Anthony is a proprietary futures trader from Sydney, with 10-years market experience. He's active?particularly during the night?in a range of products, such as; Australian and U.S. bonds, equity indices, currencies and a few commodities. While he's a click trader, Anthony is quite systematic with his processes and strategies?which are mostly trading spreads between correlated products.
Naturally, we speak about many things during this episode, but one of the highlights was hearing about how Anthony got himself into a six-figure drawdown and was able to claw it back in just one-month. We spend quite a bit of time breaking it down.
Anthony is also a budding podcaster, who hosts the show Minds of Motorsport. So, if you'd like to hear from people in the world of motorsport, be sure to give it a listen!
It?s with great pleasure that I introduce to you, Stan Gluzman; an intraday equities trader at proprietary trading firm Seven Points Capital. Stan also heads up a small team of junior traders at one of the firms? additional offices?outside of New York?in Fort Lauderdale, Florida.
We discuss Stan?s path to consistent profitability as a prop trader, and then we get into specifics about the various strategies that Stan has traded in recent years?including the actual strategies that he implements today. I also ask Stan to share details about the various forms of analysis (statistical, fundamental and technical) that he uses to identify his best trading opportunities each day.
And if you like this episode, you should go back and listen to Mike Katz on episode 156. Because Mike?s the co-founder of Seven Points, and as you?ll hear, he was a mentor to Stan while he was still developing the skills to trade professionally.
My guest on this episode is Joshua Greenwald, the CEO of a newly formed crypto derivatives exchange, LXDX. But the part that got me keen to speak with Josh, was the fact that he was a professional trader for more than 10-years prior?
Josh started his career at DRW Trading in Chicago, he then left after six years and went on to co-found Greenlight Trading?a proprietary firm specializing in low-latency options market making, almost exclusively for Asian markets. Greenlight grew to be a team of approximately 30-people, before it was acquired.
Over the next hour or so, we spoke a lot about Greenlight; the timeline from beginning development up to beginning to trade, the signals and the opportunities that they went after, and even the technology that they utilized (i.e. custom built FPGA chips).
Towards the end, we discuss what?s involved in starting an exchange, the functionality and features that are missing from most crypto exchanges but common in traditional markets. And how LXDX is using a security token offering for additional funding (not an endorsement).
Jack Ma is a proprietary futures trader from Sydney and the head trader of Minter Capital?a firm he established this year, in which he currently mentors and backs a group of developing traders.
Jack trades an ?inventory style? in the market of Australian 90-Day Bank Bills?continually working structures around his expectations of yield strip movements, with minimal exposure to outright risk. He also trades Australian 3-year and 10-year Government Bonds, but predominantly during rolls (contract expiry).
During this conversation, you?ll hear about Jack?s progression over the past 5-years?breakthroughs and lessons learned, plus his thoughts on trading as a skill (not a strategy), gaining an edge, mindset and competitiveness.
If you?ve been through the archives, then this weeks guest will be no stranger; it?s the options madman and trader of 10+ years, Anand ?Lucci? Sanghvi.
Lucci was one of the first guests to appear on Chat With Traders?back in 2015. As you can imagine, there?s been plenty happening since then, so we took this opportunity to catch up?
Topics of discussion range from life in Puerto Rico, dealing with taxes as a trader, a failed hedge fund, what?s been working for Lucci in equity options?and how he?s continued to evolve in recent years, plus many thoughts on trader psychology.
Bobby Cho is the global head of trading at Cumberland?which is the crypto arm of Chicago trading firm, DRW and it?s one of the largest liquidity providers in the space. Prior to this, Bobby was director of trading at itBit and vice president of trading at Digital Currency Group (formerly known as SecondMarket).
After featuring on the podcast in August last year, I thought it would be fitting to check in with Bobby again, because of the events which have unfolded in cryptocurrency markets over the past 12 months?
Our conversation begins with some of the highlights from the recent Cumberland Summit?which was an industry event for insiders, and Cumberland?s international expansion. Then we get into Bitcoin?s sudden rise and decline from $20k, whether or not crypto markets have matured, decentralised exchanges, crypto?s value and use cases, institutional involvement and the bigger picture moving forward.
