Today I have a great pleasure and honour to chat with Andrea Unger. He’s the only trader winning the World Cup Championships 4 times! Until now no one has achieved such thing except Andrea!He’s a fully systematic trader, and in this episode, he describes why he has chosen such trading approach.In this episode he talks about his procedure for building and testing mechanical systems, how to know when risking more is pointless, and many other topics.What I like especially very much in the way Andrea talks about trading, is that he’s extremely honest. He’s not promising an easy way to quickly get rich via trading, but on the other hand, he’s a great example that a passion and hard work significantly helps to be successful on the market.I hope you will enjoy the show!

System Trader Show

STS 004 – Andrea Unger: 4-Time World Trading Champion

Episode page: https://systemtrader.show/018Rick Ferri, a guest of today's episode, is a well-known person in the investment industry for years. He is a retired US Marine and fighter pilot. He worked as a broker and portfolio manager in an investment company and got the CFA title. Currently, he works mainly as a consultant in the area of cheap index investing. Rick is also the author of numerous books for investors and the host of the Bogleheads podcast, which is for anyone looking for a smart approach to investing and personal finance.In this episode, we talk about the philosophy of index investing proposed by Jack Bogle, founder of Vanguard. You will learn about the reasons why Rick proposes to invest through cheap index funds and ETFs. Rick also explains how to approach building a portfolio step by step. I ask my guest, among other things, what will happen when everyone starts to invest passively.

STS 018 – Rick Ferri: Why should most investors invest passively?

Episode page: https://systemtrader.show/017Wes Gray after serving as a Captain in the United States Marine Corps earned an MBA and a PhD in the finance from the University of Chicago where he studied under Nobel Prize Winner Eugene Fama. He worked as a finance professor at Drexel University. He then found Alpha Architect -- a research-intensive asset management firm with a focus on high-conviction value and momentum factor exposures.In this interview, we talk about why it's so important to have a process, trust it, be patient and to have a long-term investment perspective. Wes explains that no strategy works all the time and that pain is always a part of successful investing.

STS 017 – Wes Gray: Don't try too hard, have a long horizon, be patient and trust the process

Meb Faber is a co-founder and the Chief Investment Officer of Cambria Investment Management. His speciality is quant investing. Meb is the host of The Meb Faber Show podcast and has authored numerous white papers and books. He is a frequent speaker and writer on investment strategies and has been featured in Barron’s, The Wall Street Journal, The New York Times, and The New Yorker.In this episode, we talk why you need an investment plan, why the systematic approach is helping to have a better decision-making process, how to behave in the period of a market crash, is dividend investing a right approach for most of us, and many other topics. Only practical knowledge, no-nonsense theory.

STS 016 – Meb Faber: Why an investment plan is a must and how to behave in the period of a market crash?

Robert Carver worked in the City of London for over a decade. For seven years he was a portfolio manager at AHL -- one of the world's largest systematic hedge funds -- before, during and after the global financial meltdown of 2008.In this interview, we talk about many trading topics, mostly around the systematic approach and why it's so important for most of us to base the decison-making process on rules rather than discretion. Robert also explains why the most important factor to consider when investing is risk.You can hear how people managing billions of dollars were considering liquidation of market positions during the 2008 crisis, while at the same time, mechanical strategies made over a billion dollars in a single day. The fund's computer system had stuck to its preprogrammed set of trading rules and mechanically exploited the market moves almost to perfection, while terrified humans had discussed closing it down.Although we discussed many negative aspects of trading and investing, there's a positive message to all of as well. With enough discipline and work, most of us may construct an investing vehicle at home and build our own capital successfully.On my website at systemtrader.show/015 you can find show notes to this episode. If you consider this material as valuable, please share it with others. Thank you!

