Tue, 27 November 2018
If you’ve been through the archives, then this weeks guest will be no stranger; it’s the options madman and trader of 10+ years, Anand “Lucci” Sanghvi.
Lucci was one of the first guests to appear on Chat With Traders—back in 2015. As you can imagine, there’s been plenty happening since then, so we took this opportunity to catch up…
Topics of discussion range from life in Puerto Rico, dealing with taxes as a trader, a failed hedge fund, what’s been working for Lucci in equity options—and how he’s continued to evolve in recent years, plus many thoughts on trader psychology.
Direct download: 168_20Stay20alive2C20wait20for20your20market2C20then20all20guns20blazing20w_20Anand20Lucci20Sanghvi.mp3
Category:trading -- posted at: 5:26pm EST
Wed, 31 October 2018
Bobby Cho is the global head of trading at Cumberland—which is the crypto arm of Chicago trading firm, DRW and it’s one of the largest liquidity providers in the space. Prior to this, Bobby was director of trading at itBit and vice president of trading at Digital Currency Group (formerly known as SecondMarket).
After featuring on the podcast in August last year, I thought it would be fitting to check in with Bobby again, because of the events which have unfolded in cryptocurrency markets over the past 12 months…
Our conversation begins with some of the highlights from the recent Cumberland Summit—which was an industry event for insiders, and Cumberland’s international expansion. Then we get into Bitcoin’s sudden rise and decline from $20k, whether or not crypto markets have matured, decentralised exchanges, crypto’s value and use cases, institutional involvement and the bigger picture moving forward.
Direct download: 167_20Crypto27s20not20deadE28094and20never20assume20anything20w_20Bobby20Cho.mp3
Category:trading -- posted at: 8:04am EST
Wed, 26 September 2018
The idea for asking Hugo to appear on this episode, was to chat about learning a programming language. Because for some traders, having the ability to write code can have great advantages—such as having the ability to collect stats on market behavior, perform research in a robust data-driven way, visualize large amounts of data, backtest and analyse trading ideas, implement algorithmic strategies, etc.
Plus more professional trading firms and finance related positions now require applicants to have some programming skills. And the same goes for many industries, which should be no surprise, considering a recent IBM study revealed that ‘90% of the world’s data has been created in the last two years alone.’
Hugo and I discuss when someone should consider learning to code, determining what’s relevant, the time it takes to become fluent in a programming language, working with new datasets, what to be wary of when using predictive models. And for fun, I ask Hugo (as a data scientist) how he’d go about creating a basic strategy…
Direct download: 166_20The20trader_s20guide20for20learning20to20codeE28094with20data20scientist2C20Hugo20Bowne-Anderson.mp3
Category:trading -- posted at: 6:42pm EST
Sun, 9 September 2018
I was introduced to this weeks guest by an experienced trader and fund manager, who described him as being "hands down the best trader I know..."
Michael Samuels is an equities trader, who once traded for First New York and Apex Capital, he now trades his own money under the banner of Broome Street Capital.
Michael describes himself as being an 'event driven trader' with a primary focus on news flow surrounding mergers and acquisitions, shareholder activism and fundamentals—to seek out valuation disconnects.
During this episode you'll hear about merger-arb strategies (including examples), what happens during takeovers, a case of "excessive" due diligence, mistakes made and lessons learned during Michael's career, plus plenty more.
You should also note, Michael has recently begun hosting a podcast about M&A activity and the journalists who report on significant company news: According To Sources
Direct download: 165_20Speculating20on20mergersE28094and20a20case20of20_excessive_20due20diligence20w_20Michael20Samuels.mp3
Category:trading -- posted at: 8:19pm EST
Wed, 1 August 2018
Nick Fabrio is an exceptional day trader. With a bias for short selling and playing catalysts on the Australian stock market, Nick had surpassed a million dollars in trading profits within his first three years. And all along, he’s been a self-directed ‘retail’ trader.
Although he currently lives in Texas, Nick and I were able to catch up, sit down and record this podcast while he was back in Sydney last month. We got talking about many things; from dealing chips at The Star casino to receiving threats from a company’s lawyers, analyzing market depth and everything in between.
Direct download: 164_20How20to20punt20ASX20stocks20and20make20a20pretty20penny20w_20Nick20Fabrio2C2040longhorncapital.mp3
Category:trading -- posted at: 9:21am EST
Tue, 3 July 2018
This special episode of Chat With Traders was recorded in June 2018, in front of a live audience in Sydney. It’s a conversation I had with John Moulton, though better known as Rambo.
John’s a serious trader, and for good reason, he’s considered to be somewhat of a legend trader in Australia…
In short, John left the Chicago trading pits in the 80’s, bound for the Sydney Futures Exchange. During the years that followed, he became a VERY large spread trader of Government Bonds and Bank Bills—he was responsible for a major share of the trading volume done each day.
Now forty years on, since placing his first trade, John is still an active market participant—trading from a coastal location in Queensland, Australia. So, press play and listen in to our conversation, as John reflects on the things which matter most for achieving success and longevity as a trader.
With great honor, I present to you John Moulton (aka Rambo!)
Direct download: 163_20An20evening20with20veteran20trader2C20John20_Rambo_20Moulton205BLIVE5D.mp3
Category:trading -- posted at: 10:19am EST
Fri, 11 May 2018
Returning for this episode, is Mike Bellafiore—the co-founder of New York City prop trading firm, SMB Capital. Mike is also the author of One Good Trade and The Playbook, and he was the featured guest on episode 022.
As the title suggests, the purpose of our conversation is to breakdown how you can formulate a plan for becoming a 7-figure day trader. Mike is well-qualified to speak on this subject, because he’s mentored and lead traders within his own firm to reach this level of trading success.
There are no quick fixes packed into this episode, but there is real value—if you listen carefully, take notes and intentionally act on some of Mike’s suggestions, I know it will make a difference over time.
Don’t miss the upcoming LIVE podcast event in Sydney, with special guest John “RAMBO” Moulton. And did I mention there’s beers ‘n pizza too?! → Get tickets
Direct download: 162_20The20formula20for20how20to20become20a207-figure20day20trader20w_20Mike20Bellafiore.mp3
Category:trading -- posted at: 5:31pm EST
Fri, 20 April 2018
For this episode, I got to catch up with Mike Agne (@EconEmotions). I know some of you will be well acquainted with Mike; I first interviewed him last year in New York—in person for a live event, and then he was on the podcast in August last year too.
Mike’s trading experience runs deep in bonds/fixed income, also index futures and options. And for a long time he was a prop trader at the renown TransMarket Group. Additionally, Mike writes an excellent weekly newsletter about global markets.
Catching up this time, we talk; relative value trading, the recent pick up in volatility and regime changes, Mike’s economic outlook, risk parameters, technical analysis, making money in bear markets and developments in the world of crypto assets.
Direct download: 161_20When20there27s20blood20in20the20water2C20the20sharks20will20come20w_20Mike20Agne.mp3
Category:trading -- posted at: 5:55pm EST
Sun, 11 March 2018
For this episode of Chat With Traders podcast, ironically, I’m not chatting with a trader. Instead, I’m speaking with Kimberly Trautmann and she’s Head of DRW Venture Capital.
DRW began as a Chicago trading firm, founded by Don Wilson 25 years ago. Since then, it has grown to be one of the world’s largest firms, with offices in six major cities around the globe and over 800 employees.
It has also become much more than solely a trading firm—the firm’s operations have extended to cryptocurrency market making, large scale property development, and of course, venture capital.
Kim and I talk about; why companies seek venture capital, how investment opportunities are assessed and valued, thoughts on risk/reward. Plus, why the firm has a keen interest in companies innovating with blockchain technology (and ICO’s!)
Direct download: 160_20Why20trading20powerhouse2C20DRW2C20is20directing20profits20into20venture20capital20w_20Kimberly20Trautmann.mp3
Category:trading -- posted at: 9:43am EST
Sun, 25 February 2018
I was recently introduced to Greg Newman by James King [Episode 133]. The two previously worked together at Mandara Capital, a London Trading firm…
There, James was the performance director (with a background in sports science), and Greg was head of a highly successful oil trading desk—which he built from the ground up in three years, with some guidance from James for overcoming obstacles.
Now, Greg remains a serious participant in oil derivatives and has gone on to become a founding partner of Onyx Commodities. Greg and his firm are most active in oil futures (and the energy sector), but also trading in related OTC products, or better known as swaps.
So naturally, you’ll hear Greg speak about futures, swaps, producers and the physical—which is really interesting! He also talks about “trade craft” and how stoic thinking has moulded him into the trader he is today.
Direct download: 159_20Bringing20stoicism20to20tradingE28094and20market20making20in20oil20derivatives20w_20Greg20Newman.mp3
Category:trading -- posted at: 8:01am EST
Fri, 9 February 2018
Phil Goedeker has been trading stocks for, roughly, 15 years. He started young, in college, made a truckload of money in a short period of time, which then afforded him the luxury of never having to work a “real job.”
Admittedly, Phil will tell you, luck was a major factor early on. Nonetheless, he’s been abundantly successful since, and has continued trading—now with a strategy, with rules and with an edge. Phil’s way of trading is to short parabolic moves—on low float stocks which have been seriously hyped up, and when he senses golden opportunities, he strikes with real conviction.
You’ll hear Phil speak about; his early days and progression, his obsession with cutting losses quickly and going hard on trades which can make a good year a great year. Plus some talk about strategy, timing, setups and why Phil is set on filtering his trading profits into farmland…
Direct download: 158__Short_hype_stocks_long_farmland_w__Phil_Goedeker_OzarkTrades.mp3
Category:trading -- posted at: 9:31pm EST
Fri, 26 January 2018
When Alex (@TAGRtrades) was on CWT for the first time—Episode 119, he was beginning to make head way as a full-time day trader, since abandoning a secure job in recent years. But since then, he’s really stepped it up a notch…
Alex started 2017 with an account balance of $32,000 and finished the year with a compounded return of 1,400%. But what makes things more significant, is how he was able to achieve this with minimal drawdown.
Over the course of this episode, you’re going to hear Alex and I reviewing his performance of the past twelve months—what he did well and areas where he would like to further improve. Alex also talks about his strategy; from scanning to entries to managing positions. Plus psychology, self-discipline and more.
Direct download: 157_20What20this20day20trader20learned20after20returning2014002520in20one20year20E2809320Alex2C2040TAGRtrades.mp3
Category:trading -- posted at: 11:13pm EST
Sat, 13 January 2018
Michael Katz is an active day trader and the managing partner of New York prop trading firm, Seven Points Capital. Mike and his firm, are large volume participants in U.S. equity markets, and to a lesser extent, futures and options too.
