004: Nick Radge discusses system design, the best type of trading systems, handling a bear market, measuring performance and the difference between successful traders and everyone else.
Better System Trader - A podcast by Andrew Swanscott chats with professional traders Larry Williams, Ernest Cha
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In our chat with Nick we discuss system design, the best type of systems to trade, how observations can lead to better strategies, the best way to handle a bear market, measuring system performance, survivorship bias and the difference between successful traders and everyone else. Topics discussed:
- The trading style most people should try first
- Systematic ways to determine a trend
- Why simple systems are the best
- Why broker consensus is a poor indicator
- The best type of stocks for trend following strategies
- What you need to know about a system to be able to handle the drawdown
- How observations can lead to better strategies
- Why buy and hold offers average returns and the best approach to handling a bear market
- How trading can take less than 5 minutes per day
- Measuring the performance of a system
- The difference between very successful traders and everyone else
- The types of survivorship bias that could be ruining your backtest results
- The warning signs of over-optimisation
- Coping with drawdown and personal doubts
- 2 basic strategies you can start testing today!