STS 015 – Over a billion dollars in a single day – Robert Carver, an ex-hedge fund manager about professional approach to systematic trading

It happens very often that we work because we don't see any alternatives. Our job may be annoying as hell, we may even hate it, but the reality seems like we don't have any other options. We have a mortgage, we have a family to maintain, or our qualifications aren't allowing us to do something new. So we don't dare to do something new, and we don't have a plan, we're just drifting -- day by day.My guest, Paul Novell, talks in this episode how he decided to live the life he wants to live. He left the semiconductor industry, a well-paid job at around 40, to pursue a more independent life. Already since 2006, his primary source of income is from investments.I discuss with Paul many investment topics. It's interesting to learn how Paul was maturing over the years, how he switched slowly from discretionary dividend investing towards quantitative and tactical asset allocation investment systems.For more please visit: https://systemtrader.show/014

STS 014 – Paul Novell: investing for a living, financial independence and early retirement

Investing is simple, but not easy, as Warren Buffett says. And yes -- technically the investment process should be as simple as possible. But does it mean that an average investor should not even think about active investment strategies and entirely rely on a passive portfolio? Which strategy is best to follow? And will it work tomorrow?In this interview, my guest, Jack Vogel from Alpha Architect, talks about many trading topics, including momentum and mean reversion market anomalies.

STS 013 – Jack Vogel: Market anomalies and quantitative approach to investing

The investment strategy described by Gary Antonacci in my previous episode is not only a theoretical model. Today I have a pleasure to present you two separate discussions with people being professional financial advisors in the United States. One thing they have in common is that in their investment process, they use an idea introduced by Gary. What I’ll try to find out is why they got interested in Dual Momentum. In this episode:- Assets allocation and tactical money management- Value investing/fundamental analysis- How rule-based, systematic trading approach can be used?- What are the main reasons why most people are poor traders/investors?- Why dynamic allocation is so important, how it works in Dual Momentum and how it’s different from permanent diversification?- Trend-following strategy based on diversified futures portfolio vs. momentum applied on stock indices- Myopia problem — why paying too much attention to short-term performance can skew our long-term investment strategy?- Can average investor/trader compete with professionals?- Proprietary Dual Momentum models- How should we approach the model backtesting to avoid curve-fitting pitfall?- What is a Fiduciary?

STS 012 – James Di Virgilio & Dan Korth: professional advisors about Dual Momentum investing

Gary has over 40 years’ experience as an investment professional. After receiving his MBA degree from the Harvard Business School he concentrated on researching and developing innovative investment strategies that have their basis in academic research.Gary’s innovative research on momentum investing was the first-place winner in 2012 and the second-place winner in 2011 of the prestigious Wagner Awards for Advances in Active Investment Management given annually by the National Association of Active Investment Managers.

STS 011 – Gary Antonacci: combining relative strength price momentum with absolute momentum

Linda began her professional trading career in 1981 as a market maker in options. She became a registered Commodity Trading Advisor in 1992. She worked as a principal trader for several funds. In 2002 she started her own hedge fund, which was ranked 17th out of 4500 for best 5-year performance by BarclaysHedge.Jack Schwager recognised her great talent in his famous Market Wizards series. Since 2015 Linda continues to trade daily for her own account. In the world of professional trading and money management, Linda Raschke stands out from the crowd for three factors: performance, longevity and consistency.Most frequently when talking about trading, we focus on its positive aspects. Linda Raschke takes a different perspective in this interview sharing with us market lessons while highlighting the tension between luck, risk, and passion.To me, it’s an extraordinary interview with an extraordinary person summarising her great book titled “Trading Sardines”. It is indeed a 21st-century version of “Reminiscences of a Stock Operator”! Linda although being so successful as a professional trader, openly admits how repeatedly got her ass kicked by the markets.It sounds so attractive when we can mention how you feel making one million in one single day. Linda, however, puts an accent on being on the wrong side of outliers so many times that it is well beyond the random. Rare events are happening more often than we may think, especially if you are on the markets so long as Linda.