In this episode, Mike discusses the things which have attributed most to his consistency over the years, insight to his momentum strategies, and how he’s able to turnover millions of shares each month, and of course, plenty more.
Direct download: 156_20Day20trader2C20green20every20month2C20talks20consistency2C20strategy20and20doing20sizeE28094Michael20Katz.mp3
Category:trading -- posted at: 1:17am EST
Thu, 28 December 2017
Anthony Saliba, an original Market Wizard, was first on episode 107. On that episode, we mostly discussed Tony’s life as a trader and related subjects. But one area we didn’t get into too much, was his life as a parallel entrepreneur and an investor.
So, I mentioned to Tony, this time around, it’s something I’m keen to hear a lot more about. Because his success extends far beyond trading alone…
For example; LiquidPoint, an options execution and technology firm which Tony founded, was acquired in 2007 for a sum of mid nine-figures. He’s also invested in upwards of 100 companies—in a whole range of sectors, owns a golf resort, shopping centers and other real estate. And that’s not all.
The underlying theme throughout this episode is not how to become a better trader, but how to build generational wealth!
Direct download: 155_20The20trader_s20guide20to20building20generational20wealth20w_20Anthony20Saliba.mp3
Category:trading -- posted at: 7:22pm EST
Fri, 15 December 2017
Andreas Koukorinis lives in London and in 2013 he co-founded Stratagem Technologies—a tech startup using AI and machine learning to trade sports as a financial product. These sports predominately include; football, tennis and basketball.
But for Andreas, his roots are in trading instruments and markets that most of us are more accustomed to. He’s worked for the likes of Morgan Stanley and Deutsche Bank, and before Strategem came to be, he was trading at DeepValue.
From listening to this episode, you’ll soon notice that Andreas is passionate about applying rigorous trading principles to nascent markets, as well as the broader applications of AI as a technology.
Direct download: 154_20When20a20quant20trader20enters20the20world20of20sports20betting...20w_20Andreas20Koukorinis.mp3
Category:trading -- posted at: 5:48pm EST
Thu, 7 December 2017
Xiao Qiao is a research analyst for a Connecticut-based hedge fund, focused on trading commodity futures. He graduated with a PhD in Finance—and was a teaching assistant to renown economist Eugene Fama.
Notably, Xiao has also worked directly with trading legend Blair Hull on two quantitative research projects, which concern market timing and return predictability.
The main objective of this episode with Xiao, is to learn how a research analyst thinks about things directly related to research, and ways that you can do better market research for yourself.
On top of this, Xiao, based on his experience, shares a few tips for those who have an urge to study something—but are unsure about what to study, and some of the differences he's observed between the world of academia and working as a practitioner.
Direct download: 153_20Research20analyst20shares20practical20ways20to20do20better20researchE28094Xiao20Qiao.mp3
Category:trading -- posted at: 2:04am EST
Thu, 30 November 2017
Kory Hoang is not a veteran trader—he’s not someone who has been doing this 10-20 years. He’s someone who has been doing this for only a few years, yet he’s begun to make decent gains on his trading capital.
Kory is also not a full-time trader …well, at the time of recording this—a few weeks ago—he wasn’t! Kory was a private equity analyst for Pitchbook, who traded on the side. But he’s since informed me that he’s handed in his notice and taken the leap to focus on trading (plus a couple startup projects).
In terms of how he trades; Kory is a retail systematic trader. He’s running numerous algorithmic strategies, which he’s developed (all of which are fairly simple). These run on various ETFs, ETNs and even some cryptocurrencies.
During our chat, we cover quite a bit; but mostly his journey and how he’s progressed to this point!
Direct download: 152_20A20beginners20foray20into2028part-time2920systematic20trading20w_20Kory20Hoang.mp3
Category:trading -- posted at: 6:16am EST
Thu, 16 November 2017
Rick Lane is the current CEO of Trading Technologies—a software provider that develop high-performance trading platforms which are used by; proprietary traders, hedge funds, CTAs, brokers and banks etc.
The reason why I asked Rick to appear on this episode is because, as we know, not everyone is cut out to be a trader. And that’s fine! I’d like to highlight, there are many other roles in the world of trading where you can have a great impact by leveraging skills which you may have already attained…
Prior to teaming up with his cousin, a large interest rate trader, who anticipated the inflection point of automated trading, Rick was modelling combat scenarios for the military and he also did a short stint at Google as a product manager.
Direct download: 151_20Perspective20from20a20trading20technologistE28094attacking20unique20problems20w_20Rick20Lane.mp3
Category:trading -- posted at: 3:53pm EST
Wed, 8 November 2017
Following on from Episode 149, here’s part two of the interview with Aaron Brown.
To refresh your memory, Aaron is highly regarded as an authority on the subject of risk taking. For the past 30-years he’s worked as a dedicated risk manager, and for the past decade, Aaron was the risk manager for renown quant fund, AQR.
Coming up on this episode, you’ll gain deeper insight to how you can better understand and manage risk for yourself—we go over: Questions traders should be asking themselves, how to leave less money on the table, high win rate verse low win rate strategies, black swans, killing opportunity while trying too hard to prevent disaster. And that’s certainly not all!
Direct download: 150_20A20lesson20in20risk20takingE28094with20the20former20risk20manager20of20a2024200B20fund2C20Aaron20Brown2C20Pt.202.mp3
Category:trading -- posted at: 6:25pm EST
Wed, 1 November 2017
Aaron Brown is highly regarded as an authority on the subject of risk management. Although he originally started out as a poker player and sports bettor (then a trader and portfolio manager), for the past 30-years Aaron’s been a dedicated risk manager. And for the past 10-years, he was the risk manager for quant fund, AQR.
Aaron has also authored several books (ranging in topics from poker to finance and risk), contributes to Bloomberg View and writes a column for Wilmott Magazine.
On this episode, part one, we talk about: Aaron's early days playing poker, unconscious influences on decision making, the goals and objectives of a risk manager, how Aaron managed the quant equity crisis of August 2007, and much more too.
Direct download: 149_20A20lesson20in20risk20takingE28094with20AQR_s20former20risk20manager2C20Aaron20Brown2C20Pt.201.mp3
Category:trading -- posted at: 7:42pm EST
Wed, 25 October 2017
John Grady is an independent futures trader from Florida, who primarily trades Treasury bonds. His trading is purely discretionary, based upon his read of order flow. Essentially, he’s a scalper.
Throughout this episode we talk all things order flow; the basics, the value of an order book, some of John’s trading methods, order types and managing positions, how to build skill at reading order flow, as well as, the impact of HFT and what’s commonly known as spoofing.
Direct download: 148_20The20order20bookE28094what20traders20must20know20about20supply20and20demand20w_20John20Grady.mp3
Category:trading -- posted at: 8:22pm EST
Wed, 18 October 2017
Dr Thomas Starke is a Physics PhD who once designed microchips, worked as an engineer for Rolls Royce and lectured at University of Oxford, before applying his know-how of modelling to financial markets…
As a trader, Thomas has contracted to various funds and up until recently, he was a Quantitative Developer at a well-regarded Sydney prop trading firm.
Thomas was great to chat with—not only did we talk about things related to quant trading, strategy development and robustness, but also his infatuation with disruptive technologies; artificial intelligence and quantum computing.
Direct download: 147_20Detective20work20leading20to20viable20trading20strategies2C20and20the20rise20of20AI20w_20Dr20Thomas20Starke.mp3
Category:trading -- posted at: 9:08pm EST
Wed, 11 October 2017
On this episode, I’m joined by three traders from a data-driven, options trading, performance based fund, Blackpier Capital…
Ryan Moffett, the Lead Investment Manager—and a prior guest on Episode 83. Tyler Michalove, who plays a key role in trade execution. And Wayne Klump, who heads up research and strategy development.
We discuss mentoring, the benefits of working in a team, the upside to trading options, the unique edges which can be gained from the multiple dimensions inherent to options, an example of how options could potentially improve an existing strategy and plenty more.
Episode sponsored by TradeStation – A trusted online broker geared towards active traders. Discover the benefit’s of trading with TradeStation: tradestation.com/traders
Direct download: 146_20When20trading20becomes20a20team20sportE28094with20Ryan20Moffett2C20Tyler20Michalove202620Wayne20Klump.mp3
Category:trading -- posted at: 7:24pm EST
Wed, 4 October 2017
Here’s the first episode in the history of Chat With Traders podcast, where I don’t have a guest with me. That’s because, this episode is the recording of a talk I gave at Noosapalooza 2017—a trading conference hosted by Nick Radge, here in Australia.
Throughout the talk I pull upon many lessons and snippets of wisdom which have been learned through conversations here on this podcast. So, I’ve appropriately titled the talk; Six Ways to Emulate Talented Traders…
Sponsored by Scoop Markets: Use a powerful algo to analyse 1000’s of tweets every second—identifies breaking news, before it breaks → Learn more
Direct download: 145_20Six20ways20to20emulate20talented20traders20w_20Aaron20Fifield.mp3
Category:trading -- posted at: 9:24pm EST
Thu, 28 September 2017
Since 2013, Tim Steenstrup has been a cross-border arbitrage trader at Conventus Capital. Though markets have been a part of his life going back to 1994; Tim’s been part of a brokerage firm in Japan, a hedge fund—which was featured in The Big Short movie, and a prominent New York trading firm.
As you’ll soon hear, we skim through Tim’s backstory and then spend a large part of this episode going into the mechanics of how a cross-border arbitrage strategy works. Tim does highlight, this strategy may be difficult to implement as a retail trader, but regardless, I think it’s valuable for you to hear about the various approaches of how professional traders trade…
Episode sponsored by TradeStation: A trusted online broker geared towards active traders. Discover the benefit’s of trading with TradeStation.
Direct download: 144_20Learn20an20arbitrage20strategy20used20by20professional20stock20traders20w_20Tim20Steenstrup202.mp3
Category:trading -- posted at: 11:05am EST
Wed, 20 September 2017
You’re about to hear a first-hand account from someone who’s been on a wild ride through the U.S. justice system. My guest is Michael Kimelman; a former prop trader and hedge fund manager who was convicted (and served time) for insider trading…
You’ll hear about the series of events leading up to his arrest, details about the trial, revelations of a rogue judge and the dim reality of life while incarcerated.
If you get through this episode and you’re curious to know more, then you might be pleased to know Michael has also written a book—the title: Confessions of a Wall Street Insider: A Cautionary Tale of Rats, Feds and Banksters.
Direct download: 143_20Convicted20of20insider20tradingE28094from20suburban20life20to20prison20life20w_20Michael20Kimelman.mp3
Category:trading -- posted at: 7:43pm EST
Wed, 13 September 2017
It was exactly 100-episodes ago when I first had Bert Mouler on the podcast. This week, I’m joined by him again for a second interview…
Bert is an algorithmic trader with a serious focus on machine learning. His trading decisions are driven purely by data, and he goes to great lengths to remove human bias and flaws through the use of automation.
