trading as a business

Posted on Apr 16, 2020 by Kris Longmore
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One of the keys to running a successful systematic trading business is a relentless focus on high return-on-investment activities. High ROI activities include: Implementing new trading strategies within a proven framework. An example might be to implement a portfolio of pairs trades in the equity market. Scaling existing strategies to new instruments or markets. For example, porting the pair trading setup to a different international equity market. Well planned iterative research, set up in such a way that you can test and invalidate ideas quickly. This is the kind of research we show in our Bootcamps. Low ROI activities include: Large scale data mining exercises or any research that requires significant effort be expended before the idea can be invalidated. Looking for unique alpha ideas when you could be implementing simple trades within a proven framework. Building your own backtesting platform[footnote]You probably think you’ll learn a ton doing this and you’re not wrong about that – but it’s going to suck a huge amount of your time on something that you can buy in cost-effectively.[/footnote] Building your own execution platform[footnote]Ditto.[/footnote]...

Posted on Aug 01, 2019 by Kris Longmore
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One of the biggest wins we have at Robot Wealth is in helping aspiring traders see the markets, and profitable trading, for what it really is. Rather than utilising a tried and tested approach that has generated real money in the markets, in practice, many aspiring traders gravitate to seemingly exciting approaches with the weakest history of success, assuming that this is how you make money in the markets. Our job is to give you that tried and tested approach. To make your trading life easier and more profitable, we recommend putting the fun distractions on hold in favour of the far simpler, lower-hanging fruit that will really make your money grow. Let's see what this shift in approach looks like... What are you really trying to achieve? Say you have X dollars of trading capital. As traders, what we're trying to do is maximise the chance of turning $X into more than $X. This doesn’t seem like a revolutionary way of looking at things – but it seems to me that most traders aren’t focusing ruthlessly on this problem, certainly...