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Better System Trader

Updated 2 months ago

Business
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Investing
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If you’re looking for inspiration, motivation and practical advice on improving your trading results, Better System Trader delivers every fortnight. Each episode brings you an expert trader who shares their own story, along with the steps, both good and bad, that they've taken on their path to success. With a focus on actionable insights, the tips and tricks used by the experts contain loads of value, providing you with insanely practical tips and tools you can start using TODAY. Improve your trading with Better System Trader.

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If you’re looking for inspiration, motivation and practical advice on improving your trading results, Better System Trader delivers every fortnight. Each episode brings you an expert trader who shares their own story, along with the steps, both good and bad, that they've taken on their path to success. With a focus on actionable insights, the tips and tricks used by the experts contain loads of value, providing you with insanely practical tips and tools you can start using TODAY. Improve your trading with Better System Trader.

iTunes Ratings

217 Ratings
Average Ratings
199
9
3
1
5

Best trading podcast ever

By yuyangdeng528 - Oct 29 2018
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I truly loved this podcast. Please keep this coming forever! So beneficial to new traders

Great trading podcast

By Koopie33 - Jul 14 2018
Read more
This is a great trading podcast with valuable information

iTunes Ratings

217 Ratings
Average Ratings
199
9
3
1
5

Best trading podcast ever

By yuyangdeng528 - Oct 29 2018
Read more
I truly loved this podcast. Please keep this coming forever! So beneficial to new traders

Great trading podcast

By Koopie33 - Jul 14 2018
Read more
This is a great trading podcast with valuable information
Cover image of Better System Trader

Better System Trader

Latest release on Jun 23, 2019

Read more

If you’re looking for inspiration, motivation and practical advice on improving your trading results, Better System Trader delivers every fortnight. Each episode brings you an expert trader who shares their own story, along with the steps, both good and bad, that they've taken on their path to success. With a focus on actionable insights, the tips and tricks used by the experts contain loads of value, providing you with insanely practical tips and tools you can start using TODAY. Improve your trading with Better System Trader.

Rank #1: 076: Entries, Exits and Trend Following with Larry Tentarelli

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As traders, we can sometimes get tempted into making things more complicated than they need to be.

Entries...

Exits...

Position sizing...

Trade management...

There are a number of aspects to trading where we get to decide how simple or complicated we really want to make it.

Our guest for this episode, Larry Tentarelli, has developed a simple, no nonsense approach to trading and in our chat he shares the trading insights and approaches he's developed over the past 20 years.

In this episode Larry shares:

  • Simple techniques to trading and trade management that turned Larrys trading consistently profitable
  • How traders can overcome the challenges of finding a trading style that suits their personality
  • The “four legs of a table” approach to trading and why it’s so important for trading success
  • Why there is no perfect entry signal and the key aspect of trading you should focus on instead
  • PLUS a bunch of listener questions submitted by you!

Feb 19 2017

47mins

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Rank #2: 062: Mean Reversion strategies with PJ Sutherland

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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

Nov 13 2016

53mins

Play

Rank #3: 026: Systematic trader Robert Carver discusses trading rules, what makes a good trading rule and the advantages of using continuous rather than binary rules. He also shares insights into over-fitting and the challenges of walk-forward testing that can mak

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Robert Carver is an independent systematic trader who spent more than seven years working for one of the worlds largest systematic hedge funds.

In this episode we discuss trading rules, what makes a good trading rule and the advantages of using continuous rather than binary rules. He also shares insights into over-fitting and the challenges of walk-forward testing that can make it impractical.

Topics discussed
  • What makes a good trading rule
  • The advantages of simple rules
  • Why only some trading rules are profitable
  • Walk-forward testing and some of the challenges that can make it impractical
  • How much data you actually need to determine if a trading rule is better than another
  • Why choosing the optimal values during a walk-forward test is not the best approach and some alternatives
  • Weighting trading rules
  • Steps to avoid over-fitting
  • Should trading rules be adjusted for individual instruments?
  • Continuous trading rules compared to binary rules
  • The applications and advantages of continuous trading rules
  • What makes a good systematic trader
  • The issues that overconfidence creates in trading
  • Two aspects of institutional trading that most retail traders could apply to their own trading

Sep 27 2015

57mins

Play

Rank #4: 049: Linda Raschke on trading edges, modelling the markets, identifying market behavior, trade management and day trading techniques.

