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Better System Trader

If you’re looking for inspiration, motivation and practical advice on improving your trading results, Better System Trader delivers every week. Each episode brings you an expert trader who shares their own story, along with the steps, both good and bad, that they’ve taken on their path to success. With a focus on actionable insights, the tips and tricks used by the experts contain loads of value, providing you with insanely practical tips and tools you can start using TODAY. Improve your trading with Better System Trader.
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Now displaying: May, 2016
May 29, 2016

Nelson Freeburg was the editor of Formula Research, a newsletter that developed systematic timing models for the stock, bond, and commodity markets.

He was also a research consultant working with institutional money managers to design proprietary timing models.

Nelson had been an active trader since 1980 and occasionally spoke about his work to audiences around the world.

In this episode, Linda Raschke shares memories of Nelson, his approach to model development and what we can learn by studying his work.

Topics discussed

  • Timing models and the components Nelson used in his models
  • Russell growth vs Russell value model
  • Out of sample testing and sample size
  • Why Nelson focused so much on reducing drawdown
  • Nelsons biggest strengths in modelling and what we can learn from his approach
  • Voting systems
  • The benefits of overlaying models

 

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.

May 15, 2016

Markets are constantly changing. Trading edges come and go.

In an industry with such a low survival rate, where some areas are changing at an ever increasing rate, what does it actually take to not only survive, but thrive, over an extended period of time?

The guest on this episode, Linda Raschke, has been trading for over 35 years. She traded for several hedge funds before starting her own, ranking 17th out of 4500 hedge funds by Barclays Hedge for 'Best 5 year performance'.

She's experienced a large number of changes in the industry, some of them have been huge, but she’s managed to adapt and continues trading even today.

Linda stand out from the crowd for three factors: Performance, Longevity and Consistency, so what does it actually take?

What has she learnt over the years and what can we do to improve our own chances of performance, longevity and consistency?

In our chat with Linda we discuss some of the changes she’s experienced over the years and the impacts this has had on trading. We also hear about her approach to modelling the markets, understanding market behavior, trade management, day trading techniques and some fantastic questions submitted by fellow listeners. Make sure you don’t miss those!

Topics discussed

  • Changes in the markets over time and the impacts that has had on strategies and their performance
  • How to use modelling to identify market behavior and edges
  • AI, machine learning and neural network techniques
  • Tips and factors to consider when daytrading
  • Reading market behavior throughout the day

PLUS loads of great questions submitted by Better System Trader listeners!

 

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.

May 1, 2016

Trading can be tough, markets are noisy and finding signals in the market noise can be challenging. Also, applying indicators to trading strategies can introduce lag, however a lot of traders don’t even realize the lag their indicators are introducing or the impact it can have on trading. In fact, the guest in our chat today, John Ehlers said “One of the biggest enemies of traders is lag”.

So, what's the solution?

John Ehlers is well known in the commodity futures arena as the Creator of MESA, having pioneered the MESA method of cycle analysis in the late 1970's and becoming the founder of MESA Software.

He is author of four books including Rocket Science for Traders, Cycle Analytics for Traders, Cybernetic Analysis for Stocks and Futures and MESA and Trading Market Cycles.

He has also been a contributing editor of Stocks & Commodities, winning a number of awards for his work.

In our chat with John we discuss the issue of indicator lag, the impact it can have on trading and some solutions. We also talk about applications of Digital Signal Processing in trading, the MESA approach, regime switching, Cycles and the mistakes people make trading cycles.

Topics discussed

  • MESA and it’s application to trading
  • Alternatives to the MESA approach and which is best for the markets
  • How cycle length can determine indicator length
  • Common mistakes people make with cycles
  • Cycles and DSP techniques as regime filters
  • The problems caused by indicator lag and solutions to reducing lag
  • The best low-lag filter and oscillator available
  • Getting started with Cycles and DSP

 

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.

 

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