Chat With Traders 281: Marsten Parker - The Purely Systematic Wizard Trader
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May 21, 2024 Experienced trader Marsten Parker discusses transitioning from discretionary to systematic trading, emphasizing statistical analysis and automated systems. He shares insights on developing fully automated trading systems for breakouts, mean reversion, IPO opportunities, and other strategies. Marsten highlights the importance of avoiding risky stocks, analyzing market regimes, and discrepancies between backtesting and live trading results.
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Early Trading Losses
- Marsten Parker's early trades were based on fundamental analysis and CNBC tips.
- He lost $50,000 in his first year, prompting a shift to systematic trading.
Dislike for Discretionary Trading
- Marsten Parker dislikes the emotional rollercoaster of discretionary trading.
- He prefers the analytical puzzle of systematic strategy development.
Core Breakout Strategy
- From 1998 to 2015, Marsten Parker primarily used one core strategy: buying breakouts and shorting breakdowns on unusual volume.
- Initially, he phoned orders, then emailed them, finally automating the process.