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Markets are constantly changing. Trading edges come and go.

In an industry with such a low survival rate, where some areas are changing at an ever increasing rate, what does it actually take to not only survive, but thrive, over an extended period of time?

The guest on this episode, Linda Raschke, has been trading for over 35 years. She traded for several hedge funds before starting her own, ranking 17th out of 4500 hedge funds by Barclays Hedge for 'Best 5 year performance'.

She's experienced a large number of changes in the industry, some of them have been huge, but she’s managed to adapt and continues trading even today.

Linda stand out from the crowd for three factors: Performance, Longevity and Consistency, so what does it actually take?

What has she learnt over the years and what can we do to improve our own chances of performance, longevity and consistency?

In our chat with Linda we discuss some of the changes she’s experienced over the years and the impacts this has had on trading. We also hear about her approach to modelling the markets, understanding market behavior, trade management, day trading techniques and some fantastic questions submitted by fellow listeners. Make sure you don’t miss those!

Topics discussed
  • Changes in the markets over time and the impacts that has had on strategies and their performance
  • How to use modelling to identify market behavior and edges
  • AI, machine learning and neural network techniques
  • Tips and factors to consider when daytrading
  • Reading market behavior throughout the day

PLUS loads of great questions submitted by Better System Trader listeners!

May 15 2016

1hr 38mins

Play

Rank #5: 127: Building Mean Reversion trading strategies with Cesar Alvarez - Part 1

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We’ve got something special organised for you here...

This is the 1st episode in a special 2-part series on building Mean Reversion trading strategies.

And to discuss Mean Reversion we have a special guest, someone who has been on the podcast a couple of times already - Cesar Alvarez from Alvarez Quant Trading.

Those of you who know Cesars work would be aware that he is a Mean Reversion specialist.

He has a wealth of knowledge on Mean Reversion trading that he's going to share with us over this special 2-part series, so I’m really excited to be sharing it with you.

In this first episode Cesar will be sharing:

  • The high level steps to building a mean reversion trading strategy,
  • Why carefully selecting a trading universe is so important and the factors you need to consider,
  • Simple but highly effective techniques to measuring mean reversion you can start testing today,
  • How to combine indicators properly to identify better quality trades, and
  • Why strategies with a smooth equity curve may not actually be the best strategies to trade in the future.

Oct 14 2017

39mins

Play

Rank #6: 024: Trader coach Dr Van Tharp discusses beliefs and their impact on trading, the qualities of successful traders, adapting trading to market types, position sizing, trading mistakes and overcoming fear, perfectionism and impatience.

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In this episode Dr Van Tharp talks about beliefs and their impact on trading, the qualities of successful traders, adapting trading to market types, position sizing, trading mistakes and overcoming fear, perfectionism and impatience.

Topics discussed
  • How Van got started in the markets and the issues he faced initially
  • The main reasons the majority of trades are unsuccessful
  • How traders can identify the type of strategies that suits them
  • What it means to trade your beliefs in the market
  • How to assess whether your beliefs are useful or limiting
  • The real importance of psychology in trading
  • Your collection of parts and how they interact
  • The process of transformation in a trader
  • Qualities of losing traders and how to test yourself for them
  • The impact mistakes could be having on your results without even knowing
  • How to cope with larger trade sizes as your account grows

PLUS listener questions on:

  • Using position sizing to meet your objectives
  • The 6 market types, how to measure them and how to apply it to your trading
  • How to find positive expectancy systems
  • Developing patience when in a trade
  • Trading in short timeframes
  • How to address issues with perfectionism
  • Systematic vs Discretionary trading
  • Overcoming fear of pulling the trigger
  • Handling drawdowns

Sep 13 2015

52mins

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Rank #7: 124: Managing Trades with Linda Raschke

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Trade management is a critical component of a trading strategy.

It can often be the difference between a profitable trade and a loss...

However many traders focus on the entry only and leave trade management as an afterthought.