So, coming up over the next 60-minutes or so, you'll hear about:
While listening, I encourage you to keep an open mind and mull over Bert’s creative thoughts!
Direct download: 142_20Using20creative20thought20and20automation20to20bypass20human20flaws20w_20Bert20Mouler.mp3
Category:trading -- posted at: 7:01pm EST
Wed, 6 September 2017
Featuring on this episode is former software entrepreneur turned hedge fund manager, Erik Townsend. I’m sure some will already be quite familiar with Erik—in particular the macro investing crowd, as Erik also hosts the Macro Voices podcast.
After selling his company in 1998, Erik made a few lifestyle and investing decisions which he soon began to question, but took ownership of his situation and the discovery of global macro set him sailing in a new direction…
Major talking points we cross off, include; how Erik uses the concept of The Fourth Turning and major cycles to guide his macro outlook. And one possible scenario for the future of cryptocurrencies—I'm sure some of you won't like what you hear, but I think it's well worth listening to!
Direct download: 141_20Software20millionaire20fooled20by20_the20dream_20and20saved20by20global20macro20w_20Erik20Townsend.mp3
Category:trading -- posted at: 6:55pm EST
Wed, 30 August 2017
My guest on this episode is Jimmy Soni—who, with his co-author Rob Goodman, recently wrote the biography of Claude Shannon, titled; A Mind at Play.
Shannon was born in 1916 and became one of the foremost intellects of the twentieth century, before passing away in 2001. He was a mathematician, a scientist, an inventor and also, a stock market investor…
Although he’s widely unknown by the general public, Shannon is responsible for Information Theory—a revolutionary method of measuring information which stands behind much of the technology we use all day everyday.
Shannon’s other achievements, discoveries and inventions range from artificial intelligence to cryptography and fire breathing trumpets to chess playing machines and the world’s first wearable computer, and that’s not all!
Direct download: 140_20The20life20and20times20of20genius20problem20solver2C20Claude20Shannon20w_20Jimmy20Soni.mp3
Category:trading -- posted at: 9:15pm EST
Wed, 23 August 2017
Bobby Cho is a cryptocurrency trader at Cumberland Mining—which is a company of DRW Trading. Ever since getting involved in financial markets, during 2008, he has gravitated towards mostly illiquid/difficult-to-trade products…
So, in some ways, it was inevitable that Bobby would begin to explore Bitcoin and other cryptocurrencies. This was around 2013, while Vice President at SecondMarket.
In 2014, Bobby became Director at Bitcoin exchange, itBit, and then in 2016, joined Cumberland Mining—one of the largest institutional liquidity providers in cryptocurrency markets (predominately Bitcoin and Ethereum).
During the episode, Bobby and I got speaking about some pretty interesting topics, which ranged from; the infrastructure of crypto markets to the curiosity and entrepreneurial mindset which powers DRW, and the challenges of exchange arbitrage to the real world value of Blockchain technology.
Direct download: 139_20Making20way20for20the2027whales2720of20cryptocurrency20markets20w_20Bobby20Cho2C20Cumberland20Mining.mp3
Category:trading -- posted at: 8:10pm EST
Wed, 16 August 2017
During the 90’s, Kevin Muir was a proprietary derivatives trader for RBC Dominion Securities. In 2000, Kevin branched out to begin trading independently, and since 2014, he’s been writing a daily blog, The Macro Tourist.
Kevin’s unique in the sense that he fits the bill of two largely different trading types; an intraday trader and a global macro trader. He also doesn’t specialize in one particular thing, or certainly not to the extent that many traders do…
Kevin can be quoted as saying, “I never know where I’m going to make money next year.” And that’s because he’s someone who’s continually seeking out the next great trade. In the past, Kevin’s great trades have come in the form of; risk arbitrage, mining Bitcoin, convertible bonds and day trading futures—amongst many other things!
Direct download: 138_20In20Search20of20the20Next20Great20TradeE28094with20The20Macro20Tourist2C20Kevin20Muir.mp3
Category:trading -- posted at: 8:27pm EST
Wed, 9 August 2017
Dr. William Ziemba’s an academic, a practitioner, gambler, trader and an author. He’s worked with and consulted to many well-respected names in the field, such as; Edward Thorp, Blair Hull and the very successful horse bettor, Bill Benter.
In the beginning, horse betting was William’s field of expertise (he even published a book titled, Beat The Racetrack!) And in many ways, for William, horse betting worked as a gateway to trading financial markets—which he’s been doing since 1983.
Now in current times, William manages a fund; Alpha Z Advisors—which started trading in July 2013 and as of May 2017, has returned 527%.
Much of William's trading revolves around calendar anomalies, arbitrage strategies and behavioral biases. We spend a good amount of time discussing these few things, plus William shares one anomaly he's been trading for many years.
In the later part of this episode, we also talk about position sizing, the Kelly Criterion and finally, horse racing.
Direct download: 137_20The20horse20bettor20exploiting20anomalies20in20financial20markets20E2809320Dr.20William20Ziemba.mp3
Category:trading -- posted at: 7:37pm EST
Wed, 2 August 2017
I first interviewed Mike at CWTNYC, in May 2017. The 100-listeners (give or take) who attended, will already be very familiar with Mike and there may be a few moments of déjà vu throughout this episode. But for everyone else…
Mike came into trading around 20-years ago, beginning at Chicago prop firm, TransMarket Group, where he ultimately spent 12-years of his career. Over the course of his time there, Mike became one of their largest 30-year Treasury basis traders, both in terms of volume and performance.
Now days, Mike is trading a relative value strategy through his own book, and building out a track record with the aim to launch a hedge fund in the coming years…
But you’ll hear more about all of this, the things which have helped Mike get to where he is now, and how he trades bonds using a relative value strategy during this episode.
Direct download: 136_20Take20care20of20the20short20term3B20take20care20of20the20long20term20w_20Mike20Agne.mp3
Category:trading -- posted at: 9:39pm EST
Wed, 26 July 2017
Sheelah Kolhatkar is a writer at the The New Yorker, who was previously a journalist at Bloomberg Businessweek, and prior to that, a hedge fund analyst.
She’s also the author of New York Times bestseller, Black Edge: Inside Information, Dirty Money and the Quest to Bring Down the Most Wanted Man on Wall Street.
Of course, the most wanted man being referred to, is the ultra-wealthy hedge fund legend, Steven Cohen of S.A.C. Capital Advisors—someone who Sheelah has become very familiar with, through much of her own tireless and strenuous research…
During our conversation, Sheelah gives color to; where Steven started out in life and how he became an ultra-wealthy multi-billionaire—with, might I add, an elaborate art collection, how S.A.C. became the target of one of histories greatest insider trading investigations, and ultimately, how it all played out...
Direct download: 135_20How20mastermind20trader2C20Steven20Cohen2C20bent20rules20and20made20billions20w_20Sheelah20Kolhatkar.mp3
Category:trading -- posted at: 6:58pm EST
Wed, 19 July 2017
On this episode, I have a returning guest—who first appeared on episode 53. His name is a mystery, but he goes by the handle: @BTCVIX
Episode 53 was the first time I covered Bitcoin on this podcast, and that was at the very end of 2015. As you’re probably aware, the cryptocurrency markets have evolved a lot since then, so BTCVIX is here to fill us in on what’s been happening and, potentially, what lies ahead…
We also cover how to acquire various cryptocurrencies, best practises for protecting your coins, is Bitcoin in a bubble, the frenzy surrounding ICO's, and much much more.
Direct download: 134_20BitcoinE28094the20magic20internet20money20you20can20no20longer20ignore20w_2040BTCVIX.mp3
Category:trading -- posted at: 5:16pm EST
Wed, 12 July 2017
Up until recently, James King was the Performance Director at a commodity trading firm in London, Mandara Capital. And it was here that he implemented scientific methods to stack probability in the favour of success—by using techniques he learned from his education in Applied Sports Science and Performance Psychology.
Now, James is setting out on a new venture, Project Thor, which aims to support talented retail traders with extra capital and other beneficial resources—which we discuss briefly towards the end of the episode.
But for the most part, we discuss; principals for success, testing for resilience, ensuring you’re motivated and focusing on the right things, how ‘stretch goals’ can be used to massively multiply results, routines and heaps more.
Direct download: 133_20Using20sports20science20to20stack20probability20in20favour20of20trading20success20w_20James20King.mp3
Category:trading -- posted at: 7:02pm EST
Wed, 5 July 2017
Mark Gardner began working in the field at 17-years old, straight out of high school. Initially he began with back office duties, before broking on the floor of the Sydney Futures Exchange (SFE). Then later he was picked up by a large Bank Bills trader to exclusively execute trades, and who he learned a great deal from.
Around 2005, Mark started trading his own book. Over the 10-years that followed, Mark had only two losing months—and to date, he’s never encountered a losing year. Though in 2015 he did suffer a substantial blow, losing months and months worth of gains in the space of just a few short hours.
Today, Mark is also a partner and the chairman of Genesis Trading (one of the larger prop firms in Australia). He’s also leading a new venture, 42Trading, as a foray into quantitative trading. And to top it off, Mark is the president of the Australian Securities Traders Association too.
Throughout this episode we speak about Mark's insane work ethic (and no, that's not exaggeration!) We also get into lessons from his past, why he sees a future in quantitative trading and more...
Direct download: 132_20Still20adapting20after20802C0002B20hours20of20screen20time20w_20Mark20Gardner.mp3
Category:trading -- posted at: 7:49pm EST
Wed, 28 June 2017
Morgan’s career as a trader and portfolio manager began 20-years back, and since then he’s worked at many prominent firms and funds—to name just a few; Millburn Ridgefield, Merrill Lynch, Citadel and Allston Trading.
He’s currently the CEO of CloudQuant, a cloud-based algo development platform and fund.
During our conversation, Morgan explains why he feels as though the ‘common’ approach to strategy development can be counter intuitive, and he gives an alternative 3-step formula. We also spend time discussing how machine learning fits into a traders toolbox
Direct download: 131_20Strategy20developmentE28094powered20by20machine20learning20w_20Morgan20Slade.mp3
Category:trading -- posted at: 7:53pm EST
Wed, 21 June 2017
Ben Mallah is a trader of a different kind—he doesn’t trade stocks and bonds, he trades in real estate. You could probably call him a property developer, although he doesn’t build from scratch; he buys distressed apartment buildings, hotels and shopping centers, fixes them up, and then sells to make a profit.
He grew up in one of the roughest areas of New York and had a very tough upbringing, but Ben is the true definition of a ‘rags to riches’ story…
During his early 20’s, as a side hustle while working in the military, Ben began getting into real estate. Thirty years have since passed, and in that time, he’s built up a real estate empire worth (approximately) $200,000,000.