The idea for asking Hugo to appear on this episode, was to chat about learning a programming language. Because for some traders, having the ability to write code can have great advantages?such as having the ability to collect stats on market behavior, perform research in a robust data-driven way, visualize large amounts of data, backtest and analyse trading ideas, implement algorithmic strategies, etc.
Plus more professional trading firms and finance related positions now require applicants to have some programming skills. And the same goes for many industries, which should be no surprise, considering a recent IBM study revealed that ?90% of the world?s data has been created in the last two years alone.?
Hugo and I discuss when someone should consider learning to code, determining what?s relevant, the time it takes to become fluent in a programming language, working with new datasets, what to be wary of when using predictive models. And for fun, I ask Hugo (as a data scientist) how he?d go about creating a basic strategy?
I was introduced to this weeks guest by an experienced trader and fund manager, who described him as being "hands down the best trader I know..."
Michael Samuels is an equities trader, who once traded for First New York and Apex Capital, he now trades his own money under the banner of Broome Street Capital.
Michael describes himself as being an 'event driven trader' with a primary focus on news flow surrounding mergers and acquisitions, shareholder activism and fundamentals?to seek out valuation disconnects.
During this episode you'll hear about merger-arb strategies (including examples), what happens during takeovers, a case of "excessive" due diligence, mistakes made and lessons learned during Michael's career, plus plenty more.
You should also note, Michael has recently begun hosting a podcast about M&A activity and the journalists who report on significant company news: According To Sources
Nick Fabrio is an exceptional day trader. With a bias for short selling and playing catalysts on the Australian stock market, Nick had surpassed a million dollars in trading profits within his first three years. And all along, he?s been a self-directed ?retail? trader.
Although he currently lives in Texas, Nick and I were able to catch up, sit down and record this podcast while he was back in Sydney last month. We got talking about many things; from dealing chips at The Star casino to receiving threats from a company?s lawyers, analyzing market depth and everything in between.
This special episode of Chat With Traders was recorded in June 2018, in front of a live audience in Sydney. It?s a conversation I had with John Moulton, though better known as Rambo.
John?s a serious trader, and for good reason, he?s considered to be somewhat of a legend trader in Australia?
In short, John left the Chicago trading pits in the 80?s, bound for the Sydney Futures Exchange. During the years that followed, he became a VERY large spread trader of Government Bonds and Bank Bills?he was responsible for a major share of the trading volume done each day.
Now forty years on, since placing his first trade, John is still an active market participant?trading from a coastal location in Queensland, Australia. So, press play and listen in to our conversation, as John reflects on the things which matter most for achieving success and longevity as a trader.
With great honor, I present to you John Moulton (aka Rambo!)
Returning for this episode, is Mike Bellafiore?the co-founder of New York City prop trading firm, SMB Capital. Mike is also the author of One Good Trade and The Playbook, and he was the featured guest on episode 022.
As the title suggests, the purpose of our conversation is to breakdown how you can formulate a plan for becoming a 7-figure day trader. Mike is well-qualified to speak on this subject, because he?s mentored and lead traders within his own firm to reach this level of trading success.
There are no quick fixes packed into this episode, but there is real value?if you listen carefully, take notes and intentionally act on some of Mike?s suggestions, I know it will make a difference over time.
Don?t miss the upcoming LIVE podcast event in Sydney, with special guest John ?RAMBO? Moulton. And did I mention there?s beers ?n pizza too?! ? Get tickets
For this episode, I got to catch up with Mike Agne (@EconEmotions). I know some of you will be well acquainted with Mike; I first interviewed him last year in New York?in person for a live event, and then he was on the podcast in August last year too.
Mike?s trading experience runs deep in bonds/fixed income, also index futures and options. And for a long time he was a prop trader at the renown TransMarket Group. Additionally, Mike writes an excellent weekly newsletter about global markets.