In episode 49 of the podcast, Linda Raschke, said "trade management is probably the most neglected area of system development".

In that episode we focused on Linda's approach to modelling the markets but in this episode Linda is back to discuss trade management and exits, including:

  • Why trade management is such a neglected aspect of trading,
  • How to model different types of exits and the impact of market environments,
  • How volume and breadth measures can give clues to the tone of the market, and
  • How to use the power of relative strength to target the best markets to trade.

Oct 01 2017

43mins

Play

Rank #8: 070: Risk Management with Robert Carver

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Risk Management…

It's not as sexy as the latest hot indicator…

Or the undiscovered penny stock poised for an explosive move…

Or the trading guru who appeared out of nowhere and is now promising to share the “secrets” to making million dollar profits overnight…

… But there are a whole host of risks that have the potential to destroy trading accounts in just seconds, so it’s an incredibly important topic for serious traders to consider.

We have plenty of examples in history that show what happens when Risk Management goes bad, so what can we learn from these and how can we best protect ourselves from catastrophic losses?

Our guest for this episode, Robert Carver, is an independent systematic trader, freelance writer and research consultant.

He spent years working for one of the world’s largest systematic hedge funds and is the author of “Systematic Trading: A unique new way to make investment and trading decisions.”

In this episode, Rob shares with us:

  • The different types of risk we face as traders – including ‘hidden’ risks that can destroy trading accounts in seconds
  • What can go wrong when Risk Management goes bad (we have some great examples in history to learn from!)
  • Common mistakes and assumptions traders make with Risk Management that can lead to heavy losses
  • Tips and techniques to identifying and “managing” Risk

Jan 22 2017

1hr 3mins

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Rank #9: 067 - Quantitative Momentum with Jack Vogel

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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

Jan 08 2017

40mins

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Rank #10: 004: Nick Radge discusses system design, the best type of trading systems, handling a bear market, measuring performance and the difference between successful traders and everyone else.

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In our chat with Nick we discuss system design, the best type of systems to trade, how observations can lead to better strategies, the best way to handle a bear market, measuring system performance, survivorship bias and the difference between successful traders and everyone else. Topics discussed:

  • The trading style most people should try first
  • Systematic ways to determine a trend
  • Why simple systems are the best
  • Why broker consensus is a poor indicator
  • The best type of stocks for trend following strategies
  • What you need to know about a system to be able to handle the drawdown
  • How observations can lead to better strategies
  • Why buy and hold offers average returns and the best approach to handling a bear market
  • How trading can take less than 5 minutes per day
  • Measuring the performance of a system
  • The difference between very successful traders and everyone else
  • The types of survivorship bias that could be ruining your backtest results
  • The warning signs of over-optimisation
  • Coping with drawdown and personal doubts
  • 2 basic strategies you can start testing today!

Apr 26 2015

1hr 1min

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Rank #11: 003: Cesar Alvarez on trading ideas, backtesting, stops and market timing

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In our chat with Cesar Alvarez we talk about trading ideas, key concepts and pitfalls of backtesting, the impact of stops on returns, market timing, over-optimisation, drawdown and using multiple strategies in a portfolio. Topics discussed:

  • Where to find trading ideas
  • Why you should test all of your ideas, even if you think they won't work
  • Pitfalls of backtesting you need to look out for
  • How to identify coding errors in backtesting
  • Some clues that indicate you may have over-optimised a strategy
  • Issues with splitting data into in-sample and out-of-sample portions
  • The impact of stops on returns
  • Handling a 50% overnight drop in a stock price
  • Finding your personal drawdown tolerance
  • How market timing can impact a strategy
  • Why you need multiple strategies in a portfolio

Apr 19 2015

54mins

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Rank #12: 092: Trading for a Living with Nick Radge

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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'.

May 04 2017

34mins

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Rank #13: 027: Trader and Psychologist Dr Gary Dayton discusses why traditional approaches to controlling emotions don't work, the role of emotions in trading and how mindfulness can improve trading performance.

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Dr. Gary Dayton has been an active trader since 1999 and is President of a consulting firm that specializes in developing “peak” performance in traders.

