221: Bad trades, shorting disasters and just get out!

The guest for this episode is Jack Vogel from Alpha Architect, a quantitative asset management and consulting firm. Jack has published a number of papers on SSRN and also co-authored a couple of books including “Quantitative Momentum: a practitioners guide to building a momentum-based stock selection system”. In our chat with Jack you will hear: Momentum - what is it, what causes it and the different types you need to be aware of How to best apply momentum techniques to a portfolio Why measuring the quality of a trend is so important and how to do 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.

8 Jan 201740min

What can traders learn from airline pilot Captain Sullenberger and his response and actions landing a plane in the Hudson River?   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 Jan 201710min

So here it is: The Top 10 Trading Lessons for 2016! I have to admit, creating this list was really fun. Not only because I got to look back and remember all of the great episodes we released and the knowledge that these fantastic guests shared with us, but also because I had the chance to think about the impact these episodes hopefully had on your trading too. This Top 10 List was chosen based on a few factors, including download stats, feedback from listeners and some of my own personal favorites. So although this list is not solely based on analytics, each episode was chosen with the intention to offer powerful trading insights as you move into the new year. So if you missed any of these episodes, make sure you listen to them before we ring in the new year! Also make sure to download the FREE BONUS audio package — This audio contains the biggest trading lessons from each of the guests in this Top 10 list and I compiled them to make sure we all learn from their insights. It’s only short but it’s packed with valuable info! One last note: NONE of this would be possible without you and your support. So I want to THANK YOU for a fantastic 2016! So (drumroll please…..) here they are: My Top 10 Trading Lessons for 2016   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.

24 Dec 20166min

As markets become more mature and more efficient, it can be become increasingly difficult to find sustainable edges. Many traders are looking at the same data and using the same techniques, so what are our options here? 2 of the obvious options we have are: Try to find a unique approach to the markets or at least something that isn't so popular, Explore alternative markets where inefficiencies are more prevalent. In this episode, our guest Bert Mouler is going to discuss both options and share his solutions. Bert has been an independent trader for close to a decade and is the President and CIO of Profluent Capital, which uses advanced AI and machine learning technology to produce uncorrelated alpha for their clients. In our chat today, you will learn: Cryptocurrency markets – what to trade, the huge inefficiencies that exist and finding edges in the bitcoin markets The advantages and disadvantages of Machine Learning and tips to use it effectively in trading Feature engineering and the importance of looking at data in unique ways   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.

11 Dec 201644min

Most trading strategies have an optimal type of market condition where they work at their absolute best, so having an understanding of market conditions and being able to detect and adapt to them can really have a huge impact on trading performance. But how can we measure market regimes properly? What techniques can we use to find that delicate balance between stability and reactivity so that it improves performance rather than reduces it? Our guest for this episode, Alan Clement, has completed considerable research into market regimes and is going to share his knowledge with us today! Alan is a Certified Financial Technician, full time independent trader, quantitative trading systems designer and private investment consultant. In our chat today, you will learn: Market regimes – what they are and how they can impact the performance of your trading strategies The different types of Market Regimes and key aspects to consider when defining them Indicators, market breadth and intermarket measures – which ones are the best for detecting market regimes?   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.

27 Nov 201649min

The performance profile of Mean Reversion is extremely desirable to a lot of traders. Mean reversion trading strategies can produce high win rates and a smooth equity curve, however there are risks, which can result in giving back a large portion of profits, or of your trading account, some times in a very short period of time. So what can you do to build mean reversion strategies that produce consistent profits while managing risk effectively? Todays guest, PJ Sutherland, is here to share the knowledge he has gained from years of research and trading mean reversion strategies, and as you’re going to hear, he has some really interesting insights to share with us. PJ has extensive experience in the development and deployment of quantified trading systems and has been active in the market for the past decade. He is the founder and director of Alpha Investment Advisors, providing research to hedge funds and prop trading firms, and the founder of the website Quantlab for private traders. In our chat today, you will learn: The key drivers of short-term returns in mean reversion trading The impact of market environments on mean reversion strategies and how to detect and adjust strategies to varying market conditions Should you 'Catch a falling knife' or wait for confirmation? How to determine which entry technique is best for you Building a portfolio of strategies using parameter ranges across the mean reversion curve Simple but powerful techniques to managing risk in mean reversion strategies   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.

13 Nov 201653min

There are a number of different aspects to trading that we really need to get a handle on to increase our odds of success. Some aspects we often put a lot of thought and analysis into, and others we may not consider so carefully or at all, which could be impacting our trading results without us even realizing. Todays guest, Dr Howard Bandy, is here to discuss the foundations of trading, and some of these aspects we really need to consider, whether we’re just starting out or a more experienced trader. Howard has over 50 years experience in the research and application of modelling and simulation of financial systems. He has previously worked as a senior research analyst for a CTA firm, is a consultant to trading companies and individuals, as well as being an international speaker and publishing a number of books on quantitative trading systems. In our chat today, you will learn: How to systematically choose the right markets to fit you risk profile, trading style and objectives The 3 characteristics a market must have to be tradable The difference between Impulse signals vs State signals and how they can be used to manage trades and monitor trade health The four parameters you need to understand to define your own risk tolerance Choosing the best objective function to evaluate trading strategy performance   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.

30 Okt 201644min

Why is it that some traders can create trading strategies that perform well in real-time trading while other strategies fall apart? How do some traders keep their trading strategies fresh and adaptive to market conditions while other strategies just stop working altogether? Robert Pardo, president of Pardo Capital, author of the book ‘The Evaluation and Optimization of Trading Strategies’ and creator of the ‘Walk Forward Analysis’ approach, is here to chat about creating and optimizing strategies that are robust and continue to work in the future. In our chat today, you will learn: Common mistakes traders make that can cause strategies to fail in real-time trading The dangers of traditional optimization techniques and how they can be reduced and even overcome How to determine if a strategy really is robust, while keeping it fresh and adapting to market conditions   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.

16 Okt 201654min