Direct download: 130_20How20to20own2010027s20of20millions20of20dollars20of20real20estate20w_20Ben20Mallah202.mp3
Category:trading -- posted at: 6:58pm EST
Wed, 14 June 2017
Victor Haghani began his career at Salomon Brothers in 1984, starting out in a research role before joining their prop trading desk. In 1992, Victor left Salomon to become one of the founding partners of Long Term Capital Management…
LTCM was an incredibly successful hedge fund, up until 1998, when it failed in a spectacular fashion. Causing the Federal Reserve to step in and organize a bailout, in order to prevent the possibility of a collapse in the global financial system.
Victor took a ten year sabbatical after the dust settled, and in 2010 he founded an active index investing fund, Elm Partners.
For this episode, much of our discussion is in reference to an experiment Victor carried out (with some involvement from Edward Thorp), on the patterns of how 61 participants would bet on a biased coin.
Sponsored by TradeStation: Very few online brokers offer the services, the tools and the technology (all-in-one!) – for active traders – like TradeStation do. Learn more and get started here.
Direct download: 129_20Optimal20bet20sizingE28094lessons20from20a20biased20coin20flip20experiment20w_20Victor20Haghani.mp3
Category:trading -- posted at: 7:10pm EST
Wed, 7 June 2017
Andy has been an active stock trader since the early 90’s, and in 2001 he founded Kershner Trading Group—a proprietary trading and technology firm in Austin (Texas) and, through a partnership with SMB Capital, Kershner Trading have a second office in Midtown (Manhattan) too.
So, what did we talk about? Andy's ability to take pain on adverse positions, whether or not this has been a key ingredient to his trading success, and do traders with higher risk tolerances make more money. Andy also shares his daily habits and critiques a trade which didn't go so well from the session prior to recording this episode. And naturally, we cover a few other things too...
Sponsored by TradeStation.com: Very few online brokers offer the services, tools and technology (all-in-one!) – for active traders – like TradeStation do.
Direct download: 128_20Risk20tolerance2C20daily20habits20and20trade20critiques20w_20Andy20Kershner.mp3
Category:trading -- posted at: 6:35pm EST
Thu, 1 June 2017
Though not a trader herself, Nell Sloane has been in and around markets and exchanges for roughly 30-years, mostly working in roles that assisted commodity traders and brokers in one way or another.
Then since 2006, Nell has been the Principal of Capital Trading Group—a Chicago investment firm, which she co-founded with Patrick Lafferty. And this is the reason why I asked Nell to come on the podcast; because the role of CTG is to support traders who wish to expand their operation by managing money for others as a CTA.
CTG do also offer services to professional and individual investors to help them navigate managed futures. But for this episode, we focus on…
What does it mean to be a CTA, the incentives to become a CTA and where to begin, fee structures, the requirements and regulations, how to attract capital from investors, and other related subjects.
Direct download: 127_20Becoming20a20CTAE28094how20to20begin20managing20money20w_20Nell20Sloane.mp3
Category:trading -- posted at: 7:15pm EST
Wed, 24 May 2017
Jonathan (@HF_Trader) got into trading after a sports-related injury changed his life trajectory. He was fortunate enough to meet and be mentored, early on, by one of the first people to be hired at Steve Cohen’s S.A.C. Capital Advisors—where this person ran a multi-billion dollar statistical arbitrage fund.
After getting a dual degree in economics and quantitative finance, Jonathan landed a job within a hedge fund and was promoted to head trader within the space of about 6-months. Over the course of several years, while Jonathan worked at the fund, their assets under management grew by several billion dollars.
In 2014, Jonathan cashed out and began trading for himself. He loaded $260,000 into an account and has since compounded this amount into more than $2,000,000. Using an intraday system he’s developed, Jonathan trades Crude Oil and E-Mini S&P 500…
Sponsored by TradeStation: Very few online brokers offer the services, tools and technology (all-in-one!) – for active traders – like TradeStation do.
Direct download: 126_20The20demeanor20of20an20unstoppable20futures20trader20w_20Jonathan2C2040HF_Trader.mp3
Category:trading -- posted at: 8:29pm EST
Wed, 17 May 2017
Matthew Hoyle was once a trader, or more specifically, an options market maker. And he started at a very young age, on the exchange floor in Amsterdam. But since 2003, he’s been in the headhunting (or recruiting) business. His firm, Matthew Hoyle Financial Markets.
Essentially, Matthew finds the best candidates for hard to fill roles. He’s contracted by banks, hedge funds and all sorts of trading firms—for example; Tibra, Optiver, Tower Research, Citadel, Millennium Partners, amongst many others.
Matthew’s deeply knowledgeable on the industry, and he’s won many awards for doing what he does…
During this episode we get talking about; tips for getting hired, the skills which are most in demand, what firms are looking for, also, how firms attempt to attract and retain talent, various compensation structures – and everything in between!
Direct download: 125_20Getting20hiredE28094who20trading20firms20and20hedge20funds20are20seeking20out20w_20Matthew20Hoyle.mp3
Category:trading -- posted at: 7:29pm EST
Wed, 10 May 2017
Max got into trading about six years ago, after a co-worker pulled up in a brand new Lotus Elise—paid for with gains from trading BP stock. Working as an engineer at the time, with average pay, it wasn’t long before Max opened his first trading account and got to work…
Having now developed a unique style of his own, which he describes as a scalping method—focusing on NASDAQ listed stocks, Max has become very consistent and profitable. (If you’re interested, max regularly posts PnL on his Twitter account.)
To mention a few of the things we discussed; how traders can benefit from being independent thinkers, the nature of scalping strategies, optimizing your workflow, mindset and improving your psychological game, and plenty more.
Sponsored by TradeStation.com: Very few online brokers offer the services and technology (all-in-one!) – for active traders – like TradeStation do…
Direct download: 124_20When20chasing20a20quick20buck20becomes20making20a20quick20buck20w_20Max2C2040Madaznfootballr.mp3
Category:trading -- posted at: 6:47pm EST
Wed, 3 May 2017
Darren Reed (@LiftTheOffer) has been a stock broker, the head trader at a $300M hedge fund, and an active prop trader at Australian firms, Propex, Aliom and Gensis. At the later two, he also mentored traders as part of his role in trader development.
But this year (2017), Darren has returned to Perth—on the west coast of Australia, to establish a new proprietary trading firm with a few partners; Cygnet Trading.
The main focus of this episode can be summarized with just a few words; grit, hustle and intent. Further, Darren speaks about paying your dues, why environment is everything, and a window into the life of a discretionary prop trader.
Direct download: 123_20Grit2C20hustle2C20intentE28094and20environment20w_20Darren20Reed2C2040LiftTheOffer.mp3
Category:trading -- posted at: 8:15pm EST
Wed, 26 April 2017
Doug Cifu is the co-founder and CEO of Virtu Financial, one of the largest electronic market making firms in the world. Around the clock, Virtu are trading in 12,000 instruments, across 235 markets and 36 countries, with only 140 staff.
Virtu often trade more than 4.5 million times a day, and prior to their IPO in 2015, Virtu reported the firm had made a profit 1,277 out of 1,278 days—losing money just one day between 2009 and 2014.
And in recent news, Virtu made headlines 20th April (2017), after announcing their acquisition of rival, Knight Capital Group for $1.4 billion.
Doug is also the co-owner of NHL team, Florida Panthers—with the second owner, being none other than his Virtu co-founder, Vincent Viola.
Direct download: 122_20Virtu.20Hitting20singles20all20day20longE28094on20a20global20scale20w_20Doug20Cifu.mp3
Category:trading -- posted at: 4:02pm EST
Wed, 19 April 2017
Michael Mauboussin is a Managing Director and Head of Global Financial Strategies at Credit Suisse. He’s also a professor of finance at Columbia Business School, and the author of several books, such as; The Success Equation and More Than You Know.
Michael is widely-recognized as a thought leader on the subject of decision making, as well as thinking about things in the way of process over outcome, and skill vs luck.
And it’s these three things which are the over-arching theme of this episode. So hopefully, you’ll pick up a few good tips from Michael, that will help to improve your ability of making better decisions (and creating better processes) as a trader.
Sponsored by TradeStation.com: Open an account with online broker, TradeStation, to enjoy; low-cost commissions, no software fees, free real-time data and free professional-grade scanning tools.
Direct download: 121_20Tactics20for20better20decision20making2C20and20skill20versus20luck20w_20Michael20Mauboussin.mp3
Category:trading -- posted at: 8:18pm EST
Wed, 12 April 2017
Mebane Faber is the founder and CIO at Cambria Investment Management, where he manages Cambria’s ETFs, separate accounts and private investment funds. He’s also authored numerous white papers and five books now, on various investing subjects. Meb’s a budding podcaster too, his podcast; The Meb Faber Show.
The main reason why I asked Meb to join me for this episode, was to share some simple ways that active traders can capitalize on the opportunity and compounding effect that (somewhat passive) longer-term investing has to offer.
So, I ask Meb about; where to start out, how to set expectations, various types of portfolios, when to enter the market, what to do during drawdown, what things new investors struggle with most, so on and so forth…
Sponsored by TradeStation.com: Open an account with online broker, TradeStation, to enjoy; low-cost stock trades, no software fees, free real-time data and free professional-grade scanning tools.
Direct download: 120_20A20crash20course20in20long-term20investing20for20short-term20traders20w_20Mebane20Faber.mp3
Category:trading -- posted at: 7:24pm EST
Wed, 5 April 2017
Alex (@TAGRtrades) is a 27-year old day trader, from Texas. He’s been trading full-time for four years, and has really begun to hit his stride. Alex closed Q1 of 2017 with a $49,000 gain, after going into the year with an account balance of $32,000.
He’s a small-cap momentum trader, but unlike most guests who I’ve had on previously that play in this space, Alex takes the majority of his trades on the long side. So naturally, we chat about his reasons for this…
We also chat about; the leap into full-time trading, key lessons Alex learned in the early stages of his development, how he manages trades, and why journaling has been immensely helpful.
Direct download: 119_20What20this20day20trader20learned20after20four20years20of20abandoning20a20secure20job20E2809320Alex2C2040TAGRtrades.mp3
Category:trading -- posted at: 8:35pm EST
Wed, 29 March 2017
High-speed trading veteran, Manoj Narang, originally worked on Wall St for the likes of Credit Suisse and Goldman Sachs prior to founding Tradeworx, which became one of the larger trading firms in the U.S. (in terms of volume).
He’s since parted ways with Tradeworx to start MANA Partners—an innovative quant fund which raised almost one billion dollars for it’s launch in January this year (2017).