His approach to trading psychology is very different to the traditional approaches used by other trading coaches, introducing traders to the practise of mindfulness to not only overcome fear and other unwanted trading emotions but to develop the concentration and focus needed to trade successfully.

In this episode we discuss why traditional approaches to controlling emotions don't work, the role of emotions in trading and how mindfulness can improve trading performance. He also shares some tips on how to get started practising mindfulness, the benefits it can have outside of trading and how the approach of Mental Parking can increase focus.

Topics discussed
  • Comparisons of sports and trading performance
  • Traditional approaches to handling emotions in trading and why they don't work
  • Why it’s impossible to suppress your emotions
  • Landing a plane in the Hudson River and what the Captains response teaches us about trading
  • The role of emotions and how experienced traders actually leverage emotions in trading
  • The concept of Mindfulness and the benefits to traders
  • How to use Mindfulness when trading
  • The evidence that Mindfulness can improve trading performance and how it impacts the brain
  • How to get started practising Mindfulness
  • How to use Mental Parking to increase focus and productivity
  • How exercise can improve mental and trading performance

Oct 03 2015

1hr 1min

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Rank #14: 020: Larry Williams talks conditional trading, what drives prices, the misuse of indicators, cycles, forecasting markets PLUS 50 years of trading insights

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In this weeks episode Larry Williams talks about conditional trading, understanding what drives prices, the misuse of indicators and how to apply them correctly. We also discuss cycles, forecasting markets, what to look for in market tops plus loads of listener questions where Larry shares tips and insights from 50 years of trading.

Topics discussed
  • What it means to be a conditional trader
  • Why buy and sell signals need to be analysed in the context of market conditions
  • Fundamental factors that drives markets
  • Interpreting the COT reports correctly
  • The buying differences between retail and commercial traders and how it can indicate future market direction
  • Why you should approach trading like a combination lock
  • Coming up with unique indicator ideas
  • The mis-use of indicators and how to use them correctly
  • Trading styles of successful traders
  • Forecasting markets based on technical factors
  • Characteristics of stock market tops and bottoms
  • The fundamentals to watch during market tops
Listener questions
  • Issues with the Forex market
  • Trading prices patterns, do they still work and are they scalable
  • Why short term price patterns work
  • What happened in 2002 and why you need to consider that when backtesting
  • Will trend trading always be effective?
  • How many positions to trade at one time
  • Money management tips for those who aren't into heavy maths
  • Choosing the best markets to trade
  • Favourite Larry Williams indicator
  • What keeps Larry motivated to trade after 50 years
  • What drives peak performance (it’s not money…)
  • The key component that really drove Larry to becoming a consistently successful trader
  • How Larry lasted so long in the industry
  • How to overcome emotions when entering or holding trades
  • Larry’s biggest contribution to the trading industry
  • Why Larrys strategies have lasted the test of time
  • Common traits against the most successful traders
  • The trading model that’s worked for Larry for over 50 years

Aug 16 2015

1hr 7mins

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Rank #15: 097: Optimization Myths with Jack Schwager

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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.

May 28 2017

26mins

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Rank #16: 103: A New Responsive Indicator with John Ehlers

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Indicators often form a large part of trading systems, however there are a number of issues caused by indicators that can result in under-performing trading strategies, like:

  • they're reactive, instead of predictive,
  • they have alot of lag, which means they're slow to respond to the markets, and
  • they can often give you a signal too late so you’ve already missed some of the move or even a large part of the move!

Today we talk to John Ehlers who is going to share with us a brand new indicator he's developed that overcomes alot of these issues. This new indicator:

  • Minimises lag,
  • Is very responsive to the market, and
  • Gives a fast indication of turning points.

Plus at the end of the chat we share how you can get a FREE copy of this new indicator to try it out for yourself.

Jun 25 2017

27mins

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Rank #17: 082: Machine Learning with Kris Longmore

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Machine learning has seen a huge amount of growth over recent years with the increase in available data and processing power.

It's an incredibly powerful toolset for uncovering patterns and relationships in data, however, these tools can be challenging to learn, apply correctly and are also open to abuse.

Our guest for the episode, Kris Longmore from Robot Wealth, specializes in Machine Learning, Algorithmic Trading and Artificial Intelligence.

