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:trading -- posted at: 5:51pm 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.
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 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.
Sponsored by TradeStation.com – Trade with TradeStation. Enjoy access to many markets and products, cost-saving commission rates, and more.
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.
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 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.
Sponsored by TradeStation.com – A fully-licensed online broker and trading technology provider (who have won a ridiculous amount of awards!)
Direct download: 098_20How20successful20day20trading20can20fly20in20the20face20of20conventional20wisdomE28094ex-prop20trader2C20Peter20To.mp3
Category:trading -- posted at: 4:21pm EDT