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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: 2021
Sep 15, 2021

Martyn Tinsley from TradeLikeAMachine joins us to discuss market noise, and how to leverage noise to improve trading strategies, including:

  • Why it's important to understand market noise,
  • The impact of market noise on trading strategies,
  • Using noise to filter assets and timeframes,
  • Example of impact of market noise on Mean Reversion strategies,
  • The best strategies to trade in noisy markets,
  • The difference between noise and volatility,
  • Harmonic price patterns, instantaneous noise filtering, trading currency pairs, signal lag in noise indicators, repeatable patterns vs indicators and much more!
Sep 7, 2021

Brian Blandin from Markets Science joins us to discuss how to find and trade statistical edges in the crypto markets, including:

  • The things traders need to be aware of before trading crypto,
  • Common factors and repeatable patterns that move the crypto markets,
  • Software, programming language and exchange selection,
  • How to screen cryptocurrencies to find those worth trading,
  • Safety of funds at unregulated brokers,
  • Crypto market correlation to stocks and index futures,
  • Moving from discretionary to systematic crypto trading, volatility, slippage, liquidity and much more!

 

Aug 24, 2021

Curtis White from Beyond Backtesting joins us to discuss 3 ways traders can build better trading models, including:

  • The problem with trading models and why traders struggle to incorporate predictive factors into models,
  • What drives the markets and using market cognition for better trading ideas,
  • Identifying and trading different markets and datasets,
  • Using statistical creativity in the strategy validation process,
  • Problems with Walk Forward Optimization and the 'proven winner' solution,
  • Testing with different bar types, the negative impacts of being too risk averse, and much more!
Aug 10, 2021

Kyle Schultz from Algorithmic Futures joins us to discuss how to leverage volatility in your trading strategies to improve risk/reward and outperform the market, including:

  • Why volatility is a key component in trading strategies,
  • 3 main ways to apply volatility in trading strategies,\
  • Types of volatility filters and when to use them in the strategy development process,
  • Using VIX term structure as a regime filter,
  • Adapting strategies to different volatility regimes,
  • Mean reversion vs momentum in different volatility regimes,
  • And much more!
Aug 3, 2021

Jeff Swanson from EasyLanguageMastery discusses how to avoid curve fitting your trading strategies using the "independent testing" technique, including:

  • The things traders do that cause curvefitting,
  • Is curvefitting a trading strategy really that bad?
  • Independent testing and why you should use it when developing trading strategies,
  • How to do independent testing of filters and using optimization to judge filter consistency,
  • Testing combinations of filters and why you should look to remove
  • Plus, types of filters to test, where to get trading ideas, how long to test a trading idea, when to switch strategies off, combining filters, tweaking a strategy and much more!
Jul 27, 2021

Algorithmic trader Cesar Alvarez from Alvarez Quant Trading joins us to discuss low effort trading strategies, including:

  • An explanation of rotational trading and the benefits/challenges of using rotational strategies,
  • Why rotational trading is a fantastic way to diversify time (and also get to “trade lazy”),
  • How often to rebalance and the impacts of the day you choose to rebalance,
  • Ranking methods and some of the most effective ways to find the best candidates,
  • How to reduce the churn in rotational trading with one small but powerful exit tweak,
  • Plus, universe selection, risk management, rebalancing, short trades, mean reversion, stock splits, audience questions and much more!
Jul 20, 2021

Trend following trader David Lundgren joins us to discuss how to improve trend following performance, including:

  • The problem with momentum (and why momentum “doesn’t work”),
  • Why momentum isn't working today,
  • Mixing momentum with trend following for better performance,
  • The 4 conditions that must happen for a trend to occur,
  • Modeling regime drivers and digging deeper to understand true market health,
  • What to do when trading strategies are struggling,
  • And much more.
Jul 14, 2021

Trader, author and performance coach Dr Brett Steenbarger discusses how traders can get an edge by applying innovation to their trading, including:

  • The 2 levels of improvements traders can make,
  • Why traders resist innovation and how to address hesitation to change,
  • How to innovate by looking at what we do well,
  • Why NOT trading can be an innovation for traders,
  • Impacts of lifestyle and mindset on innovation,
  • Why you should “limit your search” when looking for edges,
  • The 2 qualities most shared amongst successful traders
  • Plus, odds and backtesting market patterns, skill vs luck, testing in relevant market regimes, what successful traders focus on and much more!
Jun 15, 2021

Quant trader Ernie Chan from PredictNow.ai joins us to discuss how to predict the profitability of trades using machine learning, including:

  • Unconditional probability and the problem with win% in backtest reports,
  • Why “conditional probability” is much more useful for a trader and how to apply conditional probabilities to capital allocation,
  • Why you should use Machine Learning for risk management and capital allocation only (and not for building trading strategies),
  • Why feature selection and feature importance ranking are so valuable,
  • Plus, the best ML techniques for prediction, how simple should trading strategies be, insights from cluster-based feature selection, do these techniques really work, ML as a crystal ball and much more!
Jun 9, 2021

Richard Metzger from Quantsys.net joins us to discuss how to combine algos using state-based market design techniques for more consistent trading performance, including:

  • Why it's important to be sceptical of your algos,
  • The main causes of poor algo performance and how state-based market design can address these issues,
  • How to define market states into "buckets" and why you should keep them simple,
  • Combining state-based algos to create a system, plus
  • Adjusting inputs for market states, combining strategies in Tradestation, market states vs regime filters, and much more!
Jun 2, 2021

Mandi Pour Rafsendjani from High Performance Trading joins us to discuss tips and techniques to perform like a world champion, even under times of stress and uncertainty, including:

  • The 2 types of fears that lead to stress in trading,
  • Self-image and accelerating trading performance,
  • The 3 different areas to look at when dealing with stress,
  • "Protective Pessimism" and positive vs negative thinking,
  • The "3M's" to check when a strategy stops working,
  • The "Queens Gambit" strategy to performance improvement, plus
  • How to recover from larger drawdowns, overtrading, Wim Hof and yoga, self-talk, mindset and why the market is like an “all you can eat” buffet you can keep going back to – yum!
May 26, 2021

David Bean from Capstone Trading Systems joins us to share tips and techniques to manage multiple trading strategies, including:

  • When to start trading a strategy live (the answer may not be what you think!),
  • Why you should learn to love “ugly equity curves”,
  • Watching the markets for trading ideas,
  • Identifying patterns and cycles in portfolio drawdown,
  • Why you should consider correlation based on methodology instead of typical correlation measurements, plus
  • Patterns vs optimization, single idea strategies, market truths, retesting failed patterns, low frequency trading strategies and much more.

 

May 12, 2021

Adam Grimes from Talon Advisors discusses why trading can be so challenging and what to do about it, including:

  • Why it can be so hard to learn from the markets,
  • The dangers of doing stupid things in the markets that generate a good outcome,
  • Random price movements and finding more predictable moments,
  • Why having success outside of the markets doesn’t guarantee you’ll be a good trader,
  • Trading psychology and interacting with randomness,
  • Adapting to uncertainty and mispricing risk,
  • Deliberate practise, Algo vs discretionary trading, when to stop trading a system, new events, out of sample date, how far to backtest and forward test before going live and much more.
May 5, 2021

Algorithmic trader Kevin Davey discusses the sneaky tactics trading scammers use to trick people and how you can spot a fraud and protect yourself, including:

  • How to check if testimonials are real,
  • Some simple ways to tell if a trader really is trading live as they claim,
  • How to spot fake trading strategies,
  • Trading gurus who report unrealistic returns and flaunt fake wealth,
  • Websites you can use to check if trading educators are scammers,
  • Why teach if you can trade,
  • Fake trendlines and cherry-picked examples for books,
  • Plus, Paypal refunds, money back guarantees, audited trading records, realistic rates of return, reputable trading educators, the old hedge fund trader/caravan park scam, and much more.