As a brief summary for some of the things we got to chat about; the value of technology which drives some trading operations, capitalizing on the explosion of data, plus why aspiring traders should be willing to buck the trend and think freely.
Sponsored by TradeStation.com – Open an account with online broker, TradeStation, to enjoy; low-cost stock trades, no software fees, free real-time data and free professional-grade scanning tools.
Direct download: 118_20Trading20technology2C20alternative20data2C20and20originality20w_20Manoj20Narang.mp3
Category:trading -- posted at: 7:11pm EST
Wed, 22 March 2017
Larry Alintoff was a prop trader for Paul Tudor Jones, before running the largest group of traders on the AMEX (at the time). When he later went over to the NYBOT, Larry became the largest trader in the Frozen Concentrated Orange Juice pit, and now days, he’s CIO of The Toro Fund.
During this episode, we cover; the thing which helped Larry to become consistent, why there’s great opportunity in knowing when things that “should” happen, don’t happen, and how he’s been able to successfully apply a similar trading style from the floor to the screens. Plus, how a market obsession has carried him this far…
Direct download: 117_20Traders2720opportunityE28094when20things20that20_should_20happen2C20don27t20happen20w_20Larry20Alintoff.mp3
Category:trading -- posted at: 7:39pm EST
Wed, 15 March 2017
Sean Hendelman is the co-founder and CEO of T3 Companies.
T3 is one of the larger proprietary trading firms in the U.S. And incase you’re curious, the three T’s of T3 stand for; trading, training and technology.
A few of the things Sean and I spoke about, include; how he got his start, how he lost all his money twice—and why it was a worthwhile experience (in hindsight), and some of the great lessons he’s learned from the business of trading.
Even as CEO today, Sean is still very hands on with T3’s automated trading, so we also had an interesting conversation around this—some of his comments and views may actually surprise you. And hand traders, need not feel neglected, because there’s something in this for you to!
Direct download: 116_20Taking20losses2C20ultimately20winning2C20and20keeping20pace20with20markets20E2809320Sean20Hendelman.mp3
Category:trading -- posted at: 6:30pm EST
Wed, 8 March 2017
Adam Grimes has been a trader for more than 20-years, he’s traded all major asset classes, across various timeframes. He’s traded independently, with a prop firm, and he’s run other trading businesses also.
The main focus of this episode is to explore some of the things which discretionary traders can adapt from quantitative traders, and vice versa—meaning, what things can quants take from those who rely on discretion.
Then in the later part of this episode, Adam lays out a solid framework which can help struggling traders to move forward. As well as, the types of questions you should ask when you don’t know what you don’t know.
Direct download: 115_20What20hand20traders20can20learn20from20system20traders2C20and20vice20versa20w_20Adam20Grimes.mp3
Category:trading -- posted at: 7:53pm EST
Wed, 1 March 2017
Brannigan Barrett is a futures day trader—who trades a total of eight markets, across; bonds, equity indices, currencies and commodities. He was previously a trader at prop firm, Futex, but is now part of Axia Futures.
The subjects we cover during this conversation, include; how to progressively become a bigger (and better) trader, how a “dogfight” attitude has helped Brannigan’s trading career, how he prepares going into major news announcements, his daily process for journaling and being ready for “one good trade.” Plus, how to think about and achieve your trading goals.
Direct download: 114_20The20process20of20becoming20a20bigger2028and20better2920trader20w_20Brannigan20Barrett.mp3
Category:trading -- posted at: 6:20pm EST
Wed, 22 February 2017
Benjamin Small is an electrical engineering PhD. He’s worked in quantitative research roles since 2006, at UBS, Citadel, Credit Suisse and the stock exchange, IEX.
Today though, Ben is head of market structure at Gemini—the world’s first fully licensed and fully regulated Bitcoin exchange, which is based in New York.
During this chat, we get into; payment for order flow and high frequency trading, why there’s an incentive to normalize Bitcoin, the cryptocurrency ecosystem, potential outcomes for the future of Bitcoin, and becoming a cashless society.
Direct download: 113_20Normalising20Bitcoin2C20and20exploring20the20cryptocurrency20ecosystem20w_20Benjamin20Small.mp3
Category:trading -- posted at: 6:07pm EST
Wed, 15 February 2017
Jorge Soltero began as a floor trader in Chicago, where he was an options market maker. A few years into his career, he landed a position at Hull Trading Company (the renowned firm of legendary trader, Blair Hull).
After Hull Trading was bought by Goldman Sachs in 1999, Jorge became more of an institutional trader—not only working at Goldman, but later, UBS and Merrill Lynch too, where he specialized in options and ETFs.
Listening to this episode you’re going to hear about; the culture of trading pits, exactly what it was like to be a trader at Hull Trading Co., the transition to electronic trading, what makes ETFs an attractive product, and more…
Sponsored by Gemini.com: The first fully regulated Bitcoin exchange, for traders and investors. Register for one-month of FREE trading.
Direct download: 112_20Reminiscences20of20a20trader20at20Hull20Trading20Co.E28094and20a20sell-side20career20w_20Jorge20Soltero.mp3
Category:trading -- posted at: 6:00pm EST
Wed, 8 February 2017
Returning to Chat With Traders for a second time is David Bush—first on episode 23.
David began as a discretionary trader, more than 20-years ago, but over time he’s developed into a quant trader. And he’s exceptionally good at what he does; David’s been the first place winner of two (real money) trading competitions in recent years.
Last time David was on we spoke fairly extensively about his path as a trader and a high-level overview of his process. This time around we covered plenty of new ground—exploring David’s process in greater depth. Also, I particularly liked David’s comments towards the end about, “Intensity, not time.”
Direct download: 111_Strategy_objectives_statistical_significance_and_market_behavior_w__David_Bush.mp3
Category:trading -- posted at: 5:13pm EST
Wed, 1 February 2017
On this episode, I’m joined by George—who goes by @RollyTrader on Twitter.
George is an Australian equities trader, with a momentum/swing trading type of approach. In the past, George has held a few finance-related positions, but since late-2009 he’s mostly traded independently.
During the interview, George and I got speaking about; lessons he learned early on, the effect that coaching and mentoring has had on his trading, specifics about the setups George trades, and also, his involvement with venture capital.
Sponsored by Gemini.com – The world’s first fully regulated and fully licensed Bitcoin exchange—for traders, investors & institutions.
Direct download: 110_Learning_to_trade_momentum_setups_and_becoming_a_venture_capitalist__George_RollyTrader.mp3
Category:trading -- posted at: 5:36pm EST
Wed, 25 January 2017
I’m not sure how to best say this, but Edward Thorp, is kind of a big deal…
Not only in the world of financial markets, but he’s also a household name amongst the gambling scene. He’s the man who beat the dealer, and later, beat the market.
It was during the late-50’s and early-60’s, when Ed, a math genius and professor at MIT, took on the challenge of discovering a way to get an edge playing gambling games such as blackjack, roulette and baccarat. Long story short; Ed won—and he’s now considered the father of card counting.
From there, the next obvious move for Ed was to take on financial markets—which he also did with a great degree of success. His first hedge fund, Princeton Newport Partners, achieved an annualized return of 19.1% (before fees) over a 19-year period, with 227 of 230 months being profitable—the worst monthly loss being less than 1%.
Ed’s most recent book, A Man For All Markets, is now available on Amazon.
Sponsored by TradeStation.com – The online broker for professional market monitoring tools, an award-winning platform and low trading costs.
Direct download: 109_The_man_who_beat_the_dealer_and_later_beat_the_market__Edward_Thorp.mp3
Category:trading -- posted at: 2:50pm EST
Mon, 23 January 2017
Throughout this series, which has been a window into the workflow of professional quant trading firms, we’ve encouraged you to submit questions and requests for further clarification. So, in this episode, being the final installment, Delaney answers as many of these questions as possible (within 80-mins).
Sponsored by DataCamp.com – Once you commit to learning how to program—specifically for data science and quant research, your next best step: Visit DataCamp to start any course, free!
Direct download: Q6_20Your20Quantitative20Trading20Questions20Answered20w_20Delaney20Mackenzie.mp3
Category:trading -- posted at: 6:05pm EST
Wed, 18 January 2017
John Netto, a former U.S. marine, describes himself as a high velocity, cross-asset class trader. He connects the ability to be versatile, adaptable, and interpret large amounts of information to be his greatest edge—for making lucrative returns.
These are all things we cover during the interview, which includes discussion about; process, research, strategy, macro, and market regimes. We also talk about the benefits of stepping outside of your comfort zone, why there’s a need to embrace growing pains, and when emotion can be an ally.
Sponsored by TradeStation.com: Trade stocks, ETFs, futures and options with competitive commissions (using an award-winning platform!)
Direct download: 108_Being_a_versatile_and_adaptable_trader_while_testing_your_comfort_zone_w__John_Netto.mp3
Category:trading -- posted at: 6:11pm EST
Wed, 11 January 2017
For the great, Anthony Saliba, his initial 13-years in the field were spent as a market maker on the CBOE floor, where he made approximately $9,000,000 before 30 years old (and that was during the 80’s). At which point, he was one of the traders featured in Jack Schwager’s first Market Wizards’ book.
Since then, Anthony’s continued to scale up—making major moves, both, through trading and through various business ventures.
We spoke for close to two hours; about his experience on the floor, a trader education company which he founded, some of the non-cliché traits of great traders, longevity, and how he’s grown wealth as a parallel entrepreneur, amongst other topics.
Anthony has also authored a new book for options traders; Managing Expectations.
Sponsored by TradeStation.com – TradeStation won Barrons’ award for the online broker “Best for Frequent Traders” in 2016! Check ’em out.
Direct download: 107_A_40-year_trading_career_fueled_by_necessitythe_mother_of_invention_w__Anthony_Saliba.mp3
Category:trading -- posted at: 5:44pm EST
Wed, 4 January 2017
Turney Duff was a hedge fund trader on Wall Street who lead a truly excessive lifestyle. In 2013 he released a book about his experiences—titled, The Buy Side. And currently, Turney is a consultant on the Showtime TV series, Billions.
On this episode we cover everything, from what it was like to trade more than one billion dollars at Galleon Group—which was the hedge fund run by Raj Rajaratnam, currently serving an 11-year prison sentence for partaking in one of the largest insider trading rings in U.S. history.
Following on from this, we discuss Turney’s relationships with the sell-side and the extreme measures they’d take to win his business. Which leads into the shenanigans which took place after-hours—the cocktail of drugs, alcohol, sex, money and power.
We finish up with Turney’s fall from the top, some of the greatest realizations he’s come to, and the life he leads today… Enjoy!
Sponsored by TradeStation.com – TradeStation connect traders with all the bell’s n whistles to better monitor and participate in markets.
