SI150: Extracting Edges from the Market ft. Richard Brennan - a podcast by Niels Kaastrup-Larsen

This week, Richard Brennan from ATS Trading Solutions makes his debut on the show, and we discuss the complexity behind successful Trend Following strategies, momentum trading versus Trend Following, the importance of average win rate, how a weak edge can still lead to strong returns, deflationary environments and their past effects on the Trend Following models, which markets, and how many, to include in a profitable trading system, and how to find the perfect exit strategy with minimum risk.
In this episode, we discuss:
Why there may be no such thing as a 'simple' successful Trend Following strategy
How to profit across multiple timeframes
How momentum investing is often confused with Trend Following methods
Average win rate versus average loss rate
Why inflation is usually a good thing for systematic investors
Trailing stops and risk management
How many markets are ideal for a profitable Trend Following system
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Follow Richard on Twitter.
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And you can get a free copy of my latest book “The Many Flavors of Trend Following” http://www.toptradersunplugged.com/book%22%20%5Ct%20%22_blank (here).
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Send your questions to info@toptradersunplugged.com
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Episode TimeStamps:
00:00 – Intro
01:31 – A huge thank you to listeners of the show for leaving your 5-star reviews on iTunes
02:18 – Macro recap from Niels
04:23 – Weekly review of performance
10:24 – Q1; Kushro: Is there a way for the novice rules-based investor to reliably backtest their rules?
12:40 – Q2 and Q3; Danny: Can you give an example of how to trade multiple timeframes? How do I manage risk from unrealised profits and losses?
23:35 – Extracting an edge from markets
42:22 – Analysing win/loss rates
52:00 – Stops and position sizing
56:42 – Benchmark performance update
57:45 – Some big announcements

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