204: “How to leverage market biases to improve strategy performance” – Lawrence Chan

Trader, author and performance coach Dr Brett Steenbarger discusses how traders can get an edge by applying innovation to their trading, including: The 2 levels of improvements traders can make, Why traders resist innovation and how to address hesitation to change, How to innovate by looking at what we do well, Why NOT trading can be an innovation for traders, Impacts of lifestyle and mindset on innovation, Why you should “limit your search” when looking for edges, The 2 qualities most shared amongst successful traders Plus, odds and backtesting market patterns, skill vs luck, testing in relevant market regimes, what successful traders focus on 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.

14 Juli 202152min

Quant trader Ernie Chan from PredictNow.ai joins us to discuss how to predict the profitability of trades using machine learning, including: Unconditional probability and the problem with win% in backtest reports, Why “conditional probability” is much more useful for a trader and how to apply conditional probabilities to capital allocation, Why you should use Machine Learning for risk management and capital allocation only (and not for building trading strategies), Why feature selection and feature importance ranking are so valuable, Plus, the best ML techniques for prediction, how simple should trading strategies be, insights from cluster-based feature selection, do these techniques really work, ML as a crystal ball 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.

15 Juni 202154min

Richard Metzger from Quantsys.net joins us to discuss how to combine algos using state-based market design techniques for more consistent trading performance, including: Why it's important to be sceptical of your algos, The main causes of poor algo performance and how state-based market design can address these issues, How to define market states into "buckets" and why you should keep them simple, Combining state-based algos to create a system, plus Adjusting inputs for market states, combining strategies in Tradestation, market states vs regime filters, 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.

9 Juni 20211h

Mandi Pour Rafsendjani from High Performance Trading joins us to discuss tips and techniques to perform like a world champion, even under times of stress and uncertainty, including: The 2 types of fears that lead to stress in trading, Self-image and accelerating trading performance, The 3 different areas to look at when dealing with stress, "Protective Pessimism" and positive vs negative thinking, The "3M's" to check when a strategy stops working, The "Queens Gambit" strategy to performance improvement, plus How to recover from larger drawdowns, overtrading, Wim Hof and yoga, self-talk, mindset and why the market is like an “all you can eat” buffet you can keep going back to – yum!   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.

2 Juni 20211h 8min

David Bean from Capstone Trading Systems joins us to share tips and techniques to manage multiple trading strategies, including: When to start trading a strategy live (the answer may not be what you think!), Why you should learn to love “ugly equity curves”, Watching the markets for trading ideas, Identifying patterns and cycles in portfolio drawdown, Why you should consider correlation based on methodology instead of typical correlation measurements, plus Patterns vs optimization, single idea strategies, market truths, retesting failed patterns, low frequency trading strategies 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.

26 Maj 20211h 6min

Adam Grimes from Talon Advisors discusses why trading can be so challenging and what to do about it, including: Why it can be so hard to learn from the markets, The dangers of doing stupid things in the markets that generate a good outcome, Random price movements and finding more predictable moments, Why having success outside of the markets doesn’t guarantee you’ll be a good trader, Trading psychology and interacting with randomness, Adapting to uncertainty and mispricing risk, Deliberate practise, Algo vs discretionary trading, when to stop trading a system, new events, out of sample date, how far to backtest and forward test before going live 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.

12 Maj 20211h 15min

Algorithmic trader Kevin Davey discusses the sneaky tactics trading scammers use to trick people and how you can spot a fraud and protect yourself, including: How to check if testimonials are real, Some simple ways to tell if a trader really is trading live as they claim, How to spot fake trading strategies, Trading gurus who report unrealistic returns and flaunt fake wealth, Websites you can use to check if trading educators are scammers, Why teach if you can trade, Fake trendlines and cherry-picked examples for books, Plus, Paypal refunds, money back guarantees, audited trading records, realistic rates of return, reputable trading educators, the old hedge fund trader/caravan park scam, 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.

5 Maj 20211h 11min

World Cup Trading Championship runner-up Scott Welsh joins us to discuss how "breaking the rules" and doing the opposite of "traditional" trading approaches can lead to higher returns, including: "Burning the ships" and how limiting beliefs are hurting traders, Why traders should "start from the end" and work backwards, Why it's good to see losing in your trading, The 80/20 rule and why "getting the star" beats diversification, How to achieve real-life trading that’s better than the backtest, Selection bias - is it really so bad? Why you should say “screw you” to people who tell you that you can’t do it, Plus, doing the opposite to conventional trading wisdom, breaking the rules with indicators, strategies that never break, trading platforms, beating buy and hold, small profit targets, 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.

28 Apr 20211h 3min