89 Making a Simple System and Sticking To It with Robert Carver, Author & Trader – 1of2

"Most people are not as good at trading as they think they are." - Robert Carver (Tweet)
Robert Carver spends most of his book telling you that he is not a good trader. So why did he devote his life and a whole book to the subject?

Because he believes in systematic trading; making a simple trading system and sticking to it.

In this episode, we dive into his new book and explore why simplicity is the key, people think they are better traders than they are, and so much more.

Thanks for listening and let's welcome our guest, Robert Carver.



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In This Episode, You'll Learn:

Why Robert decided to write his new book, Systematic Trading
Robert reads the preface to his new book
He explains one of the biggest investing mistakes of his career
The book that got him interested in the financial industry
"From quite a young age, I was fascinated by computers." - Robert Carver (Tweet)

How he got a job with AHL
"From 2006 to 2013 when I left AHL, it was probably the most exciting period to work in financial markets." - Robert Carver (Tweet)

Why he wrote a book with very little math involved so that he spoke to a large audience
The 3 types of investors that he defines in the book
How cognitive biases in humans make them bad traders
"If you use a system with simple rules, you can overcome those cognitive biases." - Robert Carver (Tweet)

Why he spends a lot of his book explaining how bad he is at trading
Whether trend following and other divergent strategies work or not
Why sticking to a plan is so important
"You need to make the assumption that the future will be at least a bit like the past." - Robert Carver (Tweet)

How the markets and CTAs will change once the interest rate changes
The differences between a subjective and an objective system
Things that people should avoid when creating a trading system
Why few people have a good handle on overtrading
Machine learning approaches vs. idea approaches to creating trading programs
"I personally prefer the ideas-first method to creating trading systems." - Robert Carver (Tweet)

How systematic trading adapts

Resources & Links Mentioned in this Episode:

Listen to our two episodes with Kathryn Kaminski here and here.
AHL
Liar's Poker by Michael Lewis
Thinking, Fast and Slow by Daniel Kahneman

"I try to pick up on human behaviors that have not changed for thousands of years." - Robert Carver (Tweet)
This episode was sponsored by Eurex Exchange:

Connect with Robert Carver:
Buy his book on Amazon.

Follow Robert Carver on Linkedin
"Overconfidence is the fundamental human flaw that effects most people." - Robert Carver (Tweet)