Position Sizing and Cutting Losses

We’re joined by Jack Schwager—author of the legendary Market Wizards series and co-founder of FundSeeder—along with his partner and fellow co-founder & CEO, Emanuel Balarie. Jack shares what it really takes to be considered for a Market Wizards book: not one formula, but a mix of standout performance, disciplined risk, and an almost obsessive commitment to process and adaptation. Along the way, we dig into why survival so often hinges on position sizing and pre-planned exits, whether strategies like trend following can still hold up today, and the paradox of how fundamental convictions can actually work against risk management.

Emanuel then explains how FundSeeder discovers talented but undiscovered traders worldwide, using analytics to measure performance and the FundSeeder Rise accelerator (now part of RQSI) to help top performers make the leap from trading their own accounts to managing outside capital. Think of it as a “farm system” for the next generation of fund managers. Few will ultimately make the cut, but every great manager starts somewhere—and if you’ve been honing your craft and building a real track record, this episode might spark the thought: why not you?

Time Stamps:

Please note: Exact times will vary depending on current ads.

• 00:00 – Introduction and background

• 10:50 – What qualifies as “Market Wizards” performance

• 15:20 – Longevity vs. hot streaks

• 17:20 – Position sizing & cutting losses

• 19:20 – Obsession level + trainee mindset

• 24:20 – When edges die (index adds, VIX pattern)

• 27:20 – Trend logic vs. whipsaw reality

• 32:20 – Fundamentals vs. risk management

• 38:20 – “Know your exit before entry”

• 39:50 – FundSeeder origin story

• 42:20 – Evaluating traders (quant + qual)

• 48:20 – Why the Rise accelerator exists

• 52:20 – RQSI’s role in seeding talent

• 55:20 – Free analytics & benchmarking for traders

• 57:20 – How to apply / contact

Trading Disclaimer:

Trading in the financial markets involves a risk of loss. Podcast episodes and other content produced by Chat With Traders are for informational or educational purposes only and do not constitute trading or investment recommendations or advice.

Links + Resources:

• FundSeeder: https://fundseeder.com

• FundSeeder Rise (accelerator): https://www.fundseeder.com/rise

• FundSeeder on X:  https://x.com/fundseeder

• Jack Schwager: https://x.com/jackschwager  | http://www.jackschwager.com/

• Emanuel Balarie: https://x.com/emanuelbalarie

Sponsor of Chat With Traders Podcast:

• Trade The Pool:  http://www.tradethepool.com
  

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