He is the co-founder and Head of Quantitative Research at Quantify Partners and also provides consulting and educational services through his website Robot Wealth.

In this episode Kris is going to share with us some of his insights into Machine Learning and strategy validation, including:

  • How Machine Learning can be used to analyse huge amounts of data, uncover patterns and relationships, and define a trading edge,
  • How Machine Learning tools can be abused and the common mistakes that traders make with Machine Learning,
  • Strategy validation techniques that best suit market data and 1 popular technique that shouldn't be used,
  • How to approach the vast libraries of algorithms available today,
  • Why delaying the trading process can lead to opportunity cost and how to know when a model is ready for trading,
  • Plus much more.

Mar 19 2017

42mins

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Rank #18: 133: Building Mean Reversion trading strategies with Cesar Alvarez - Part

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And we're back for the final episode in this 3-part series on building Mean Reversion strategies with Cesar Alvarez from Alvarez Quant Trading.

In the 1st episode we discussed the goal of Mean Reversion trading, how to select a trading universe, a number of effective techniques to measuring Mean Reversion and how to combine indicators to identify better quality trades.

In the 2nd episode we discussed market classification, trade ranking, exits, order types, position sizing, risk control and much more.

In this 3rd and final episode, Cesar answers all your questions, covering a wide range of topics, including:

  • Mean Reversion in markets outside of Stocks,
  • Controlling risk during market sell-offs, gaps and being overweight in particular sectors,
  • Performance of Large caps vs Small caps,
  • Ranking Mean Reversion setups,
  • Shorting strategies,
  • Readjusting strategy parameters and measuring robustness,
  • Balancing Mean Reversion in a portfolio of other trading styles,
  • Tail risk, leverage, options, performance monitoring and so much more!

Nov 12 2017

44mins

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Rank #19: 064: Cryptocurrencies and Machine Learning with Bert Mouler

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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

Dec 11 2016

44mins

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Rank #20: 063: Market Regimes with Alan Clement

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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?

Nov 27 2016

49mins

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164: Performance Accelerators - Steve Ward

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This podcast episode made me think back to the very first computer I bought in my high school days.

We’re talking about the mid-1980, when computers were still relatively new.

Actually, my first computer was a commodore 64 (how good were they!), which my parents bought me, but the first computer I actually bought myself was a pretty serious computer at the time. It cost about 3 or 4 thousand dollars, which back then was quite a bit of money. And this computer only had a fraction of the power that we have in our mobile phones these days, but back then it was one of the fastest you could get.

Anyway, this computer had a special switch on the front of the case, it was called the 'Turbo' switch. I’m not exactly sure how it worked, but when some programs were running slow, I could flick the turbo switch on and it would accelerate the performance of the computer.

And I was thinking, wouldn’t it be great if we could have a ‘Turbo’ switch for trading, where we could just flick the switch and instantly boost our performance?

Wouldn’t that be awesome?

Well, I don’t think such a switch exists unfortunately, but there are definitely things we can do to accelerate our performance, and that’s exactly what we’re discussing today with our special guest and leading performance coach Steve Ward.

Steve has over 25 years of teaching, coaching and training experience.

He works with traders, fund managers and banking professionals across the globe, helping them to improve their decision making, risk taking and ability to achieve and sustain high performance.

Steve’s work is focused on delivering evidence-based practical strategies and tactics, and in this podcast episode we discuss a number of performance accelerators in trading.

Here’s some of the things you’ll discover:

  • The key factors that can accelerate trading performance,
  • Why the ‘j-curve’ is so important for developing traders and how to shortcut the process to profitability,
  • How the best traders manage the short-term discomforts of trading to achieve long-term gains,
  • Why suppressing emotions in trading can be like trying to hold a beachball underwater, and how to improve our behavioural flexibility for higher performance,
  • How situational awareness training used by the US marines can improve our trading abilities,
  • Tips to functioning at our best in a world of hyper distractions,
  • Plus, much more.

Jun 23 2019

49mins

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163: The Laws of Trading - Agustin Lebron

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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.

Jun 01 2019

35mins

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162: Building effective entries and exits - Kevin Davey

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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.