Direct download: 106_A_Wall_Street_traders_tale_of_spectacular_excess_w__Turney_Duff.mp3
Category:trading -- posted at: 5:12pm EST
Wed, 28 December 2016
Brendan Poots is the founder of sports betting hedge fund, The Priomha Group, who mainly bet on football, cricket, golf and also horse racing and tennis.
Priomha setup shop in Melbourne (Australia) in 2010, and more recently, have expanded with a second location in Gibraltar (Europe). From inception up to the release of this episode, Priomha’s Cloney fund has returned a little over 220%.
From listening to our discussion, you’ll gain great insight to how Brendan runs his operation—from getting investors to buy in, to controlling risk and minimizing the volatility of returns, and how the fund makes money trading sports games.
Direct download: 105_20How20a20former-punter20pioneered20a20premier20sports20betting20hedge20fund20E2809320Brendan20Poots.mp3
Category:trading -- posted at: 5:33pm EST
Wed, 21 December 2016
Alex (@AT09_Trader) is a 22-year old, discretionary day trader, who’s seen great results in the few years he’s been grinding away at this. He trades small caps, and he trades aggressively—as you’ll soon hear, Alex is far from conservative.
This conversation was recorded on the 16th of November (2016), right around the time when the madness in the shipping sector was unfolding. So we got talking about the ticker DRYS and how Alex racked up a $40k loss a day or two before our interview (although, he had his first +$100k day shortly after too).
Also we spoke about how Alex got started, the types of trade scenarios that he looks for, areas that he’s working on to improve, and also his venture into real estate—where he flipped a foreclosure property for a tidy profit, plus much more.
Note: Nothing you hear on this podcast is financial advice. You’re entirely responsible for your own trading decisions.
Direct download: 104_An_appetite_for_risk_and_hitting_hard_when_opportunity_arises__Alex_AT09_Trader.mp3
Category:trading -- posted at: 3:25pm EST
Mon, 19 December 2016
Machine learning is a hot topic right now, with a lot of people wondering how it could be used in finance and trading. Used naively, machine learning poses a great deal of risk. We’ll discuss why that’s the case and also some good ways to use it carefully.
Sponsored by DataCamp.com – Learning to code can be challenging, but with A-grade courses at your fingertips, things are a whole lot easier. Visit DataCamp start today—sign up for free!
Direct download: Q5_20Good2028and20Not20So20Good2920Uses20of20Machine20Learning20in20Finance20w_20Max20Margenot202620Delaney20Mackenzie.mp3
Category:trading -- posted at: 7:58pm EST
Wed, 14 December 2016
On this episode, I’m joined by a quant trader who works at a high frequency trading firm—though you might be surprised to hear, he started out on the same path that many retail traders do—his name is; Dave Bergstrom.
The thing that makes Dave unique from most traders who’ve been on this podcast previously, is how he uses data-mining techniques to develop trading strategies. Though data-mining, in trading, often has a negative connotation attached to it, Dave believes this stems from bad practices and poor evaluation of methods.
In addition to the above and ways to reduce curve-fitting, we talk about escaping randomness, learning to write code, Dave’s three laws for strategy development, setting expectations and plenty more.
Q+A: Got a question for Dave? Write in the comments area at chatwithtraders.com/103.
Direct download: 103_20Escaping20randomness2C20and20turning20to20data20for20an20edge20w_20Dave20Bergstrom.mp3
Category:trading -- posted at: 4:50pm EST
Mon, 12 December 2016
When one has a price model that they think will work well for forecasting returns, the next step is to actually trade it. This isn’t that simple for a variety of reasons. For one thing, you need to define how much risk you’re okay with taking on in a portfolio, and then try to maximize your returns while staying within those boundaries. This is the foundation of modern portfolio theory—we’ll discuss some real life issues with this.
Sponsored by DataCamp.com – Wanna learn how to code? Then you best visit DataCamp. They’ve got a full suite of data science courses that’ll give you the skill-sets necessary of a quant.
Direct download: Q4_20Portfolio20Optimization20E2809320Risk20Preferences20In2C20Trades20Out20w_20Scott20Sanderson202620Delaney20Mackenzie.mp3
Category:trading -- posted at: 5:41pm EST
Wed, 7 December 2016
Eugene Soltes is an author and finance professor at Harvard Business School.
Over the past eight years, give or take, he’s spent a lot of time with many big-time executives and professionals who have been convicted of major financial crimes, such as; cooking the books, fraud, Ponzi schemes, and insider trading.
What initially began as nothing other than self-interest has materialized into a 464-page hardcover book, which was released in October this year (2016). The book is titled, Why They Do It: Inside the Mind of the White-Collar Criminal.
Intrigued by the subject matter, I invited Eugene onto the podcast and we got talking about; how Bernie Madoff became the mastermind behind the biggest fraudulent scheme in US history—sucking billions of dollars from unsuspecting investors, some of the notorious insider trading cases, and ultimately, why they do it.
Direct download: 102_20Unraveling20a202465-billion20Ponzi20scheme20and20notorious20cases20of20insider20trading20w.20Eugene20Soltes.mp3
Category:trading -- posted at: 5:51pm EST
Mon, 5 December 2016
In practice, no one trading model will ever be that good on its own. Luckily statistics has come up with a lot of theory about how you can combine weaker models to create better overall predictions. We’ll discuss how to combine many different trading signals into overall models and some of the practical considerations in doing so.
Sponsored by DataCamp.com – For new and intermediate programmers, DataCamp have an evergrowing library of interactive courses that’ll help you to become a data science wizard.
Direct download: Q3_20Seeking20Alpha_20Try20MORE20Alpha20Factors20w_20Jonathan20Larkin202620Delaney20Mackenzie.mp3
Category:trading -- posted at: 5:01pm EST
Wed, 30 November 2016
My guest for episode 1-0-1 is Siam Kidd, from Norwich in the UK. He’s a former-air force pilot, turned retail trader. He’s also a serial entrepreneur, and on a quest to dramatically improve the schooling system.
We got to chat about his shaky beginnings as a trader, his rock bottom moment, and how he trades currency pairs—using a technical-driven approach, with the goal of catching major trends when they happen.
During the later half, I ask Siam about why he got into business, how he’s found the ability to “think big” and how he’s gotten to a point where he now owns fifteen businesses. Then we also talk about flaws in the schooling system, Siam’s grand scheme, and what the future has in store for us.
Please spare two-minutes to take the anonymous Chat With Traders survey: click here
Direct download: 101_20Latching20onto20trends2C20strategic20business20moves2C20and20breaking20the20norm20w_20Siam20Kidd.mp3
Category:trading -- posted at: 5:05pm EST
Mon, 28 November 2016
Factors are at the core of a modern quant equity workflow. This episode introduces the notion of alpha and risk factors at a high level, and delves into some of the use cases which include: understanding how the market is moving, understanding how a portfolio is exposed to sources of risk, and turning ideas for price forecasting into encapsulated alpha factors.
Sponsored by DataCamp.com – DataCamp is the ultimate go-to for learning data science and stats, using programming languages Python and R. Start any online course today—for FREE!
Direct download: 0220Q2_20Seeking20Alpha_20Try20Alpha20Factors20w_20Jessica20Stauth202620Delaney20Mackenzie.mp3
Category:trading -- posted at: 5:27pm EST
Wed, 23 November 2016
My guest for this special milestone (being episode 100!) is someone who I’ve been attempting to bring on since before episode one was even released…
Folks, I’d like to introduce you to Bao—or better known as @Modern_Rock on Twitter.
Bao is an independent day trader, and a former-Silicon Valley software engineer, who made the large majority of his fortune trading stocks on the OTC bulletin board market. His story emphasizes; anyone with the will to succeed, even amongst adversity, can become unstoppable.
During the interview we speak about avoiding complacency, the greatest trade of Bao’s career, discovering a niche, managing confidence, consistency tips, how to progress as a developing trader, and much more.
Sponsored by TradeStation.com – Trade with TradeStation. Enjoy access to many markets and products, cost-saving commission rates, and more.
Direct download: 100_Overcome_adversity_dominate_a_niche_become_the_house__Bao_Modern_Rock.mp3
Category:trading -- posted at: 6:55pm EST
Mon, 21 November 2016
The worst case in finance is when you think you’re right, but you’re actually wrong. This can be especially dangerous when you’ve used some methodology or statistics to justify a decision, but are unaware of all the subtle biases that can cause false results. In this episode we’ll cover many of the ways that you can be wrong without knowing it in trading and finance.
Sponsored by DataCamp.com – For learning how to program, DataCamp is easily one of the top resources available—their online courses focus specifically on data science, stats & finance.
Direct download: 0120Q1_20You20Don27t20Know20How20Wrong20You20Are20w_20Delaney20Mackenzie.mp3
Category:trading -- posted at: 3:40pm EST
Wed, 16 November 2016
My guest for this episode is Brynne Kelly; an electricity, natural gas, and crude oil trader who’s spent the majority of her career on merchant trading desks, for the likes of BP amongst others. She has also been a prop trader and has experience as a hedge fund portfolio manager.
A few of the key topics we hit on include: Brynne’s responsibilities as head of trading desks, how she taught, trained and managed newer traders, and an overview for how Brynne trades relationships using fundamentals and macro trends. And plenty more.
For many listening, much of this may not necessarily be directly applicable to your own trading, but you’ll get great insight to how things work from the merchant side.
Sponsored by TradeStation.com – A well-established online broker, who’ve been serving retail and professional traders since 1982.
Direct download: 099_What_happens_on_a_merchant_trading_deskwith_energy_veteran_Brynne_Kelly.mp3
Category:trading -- posted at: 4:44pm EST
Wed, 9 November 2016
098: Peter To – How successful day trading can fly in the face of conventional wisdom—with a former poker player and ex-prop trader
Before day trading equities, Peter To played a lot of online poker and did fairly well for himself. He then dabbled in markets as an investor, but was soon attracted to OTC stocks after discovering a strange inefficiency…
In this episode we spend quite a bit of time talking about Peter’s prop trading experience, both the good and the bad. Trading nihilism and doing everything you supposedly shouldn’t do, why Peter accepts he’s not a “cold blooded assassin” and does trade with the influence of emotion. Plus, we briefly touch on Bitcoin and exchange hacks towards the end too.
Peter also writes about many of these subjects on his blog, which you can read here.
Sponsored by TradeStation.com – A fully-licensed online broker and trading technology provider (who have won a ridiculous amount of awards!)
Direct download: 098_How_successful_day_trading_can_fly_in_the_face_of_conventional_wisdomex-prop_trader_Peter_To.mp3
Category:trading -- posted at: 4:21pm EST
Wed, 2 November 2016
On this episode, I have our very first guest from China; Derek Wong—he is the Director of Systematic Trading and Options at a private fund in Shanghai.
