The Algorithmic Advantage 038 - Andrea Unger - 672% Returns? Sure! Would You Like Some Risk with That?
May 7, 2025
Andrea Unger, a four-time World Trading Champion, shares insights from his impressive journey, including a jaw-dropping 672% return during a trading competition. He emphasizes the importance of robust trading strategies, risk management, and adapting to market changes. Unger discusses the evolving world of systematic trading, the complexities of trading strategies, and how account size can affect performance. He also dives into the intricacies of backtesting and portfolio construction, providing a masterclass in navigating the dynamic futures market.
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672% Gain with High Risk and Luck
- Andrea Unger achieved a 672% return in 2008 by taking high risk during a volatile crisis market.
- He nearly went bankrupt due to a 46% drawdown but luck helped him recover and win the competition.
Position Sizing Limits and Truths
- Position sizing maximizes strategy returns but has a limit termed 'optimal F'; more risk beyond this harms profitability.
- Money management cannot turn losing strategies into winners; only good strategies with prudent risk can succeed.
Adapt Strategies to Market Changes
- Adapt strategies to changing market conditions by analyzing missed trades and switching to strategies fit for current volatility.
- Manual selection driven by experience and gut feeling complements automated techniques for better performance.