May 19 2019

42mins

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161: Improving performance with strategies that manage strategies - David Bean

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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.

Apr 12 2019

37mins

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160: How to achieve long-term trading success - Linda Raschke

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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!

Jan 27 2019

40mins

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159: Maximising the potential of portfolios - Adam Butler

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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.

Nov 25 2018

43mins

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158: Bull, Bear or Correction? Reading the signs - Troy Bombardia

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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.

Oct 28 2018

40mins

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157: Assumptions, Probabilities and Diversification with Michael Grech

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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.

Sep 30 2018

41mins

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156 - Where is technology taking us? - Dr Tom Starke

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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.

Sep 17 2018

42mins

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155: Stories from the trading floor - Damon Pavlatos

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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.

Sep 02 2018

1hr 9mins

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154: From Billion dollar trades to private trader - with Petra Zacek

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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.

Aug 19 2018

42mins

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153: High performance trading - with Mandi Pour Rafsendjani

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Quite often the focus for traders are the technical aspects of trading - indicators, back-testing procedures, robustness checks, statistics, trading platforms, infrastructure etc.

All of these aspects can have an impact on trading performance.

However, there are other aspects of trading too that often go unrecognised, ignored, and can have a huge impact on our performance no matter how good our strategies are.

What are they?

Joining us today to discuss high performance trading is Mandi Pour Rafsendjani.

Mandi is a trader, speaker and peak performance trading coach who works with independent traders, prop trading firms and hedge funds to improve their trading performance.

Some of the things you’ll discover in my chat with Mandi are:

  • The key aspects that set high performing traders apart from everyone else,
  • How traders can identify what’s really holding back their performance,
  • Why it’s important to have a ‘reset button’,
  • Two aspects of drawdown and how traders can more effectively manage drawdown,
  • How to strengthen your ‘taking-losses’ muscle to better handle losses,
  • And much more.

So let’s jump over now to my chat with Mandi on high performance trading.

Aug 05 2018

52mins

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152: "Backtesting trading strategies does not work" - John Ehlers

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"Backtesting trading strategies does not work!”

Got your attention?

Maybe you agree with this statement.

Perhaps you strongly disagree and you’re currently heading out to the backyard to grab your pitchfork.

Or maybe you’re shaking your head thinking ‘what the heck swanny, have you finally lost it man?’.

Well, the good news is I haven’t lost it (yet). We're going to dive deeper into this statement in the podcast episode today.

But first, I'd like to introduce our guest - John Ehlers.

John is a friend of the show. He’s been a guest multiple times, discussing topics such as cycles, indicators and digital signal processing. In our chat today we’re going to tackle robustness and also intraday trading.

Some of the things you’ll hear on the show today are:

  • The startling differences between intraday and daily timeframes and the critical factors you need to watch out for,
  • Why it’s more difficult to predict where market prices are going on an intraday basic compared to daily timeframe, and how you need to think about intraday data differently,
  • We’ll be digging deeper into this “Backtesting trading strategies does not work” statement to find out what it means,
  • How to use a simple Genetic Optimization trick to determine the robustness of a strategy
  • How Genetic Optimization can be used to identify suitable ranges for optimization parameters
  • Why short walk forward periods could be better than longer,
  • Plus a whole lot more.

So lets jump over to my chat now with John Ehlers.

Jul 22 2018

40mins

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151: Buy the fear, sell the greed - Larry Connors

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As Warren Buffet once said: "the stock market is a manic depressive.

The market can be full of euphoria and greed one moment, and switch to fear and panic the next.

This can often be a time of danger and high-risk for some traders, but for other traders it’s a time of immense opportunity.

How?

In this podcast episode we’re joined by special guest Larry Connors.

Larry has over 30 years in the financial markets industry and has been featured on the Wall Street Journal, Bloomberg, Dow Jones, & many others.

He has been providing high-quality, data-driven trading research for over 15 years, and I’m sure that many BST listeners have a stack of his books on their bookshelf. I definitely do!

