.

Agustin began his career as a trader and researcher at one of the worlds largest market-making firms - Jane Street Capital. Over the years he has traded many different kinds of securities and has created, developed and implemented successful trading strategies.

In my chat with Agustin you'll discover:

• The "laws" traders need to apply to make better decisions,
• Why you're never really happy with the trades you make and what to do about it,
• Identifying your "personal edge" and leveraging it in the markets,
• Why traders need to integrate "storytelling" into their processes,
• The dangers of traders "mistaking the map for the territory",
• How to approach a model when it's breaking down,
• Plus, much more.

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.

Glad you could join us today for a discussion on what is probably one of the most popular topics in trading, and that is entries and exits.

Traders love talking about entries, but the truth is, when you dig deeper and test them out, you might just discover lots of entry and exits techniques either don't actually work very well at all or don't work as well as expected.

So, how do traders know what makes a good entry or exit?

How do we go about building effective entries and exits for our trading strategies?

Well, in this podcast episode we dig deeper into entries and exits with special guest Kevin Davey.

Kevin has just released a book on entries and exits, so we're going to dig into that a little and discuss a number of other aspects of entries and exits too, including:

• What makes a good entry – logic, symmetry, indicators, patterns or something else?
• How to test the effectiveness of an entry to determine if it's any good,
• An unexpected way to use entries that could radically improve your trading strategies,
• The hidden dangers of combining and optimizing exits,
• A simple technique to determine if you could be optimizing too much,
• Where to find enough entries and exit ideas to keep you busy for a year,
• Plus, much, much more.

Let's get started with my chat with Kevin on entries and exits.

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.

Our special guest for this episode has done some really interesting work into strategies that manage trading strategies based on their current performance.

This can have a huge impact on performance results, but what does it actually mean, how does it work and how can we do it?

Well, David Bean from Capstone Trading Systems is joining us to explain exactly that, plus he's going to share a whole lot more, including:

• Patterns versus indicators, where they fit in a strategy and which works better,
• Why market regime filters may not be the best approach and an alternative solution that could be better for you,
• How to really dig deep into understanding how a strategy and market truly works and the benefits of knowing that,
• How to determine the best time to start trading a strategy and when to stop trading it,
• How to plan for, manage and even profit from strategy degradation,
• Plus much more.

So, enough of the delays, lets jump right into my chat with David Bean.

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.

I just want to start by saying happy new year! I know it was a few weeks back, but I hope you've had a good start to the year and I wish you all the best for 2019.

Now I'm really excited to be sharing this episode with you for a number of reasons.

I think it's very timely considering this is the time of the year where we make new years resolutions. We reflect on where we are and what we want achieve. Perhaps we've set some goals and started achieving some of those, or maybe even broken some of them already.

In this episode we're going to be talking about what it takes to be the best, or perhaps I should say YOUR best.

We're going to be talking about high performance trading, what it takes to have a successful trading career over the long term.

And joining us for this chat is one of the best, Linda Raschke.

As I'm sure you know, Linda has experienced a very high level of trading success throughout her career. There aren't too many traders around who can say they've had the level of performance, success and longevity that Linda has had, so she's really an excellent person to discuss this with us today.

She's going to share some stories with us, and some valuable trading wisdom which I'm sure you'll find valuable, so let's jump straight into my chat with Linda, hope you enjoy it!

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.

With so much focus often on the actual trading strategies or investments, portfolio construction can sometimes become an afterthought… or not even considered.

However, as we're going to hear about today, portfolio construction and optimization has the potential for huge increases in wealth...

But there are a number of aspects we need to carefully consider if we want to maximise the potential of portfolios.

Joining us today as our special guest is Adam Butler, CIO from quantitative asset management company Resolve Asset Management.

Adam has published some interesting research on portfolio construction and optimization, and he's even provided a portfolio optimization framework that can guide investors and traders towards the appropriate optimization method.

In my discussion with Adam today, you're going to discover:

• How some traders and investors apply rules to portfolio construction based on a flawed premise,
• How the 'Portfolio Optimization Machine' framework can guide investors toward the appropriate optimization method,
• Why some errors in estimates don't have a particularly large impact on portfolio outcome and where the real challenges comes in,
• The differences in constructing portfolios in stocks versus futures,
• The multiple dimensions of diversification and how to approach the risks of rebalancing,
• How to choose the best portfolio construction and optimization technique for you,
• Plus much more.

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.

With recent market stock market actions, talk again is turning to whether this is just another correction.

Will the bull market resume or are we in the beginning stages of a bear market?

In this episode we have a timely look at the market with Troy Bombardia from investment research firm Fundamental Capital and the website BullMarkets.co.

