Whether you’re a retail trader with a small account or a fund manager with millions or billions under management, something that we all need to consider carefully as traders is how or where we’re going to use the money in our trading accounts.
'Capital allocation' sounds boring but it can have such a huge impact on our trading results. Unfortunately, it can sometimes be overlooked for other aspects of trading like entries and exits, leaving traders with an inefficient use of their capital and can result in lower returns and poor performance.
Can we use our trading capital more efficiently to achieve higher returns? And if we can, then how?
Todays guest, Michael Melissinos, started out as a junior analyst at Bear Stearns and is now running his own systematic trend-following fund Melissinos Trading.
Mike is a competitive guy, always looking for ways to improve his trading performance and in today’s episode he's going to share with us some practical ideas and research, including:
Today’s guest is a trader that has been requested quite a few times actually, I’ve had a lot of requests to have this person as a guest on the show, and the guest is Adam Grimes.
Adam has two decades of experience in the industry as a trader, analyst and system developer and is currently Chief Investment Officer of Waverly Advisors.
He’s previously held positions at Level Partners, MBF Asset Management and SMB Capital and is the author of ‘The Art & Science of Technical Analysis: Market Structure, Price Action & Trading Strategies’.
For those of you that know Adam and his work, his approach to trading is a mix of quant and discretion, and I think even if you’re a purely systematic or quant based trader it’s interesting to hear other people’s approaches and points of view.
So we start off the chat by discussing his approach of mixing quant and discretionary models, and then we move onto behavioral factors in the market and why approaches that look at the market as purely rational fail.
We then end the chat discussing Keltner channels and their applications to trading, so there’s quite a variation in topics here but I’m sure you’ll find it interesting.