Catching up this time, we talk; relative value trading, the recent pick up in volatility and regime changes, Mike?s economic outlook, risk parameters, technical analysis, making money in bear markets and developments in the world of crypto assets.
For this episode of Chat With Traders podcast, ironically, I?m not chatting with a trader. Instead, I?m speaking with Kimberly Trautmann and she?s Head of DRW Venture Capital.
DRW began as a Chicago trading firm, founded by Don Wilson 25 years ago. Since then, it has grown to be one of the world?s largest firms, with offices in six major cities around the globe and over 800 employees.
It has also become much more than solely a trading firm?the firm?s operations have extended to cryptocurrency market making, large scale property development, and of course, venture capital.
Kim and I talk about; why companies seek venture capital, how investment opportunities are assessed and valued, thoughts on risk/reward. Plus, why the firm has a keen interest in companies innovating with blockchain technology (and ICO?s!)
I was recently introduced to Greg Newman by James King [Episode 133]. The two previously worked together at Mandara Capital, a London Trading firm?
There, James was the performance director (with a background in sports science), and Greg was head of a highly successful oil trading desk?which he built from the ground up in three years, with some guidance from James for overcoming obstacles.
Now, Greg remains a serious participant in oil derivatives and has gone on to become a founding partner of Onyx Commodities. Greg and his firm are most active in oil futures (and the energy sector), but also trading in related OTC products, or better known as swaps.
So naturally, you?ll hear Greg speak about futures, swaps, producers and the physical?which is really interesting! He also talks about ?trade craft? and how stoic thinking has moulded him into the trader he is today.
Phil Goedeker has been trading stocks for, roughly, 15 years. He started young, in college, made a truckload of money in a short period of time, which then afforded him the luxury of never having to work a ?real job.?
Admittedly, Phil will tell you, luck was a major factor early on. Nonetheless, he?s been abundantly successful since, and has continued trading?now with a strategy, with rules and with an edge. Phil?s way of trading is to short parabolic moves?on low float stocks which have been seriously hyped up, and when he senses golden opportunities, he strikes with real conviction.
You?ll hear Phil speak about; his early days and progression, his obsession with cutting losses quickly and going hard on trades which can make a good year a great year. Plus some talk about strategy, timing, setups and why Phil is set on filtering his trading profits into farmland?
When Alex (@TAGRtrades) was on CWT for the first time?Episode 119, he was beginning to make head way as a full-time day trader, since abandoning a secure job in recent years. But since then, he?s really stepped it up a notch?
Alex started 2017 with an account balance of $32,000 and finished the year with a compounded return of 1,400%. But what makes things more significant, is how he was able to achieve this with minimal drawdown.
Over the course of this episode, you?re going to hear Alex and I reviewing his performance of the past twelve months?what he did well and areas where he would like to further improve. Alex also talks about his strategy; from scanning to entries to managing positions. Plus psychology, self-discipline and more.
Michael Katz is an active day trader and the managing partner of New York prop trading firm, Seven Points Capital. Mike and his firm, are large volume participants in U.S. equity markets, and to a lesser extent, futures and options too.
In this episode, Mike discusses the things which have attributed most to his consistency over the years, insight to his momentum strategies, and how he?s able to turnover millions of shares each month, and of course, plenty more.
Anthony Saliba, an original Market Wizard, was first on episode 107. On that episode, we mostly discussed Tony?s life as a trader and related subjects. But one area we didn?t get into too much, was his life as a parallel entrepreneur and an investor.
So, I mentioned to Tony, this time around, it?s something I?m keen to hear a lot more about. Because his success extends far beyond trading alone?
For example; LiquidPoint, an options execution and technology firm which Tony founded, was acquired in 2007 for a sum of mid nine-figures. He?s also invested in upwards of 100 companies?in a whole range of sectors, owns a golf resort, shopping centers and other real estate. And that?s not all.
The underlying theme throughout this episode is not how to become a better trader, but how to build generational wealth!
Andreas Koukorinis lives in London and in 2013 he co-founded Stratagem Technologies?a tech startup using AI and machine learning to trade sports as a financial product. These sports predominately include; football, tennis and basketball.