Initially though, Derek got his start in the agricultural pits at the CBOT, then following on from this, he’s worked at various quant shops in Chicago, South Korea, and now days, mainland China.
After discussing Derek’s backstory, we talk; emerging markets, cultural differences of Chinese investors, convergent and divergent strategies, diversification, and some slightly unconventional ways of thinking about how you trade.
Additionally, Derek also has some awesome insight for traders who are discretionary and what traders should focus once reaching profitability.
Derek has agreed to answer any trading questions you may have. So if you’ve got a question go to chatwithtraders.com/97, scroll to the bottom of the page and write in the comments area…
Sponsored by TradeStation.com: TradeStation clients have it pretty good; an amazing platform, great commissions and all the rest!
Direct download: 097_How_to_think_about_strategies_like_a_quant_and_diversify_like_a_boss_w__Derek_Wong.mp3
Category:trading -- posted at: 4:09pm EST
Wed, 26 October 2016
Nico (@InefficientMrkt on Twitter) is a day trader with a thirst for momentum. He predominately trades low-priced stocks that have a tendency to move fast and far—and roughly 90% of his positions are on the short side.
But the main reason why I brought Nico onto the podcast, is I feel as though he has a story which many traders will be able to relate to, on one level or another…
The short of it is; Nico placed his first trade in 2007, made 4x on his starting capital year one, and then slowly bleed his trading account for the next seven years. He’s now found his groove, but his overnight success was eight years in the making.
This episode is very much centered around Nico’s journey and development as a trader, and how full-time trading became more than a pipe dream.
Direct download: 096_An_eight_year_overnight_success_story_and_a_thirst_for_momentum_w__Nico.mp3
Category:trading -- posted at: 5:23pm EST
Wed, 19 October 2016
For this episode, the trader who I had the opportunity to speak with, and who you’re about to hear from, is Adrian—or @AdeyF69 on Twitter.
Adrian was a pro sailor for almost two decades, but for the past six years, he’s been on dry land, taking an income from financial markets as an independent day trader.
Adrian primarily trades the Bund and the DAX, though he initially started out in foreign exchange. His trading strategy is influenced by support and resistance areas, volume profiling, order flow, and stats.
After talking about how Adrian’s survived storms at sea, torturous sleeping patterns, and run-ins with pirates, we spend a fair amount of time discussing; how Adrian uses stats and some things to watch out for, and why it pays to be process driven.
Direct download: 095_Why_it_pays_to_be_relentlessly_process_driven_and_when_stats_count_w__Adrian.mp3
Category:trading -- posted at: 7:06pm EST
Wed, 12 October 2016
My guest on this episode is a former-stand up comedian, turned questionable stockbroker, turned day trader—folks, I’d like you to meet, Kenny Glick.
During the 90’s, Kenny went from the stages of comedy clubs into a hyper-aggressive brokerage firm, which he describes as being identical to scenes from the movie, Boiler Room—and he has some wild stories to share, which you’ll hear very soon.
Once Kenny realized his morals were getting in the way of his ability peddle junk stocks, he went on to pursue a career in trading stocks and options. And that’s, also, what we go into detail about during this episode.
Additionally, you’ll pick up some simple chunks of wisdom which you can apply to your own way of trading—if you choose to.
Direct download: 094_Shady_tales_from_a_real-life_Boiler_Room_and_things_profitable_traders_do_w__Kenny_Glick.mp3
Category:trading -- posted at: 6:37pm EST
Wed, 5 October 2016
What you’re about to hear is a conversation I had with a short-term futures trader, Ben—whose last name we won’t mention only for privacy reasons, but he goes by @BLB_Capital on Twitter.
Before entering the market, Ben previously ran a construction company until an injury put him out of action for a period of time, which is when a friend got him interested in trading. Developing his craft over recent years, the bulk of Ben’s trading now revolves around order flow and he’s most active in Oil, Gold and ES.
Over the next 50-mins or so we discuss; what Ben learned and emulated from a large bond trader he was trained by, insight to his core trading strategies, how he utilizes automation, why traders should be aware of “right-to-left syndrome” and more.
Sponsored by Darwinex.com: Darwinex back independent traders with talent who lack sufficient capital—scale your trading career from a side-hustle to a professional business.
Direct download: 093_What_an_order_flow_fanatic_adapted_from_one_of_the_big_boysBen_BLB_Capital.mp3
Category:trading -- posted at: 7:07pm EST
Wed, 28 September 2016
092: Dario Mofardin – Observing the whole board, building a body of evidence, swinging at fat pitches
For this episode I spoke with fund manager, Dario Mofardin.
Dario went from a finance degree, straight into a market analyst and then trader position at a private global macro hedge fund, during the early 90’s. He then went into investment banking for 13 years, working with mergers and acquisitions from various locations around the globe. And since 2008, Dario has been trading independently, but has recently begun trading external funds also.
Some of the key points we chat about during this episode include; seeing the whole board as a global macro trader, how to build a body of evidence, why Dario went from short-term trading to higher timeframes, plus trade management and checklists too.
Direct download: 092_Observing_the_whole_board_building_a_body_of_evidence_swinging_at_fat_pitches_w__Dario_Mofardin.mp3
Category:trading -- posted at: 7:21pm EST
Wed, 21 September 2016
Craig Scott is someone who has been trading and investing for most of his life, first starting in school when he participated in a year long stock picking competition.
Once completing a double major in finance and accounting, Craig spent many years as an auditor and an accountant, and later on, the entrepreneur within had him start and grow several businesses (doing similar things) along the way.
As Craig describes his style of trading and investing; it’s a hybrid of fundamentals, momentum, sentiment and instinct. He uses options for short-term positions and for mid/longer-term positions he uses stocks. And worth mentioning; Craig’s very adamant about the fact that he does not use charts!
Direct download: 091_Trading_fundamentals_sentiment_and_events_and_why_conviction_matters_w__Craig_Scott.mp3
Category:trading -- posted at: 6:32pm EST
Wed, 14 September 2016
For this episode I’m joined by Michael Halls-Moore, who runs QuantStart.com—a site well-known by many algorithmic traders.
Prior to trading, Michael studied computational fluid dynamics and was the co-founder of a tech startup, before getting involved a small equity fund as a quant developer—where his key role was cleansing data.
Now, independently, Michael trades his own short-term algorithmic strategies, consults to hedge funds on machine learning and quant infrastructure, and also has a keen interest in space exploration.
We discussed a whole range of topics, including; the need for quality data, thinking about risk from a portfolio level, trading multiple automated strategies, the role of common sense in parameter optimization, learning to program, and more.
Sponsored by Tradovate.com – Commission-free futures trading has arrived. As a Tradovate customer, you’ll pay one flat monthly rate to trade unlimited contracts—starting from $39.
Direct download: 090_This_quants_approach_to_designing_algo_strategiesMichael_Halls-Moore.mp3
Category:trading -- posted at: 7:47pm EST
Wed, 7 September 2016
Blake Morrow (otherwise known as @PipCzar on Twitter) started out as a stock broker in 1995, but this only lasted for a short period of time, before becoming a trader…
A wealthy friend put up $50,000 in starting capital, which Blake lost about $30,000 of it within the first six months. Though, before wiping out, Blake was able to turn that remaining $20,000 into roughly $1.5M in the next few years that followed.
He’s since been involved in various trading and technology firms, but today, Blake is the Chief Currency Strategist for WizeTrade, co-founder of Forex Analytix, and an independent forex trader.
Over the course of this episode you’ll hear about Blake’s story in greater detail, how he navigates forex markets—using charts and technical analysis as well as economic drivers, some tips for beginning traders using leverage, and plenty more.
Direct download: 089_From_ramen_noodles_to_a_lucrative_career_trading_Forex_markets_w__Blake_Morrow.mp3
Category:trading -- posted at: 7:26pm EST
Wed, 31 August 2016
Dave Lauer is a former-high frequency trader for firms such as Citadel and Allston Trading. He’s worked specifically in various areas of the HFT pipeline, including; research and modelling, building hardware, and programming and operating strategies—which are measured in millionths of a second (or microseconds).
Following the Flash Crash, Dave left his role as a trader (for various reasons we discuss during this episode) and now, as a partner of KOR Group, consults to institutional managers on market structure and best execution.
Dave was also featured in the VPRO documentary, The Wall Street Code, along with other Chat With Traders guests; Haim Bodek, Eric Hunsader, and Blair Hull.
Sponsored by TechnicianApp.com: Chart, analyze, and trade from anywhere with Technician’s award-winning app—for mobile, tablet, and desktop. Learn more and sign up for free!
Direct download: 088_A_former-high_frequency_trader_talks_speed_market_structure_and_dark_poolsDave_Lauer.mp3
Category:trading -- posted at: 6:16pm EST
Wed, 24 August 2016
This week on the podcast, I spoke with Tom Sosnoff, who many of you will already know—he’s pretty close to a household name name in this industry. But if you don’t…
Tom was a floor trader at the CBOE for 20 years, later going on to co-found thinkorswim—a widely popular online brokerage. In 2009, thinkorswim was sold to TD Ameritrade for approximately $606M, and Tom left the company shortly after to start financial news show, tastytrade.
In this episode we hit on; the issue with being too risk adverse in markets and in life, Tom’s extensive trading career, plenty of talk about options, the value of intellectually challenging ourselves (with respect to finance), and more.
Direct download: 087_Tom_Sosnoff_speaks_on_life_experiences_trading_options_and_reaching_your_potential.mp3
Category:trading -- posted at: 6:22pm EST
Wed, 17 August 2016
Jared Tendler is an internationally recognized mental game coach. His clients include world champion poker players, the #1 ranked pool player in the world, professional golfers, and more recently, traders too.
If Jared was to summarize exactly what he does (and what he specializes in), it would be; removing negative and excessive emotion from decision making.
So naturally, this serves as the underlying theme throughout our conversation, but we also discuss higher-level topics like; variance, the major crossovers between high-stakes poker and trading, how psychology has been oversold and when it really matters, plus how to identify various types of “tilt.”
Direct download: 086_What_traders_can_learn_about_mental_game_from_world_champion_poker_coachJared_Tendler.mp3
Category:trading -- posted at: 6:41pm EST
Wed, 10 August 2016
Blair Hull has been labeled by Forbes as, “One of the most successful traders of the last 40 years,” and he was also profiled in Jack Schwager’s, The New Market Wizards.
Prior to trading, Blair was a serious Blackjack player for 5-years during the 70’s. From there he took his winnings to the the Pacific Exchange to trade mispriced options, and in 1985, he founded one of the world’s premier market-making firms, Hull Trading.
At its peak, Hull Trading was active on 28 exchanges in nine countries. Then in 1999, the firm was acquired by Goldman Sachs for $531 million dollars.
