The Algorithmic Advantage

036 - Kevin Davey Part I - It's All About Process in Algo Trading

11 snips
Apr 18, 2025
Kevin Davey, an algorithmic futures trader with three decades of experience, shares his insights on trading processes and improvement techniques. He emphasizes the necessity of a structured approach, discussing rigorous validation methods like walk-forward testing and Monte Carlo simulations. Davey also explores market diversity, from grains to cocoa, highlighting the importance of adaptation and robust risk management. He stresses that success in the unpredictable market relies on disciplined strategies rather than mere past successes.
Ask episode
AI Snips
Chapters
Books
Transcript
Episode notes
INSIGHT

Engineering Mindset Shapes Trading

  • Kevin Davey applies engineering and quality assurance principles to trading, emphasizing process and continuous improvement.
  • He stresses that trading has no fixed right or wrong answers, requiring adaptability and ongoing refinement.
INSIGHT

Diverse Futures and Timeframes

  • Kevin trades diverse futures markets on CME and ICE, focusing on liquid instruments with sufficient history.
  • He uses multiple timeframes and technical inputs but accepts most ideas fail after costs like slippage.
INSIGHT

Longer-Term Strategies Filter Noise

  • Shorter timeframes generally contain more noise and incur higher slippage costs, making longer-term trend-following strategies usually more effective.
  • Kevin aligns with letting the market guide strategy choice rather than forcing views.
Get the Snipd Podcast app to discover more snips from this episode
Get the app