219: 3 Biggest Lessons from Chart Trader to Algo Hedge Fund Manager
Jan 3, 2024
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Breakout trading specialist and Hedge Fund manager Tomas Nesnidal shares his 3 biggest lessons from his start in discretionary chart trading up to breakout trading mastery. Topics include the transition from discretionary to algorithmic trading, the role of lifestyle in trading choices, exploring breakout trading strategies, incorporating robustness testing in trading, and the importance of exit strategies over entries.
Transitioning from discretionary to algorithmic trading can free up time and provide a more efficient approach.
Focusing on exit strategies rather than just entries can lead to more effective trading strategies.
Deep dives
Moving from discretionary to algorithmic trading
The speaker shares how they transitioned from discretionary to algorithmic trading in order to free up their time. They mention the challenges they faced, such as the time-consuming nature of discretionary trading and the desire for a more efficient approach. They also discuss a defining moment that led them to realize the importance of algorithmic trading for their desired lifestyle.
Discovering breakout trading and building a model
The speaker talks about their journey into breakout trading and how it became their specialty. They mention a friend who introduced them to breakout trading strategies and how it resonated with their previous discretionary trading experience. They highlight the importance of having a model for building strategies, which can make the process more efficient and scalable. They emphasize the need to focus on exits rather than just entries, and how this perspective can lead to more effective trading strategies.
The impact of mentors in the trading journey
The speaker pays tribute to their mentor, Mike, who had a major impact on their trading journey. They describe Mike as a former CIA agent with unconventional manners and a deep understanding of risk management and trade exits. They stress the importance of viewing trading as a long-term game and prioritizing risk management over entry setups. They explain how lessons from Mike helped them develop a more disciplined and profitable trading approach.
Closing remarks
The speaker encourages traders to embrace the concept of algorithmic trading and strive for a balanced lifestyle. They emphasize the need for a model and robustness testing procedures in strategy development, and how these can lead to more consistent and profitable results. They also highlight the importance of understanding the relationship between win percentage and reward-risk ratio, and how it can guide decision-making in strategy building and portfolio management. They offer additional resources, such as the Better Trader Academy and their book, Breakout Trading Revolution, for further learning.
In this episode, our guest is breakout trading specialist and Hedge Fund manager Tomas “Mr Breakouts” Nesnidal. In our discussion Tomas shares the 3 biggest lessons from his start in discretionary chart trading up to breakout trading mastery, plus some interesting stories along the way (like the trading tips he learnt from a CIA agent!) Packed with practical tips, eye-opening insights and interesting stories, this is a must-listen for anyone looking to up their trading game. Tomas's story is one you don't want to miss. Key Points: Transition from Discretionary to Algorithmic Trading The Role of Lifestyle in Trading Choices Exploring Breakout Trading Strategies Incorporating Robustness Testing in Trading The Importance of Exit Strategies over Entries Developing a Successful Trading Model Influence of Mentors in Trading Development And Much More. Disclaimer: Trading in the financial markets involves a substantial risk of loss. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice.
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