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.
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Direct download: Q4_20Portfolio20Optimization20E2809320Risk20Preferences20In2C20Trades20Out20w_20Scott20Sanderson202620Delaney20Mackenzie.mp3
Category:trading -- posted at: 5:41pm EDT
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.
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Direct download: Q3_20Seeking20Alpha_20Try20MORE20Alpha20Factors20w_20Jonathan20Larkin202620Delaney20Mackenzie.mp3
Category:trading -- posted at: 5:01pm EDT
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.
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Direct download: 101_20Latching20onto20trends2C20strategic20business20moves2C20and20breaking20the20norm20w_20Siam20Kidd.mp3
Category:trading -- posted at: 5:05pm EDT
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.
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Direct download: 0220Q2_20Seeking20Alpha_20Try20Alpha20Factors20w_20Jessica20Stauth202620Delaney20Mackenzie.mp3
Category:trading -- posted at: 5:27pm EDT
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.
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Direct download: 100_20Overcome20adversity2C20dominate20a20niche2C20become20the20house20E2809320Bao2C2040Modern_Rock.mp3
Category:trading -- posted at: 6:55pm EDT
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.
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Direct download: 0120Q1_20You20Don27t20Know20How20Wrong20You20Are20w_20Delaney20Mackenzie.mp3
Category:trading -- posted at: 3:40pm EDT
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_20What20happens20on20a20merchant20trading20deskE28094with20energy20veteran2C20Brynne20Kelly.mp3
Category:trading -- posted at: 4:44pm EDT
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.
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Direct download: 098_20How20successful20day20trading20can20fly20in20the20face20of20conventional20wisdomE28094ex-prop20trader2C20Peter20To.mp3
Category:trading -- posted at: 4:21pm EDT
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_20How20to20think20about20strategies20like20a20quant2C20then20mix2027em20together20w_20Derek20Wong.mp3
Category:trading -- posted at: 4:09pm EDT
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_20An20eight20year20overnight20success20story2C20and20a20thirst20for20momentum20w_20Nico2C2040InefficientMrkt.mp3
Category:trading -- posted at: 5:23pm EDT