The Outlier Trading Podcast From Quant to Retail - Building a Real Options Trading Career - Euan Sinclair | The Outlier Podcast
33 snips
Mar 27, 2025 
Euan Sinclair, an expert options trader and author of 'Retail Options Trading,' dives into the complexities of market dynamics and trading strategies. He discusses the necessity of disciplined practices and the pitfalls of overanalyzing data. Sinclair emphasizes the importance of risk management, sharing insights on optimal sizing strategies like the Kelly criterion. He also critiques the common misconception that more reading equates to better trading, advocating for practical engagement over theory. Overall, he offers a refreshing perspective on navigating the evolving landscape of retail options trading.
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Rare VIX Spike Insight
- The August 5th VIX spike was a rare event with the VIX soaring mid-60s but the S&P barely moved.
- Observing such abnormal relationships, like the S&P VIX surpassing the NASDAQ VIX, reveals significant trading opportunities.
Validate Before Adjusting
- Always validate new trading ideas with robust backtests before changing your strategy.
- Avoid overfitting your strategy based on small sample sizes or short trading periods.
Keep Systems Simple
- Keep trading systems simple and avoid adding many parameters to prevent spurious correlations.
- Diversify by creating different simple strategies rather than over-optimizing one.