STS 010 – Linda Raschke: Trading Sardines, a 21st-century version of Reminiscences of a Stock Operator

Andreas Clenow is a Chief Investment Officer located in Zurich, Switzerland, overseeing many investment strategies over a nine-figure asset base. In today’s interview, we focus mostly on his work within a quant hedge fund. We are covering many trading topics, including trend following strategies and equity momentum strategies. You can also find out why trading own money is not always the best option to do.Andreas is an author of international bestsellers titled Following the Trend and Stocks on the Move. These books present a quantitative approach to modelling the markets with extensive backtest results. You can also learn from the practitioner how hedge fund business looks from the inside.No worries if math or statistics is your Achilles’ heel. As Andreas says, scientific papers often are unnecessarily obfuscating the knowledge so that it’s not easily accessible to everyone. He proves it doesn’t have to be the case, explaining complex things, as we could think, in an easy way.

STS 009 – Andreas Clenow: quant approach to trend following and equity momentum strategies

Larry Connors has over three decades of experience in the financial markets industry and is widely regarded as one of the leading professionals, especially when it comes to systematic quantified short-term trading.He is the author of many highly acclaimed books including “How Markets Really Work” and “Short Term Trading Strategies That Work“. Larry co-wrote “Street Smarts” with Market Wizard’s legend Linda Raschke. The Technical Analysis of STOCKS & COMMODITIES Magazine selected this book as one of “The Classics” for trading books written in the 20th century.Today we talk about his latest book, “Buy the fear, sell the greed: 7 behavioural quant strategies for traders“, which proves that behavioural factors can be quantified and used on the markets.I strongly encourage you to listen to the whole episode, as Larry is fully disclosing one of his strategies from the book, which is really very powerful and having a winning percentage over 90%!

STS 008 – Larry Connors: Buy the fear, sell the greed

Robert Pardo is a legendary trader and long-term hedge fund manager. He worked with global firms like Goldman Sachs and Dunn Capitals Management. He’s a pioneer in algorithmic trading and inventor of Walk Forward Analysis. Using his excellent trading system and sound risk management he made 142% return in 2008 and was a Trader of the Year – Futures 2008.Today we discuss various trading topics, including the reliable testing methodology — Walk Forward Analysis.Enjoy the show!

STS 007 – Robert Pardo: legendary trader and long-term hedge fund manager

Kevin Davey is a full-time professional algorithmic trader, specialising mostly in futures. Using his trading systems he generated annual returns of 148%, 107% and 112% in three consecutive World Cup of Futures Trading Championships.Today we discuss various trading topics, including the reliable trading system development process, so that developed systems may look good not only on the past data.I encourage you to visit my website at systemtrader.show/006, where you can find more materials related to this episode.Enjoy the show!

STS 006 – Kevin Davey: world champion in futures algorithmic trading

Tom Basso is another Market Wizard from a renowned Jack Schwager book series, which appears on my show. It is an unusual occasion to ask him how is he going after 26 years since the famous interview. How does he see the markets after such an extensive trading experience?Although he didn’t know too much about the British pound fundamentals or economy, he made a bunch of money at the same time when George Soros was shorting it. How he did it? Was it pure luck?No. My guest believes that big trends happen in the markets. And when it happens, he just needs to squeeze it like a lemon. No complex entry/exit signals. No fancy charting. He puts, however, a great focus on risk management. At the same time, he is very patient and strategic. He doesn’t have to be profitable every day, every week or even month. But all he does is carefully planned. And in the long run, his trading approach is very profitable. For decades.After all, he was featured in Jack Schwager’s Market Wizards book in 1992. For a good reason.In 2003 he happily retired at the age of 51 years. And today he’s still actively trading on his private account using the same, old methodology — trend following.If you haven’t yet guessed, yes, Tom Basso is on my show today! Enjoy the ride!

STS 005 – Tom Basso: legendary trend follower

Listen how the world′s most successful traders made millions of dollars. How to build and test a trading strategy. How to cope with psychological aspects. How to manage your risk. And many other topics!

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STS 004 – Andrea Unger: 4-Time World Trading Champion

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