235: How traders can compete in the markets and find profitable edges - Jason Strimpel
May 9, 2024
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Jason Strimpel, founder of PyQuantNews, shares valuable insights on how traders can find profitable edges in the fast-paced markets. Topics include the dangers of brute-force data mining, identifying market inefficiencies, and the impact of behavioral patterns on trading strategies.
Differentiate skill from luck to avoid trading pitfalls.
Utilize data-driven strategies to identify and capitalize on market inefficiencies.
Maintain discipline and consistency with a profitable trading strategy to avoid unnecessary tweaking.
Deep dives
Getting Started with Python for Quant Finance
I teach a course focused on Python for quant finance, covering algorithmic trading, portfolio creation, connecting to Interactive Brokers account, and more. By the end of the course, you'll have a strong grasp of tools needed for quant finance.
Understanding Market Intuition
Staring at the markets for a month or two with a paper trading account to understand how the market behaves can help develop market intuition. This practical experience can provide valuable insights into market dynamics.
Using Python for Backtesting
In the realm of backtesting, there are different types of frameworks like event-based and vector-based backtesters. Understanding the nuances of each type based on your trading style can help in effectively testing trading strategies.
Balancing Unrealized and Realized Gains
To address the discrepancy between unrealized gains seen in open equity and realized gains in closed equity, consider optimizing risk management strategies, using limit orders, trailing stops, and ensuring you're trading liquid assets.
Profitable Strategy Maintenance
Once becoming profitable, it's crucial to maintain discipline and consistency with the successful strategy that led to profitability. Avoid unnecessary tweaking and continue executing the same strategy until the metrics indicate a loss of edge in that strategy.
In this episode, Jason Strimpel from PyQuantNews joins me to discuss how traders can find profitable edges and compete effectively in today's fast-paced markets. Whether you're a seasoned trader or just starting out, Jason's strategies and insights are invaluable for anyone looking to up their trading game.
Here’s just some of the points you’ll discover:
How some traders get into trouble by confusing skill with luck,
Why charts and basic trading platforms aren’t enough to compete in the markets,
The importance of looking outside the charts for genuine market inefficiencies,
The dangers of brute-force data mining for strategy design and what to do instead,
Creative approaches to finding robust trading edges,
The impact of behavioral patterns and structural market inefficiencies on trading strategies,
How data-driven strategies can help you identify and capitalize on market inefficiencies,
Identifying areas in the market where inefficiencies may exist,
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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