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