 

Apr 28, 2021

World Cup Trading Championship runner-up Scott Welsh joins us to discuss how "breaking the rules" and doing the opposite of "traditional" trading approaches can lead to higher returns, including:

  • "Burning the ships" and how limiting beliefs are hurting traders,
  • Why traders should "start from the end" and work backwards,
  • Why it's good to see losing in your trading,
  • The 80/20 rule and why "getting the star" beats diversification,
  • How to achieve real-life trading that’s better than the backtest,
  • Selection bias - is it really so bad?
  • Why you should say “screw you” to people who tell you that you can’t do it,
  • Plus, doing the opposite to conventional trading wisdom, breaking the rules with indicators, strategies that never break, trading platforms, beating buy and hold, small profit targets, and much more.
Apr 12, 2021

Numerical Computing specialist and author Timothy Masters joins us (in his only ever interview) to discuss trading strategy development and validation techniques, including:

  • Why trading strategies fall apart in live trading,
  • How luck impacts trading strategy results and the impact of selecting the 'best' trading system,
  • Why trades in an out of sample dataset are NOT representative of future trades,
  • 3 ways to use Monte Carlo Permutation tests in trading strategy development to avoid overfitting, evaluate strategy robustness and assess the quality of your strategy development process,
  • The danger of using out of sample trades to compute the probability of drawdowns,
  • Entropy and information of indicators and why it's important to strategy development,
  • How stationarity really impacts trading strategies and what strategy developers can do about it,
  • Using Walk Forward to determine how robust a strategy is in the market,
  • Incomplete Beta Distribution to track strategy deterioration,
  • Bootstrapping, granular Profit Factor, the predictive ability of technical indicators, counter-trend trading and much more.
Mar 30, 2021

Breakout trading specialist and Hedge Fund manager Tomas Nesnidal joins us to discuss how to increase the returns of trading strategies using "Performance Qualifiers" while also managing risk, including:

  • What is Dynamic Position Sizing (DPS) and how can it improve risk-adjusted returns,
  • How Dynamic Position Sizing is different to classical position sizing (and why DPS is better),
  • Why it’s important for traders to connect position size with what’s going on in the markets, instead of just their equity curve,
  • The 5 groups of Performance Qualifiers and how to use them to identify the probabilities of future trades,
  • Why using filters to improve trading strategies can be dangerous (and DPS is a much better option instead),
  • Plus, Dynamic Position Sizing and risk management, Optimal-f and older position sizing techniques, Dynamic Position Sizing for stocks, forex and other markets, why it’s important for traders to try new concepts, and much more.

Download the free DPS ebook at https://dpstradingtechnique.com  or discover more from Tomas at https://systemsontheroad.com

Mar 24, 2021

Unknown market wizard Marsten Parker joins us to share how he overcame broken strategies and adapted his trading to deliver a 20-year track record most traders would envy, including:

  • Being featured in the “Unknown Market Wizards” book by Jack Schwager,
  • The impacts of a 45% drawdown and how Marsten got back into trading,
  • How to use a system stop to protect your trading account from large losses,
  • Why it’s important to understand why a strategy works,
  • Mean Reversion short strategies, why they’re dangerous and how to mitigate some of the risk,
  • How to detect and protect yourself from a strategy that’s broken,
  • Uncertainty in the market and the future performance of strategies,
  • Equity curve trading, market speed, diversified strategies, tracking old strategies, indicators, market regimes and much more.
Mar 9, 2021

David Steets from Systematic Individual Investor joins us to discuss how to map market probabilities and identify high probability markets using "edge stacking" techniques, including:

  • The importance of mapping market probabilities,
  • How to identify if something really contains an edge,
  • Blending return probabilities across buckets to create a probability map,
  • Classifying markets over multiple timeframes,
  • How to confirm which edges are currently relevant,
  • Using both technical and fundamental in models,
  • The reliability of edges over time,
  • Managing conflicting information and edges,
  • Bear market signals, integrating discretion, weighting edges, VIX term structure, “anti-edges” and much more.
Mar 3, 2021

On this BST live show, Ivan from Ivanhoff Capital joins us to discuss “Short-term swing trading techniques”. Here are some of the topics you’ll discover in this episode:

  • The 2 most important factors in swing trading,
  • Why short-term trading is better than longer-term trading,
  • Measuring market environment and detecting changes,
  • How to find the hot sectors in the market,
  • Shorting stocks and adapting to market corrections and downtrends,
  • Swing trading in choppy markets,
  • Stacking the odds in your favour,
  • High conviction setups, breakouts vs dips, protecting profits, trailing stops, time stops, swing trading psychology and much more.
Feb 24, 2021

On this BST live show, Rob Carver from systematicmoney.org joins us to discuss “3 ways traders kill trading strategies”. Here are just some of the topics you’ll discover in this episode:

  • What can go wrong with strategies in live trading,
  • The impact of model complexity on prediction error, (and are simple models really better than more complicated ones - the answer may surprise you!),
  • The dangers of overstated backtest performance,
  • The impact of historic costs on backtest results,
  • The 3 types of overfitting, including 1 that most traders don’t even realise they’re doing, and how to reduce their impact on your trading models,
  • Strategy robustness and letting data define complexity,
  • The overfitting "levels of sin",
  • Correcting for the "multiple testing problem",
  • Fitting metrics, sample size, data quality, prediction error and much more.
Feb 16, 2021

On this episode of BST Live, Doc Ahrens from Trendline Dynamics joins us to discuss “Effective techniques to identify trends”, including:

  • The Macro-trend Analyzer indicator and 3 ways to use moving averages for macro trend analysis,
  • Why it's important to have simple trading solutions and what failures in aerospace can teach us about trading strategies, 
  • Studies that conclude technical indicators don't work,
  • Using visual confirmation to understand indicator reaction to market scenarios,
  • The 3 types of support and resistance, 
  • How to draw trendlines properly, why it's impossible to “understand the market”, the importance of persistence in trading and loads more.
Feb 10, 2021

So, the verdict is in…

Afrotechmods says:

“I think this is the most informative guest you have ever had! Thank you both.”

What am I talking about?

On this episode of BST Live, Stefan Friedrichowski from JFD Bank joined us to discuss “how to build Mean Reversion trading strategies”, and it was an absolute cracker! Even if you’re not a mean reversion trader, you have to see this one. 

Here’s a small sample of the tips and insights you’ll discover:

  • The "alarm signal" that got Stefan interested in Mean Reversion trading,
  • How to determine if a market is good for Mean Reversion or not,
  • How to reduce noise and increase the information content in trading charts, 
  • The danger of using a Mean which moves too fast,
  • How the distribution of 2 bar combinations gives clues about potential trading edges,
  • Adjusting the Mean length based on the timeframe of the chart, 

Stop-loss vs take profit size, trading without a stop loss, degrees of freedom, statistical significance, sample size, entries, exits, and loads more.

Feb 3, 2021

Ever wondered how to turn $10k into $100k (or more) in just 2 years (or less)?

Many traders have, especially early in their careers…

But how do professional traders achieve superior returns while also protecting capital. 

On this week’s episode of BST Live, Laurent Bernut from Alpha Secure Capital joined us to discuss “Superior returns from superior risk management”, and a new approach to risk management where you can put risk appetite on autopilot, protect capital and achieve superior returns.

Here are just some of the tips you’ll discover:

  • How to turn 10k into 1 million (or more) in just 2 years...,
  • How unrealistic trading expectations set you up for failure,
  • What is "superior" risk management and why investors are like teenage girls,
  • Concavity and Convexity Oscillators for dynamic risk management,
  • Position sizing with small accounts,
  • Why you should let the market dictate the risk for you,
  • How to judge the tradability of a strategy, plus
  • Emotional capital vs financial capital and which is more critical, Risk management after long periods of underperformance, mean reversion vs trend following, the problem with pyramiding into positions and MUCH more.

To hear all about it, head on over to bettersystemtrader.com/177 now to watch along or check in with your favourite podcast app if you like to listen. 

Happy trading!

Andrew.

PS. Laurent even turned the tables and asked me a question on why I do Better System Trader. Check out my response at bettersystemtrader.com/177

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