In my chat with Larry you'll discover:

  • How human emotions drive the market, and why it’s so important to look beyond price charts and indicators to understand what's moving the market,
  • How we can leverage extremes in specific human emotions to create quantifiable and profitable edges,
  • How Larry came up with the idea of publishing his book ‘Buy the Fear, Sell the Greed’ and what traders can learn from it,
  • 3 simple indicators to quickly judge the mood of the market,
  • How Warren Buffets investment approach to be ‘fearful when others are greedy and greedy when others are fearful’ can also apply to short-term trading,
  • And yes, I’m going to ask Larry about that famous ‘Stops hurt’ chapter published over 10 years ago that still has people talking today,
  • Plus we cover a whole lot more.

Jul 07 2018

35mins

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150: Looking at markets from different angles - Rikard Nilsson

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In this podcast episode we’re going to be talking about strategy design and different ways to look at the markets, and joining us as our special guests is Rikard Nilsson from Autostock.

Rikard trades all different styles and markets, and has even built his own trading platform with some interesting features he’s going to share with us.

Plus he’s going to share some interesting ideas on how he looks at the markets, some of which you may not have heard of before, including:

  • The 'Predictive Average' indicator – how it can be used to indicate potential market behaviours over the following days/weeks and months,
  • Validating strategies across different instruments,
  • Excluding certain parts of the day based on data,
  • Adaptive 'Backtrack Technology' and how to filter trading signals and position sizing dynamically based on past market behaviour,
  • Plus loads more, so let’s jump over now to my chat with Rikard.

Jun 24 2018

38mins

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149: Trading in Probabilities - Scott Hodson

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A huge part of algorithmic trading is all about stacking the odds in our favour.

Finding statistical edges, identifying times when probabilities indicate that market conditions are either favourable for a trade or perhaps unfavourable for a trade.

And although probabilities aren’t certainties, they can still be an important guides for traders, so joining us as special guest for this episode is Scott Hodson from Probable Trades.

Some of the things you’ll discover in my chat with Scott are:

  • How to apply probabilities to trading strategies and why looking at cross-sectional probabilities across multiple dimensions of data can potentially enhance trading results,
  • How a Probability Almanac can help track the performance of a trading strategy over certain time periods,
  • Why it can sometimes pay to have a fundamental knowledge of the stocks you’re buying instead of just blindly following trading signals,
  • How analysing risk to reward of past trades can help to determine at what point taking more risk is not beneficial,
  • Why you need to care for your ‘emotional capital, just as much as your ‘trading capital’,
  • A specific type of stop that can reduce the length and size of drawdowns,
  • Shorting strategies as a hedge to smooth out the equity curve and reduce drawdowns,
  • And much more.

Jun 10 2018

35mins

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148: Plugging holes in strategies and portfolios - Ryan Moffett

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In this episode we’re going to be talking about holey strategies and portfolios.

Now, when I say "holey" I’m not talking about religion, divine intervention, holy grails or anything like that, although we could probably apply todays topics to those type of strategies that need divine intervention (and who hasn’t had a strategy like that at some point?).

No, when I say "holey" I mean something with a hole in it, like a bucket that has a hole in the bottom.

When you put water or some other liquid into that bucket, obviously it starts leaking, reducing the performance of that bucket and today we’ll be discussing holes in trading strategies and portfolios that could be reducing trading performance.

Joining us as special guest for this episode is Ryan Moffett from Blackpier Capital.

Ryan has spent the last 12 years specializing in designing and trading robust strategies, working with and being mentored by traders out of the CBOE as well as hedge fund managers out of New York and California.

Some of the things you’ll discover in my chat with Ryan are:

  • Why manual backtesting can be more beneficial than automated testing,
  • How ‘deliberate practise’ can be used in the strategy creation process to get a deep understanding of a strategy,
  • How to find holes in a trading strategy that could punish your trading performance,
  • The hole in people’s portfolios and how allocating a small portion to ‘the 4th asset class’ can be a good hedge for a portfolio when other markets aren’t doing too well,
  • Plus a hole lot more... (see what I did there!)

May 27 2018

47mins

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147: Building trading strategies with confidence with Adrian Reid

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Confidence is a powerful thing – when people have it they can do some pretty amazing things, but on the opposite side, a lack of confidence can be debilitating too, and for traders it can have some similar effects, especially when the performance of a strategy starts to suffer and a trader has money on the line.

