The Algorithmic Advantage 034 - Intra-Day, High-Octane, Robust Futures Trading - Bob Pardo - Part 1 of 2
Mar 19, 2025
Bob Pardo, a veteran trader with decades of experience and a pioneer in walk-forward analysis, shares invaluable insights into trading strategies. He discusses the pitfalls of over-optimization and the importance of adaptability in trading methods. Pardo delves into the evolution of his XT99 strategy and how market dynamics shape trading decisions. He emphasizes the critical role of extensive data in developing robust intraday trading strategies and the significance of diversification in futures trading. Expect practical tips and philosophical insights that resonate with aspiring traders.
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Early Trading System Development
- Bob Pardo's trading journey began after a pivotal encounter with Perry Kaufman's book.
- This led him to develop trading systems on an Apple II with 48K memory.
Swing Trader and Early Software
- Early trading software was expensive and often ineffective, costing around $3,000.
- Pardo developed 'Swing Trader,' possibly coining the term "swing trading."
Working with Trading Legends
- Pardo worked at Solomon Brothers, assisting John Merriweather, later of Long-Term Capital Management.
- He knew Larry Williams and Perry Kaufman but found them private about their methods.