231: The Trading Panel – Episode 8

Ever wondered how to turn $10k into $100k (or more) in just 2 years (or less)? Many traders have, especially early in their careers… But how do professional traders achieve superior returns while also protecting capital.  On this week’s episode of BST Live, Laurent Bernut from Alpha Secure Capital joined us to discuss “Superior returns from superior risk management”, and a new approach to risk management where you can put risk appetite on autopilot, protect capital and achieve superior returns. Here are just some of the tips you’ll discover: How to turn 10k into 1 million (or more) in just 2 years..., How unrealistic trading expectations set you up for failure, What is "superior" risk management and why investors are like teenage girls, Concavity and Convexity Oscillators for dynamic risk management, Position sizing with small accounts, Why you should let the market dictate the risk for you, How to judge the tradability of a strategy, plus Emotional capital vs financial capital and which is more critical, Risk management after long periods of underperformance, mean reversion vs trend following, the problem with pyramiding into positions and MUCH more. To hear all about it, head on over to bettersystemtrader.com/177 now to watch along or check in with your favourite podcast app if you like to listen.  Happy trading! Andrew. PS. Laurent even turned the tables and asked me a question on why I do Better System Trader. Check out my response at bettersystemtrader.com/177   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.

3 Feb 20211h 26min

With 2020 coming to a close, we’ve got a great opportunity to stop for a breather (phew!), look at some of the craziness that has happened this year, and identify how we can use those insights to improve our trading even more in the future. On this episode of BST Live Mike Grech from Quantopolis.com joins us to discuss 2020 and how we can better deal with market uncertainty. Here are just some of the tips you’ll discover: Why 2020 has produced 5 years of market action in 1 year, How this year has produced outsized returns for some trading styles and what could happen next, Understanding your strategy, how it reacts to markets and when to stop trading it, The future impacts of 2020 on backtesting, re-optimization and quant trading, What could crash an overvalues stockmarket if a global pandemic can't, Tail-risk hedging during volatility environments, The drawbacks and dangers of using indicators in trading, plus… The psychology of gains and losses, the information we don't see as traders, the best risk management tool you can possibly have, 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.

16 Dec 202057min

“Randomness has the greatest negative impact on single entry trading strategies.” – Brian Miller (Optimized Trading). In this new episode of BST Live, Brian Miller from Optimized Trading joins us to discuss “3 under-utilized techniques to build dramatically better trading strategies”.  Brian shared some unique ideas for building (and improving) trading strategies. Here are just some of the tips you’ll discover: Basic market classifications most traders use (that miss the complete picture), Designing models for specific market classifications Managing trades as market classifications change, How to get started building multi-structured strategies, Matching the strategy style to the market, Multi-value, multi-entry strategies, and diversification, Adaptive money management using market classifications, plus… Trade frequency, trending vs mean reverting, intelligent allocation, 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 Dec 20201h 8min

“There are literally hundreds of statistically valid patterns in every market.” – Scott Andrews (Investiquant). So, where are they hiding out, how can we find them and how can we determine the patterns are actually valid and not just random noise in the market? In this new episode of BST Live, Scott Andrews from Investiquant joins us to discuss how to find statistical edges to improve your trading. Here are just some of the tips you’ll discover: How to find potential edges and which markets are best, Why it’s more important to spend time watching and studying the market than actually trading it, The "3 C's rule" to separate genuine signals from the noise, How long can pattern edges actually last and do dead edges ever recover? How to track the health of an edge using t-score, Using "traditional" indicators in patterns, How to deal with drawdowns (and possibly the trading quote of the year!), The "Speed Bump Rule" to manage drawdowns, plus… Allocating capital, edges in stocks, building pattern libraries, ensembles vs patterns, day trading edges, context, sample size, 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.

25 Nov 20201h 1min

Is the trend REALLY your friend? And if so, why do so many trend traders fail? Global futures trader Brent Penfold joins us to discuss trend trading tactics, including: • Why trend trading is so difficult for traders, • Why traders should be careful using indicators, • How to overcome challenging periods in trend trading, • The surprising robustness of really old strategies, • Why bright people struggle in the markets, • Drawdown, risk, position-sizing, volatility cycles, data mining, 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.

18 Nov 20201h 14min

Quant Trader Alan Clement from Helix Trader discusses momentum trading & strategies, including: Why momentum trading is so popular and how it works, What makes a good trend indicator and the 4 best indicators to identify trends,  Why the moving average is not a good trend indicator, How to rank stocks by momentum and how many momentum stocks to hold in a portfolio, The danger of stops and using momentum for exits instead, How dual momentum protects during Bear markets and market crashes, Filtering out false signals in indicators, Plus, market regimes, shorting weak stocks, position sizing, 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.

11 Nov 20201h

With the US elections just days away, traders are thinking about how the markets may react to whatever news the elections may bring. Will we see a big selloff, wild swings in price, and huge spikes in volatility? Or do the markets typically deliver something else around election time? In this episode of BST Live, Perry Kaufman from Kaufman Signals joins us to discuss how to survive market selloffs, including: Historical returns around election days since 1924, The 2 types of prices shocks and the best approach to handling them,  The link between stock price and percentage change and why you should avoid trading low priced stocks, Should traders hedge to reduce risk, The dangers of Price Shocks on backtesting results (and how to avoid them), How to determine the volatility level where returns are no longer worth the risk, Plus, volatility parity, rebalancing, portfolio volatility, 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.

3 Nov 202056min

Ever had a strategy that looked like it was broken and wondered if you should stop trading it or not? Strategy failure (or periods of poor performance) are just a part of trading, but how you deal with it can have a HA-YUGE impact on your overall results… so how do you detect when a strategy is failing? How do you work out if you should stop trading it or just give it some more time? In this episode of BST Live, trading champion Kevin Davey joins us to discuss how to detect when a strategy is failing, including: • Why looking at a single equity curve is not giving you the full picture, • How to determine the potential ranges of future strategy performance, • Using Statistical Process Control to monitor trading strategies and which metrics are best, • How Probability Cones can give traders a more informed view of strategy performance (and when a strategy could be broken), • What do to when a strategy over-performs (the answer may not be what you think!), • Should you turn a strategy back on if it recovers after extremely poor performance, • How a really good backtest can actually be a predictor of bad performance, • 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.

28 Okt 20201h 15min