But for Andreas, his roots are in trading instruments and markets that most of us are more accustomed to. He?s worked for the likes of Morgan Stanley and Deutsche Bank, and before Strategem came to be, he was trading at DeepValue.
From listening to this episode, you?ll soon notice that Andreas is passionate about applying rigorous trading principles to nascent markets, as well as the broader applications of AI as a technology.
Xiao Qiao is a research analyst for a Connecticut-based hedge fund, focused on trading commodity futures. He graduated with a PhD in Finance?and was a teaching assistant to renown economist Eugene Fama.
Notably, Xiao has also worked directly with trading legend Blair Hull on two quantitative research projects, which concern market timing and return predictability.
The main objective of this episode with Xiao, is to learn how a research analyst thinks about things directly related to research, and ways that you can do better market research for yourself.
On top of this, Xiao, based on his experience, shares a few tips for those who have an urge to study something?but are unsure about what to study, and some of the differences he's observed between the world of academia and working as a practitioner.
Kory Hoang is not a veteran trader?he?s not someone who has been doing this 10-20 years. He?s someone who has been doing this for only a few years, yet he?s begun to make decent gains on his trading capital.
Kory is also not a full-time trader ?well, at the time of recording this?a few weeks ago?he wasn?t! Kory was a private equity analyst for Pitchbook, who traded on the side. But he?s since informed me that he?s handed in his notice and taken the leap to focus on trading (plus a couple startup projects).
In terms of how he trades; Kory is a retail systematic trader. He?s running numerous algorithmic strategies, which he?s developed (all of which are fairly simple). These run on various ETFs, ETNs and even some cryptocurrencies.
During our chat, we cover quite a bit; but mostly his journey and how he?s progressed to this point!
Rick Lane is the current CEO of Trading Technologies?a software provider that develop high-performance trading platforms which are used by; proprietary traders, hedge funds, CTAs, brokers and banks etc.
The reason why I asked Rick to appear on this episode is because, as we know, not everyone is cut out to be a trader. And that?s fine! I?d like to highlight, there are many other roles in the world of trading where you can have a great impact by leveraging skills which you may have already attained?
Prior to teaming up with his cousin, a large interest rate trader, who anticipated the inflection point of automated trading, Rick was modelling combat scenarios for the military and he also did a short stint at Google as a product manager.
Following on from Episode 149, here?s part two of the interview with Aaron Brown.
To refresh your memory, Aaron is highly regarded as an authority on the subject of risk taking. For the past 30-years he?s worked as a dedicated risk manager, and for the past decade, Aaron was the risk manager for renown quant fund, AQR.
Coming up on this episode, you?ll gain deeper insight to how you can better understand and manage risk for yourself?we go over: Questions traders should be asking themselves, how to leave less money on the table, high win rate verse low win rate strategies, black swans, killing opportunity while trying too hard to prevent disaster. And that?s certainly not all!
Aaron Brown is highly regarded as an authority on the subject of risk management. Although he originally started out as a poker player and sports bettor (then a trader and portfolio manager), for the past 30-years Aaron?s been a dedicated risk manager. And for the past 10-years, he was the risk manager for quant fund, AQR.
Aaron has also authored several books (ranging in topics from poker to finance and risk), contributes to Bloomberg View and writes a column for Wilmott Magazine.
On this episode, part one, we talk about: Aaron's early days playing poker, unconscious influences on decision making, the goals and objectives of a risk manager, how Aaron managed the quant equity crisis of August 2007, and much more too.
John Grady is an independent futures trader from Florida, who primarily trades Treasury bonds. His trading is purely discretionary, based upon his read of order flow. Essentially, he?s a scalper.
Throughout this episode we talk all things order flow; the basics, the value of an order book, some of John?s trading methods, order types and managing positions, how to build skill at reading order flow, as well as, the impact of HFT and what?s commonly known as spoofing.
Dr Thomas Starke is a Physics PhD who once designed microchips, worked as an engineer for Rolls Royce and lectured at University of Oxford, before applying his know-how of modelling to financial markets?
