Tim Rea is a proprietary trader, trading his own money with well over 100 automated systems across 25 different Futures contracts.
He is a past winner of the World Cup trading championship, along with being a CTA and broker but gave that away to focus on trading his own money.
In this weeks episode we discuss various aspects of trading multiple strategies, including monitoring performance, money management, correlation, technology and trading in markets not in your timezone. We also discuss the impacts of the MFGlobal and PFG collapses and how Tim overcame the heavy losses to continue trading.
- How poor experiences investing with others drove Tim to figure it out for himself
- Becoming a systems vendor, CTA and broker and why he then left it all behind to just trade his own money
- How shorter term trading can increase confidence in a system
- How many strategies he’s currently trading (hint: its more than 100!)
- Keeping track of the performance of multiple strategies
- Why you shouldn't just stop trading a system when the drawdown is larger than it has been historically
- Why you should try to understand the underlying reasons for strategy drawdown
- Considerations when adding more strategies to a portfolio
- Managing correlations with multiple strategies
- Position sizing when trading multiple systems
- The benefits of trading a portfolio vs trading an individual method
- How to manage trading in markets not in your timezone
- The impact of the PFG collapse and how Tim overcame the heavy losses
- Lessons learnt from dealing with MFGlobal and PFG collapses
- How to manage your trading account to minimise risk of loss in another collapse
- The benefits of trading Forex
- How Tim won the World Cup Trading championship trading just the EURUSD
- The importance of vision in your trading business