235: How traders can compete in the markets and find profitable edges - Jason Strimpel

When I was learning to snowboard, I still remember the first time I got off the lift chair, strapped myself in the board and looked down the mountain. It was really overwhelming and I wondered how I was actually going to get down there without any injuries! My instructor was very comforting telling us ‘Not to focus on the bottom of the mountain’, because even though that’s the destination, to get there we were actually going to zig-zag down the mountain. So we needed to focus on the next turn and how we were going to execute that. We were told to look where we wanted to go, so if you want to go left then look left, your shoulder/hips will turn, your body weight will shift on the board and that will steer the board. And as you’re moving across the mountain you obviously want to look for hazards, look for where you want to turn and focus on shifting your body weight to steer the board around the corner It was all about the process. By focusing on the process, the outcome would eventually come. That is you'd work your way down to the bottom of the mountain with hopefully no broken bones! However, if you were to just focus solely on the bottom of the mountain, then you're likely going to fall down and crash. Trading can be a very outcome-focused activity, there is the temptation to focus on the results of our trades. Did the trade make or lose money, how is our P/L progressing for the month or year? But is this the best focus for traders to have? Should we be focusing more on the outcome or the process and what produces the best results? Do we need to have a balance between the two, and if so how? Let’s take a listen to performance coach Rande Howell now as he shares a story about an Olympic hurdler and how his approach to focus applies to trading 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.

9 Juni 20179min

It can be really interesting and exciting to research the markets and test different ideas but at some stage we need to decide if the strategy is ready for live trading. Some traders can get stuck endlessly researching… Trying to find that perfect system… Which comes at a cost. How do we avoid getting bogged down in research? How do we know when a trading strategy is actually ready for trading? Let’s listen to Kris Longmore from Robot Wealth explain his approach to determining when a trading strategy is ready for live trading.   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 20175min

Jack Schwager needs no introduction. He's a well known expert in the industry, working for some of wall streets leading firms. Plus he's the author of the best-selling series of 'Market Wizards' books, which I'm sure most traders on this planet have read! In this chat with Jack we discuss Optimization Myths, referencing some interesting results of a study that analyses the effectiveness of optimization... The results may not be what you expect... And could have a huge impact on the way we test and trade strategies. There are plenty of other nuggets of info too, including: The relationship between the best performing past and future parameter sets, Why optimization adds very little to the power of a trading strategy and where to focus instead, and How to properly assess trading results to determine if it’s your strategy or the market that’s actually any good.   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 Maj 201726min

Did you know there are some situations that can cause traders to throw away perfectly viable trading strategies, without even realizing it? Imagine that! Putting all that hard work and effort into building a trading strategy but due to some arbitrary decision we’re making during the strategy creation process, we throw the strategy away... When it could have been a good trading strategy... So, what could be causing this? And, what’s the solution? Let’s hear Dave Walton from Statistrade explain what this danger actually is so we know what to look out for, and then briefly discuss one of the solutions to this 'hidden' problem.   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 Maj 20177min

Have you ever wondered what exactly is it that makes a trader successful? Is it based on personality? A specific approach to the markets? Pure luck? Dr Brett Steenbarger is a trader and performance coach, and gets heavily involved in the recruitment process for trading firms. He gets to interview traders, see how they work and analyse their performance so he’s in a really great position to make these types of observations. Take a listen to Brett sharing the 3 main components he's observed in successful traders.   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 Maj 20176min

How many traders do you know that have successfully cornered a market? If you're not familiar with the term 'corner the market', it means to get enough control of a commodity, stock or other asset so that you can manipulate the price. There are a number of documented cases in history where people have tried... ... and it usually doesn't work out too well for them! This weeks podcast guest Kurt Sakaeda has cornered a market, however it was more of an amusing accident that an intentional act. And this is just one of the entertaining stories Kurt shares with us in our chat today. Those familiar with the World Cup Trading championships would recognize Kurts name because he's won it a few times, with his first win in 2000 so he's been trading for a while. In our chat with Kurt we discuss a mixture of trading topics, including: How to include seasonality in trading models and why you don’t need to worry about curve-fitting seasonal trades, The dangers of counterparty risk and how to reduce them, Finding profitable trades in a crisis, and How Kurt accidentally cornered a futures market and the amusing results - the 'authorities' weren't too happy.   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 Maj 201743min

Last week I had to make an emergency trip to the hospital. It highlighted a gap in my trading 'operation' (pardon the pun) so I wanted to share that with you so that you can learn from my mistakes. How will your trading handle an emergency?   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 20174min

Have you ever dreamed of leaving your day job to trade for a living? Or living a life of freedom - travelling the world or hanging around at home, doing whatever you like during the day while you live off your trading profits? When I first started getting into trading I had this grand vision in my mind of leaving my corporate job, travelling the world, living a life of luxury all supported by my trading profits. It's a common goal for alot of traders, but getting to that stage can be difficult, and knowing when you're ready to make the leap can be challenging. I regularly receive emails from people asking questions like: How do I know I’m ready to trade for a living, How do I become a full-time trader, How much money do I need, What other factors do I need to consider before taking this step. The guest for this episode, Nick Radge from The Chartist, has an extensive trading history and also mentors other traders. He's in a great position to answer all of our questions on trading for a living, so that's what he's going to do for us today, plus... ... he's also going to share some honest advice that all traders need to hear before taking the step to 'trading for a living'.   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.

4 Maj 201734min