As a trader, Thomas has contracted to various funds and up until recently, he was a Quantitative Developer at a well-regarded Sydney prop trading firm.
Thomas was great to chat with?not only did we talk about things related to quant trading, strategy development and robustness, but also his infatuation with disruptive technologies; artificial intelligence and quantum computing.
On this episode, I?m joined by three traders from a data-driven, options trading, performance based fund, Blackpier Capital?
Ryan Moffett, the Lead Investment Manager?and a prior guest on Episode 83. Tyler Michalove, who plays a key role in trade execution. And Wayne Klump, who heads up research and strategy development.
We discuss mentoring, the benefits of working in a team, the upside to trading options, the unique edges which can be gained from the multiple dimensions inherent to options, an example of how options could potentially improve an existing strategy and plenty more.
Episode sponsored by TradeStation ? A trusted online broker geared towards active traders. Discover the benefit?s of trading with TradeStation: tradestation.com/traders
Here?s the first episode in the history of Chat With Traders podcast, where I don?t have a guest with me. That?s because, this episode is the recording of a talk I gave at Noosapalooza 2017?a trading conference hosted by Nick Radge, here in Australia.
Throughout the talk I pull upon many lessons and snippets of wisdom which have been learned through conversations here on this podcast. So, I?ve appropriately titled the talk; Six Ways to Emulate Talented Traders?
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Since 2013, Tim Steenstrup has been a cross-border arbitrage trader at Conventus Capital. Though markets have been a part of his life going back to 1994; Tim?s been part of a brokerage firm in Japan, a hedge fund?which was featured in The Big Short movie, and a prominent New York trading firm.
As you?ll soon hear, we skim through Tim?s backstory and then spend a large part of this episode going into the mechanics of how a cross-border arbitrage strategy works. Tim does highlight, this strategy may be difficult to implement as a retail trader, but regardless, I think it?s valuable for you to hear about the various approaches of how professional traders trade?
Episode sponsored by TradeStation: A trusted online broker geared towards active traders. Discover the benefit?s of trading with TradeStation.
You?re about to hear a first-hand account from someone who?s been on a wild ride through the U.S. justice system. My guest is Michael Kimelman; a former prop trader and hedge fund manager who was convicted (and served time) for insider trading?
You?ll hear about the series of events leading up to his arrest, details about the trial, revelations of a rogue judge and the dim reality of life while incarcerated.
If you get through this episode and you?re curious to know more, then you might be pleased to know Michael has also written a book?the title: Confessions of a Wall Street Insider: A Cautionary Tale of Rats, Feds and Banksters.
It was exactly 100-episodes ago when I first had Bert Mouler on the podcast. This week, I?m joined by him again for a second interview?
Bert is an algorithmic trader with a serious focus on machine learning. His trading decisions are driven purely by data, and he goes to great lengths to remove human bias and flaws through the use of automation.
So, coming up over the next 60-minutes or so, you'll hear about:Bert's increasing efforts to automate as many decisions as possible The attraction of markets and areas with less sophisticated participants Other potential sources of edge?beyond alpha A peek into Bert's high frequency market making strategy And that's certainly not all...
While listening, I encourage you to keep an open mind and mull over Bert?s creative thoughts!
Featuring on this episode is former software entrepreneur turned hedge fund manager, Erik Townsend. I?m sure some will already be quite familiar with Erik?in particular the macro investing crowd, as Erik also hosts the Macro Voices podcast.
After selling his company in 1998, Erik made a few lifestyle and investing decisions which he soon began to question, but took ownership of his situation and the discovery of global macro set him sailing in a new direction?
Major talking points we cross off, include; how Erik uses the concept of The Fourth Turning and major cycles to guide his macro outlook. And one possible scenario for the future of cryptocurrencies?I'm sure some of you won't like what you hear, but I think it's well worth listening to!
My guest on this episode is Jimmy Soni?who, with his co-author Rob Goodman, recently wrote the biography of Claude Shannon, titled; A Mind at Play.
