Wed, 16 September 2015
038: Kevin Davey – The development process of an algo trading strategy, from objectives to live trading
This week on the podcast I have algorithmic trader, Kevin Davey. Who like many guests in the past, he comes from a background in engineering – there’s something about these engineers, they seem to make really great traders…
After getting off to a bumpy start 25 years ago, Kevin has come a very long way. Between 2005 and 2007 Kevin competed in the World Cup of Futures Trading Championship, where he finished in first place once, and second place twice. Each time with returns in excess of 100%!
Kevin is also the author of Building Winning Algorithmic Trading Systems, a book which has been well-received by the trading community and has plenty of 5-star ratings and reviews on Amazon.
During this interview we cover the great focus Kevin places on trading multiple strategies in multiple markets to achieve a smoother equity curve. And he also walks us through his development process for taking an algorithmic strategy from objectives and initial idea, through to total automation. Plus plenty more, and even if you’re not familiar with this side of trading, you shouldn’t have too much trouble keeping up, because Kevin does an excellent job of explaining everything.
Also, I’m going to ask again… If you haven’t already done so, could you please leave a very brief review on the podcast in iTunes while you’re listening. Just go to chatwithtraders.com/itunes, if you’d like to support the show.
Direct download: 3820EP20038_20The20development20process20of20an20algo20trading20strategy20E2809320from20objectives20to20live20trading20w_20Kevin20Davey.mp3
Category:trading -- posted at: 8:59pm EDT
Wed, 9 September 2015
037: Futures Trader 71 – Understanding areas of acceptance, thinking in probabilities, and creating a legacy
This week I had the pleasure of speaking to another brilliant trader, who has been heavily requested – his name is Morad, but many know him best as Futures Trader 71 (or FT for short).
To give you the 30 second rundown, FT has been an active trader since 2000, when he started out scalping NASDAQ stocks among the original SOES Bandits. A few years in he made the transition to trading futures, and later started his own proprietary trading firm, where he funded and mentored a team of traders.
These days FT runs a brokerage, where he provides continuous education and risk control to a structured community. And of course, he remains an active futures trader, with a great focus on reading market profile and volume profile – which we get into during this interview.
While you’re listening, I’d love it if you could please leave a brief review on the podcast in iTunes. This helps in a huge way to increase rankings and reach more listeners!
Direct download: 3720EP20037_20Understanding20areas20of20acceptance2C20thinking20in20probabilities2C20and20creating20a20legacy20w_20FuturesTrader71.mp3
Category:trading -- posted at: 6:41pm EDT
Wed, 2 September 2015
I can promise you right now, this one will not disappoint…
My guest today is the legendary trader, Peter Brandt.
Peter first started trading around 1975 (which I’m sure is before many of you listening were even born – that’s certainly the case for me). So that’s 5 decades involved with markets, i.e. ’70’s, ’80’s, ’90’s… – a very long time!
To give you an idea of Peter’s performance during this time, he has achieved a compounding annual growth rate of approximately 42%, with his best year returning well over 600%. Of course we want to know about his worst years also, well there has only been three of them, which were all drawdowns of less than 8%.
During this interview we discuss Peter’s early years working at the Chicago Board of Trade, and classical charting patterns (which form the roots of his trading methodology). We also get into Peter’s views on high frequency trading operations, why he has the default assumption that every trade will be a losing bet and some of the common misconceptions about super-traders.
Learn more about the latest CWT eBook here: chatwithtraders.com/read
Direct download: 3620EP20036_20Trading20since2019752C20Peter20Brandt20shares20lessons20from20402B20years20of20extraordinary20returns.mp3
Category:trading -- posted at: 8:56pm EDT
Wed, 26 August 2015
035: Howard Lindzon – Speaks on high growth stocks, “destroying” the market and angel investing (Co-founder of StockTwits)
This week I have a very special guest on the show who almost needs no introduction, Howard Lindzon. Who’s best known as the co-founder of StockTwits, but he’s a man who wears many hats, he’s also a trader, investor, hedge fund manager, entrepreneur and a rock-star angel investor.
So as you could imagine, I was thrilled to have Howard on the show this week. We spoke for around 50 minutes, and discussed the early years of his career (from the days of when he used to work in the back office of a brokerage firm).
We also covered Howard’s methodology around trading high growth stocks and the idea of ‘buy high, sell higher’, how innovative technology may revolutionize the landscape of trading over the next 5-10 years. And on top of this, we also talk about some of the angel investments that Howard has been involved with.
