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).
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Direct download: Q6_20Your20Quantitative20Trading20Questions20Answered20w_20Delaney20Mackenzie.mp3
Category:trading -- posted at: 6:05pm EDT
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.
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Direct download: 108_20Being20a20versatile20and20adaptable20trader2C20while20testing20your20comfort20zone20w_20John20Netto.mp3
Category:trading -- posted at: 6:11pm EDT
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.
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Direct download: 107_20A2040-year20trading20career20fuelled20by20necessityE28094the20mother20of20invention20w_20Anthony20Saliba.mp3
Category:trading -- posted at: 5:44pm EDT
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!
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Direct download: 106_20A20Wall20Street20trader27s20tale20of20spectacular20excess20w_20Turney20Duff.mp3
Category:trading -- posted at: 5:12pm EDT
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 EDT
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_20An20appetite20for20risk2C20and20hitting20hard20when20opportunity20arises20Alex2C2040AT09_Trader.mp3
Category:trading -- posted at: 3:25pm EDT
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.
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Direct download: Q5_20Good2028and20Not20So20Good2920Uses20of20Machine20Learning20in20Finance20w_20Max20Margenot202620Delaney20Mackenzie.mp3
Category:trading -- posted at: 7:58pm EDT
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 EDT
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
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:general -- posted at: 5:51pm EDT