Shannon was born in 1916 and became one of the foremost intellects of the twentieth century, before passing away in 2001. He was a mathematician, a scientist, an inventor and also, a stock market investor?
Although he?s widely unknown by the general public, Shannon is responsible for Information Theory?a revolutionary method of measuring information which stands behind much of the technology we use all day everyday.
Shannon?s other achievements, discoveries and inventions range from artificial intelligence to cryptography and fire breathing trumpets to chess playing machines and the world?s first wearable computer, and that?s not all!
Bobby Cho is a cryptocurrency trader at Cumberland Mining?which is a company of DRW Trading. Ever since getting involved in financial markets, during 2008, he has gravitated towards mostly illiquid/difficult-to-trade products?
So, in some ways, it was inevitable that Bobby would begin to explore Bitcoin and other cryptocurrencies. This was around 2013, while Vice President at SecondMarket.
In 2014, Bobby became Director at Bitcoin exchange, itBit, and then in 2016, joined Cumberland Mining?one of the largest institutional liquidity providers in cryptocurrency markets (predominately Bitcoin and Ethereum).
During the episode, Bobby and I got speaking about some pretty interesting topics, which ranged from; the infrastructure of crypto markets to the curiosity and entrepreneurial mindset which powers DRW, and the challenges of exchange arbitrage to the real world value of Blockchain technology.
During the 90?s, Kevin Muir was a proprietary derivatives trader for RBC Dominion Securities. In 2000, Kevin branched out to begin trading independently, and since 2014, he?s been writing a daily blog, The Macro Tourist.
Kevin?s unique in the sense that he fits the bill of two largely different trading types; an intraday trader and a global macro trader. He also doesn?t specialize in one particular thing, or certainly not to the extent that many traders do?
Kevin can be quoted as saying, ?I never know where I?m going to make money next year.? And that?s because he?s someone who?s continually seeking out the next great trade. In the past, Kevin?s great trades have come in the form of; risk arbitrage, mining Bitcoin, convertible bonds and day trading futures?amongst many other things!
Dr. William Ziemba?s an academic, a practitioner, gambler, trader and an author. He?s worked with and consulted to many well-respected names in the field, such as; Edward Thorp, Blair Hull and the very successful horse bettor, Bill Benter.
In the beginning, horse betting was William?s field of expertise (he even published a book titled, Beat The Racetrack!) And in many ways, for William, horse betting worked as a gateway to trading financial markets?which he?s been doing since 1983.
Now in current times, William manages a fund; Alpha Z Advisors?which started trading in July 2013 and as of May 2017, has returned 527%.
Much of William's trading revolves around calendar anomalies, arbitrage strategies and behavioral biases. We spend a good amount of time discussing these few things, plus William shares one anomaly he's been trading for many years.
In the later part of this episode, we also talk about position sizing, the Kelly Criterion and finally, horse racing.
I first interviewed Mike at CWTNYC, in May 2017. The 100-listeners (give or take) who attended, will already be very familiar with Mike and there may be a few moments of déjà vu throughout this episode. But for everyone else?
Mike came into trading around 20-years ago, beginning at Chicago prop firm, TransMarket Group, where he ultimately spent 12-years of his career. Over the course of his time there, Mike became one of their largest 30-year Treasury basis traders, both in terms of volume and performance.
Now days, Mike is trading a relative value strategy through his own book, and building out a track record with the aim to launch a hedge fund in the coming years?
But you?ll hear more about all of this, the things which have helped Mike get to where he is now, and how he trades bonds using a relative value strategy during this episode.
Sheelah Kolhatkar is a writer at the The New Yorker, who was previously a journalist at Bloomberg Businessweek, and prior to that, a hedge fund analyst.
She?s also the author of New York Times bestseller, Black Edge: Inside Information, Dirty Money and the Quest to Bring Down the Most Wanted Man on Wall Street.
Of course, the most wanted man being referred to, is the ultra-wealthy hedge fund legend, Steven Cohen of S.A.C. Capital Advisors?someone who Sheelah has become very familiar with, through much of her own tireless and strenuous research?
