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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: April, 2017
Apr 30, 2017

“ When you have a bad entry, you can always work your way around it, but when you have a bad exit, this is final… This is when the P&L gets printed.” – Laurent Bernut

Exits have such a dramatic impact on overall strategy performance, so having a full and proper understanding of the best way to leverage exits is absolutely essential.

In this episode, Laurent Bernut from Alpha Secure Capital combines his witty sense of humor with his knowledge of exits, to entertain and to also share:

  • How to classify exits and set them to achieve much clearer, neater, and better trading strategies,
  • A simple technique to determine if you’ve overstayed your welcome in a trade, stay too long and you could suffer!
  • How to use "the game of two-thirds" to determine the length of a time-exit,
  • Plus much more, including the correct way to think about stop-losses, how to deal with free-loaders in a portfolio and the ultimate entry technique to test you have a robust exit strategy.

 

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.

Apr 28, 2017

I recently received an email asking me where all the trading ideas are.

I think every episode provides at least 1 idea of value, but one that stands out in my mind was the chat with Rob Hanna in episode 7.

In that episode he share loads of trading ideas.

But he also goes one step further and explains the technique he uses to find new trading ideas...

Every.

Single.

Day.

Using this technique we can find lots of ideas to test too.

Take a listen to this short audio snippet from Rob explaining how he never runs out of trading ideas to 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.

Apr 21, 2017

One of the appeals of automated trading is that it can be automated.

You can 'set it and forget it' if you want.

However there can be some dangers with doing so.

About a year and a half ago I went through a period of being a little bit slack with monitoring my automated strategies and there was one occasion where my 'set it and forget' approach turned into a case of 'forget it and regret it'...

... A stop loss order for one of my strategies had been rejected

... I failed to check my trading platform for a few days because I was travelling and tired

... That particular lesson cost me 2-3 times the original stop loss size.

So that was a stupid thing to do.

But I learnt my lesson and now I check my trading platform alot more.

A regular checkup to make sure everything is running smoothly is incredibly important because technology issues can (and will) happen at any time.

But there's another process I've implemented which has helped me to identify issues that could have gone on for a lot longer if I'd left them unchecked.

I got this process from Kevin Davey, so in this episode I've asked Kevin to join us for a quick chat to explain his own monitoring process some more, including some examples of the things he's found by following this process.

So lets head over to my chat with Kevin Davey to hear more.

 

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.

Apr 16, 2017

Market corrections can be a stressful and challenging time for some traders, but it can also be a time of incredible opportunity.

How can we not only protect our trading accounts but also grow our capital even further during market corrections?

Our guest for this episode, @Ivanhoff, is author of the book ‘Crash: How to Protect and Grow Capital During Corrections’ and in this episode he's going to share with us:

  • Some of the warning signs a correction could be starting and how to protect your capital during market corrections,
  • The opportunities available in market corrections and how to take advantage of these to grow capital,
  • How the characteristics of corrections are changing over time and the impacts this could have for future market corrections,
  • Current market conditions and what this could be telling us.

 

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.

Apr 14, 2017

Earlier this week I was on a flight from LAX back to Melbourne.

As we were sitting on the plane waiting for our departure I overheard a flight attendant say to a fellow passenger that one of the other planes had been struck by lightning causing delays to other flights.

At the time I didn’t know if a lightning strike on a plane was a bad thing, it sure sounds like something you don’t want to experience, however it got me thinking about the risks of flying.

Now admittedly, it’s probably not the best thing to be thinking about just before the plane takes off for a 16 hour flight across the Pacific ocean at night but luckily my thoughts quickly switched to trading and the risks we face as traders.

One of the concepts which immediately came to my mind was ‘risk of ruin’, which we first discussed way back in episode 2.

In that podcast interview, futures trader Brent Penfold says:

"In my humble opinion, I think the risk of ruin is number one or the most important concept in trading."

I want to share a little bit more of that audio with you now, because it explains:

  • Why risk of ruin is such an important concept for traders to understand,
  • What traders need to know about risk of ruin,
  • How to calculate your own risk of ruin.

Plus I'll share what happens to a plane when it's struck by lightning, so take a listen.

 

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.

Apr 7, 2017

"Basing your decisions on past data is like driving down the road, looking in the rear-view mirror".

For the most part, traders don't know what’s going to happen in the future and never will.

In the previous podcast episode, Gary Hart explains how considering future probabilities can be beneficial, suggesting traders “base decisions on the probable future instead of the certain past.”

In this episode, we explore this idea further by reviewing a dangerous trading assumption and how traders can better position themselves for future market conditions.

 

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.

Apr 2, 2017

Our guest for the episode is Gary Hart, the founder of Trendfinder Trading Systems, a company offering mechanical intraday and swing trading strategies in futures.

Gary has been trading futures for close to two decades now, becoming a member of the NFA and a registered CTA.

He's had a number of trading strategies take the top spots in Futures Truth rankings so we’re going to discuss how he builds trading strategies that do that plus we also cover a lot of other aspects of trading, including:

  • The challenges of developing day-trading strategies and how to overcome them
  • The worst time to trade intraday strategies that can hurt performance
  • Why price-based strategies have lost their edge and how integrating additional data can provide superior performance over purely price-based strategies
  • How to construct a portfolio of strategies and identify ones that complement each other
  • Plus much more, including overfitting, optimization, swing-trading, correlation, market behaviour, index trading, volatility and reusing trading ideas.

 

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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