So, what can we do about this?

How can we have more confidence in the strategies that we build and trade? Confidence that we’ve built strategies that are robust. Confidence to continue trading strategies during the periods when strategy performance may be struggling.

Our special guest for this episode is Adrian Reid from Enlightened Stock Trading, and in our chat Adrian is going to enlighten us on building trading strategies that we can have confidence in.

We’re not just going to talk about trading psychology here, but Adrian will be sharing practical aspects of system design and validation, that can give us more confidence in the strategies that we create and trade live.

Some of the things you’ll discover in my chat with Adrian are:

  • The 5 key areas traders must address to build confidence in a trading system,
  • Significance testing - why it’s important to strip a strategy down to just the core components and how to determine which components are really driving performance,
  • Why the transition from backtesting a strategy to trading it live can be a difficult and uncertain one, and the preparation steps you need to take to make the transition smooth,
  • How a technique called ‘start-date stepping’ can provide valuable insights into how a strategy could really perform in live trading,
  • Plus, performance profiling across market conditions, sensitivity testing, why traders lose discipline, testing strategy rules in reverse, and much more.

May 12 2018

55mins

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146: Using indicators to predict stock movements with John MacLeod

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Predictive modelling is used in many aspects of our lives today..

in the banking and insurance industries to assess the risks and behaviours of customers…

in marketing to anticipate customer purchasing behaviours…

in meteorology to forecast the weather…

in fact there are too many applications to list here but predictive modelling has the potential to be applied pretty much anywhere, even in the markets.

Now you may be saying ‘wait, I’m not in the business of predicting, my trading is all reactive, I don’t predict, I just follow the markets’.

I’m not going to go into that argument today but before you make any decisions or judgements about this episode I invite you to take a listen because we discuss the predictability of indicators, and some of the things you’ll hear in our chat about indicators are very interesting, no matter how you use them in your own trading.

Our guest for this episode is John MacLeod. John has a background in using Predictive Modelling, working as a consultant to develop predictive models in consumer banking and mass marketing, and has applied this expertise to the stockmarkets as well.

Some of the things you’ll discover in my chat with John are:

  • Predictive modelling – what it is and how can it be used in trading to select stocks that may be setup for a big move,
  • Using indicators as predictors and 3 major conclusions John has made by analyzing the predictability of 160 indicators – these results may surprise you!
  • The accuracy of predictive modelling, which factors can impact accuracy and the easiest time periods to produce high accuracy predictions,
  • How data derived from indicators can actually be more effective as predictors then the indicators themselves,
  • Plus much more.

Apr 29 2018

43mins

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145: Protecting capital through proper risk management with Aaron Brown

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I think it’s pretty safe to say we’ve had some interesting times in the markets so far this year.

There has been an increase in uncertainty, higher volatility and even outside of the markets there have been a number of events that seem to be impacting the markets.

Some traders may be seeing the current market environment as riskier than it has been in the recent past, while other traders may be enjoying the increased opportunity, but whichever way you look at it, there is something that all traders need to consider if they want to last a long time in this business, and that is how to protect capital through proper risk management.

The guest on the show this episode is risk management expert Aaron Brown, who has worked for JP Morgan, Morgan Stanley and even spent 10 years as risk manager for quant based hedge fund AQR.

In our chat today we’re going to cover some interesting and practical aspects of Risk and Risk Management, and how we can plan for and protect ourselves, which you may find incredibly timely given recent market developments. Some of the things you’ll discover in my chat with Aaron are:

  • The biggest misconception about risk and how traders should really be looking at risk instead,
  • Why low volatility environments can be riskier than high volatility environments,
  • One of the biggest risks to the markets that can impact everyone and can be hard to measure and how to plan for it,
  • How traders should approach drawdown management,
  • Why correlations are ‘mythical’ and the right way to think about financial markets,
  • Risks in the markets today.

Apr 15 2018

54mins

Play

iTunes Ratings

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Best trading podcast ever

By yuyangdeng528 - Oct 29 2018
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I truly loved this podcast. Please keep this coming forever! So beneficial to new traders

Great trading podcast

By Koopie33 - Jul 14 2018
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This is a great trading podcast with valuable information