Troy has been working in his family's hedge fund for 10 years now, and applies a unique mix of Fundamentals, Technicals, and Statistics to his trading models.

In my discussion with Troy today, you're going to discover:

• Why Technicals alone can't give an accurate reflection of the long-term market view and what you need to incorporate instead,
• Why lots of traders that use fundamental analysis are doing it wrong and which fundamentals really drive stock market declines,
• The difference between a bear market and a "big decline" and the conditions to watch out for in each,
• Why leading economic indicators are also leading stock market indicators, and how to read them to prepare for potential market changes,
• What the economic indicators are saying about stock market conditions right now, including when the Bull market could be ending and the final step to watch out for as it unfolds,
• The importance of reflection in trading, and the 2 key aspects traders need to focus on to always be improving,
• And much more.

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.

Joining us today as special guest is Michael Grech from Quantopolis.

Mike is a quantitative trader with a background in signal processing and computer modelling, and in our chat you'll discover a number of interesting topics, including:

• Trading based on assumptions and building portfolios of diversified strategies,
• Why every trader should have some kind of volatility strategy in their portfolio and how to balance risk vs reward in volatility strategies,
• Mike's latest book on quantitative investing,
• How concepts from the book "Thinking Fast and Slow" have applications to traders.
• Plus, Mike is going to let us in on a project he's currently working on that uses a combination of simple systems and Artificial Intelligence to mimic a human trader and also to calculate market probabilities.

We cover a lot in this episode so check out my chat with Michael Grech.

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.

A common dream sold to traders, especially when they're starting out, is the dream of sitting back on the beach sipping cocktails while our trading systems go to work and make us money.

While certain aspects of that dream are possible, for example automated trading, traders still need to do a lot of work to get to that point.

We've got to research the markets, find trading edges, do testing and robustness checks, monitor strategies and systems, tweak and adjust where required...

It's really not as simple as the dream sounds.

But with recent advances in technology, including AI, machine learning and quantum computing, are we close to having fully autonomous trading systems?

That is, can systems really learn trading rules themselves, find profitable edges and trade them, while we do sit back on the beach, boat or couch sipping cocktails and counting our money?

In this podcast episode we're going to explore how recent advances in technology are impacting the trading space now and where it could be taking us in the future.

And to do that we have special guest Dr Tom Starke from AAAQuants.

Tom specialises in AI and machine learning solutions and he has some interesting insights to share with us, so let's get started now and jump over now to my chat with Dr Tom Starke.

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.

In this episode we're going to be talking about the pits.

The trading pits may be closed (or most of them are anyway) but there is a lot of history there. There are lots of stories and events that occurred in the pits over the years that we can still learn from today.

On this podcast episode we have special guest Damon Pavlatos who has been extensively involved in the commodity and financial futures industry since 1978.

He has held Exchange Memberships on the CME, CBOT and Mid America Exchange.

Not only did he trade on the floor for himself but he also executed for some of the biggest players around, including Paul Tudor Jones, Louis Bacon, Monroe Trout, Toby Crabel and others.

In Damons 40+ years of experience he's seen a lot, and he's experienced a lot too. So, in our chat today he's going to share some interesting stories from the floor, and some valuable lessons for traders of all levels of experience too.

Some of the things you'll discover in my chat with Damon are:

• The crash of '87 – what it was like leading up to, trading through it and how the crash of 2008 was scarier than the crash of 87,
• One of the biggest causes of traders blowing up their accounts - it may not be what you think,
• Why volume could be the most important indicator and how order flow 'clues' can impact trading results,
• Why it so important to 'stay ahead of the curve' and adapt to changes in technology and the markets,
• Why some types of brokerage firms are dangerous and how to check if they're properly capitalised,
• And so much more.

We cover a lot in this episode so let's jump over now to my chat with Damon

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.

Ever wonder how the 'other side' trades?

I suppose it depends what 'trading world' you live in but in this episode we're exploring 2 different worlds - the institutional world AND the private trading world.

And joining us to do that is special guest Petra Zacek.

Petra started out in the institutional world and in this episode she shares some interesting stories and lessons about her time there.

But now that she's a private trader she's also going to share some insights into trading her own account and the transition from institutional to private trading.

Some of the things you'll hear in our chat today are:

• Why it's important to think outside the box and express your trade idea in different ways,
• Making the switch from institutional to private trading and the impact her institutional experience has had on her trading today,
• How the institutional world research ideas, including what private traders are up against and how we can compete,
• Benefits of collaboration, using algos as an additional filter on top of a setup, how to balance accuracy with win/loss ratio plus a whole lot more.

So let's jump over to my chat now with Petra.

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.