Today, Blair is the founder of Hull Investments—the parent company of an actively managed ETF, Hull Trading Asset Allocation, and proprietary firm, Ketchum Trading.
Listening to this interview, you’re going to hear more about Blair’s career and his observations as a trader, why he believes great things happen in teams, and why everything revolves around having an edge.
Sponsored by TechnicianApp.com – For professional-grade charts and technical analysis tools everywhere you go, use Technician—it’s FREE!
Direct download: 085_Know_your_edge_exploit_your_edgesurvive_the_game_w__Blair_Hull.mp3
Category:trading -- posted at: 6:40pm EST
Wed, 3 August 2016
This episode features Dr. Yves Hilpisch—the founder of The Python Quants.
TPQ do a lot of good for those involved in quantitative finance, they; frequently host meet-ups and workshops, have developed platforms and analytics libraries, and often contract to exchanges, banks and hedge funds for custom Python development.
Yves is also a three-time published author, with his most notable title probably being “Python for Finance” which was released through O’Reilly. He regularly gives presentations and speaks at events on the subject of quant finance, and lectures at Universities too.
Over the next sixty minutes, you’ll hear us unpack many subjects related to being a quant and why programming in Python can be a useful skill to have in your toolbox.
Note, some of the discussion in the later part may be a little heavy for non-programmers. So if there is something that doesn’t make sense or you’d like more context around, please just write in the comments at the bottom of this page and I’ll do my best to point you in the right direction.
Direct download: 084_20Quantitative20finance20and20programming20trading20strategies20w_20Yves20Hilpisch20of20The20Python20Quants.mp3
Category:trading -- posted at: 7:18pm EST
Wed, 27 July 2016
The trader I interviewed for this episode is; Ryan Moffett from Blackpier Capital.
Having been involved with markets for about 12 years now, Ryan has experience in trading, strategy design, portfolio construction and even alternative investments—all, while working for several firms (one of which, managed upwards of $2B).
More recently though, Ryan’s ventured out to start a fund of his own, where he wears the badge of Lead Investment Manager.
Some of the subjects we check off during this episode, include; the snapping point that lead Ryan to pursue trading and cold-call 50 fund managers for guidance. How he was able to form various mentoring relationships, the first steps of starting a fund and the unseen challenges.
Plus we discuss options, strategies and research, but the highlight for myself was hearing Ryan’s insight on deliberate practice and mental discomfort.
Direct download: 083_Getting_mentors_starting_a_fund_and_deliberate_practice_w__Ryan_Moffett_of_Blackpier_Capital.mp3
Category:trading -- posted at: 6:49pm EST
Wed, 20 July 2016
This week, for the second time on Chat With Traders, my guest is Morad or better known as; Futures Trader 71.
As you could imagine, FT is a futures trader, he’s also very short-term and has been trading for about 16 years now. During this time, he was the founder of a successful prop firm and more recently, has started a brokerage; Stage 5 Trading.
First time around (on episode 37) we spoke extensively about FT’s path of becoming a trader, market profile and volume profile, and creating a legacy. This time we spoke about all new topics…
For example; how to learn a new skill, how to measure your progress besides PnL, how to remove attachment to the outcome, how FT uses a regressive risk management strategy, and plenty more too.
Direct download: 082_How_to_become_the_trader_you_wish_you_were_w__Futures_Trader_71.mp3
Category:trading -- posted at: 6:44pm EST
Wed, 13 July 2016
081: Alan Farley – Breaking down breakouts and dynamics of price movement, with The Master Swing Trader
Our guest this week is Alan Farley, who took his first trades in the late-80’s.
Alan is an active swing trader, and most of his positions take place in the US equity market—although he occasionally trades index futures and currencies too.
In 2001, Alan released his first book, The Master Swing Trader, which may be the best-selling book on the subject). He’s also a regular contributor to The Street and Investopedia, having written hundreds of articles over the years.
Subjects you’ll hear about include; the unusual way in which Alan got a well-rounded education of financial markets. Some of the big lessons that shaped him into the trader he is now, in particular, the concept of convergence and divergence. Plus, we talk about the dynamics that generate price movement, and much more too.
Direct download: 081_Breaking_down_breakouts_and_dynamics_of_price_movementmaster_swing_trader_Alan_Farley.mp3
Category:trading -- posted at: 7:39pm EST
Wed, 6 July 2016
Anthony Crudele started at a very young age on the CME floor, and he has one really interesting story about coming up as a trader…
It does involve some pretty drastic failures, burning through significant amounts of cash, and a whole lot of perseverance. But, he eventually broke through and went on to have years of making six and seven-figures, while heavily trading the E-Mini S&P 500 from it’s inception.
In our chat, you’ll hear about Anthony’s multiple blowouts and comebacks, his turning point as a trader, his approach to trading futures today, and a healthy reminder to protect your downside.
Sponsored by RealVisionTV.com – Real Vision TV is pretty much like Netflix, but purely for finance and investing—it’s a real treat! Get yourself a free 7-day trial to start streaming now.
Direct download: 080_One_traders_volatile_path_from_below_zero_to_hero_and_beyond_w__Anthony_Crudele.mp3
Category:trading -- posted at: 6:14pm EST
Wed, 29 June 2016
079: Raoul Pal – The biggest financial experiment the world has ever seen, explained by a global macro investor
Raoul Pal has a history rooted in the hedge fund industry, and with him, he carries more than 25+ years of experience in financial markets.
For a number of years he worked at Goldman Sachs where he co-managed the hedge fund sales business in equities and equity derivatives. He later moved on to GLG, one of the largest hedge fund groups in the world, where he launched their global macro fund in London.
Today, Raoul no longer manages client money but continues to invest his own. He also writes a premium research newsletter, The Global Macro Investor, and is the co-founder of Real Vision TV.
In this episode we navigate through some uncharted waters which have not been explored previously on this podcast. So in addition to macro investing, technical analysis and hedge funds, we discuss theoretical economic models, business cycles, negative interest rates, and why the world is economically in a frightening position.
Sponsored by TradeStation.com – With TradeStation, you’ll have access to a wide-range of markets and products, an award-winning platform, favorable commissions, and a sharp support team.
Direct download: 079_The_biggest_financial_experiment_the_world_has_ever_seenglobal_macro_investor_Raoul_Pal.mp3
Category:trading -- posted at: 6:39pm EST
Wed, 22 June 2016
As I’m sure you already well aware, Jack Schwager has been involved with financial markets for many years, he’s the author of the acclaimed Market Wizards series and others, and he’s also the co-founder of FundSeeder.
During our talk, we go behind the scenes of the Market Wizards and Jack shares his experiences from conducting interviews with trading royalty and some of his most memorable moments.
Of course, I ask Jack to flesh out some of the great knowledge he’s learned from this—discussing; self-confidence, sacrifices, what separates a profitable trader from a super trader, and the issue with seeking comfort.
You’ll also hear an update on FundSeeder, as well as something you might be very interested to know, what trading books does Jack recommend to others?
The New Market Wizards is now available as an audiobook on Amazon. Get a free copy
Sponsored by TradeStation.com – A fully-licensed online broker, serving traders globally. Get the benefits of an award-winning platform, competitive commissions, awesome support, and more.
Direct download: 078_The_making_of_Market_Wizards_and_wisdom_from_elite_traders_w__Jack_Schwager.mp3
Category:trading -- posted at: 7:04pm EST
Wed, 15 June 2016
You’re about to hear a really interesting conversation I had with Dennis Dick.
Dennis first started out meddling with penny stocks, before soon joining a well-established prop firm known as; Bright Trading—this was in the late 90’s. To this day Dennis remains with the same firm, still as an active short-term equities trader, but also as their Market Structure Analyst.
If his voice sounds familiar, that’s probably because he’s the co-host of Benzinga’s PreMarket Prep live morning show too.
Some of the key talking points that come up over the next 60 minutes, include; scalping, surviving as a short-term trader in a high frequency world, various order types, and the opportunities that can be found trading the open (this is actually where Dennis makes 50% of his money each day—within the first five minutes).
Sponsored by TradeStation.com – TradeStation, an award-winning broker, equip clients with remarkable technology for an advantage in competitive markets and so much more.
Direct download: 077_How_to_be_a_profitable_short-term_trader_in_a_high_frequency_world_w__Dennis_Dick.mp3
Category:trading -- posted at: 6:09pm EST
Wed, 8 June 2016
Our featured guest for this weeks interview is, Saul Knapp.
Saul originally started out as a runner on the floor of the LIFFE exchange (in London), when he was just 16 years old. Later moving on from there, he’s had various roles as a risk manager for proprietary trading firms, at times, monitoring positions for as many as 120+ traders. Today, Saul lives in Spain where he runs a small prop firm of his own.
In regard to how he trades, Saul is a spread trader who’s most active in the energy markets. So, spread trading is something we cover during our conversation, as well as his observations from being a risk manager and helping other traders improve.
If you have any questions, or if there’s anything which you’d like further explanation on, just write in the comments below to get a response from Saul.
Sponsored by TradeStation.com – Get ultra-competitive commissions, support from fully licensed brokers, powerful analysis tools and an award-winning platform, plus more.
Direct download: 076_Insight_from_a_former-risk_manager_of_120_prop_traders_and_spread_trading_w__Saul_Knapp.mp3
Category:trading -- posted at: 7:35pm EST
Wed, 1 June 2016
075: Dan Aisen – The mechanics of a dark pool, and a quest to make markets “fair” (with the co-founder of IEX)
For this episode, I had the great pleasure of speaking with Dan Aisen—one of the co-founders of IEX, and one of Forbes’ 30 Under 30 in Finance (2015).
Dan got his start at RBC where he developed their flagship execution algorithm, THOR. This was also where he met and worked under Brad Katsuyama—one of the other co-founders and CEO of IEX, who was heavily profiled in Flash Boys.
As many of you may already know, IEX is an Alternative Trading System (ATS), or more commonly referred to as a dark pool. However, they’re currently in the midst of filing for exchange status.
During our talk, I asked Dan more about the projects he worked on at RBC, how IEX went from nothing more than an idea to an operating trading venue, and why they’re on a quest to make markets “fair”.
We also discuss the “speed bumps” which have been implemented at IEX, the mechanics of dark pools, and general chat about the broader market structure.
[FREE: An unreleased interview with trader, Peter Brandt]
Peter’s been a market speculator for 45+ years, and is undeniably one of the greats. Listen to his wisdom in our second interview—available here only.
Direct download: EP20075_20The20mechanics20of20a20dark20pool2C20and20a20quest20to20make20markets20_fair_20w_20Dan20Aisen20from20IEX.mp3
Category:trading -- posted at: 5:02pm EST