During our conversation, Sheelah gives color to; where Steven started out in life and how he became an ultra-wealthy multi-billionaire?with, might I add, an elaborate art collection, how S.A.C. became the target of one of histories greatest insider trading investigations, and ultimately, how it all played out...
On this episode, I have a returning guest?who first appeared on episode 53. His name is a mystery, but he goes by the handle: @BTCVIX
Episode 53 was the first time I covered Bitcoin on this podcast, and that was at the very end of 2015. As you?re probably aware, the cryptocurrency markets have evolved a lot since then, so BTCVIX is here to fill us in on what?s been happening and, potentially, what lies ahead?
We also cover how to acquire various cryptocurrencies, best practises for protecting your coins, is Bitcoin in a bubble, the frenzy surrounding ICO's, and much much more.
Up until recently, James King was the Performance Director at a commodity trading firm in London, Mandara Capital. And it was here that he implemented scientific methods to stack probability in the favour of success?by using techniques he learned from his education in Applied Sports Science and Performance Psychology.
Now, James is setting out on a new venture, Project Thor, which aims to support talented retail traders with extra capital and other beneficial resources?which we discuss briefly towards the end of the episode.
But for the most part, we discuss; principals for success, testing for resilience, ensuring you?re motivated and focusing on the right things, how ?stretch goals? can be used to massively multiply results, routines and heaps more.
Mark Gardner began working in the field at 17-years old, straight out of high school. Initially he began with back office duties, before broking on the floor of the Sydney Futures Exchange (SFE). Then later he was picked up by a large Bank Bills trader to exclusively execute trades, and who he learned a great deal from.
Around 2005, Mark started trading his own book. Over the 10-years that followed, Mark had only two losing months?and to date, he?s never encountered a losing year. Though in 2015 he did suffer a substantial blow, losing months and months worth of gains in the space of just a few short hours.
Today, Mark is also a partner and the chairman of Genesis Trading (one of the larger prop firms in Australia). He?s also leading a new venture, 42Trading, as a foray into quantitative trading. And to top it off, Mark is the president of the Australian Securities Traders Association too.
Throughout this episode we speak about Mark's insane work ethic (and no, that's not exaggeration!) We also get into lessons from his past, why he sees a future in quantitative trading and more...
Morgan?s career as a trader and portfolio manager began 20-years back, and since then he?s worked at many prominent firms and funds?to name just a few; Millburn Ridgefield, Merrill Lynch, Citadel and Allston Trading.
He?s currently the CEO of CloudQuant, a cloud-based algo development platform and fund.
During our conversation, Morgan explains why he feels as though the ?common? approach to strategy development can be counter intuitive, and he gives an alternative 3-step formula. We also spend time discussing how machine learning fits into a traders toolbox
Ben Mallah is a trader of a different kind?he doesn?t trade stocks and bonds, he trades in real estate. You could probably call him a property developer, although he doesn?t build from scratch; he buys distressed apartment buildings, hotels and shopping centers, fixes them up, and then sells to make a profit.
He grew up in one of the roughest areas of New York and had a very tough upbringing, but Ben is the true definition of a ?rags to riches? story?
During his early 20?s, as a side hustle while working in the military, Ben began getting into real estate. Thirty years have since passed, and in that time, he?s built up a real estate empire worth (approximately) $200,000,000.
Victor Haghani began his career at Salomon Brothers in 1984, starting out in a research role before joining their prop trading desk. In 1992, Victor left Salomon to become one of the founding partners of Long Term Capital Management?
LTCM was an incredibly successful hedge fund, up until 1998, when it failed in a spectacular fashion. Causing the Federal Reserve to step in and organize a bailout, in order to prevent the possibility of a collapse in the global financial system.
Victor took a ten year sabbatical after the dust settled, and in 2010 he founded an active index investing fund, Elm Partners.
For this episode, much of our discussion is in reference to an experiment Victor carried out (with some involvement from Edward Thorp), on the patterns of how 61 participants would bet on a biased coin.
