Andreas Clenow is a hedge fund manager who specialises in developing and trading quantitative strategies across all asset classes.

Before joining the hedge fund world by establishing his own hedge fund he maintained Global Head positions at Reuters and Equis International.

He is the author of two books, the first being international best seller ‘Following the Trend’ and the second ‘Stocks on the Move’ has just been released.

In this episode Andreas talks about trend following in stocks, why traditional approaches don't work and what you can do to account for this. We also talk about trading concepts, cash vs risk allocation, position rebalancing and building robust strategies.

Topics discussed

• The origins of trend following and why a traditional trend following approach doesn't work on stocks
• Why it’s a bad idea to think in terms of cash allocation and the solution
• Position rebalancing, why, how and when
• How hedge funds look at position sizing compared to retail traders
• Why pyramiding positions doesn't make sense
• How to get a more realistic understanding of performance results than just a backtest report can provide
• How a random number generator can beat the mutual funds
• How to ensure you strategies are robust and not curve-fit
• Handling large losses or periods of drawdown
• The role of critical thinking in trading

Disclaimer:
Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.

Dr Ernest Chan talks about many aspects of quantitative trading, including how market crises impact momentum strategies and how to manage the impacts, when to use stop-losses and when they don't make sense, automating trading, managing funds in a portfolio of strategies and a simple money management approach which aims to limit drawdowns while maximising returns.

Topics discussed

• Where to find trading ideas
• The first aspect of a market to identify before building a strategy for it
• Momentum crashes and the performance of momentum strategies after a financial crisis
• How to manage the times when momentum strategies aren’t working
• When stop losses should be used and when they don’t make sense
• How to limit drawdowns while maximising growth
• Factors to consider when automating your trading
• How independent traders can avoid competing with the big trading firms
• When you need to worry about market microstructure and when it doesn’t matter
• Managing funds for a multi-strategy portfolio
• The hardest part of trading

Disclaimer:
Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.

Ralph Vince talks about position sizing, how to choose a position sizing model that suits you, optimalf, the curve and how it can be used for maximum growth and other applications. The risk of multiple strategies in a portfolio and how to manage it, dynamic position sizing, martingale strategies and how Ralphs views on money management has changed in the past 25 years.

Topics discussed

• The single biggest factor in trading which is also probably the most overlooked
• The most important factor when determine position sizing
• How horizon impacts position sizing
• How Optimalf is only one point on the curve and other critical points you also need to consider
• Traversing the curve and how it applies to your trading criterion
• How to manage a portfolio of multiple strategies
• The risk of multiple strategies and how to manage it
• Trading the equity curve
• Dynamic position sizing
• When Martingale strategies make sense
• How Ralphs views on money-management have changed in the past 25 years

Disclaimer:
Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.

Perry Kaufman discusses market noise, the impact it has on trading styles and how it can be used to determine which strategies suit a particular market. We also talk about price shocks and how to mitigate their effects, how to use volatility in your favour, volatility parity for position sizing, the information ratio for strategy performance and some strategy ideas you can test yourself.

Topics discussed

• How market noise impacts trend following and mean reversion
• The effects of money flow during a crisis
• The types of strategies that work best in new markets and why
• How the efficiency ratio can be used to determine the best type of strategy for a market
• The best markets for trend following and mean reversion
• What strategy style to choose if you're just starting out
• Using Volatility Parity for position sizing
• Impacts and dangers of price shocks on backtesting and how to handle them
• Mitigating the risk of price shocks
• Using the Information Ratio to measure strategy performance and detect possible over-fitting
• The effects of volatility on strategies and how to use volatility in your favour
• Fractal Geometry
• High Frequency Trading
• And some strategy ideas you can test

Disclaimer:
Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.