AlphaCast Kevin Davey - Champion Futures Algo Trader - AlphaCast Ep. #4 - 2023-04-28
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Apr 29, 2023 Join Leo in an engaging interview with Kevin Davey, a three-time championship futures trader, and algo trading master. Discover Kevin's transition from factory manager to trading strategy developer. Explore topics like risk management, diversification, and personalized trading strategies for success in the financial markets.
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From Sugar Systems to Algos
- Kevin Davey's trading journey began after college with a "can't miss" sugar trading system advertisement.
- This sparked a cycle of trying various approaches, losing money, and eventually discovering algo trading.
Discretionary Trading Woes
- Kevin Davey tried discretionary trading, following price action gurus, but found it emotionally challenging.
- He realized he wasn't suited for it, as he often bought high and sold low, leading to emotional trading decisions.
Manual Backtesting and Early Losses
- Kevin Davey's initial algo trading involved a triple moving average crossover system, calculated manually with newspaper prices.
- After losing a significant portion of his initial $5,000 account, he realized the importance of backtesting and understanding market intricacies like slippage and limit orders.