Now if you enjoy this interview, please go to chatwithtraders.com/itunes and leave a review. It doesn’t have to be anything major, even a single sentence would be a huge help (as it improves the CWT rankings in iTunes). I’d really appreciate this, and it’s the easiest way that you can support this show…
Direct download: 3520EP20035_20Howard20Lindzon20speaks20on20high20growth20stocks2C20_destorying_20the20market2C20and20angel20investing.mp3
Category:trading -- posted at: 7:16pm EDT
Wed, 19 August 2015
When the market went down in ’08 this weeks guest, Michael Melissinos was right there, in the thick of it. He was an analyst on the trading desk at Bear Sterns, and then later at JP Morgan after they were bought out.
Since then, Michael’s left his Wall Street days behind him, and now trades a fund of his own, using a systematic trend following approach, that operates on 40 global markets.
Although I missed a large chunk of the story there, you’ll hear how Michael got to this stage of his career during the interview. And a few of the lessons that shaped him into the trader he is today, including the advice he received from Market Wizard, Ed Seykota.
I also like Michael’s thoughts around why you should consider playing a game that’s larger than money, and the emphasis he places on preparation.
Wed, 12 August 2015
Chris is an equities trader from Southampton, UK.
His journey to becoming a trader kicked off roughly 7 years ago, after his interest in markets was peaked from reading through a book about stocks.
While these days Chris has found his edge, he did spin his wheels for several years to begin with, and also managed to run several accounts into the ground. During this time, one of the greater turning points came when Chris found another trader who was willing to pass down his experience, and offer him some much needed guidance.
And as we all understand, to have a mentor on your side is extremely valuable, so I asked Chris a number of questions around this subject which you may find helpful.
We also discuss the importance of repetition in your learning, how to build discipline and also touch on some mindset challenges that can be early roadblocks for developing traders.
I feel like many of you listening will find Chris’s story to be relatable, and hopefully you’ll takeaway a few important lessons from this interview.
Wed, 5 August 2015
032: Dan Shapiro – How to handle a run of losses & grind through slumps, while keeping your emotions intact
I’ve received many requests for this weeks guest, in recent months. Maybe it’s because he’s a straight shooter who doesn’t mix his words, or maybe it’s because he’s bounced back from harsh failures, to become an exceptional trader.
Whatever the reason may be, I know for certain, you’re going to appreciate the raw honesty and insight of this weeks guest – Dan Shapiro.
Coming up from humble beginnings, Dan called on the neighborhood loan shark to fund his first trading account, which got him through the door to one of the largest prop firms at the time. This is where he rubbed shoulders with many phenomenal traders, who helped shape him into the trader he is today.
This interview is ultimately focused on the mental and psychological aspects of trading. We discuss some of the darkest moments from Dan’s trading career, how to handle losses and grind through slumps, trading the setup and not your PnL, and why you should care more about trading right, rather than being right.
Dan was great to talk to, and I trust you’ll enjoy this episode. Actually, it may even be worthwhile for you to play this through twice, just to ensure you don’t miss anything.
I’m Aaron Fifield, your host of Chat With Traders, and here is this weeks guest from New York City, Dan Shapiro.
Wed, 29 July 2015
This week I spoke with Luke Cummings, an Australian equities trader with 14 plus years of experience on his side.
Wed, 22 July 2015
030: Tom Basso – The logic of trend following, and how to improve your trader psychology with a Market Wizard
This week we’re taking it up a level…
I had the honor of interviewing the legendary Market Wizard, Tom Basso, president of former money management firm, TrendStat.
Tom started his working life as a chemical engineer, often discussing stocks and investing with colleagues. As he started to experiment with trading from a $2000 account, there was no beginners luck in sight. Tom consecutively lost money for the first few years before things started to turnaround.
With a series of events that followed, Tom went from trading his own money, to forming TrendStat and managing other peoples money. At the peak of his career, TrendStat managed $600million dollars of capital.
And while Tom’s now retired, he still actively studies the market and continues to trade.
This interview covers many topics that range from trend following and systematic trading, to psychology and why you must never forget to ‘enjoy the ride’.
Wed, 15 July 2015
029: Brian Shannon – The science of technical analysis, versus the art of trading (Founder of AlphaTrends)
This weeks guest is Brian Shannon, who first and foremost is a professional trader, whose involvement with the market dates back well over 20 years.
He’s also the author of the highly regarded book, Technical Analysis Using Multiple Timeframes. And thirdly, Brian is the founder of AlphaTrends, an educational company focused on teaching traders how to navigate the market successfully.
For the most part Brian is a swing trader, with the occasional day trade in the mix. During the interview Brian discusses both approaches, and gives a few pointers that may help you to discover the right timeframe for your own trading.
We also talk about understanding the psychology of market participants within well-known patterns, the two indicators that Brian uses most often (one of them being VWAP – Volume Weighted Average Price), and Brian also walks us through the 4 stages of a market cycle: accumulation, markup, distribution & decline.
So all in all, Brian hit on plenty of great topics, and I feel like you’re really going to enjoy the insight he shares with us