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Andy has been an active stock trader since the early 90?s, and in 2001 he founded Kershner Trading Group?a proprietary trading and technology firm in Austin (Texas) and, through a partnership with SMB Capital, Kershner Trading have a second office in Midtown (Manhattan) too.
So, what did we talk about? Andy's ability to take pain on adverse positions, whether or not this has been a key ingredient to his trading success, and do traders with higher risk tolerances make more money. Andy also shares his daily habits and critiques a trade which didn't go so well from the session prior to recording this episode. And naturally, we cover a few other things too...
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Though not a trader herself, Nell Sloane has been in and around markets and exchanges for roughly 30-years, mostly working in roles that assisted commodity traders and brokers in one way or another.
Then since 2006, Nell has been the Principal of Capital Trading Group?a Chicago investment firm, which she co-founded with Patrick Lafferty. And this is the reason why I asked Nell to come on the podcast; because the role of CTG is to support traders who wish to expand their operation by managing money for others as a CTA.
CTG do also offer services to professional and individual investors to help them navigate managed futures. But for this episode, we focus on?
What does it mean to be a CTA, the incentives to become a CTA and where to begin, fee structures, the requirements and regulations, how to attract capital from investors, and other related subjects.
Jonathan (@HF_Trader) got into trading after a sports-related injury changed his life trajectory. He was fortunate enough to meet and be mentored, early on, by one of the first people to be hired at Steve Cohen?s S.A.C. Capital Advisors?where this person ran a multi-billion dollar statistical arbitrage fund.
After getting a dual degree in economics and quantitative finance, Jonathan landed a job within a hedge fund and was promoted to head trader within the space of about 6-months. Over the course of several years, while Jonathan worked at the fund, their assets under management grew by several billion dollars.
In 2014, Jonathan cashed out and began trading for himself. He loaded $260,000 into an account and has since compounded this amount into more than $2,000,000. Using an intraday system he?s developed, Jonathan trades Crude Oil and E-Mini S&P 500?
Sponsored by TradeStation: Very few online brokers offer the services, tools and technology (all-in-one!) ? for active traders ? like TradeStation do.
Matthew Hoyle was once a trader, or more specifically, an options market maker. And he started at a very young age, on the exchange floor in Amsterdam. But since 2003, he?s been in the headhunting (or recruiting) business. His firm, Matthew Hoyle Financial Markets.
Essentially, Matthew finds the best candidates for hard to fill roles. He?s contracted by banks, hedge funds and all sorts of trading firms?for example; Tibra, Optiver, Tower Research, Citadel, Millennium Partners, amongst many others.
Matthew?s deeply knowledgeable on the industry, and he?s won many awards for doing what he does?
During this episode we get talking about; tips for getting hired, the skills which are most in demand, what firms are looking for, also, how firms attempt to attract and retain talent, various compensation structures ? and everything in between!
Max got into trading about six years ago, after a co-worker pulled up in a brand new Lotus Elise?paid for with gains from trading BP stock. Working as an engineer at the time, with average pay, it wasn?t long before Max opened his first trading account and got to work?
Having now developed a unique style of his own, which he describes as a scalping method?focusing on NASDAQ listed stocks, Max has become very consistent and profitable. (If you?re interested, max regularly posts PnL on his Twitter account.)
To mention a few of the things we discussed; how traders can benefit from being independent thinkers, the nature of scalping strategies, optimizing your workflow, mindset and improving your psychological game, and plenty more.
Sponsored by TradeStation.com: Very few online brokers offer the services and technology (all-in-one!) ? for active traders ? like TradeStation do?
Darren Reed (@LiftTheOffer) has been a stock broker, the head trader at a $300M hedge fund, and an active prop trader at Australian firms, Propex, Aliom and Gensis. At the later two, he also mentored traders as part of his role in trader development.
But this year (2017), Darren has returned to Perth?on the west coast of Australia, to establish a new proprietary trading firm with a few partners; Cygnet Trading.
The main focus of this episode can be summarized with just a few words; grit, hustle and intent. Further, Darren speaks about paying your dues, why environment is everything, and a window into the life of a discretionary prop trader.