Better System Trader

Better System Trader

Better System Trader - the podcast and blog for system traders. Download our FREE guide to the best

Operating as usual

26/12/2023

Ever feel like you're stuck to your trading screens?

It may be causing you more harm than good.

Here's what you need to be in the best mindset for trading.

25/12/2023

You need to take time away from your trading to grow your trading.

Easy in theory.

Hard in practice.

24/12/2023

"Wanting to follow your system and trade small are the best two lessons and ideas you can tell people" - Jerry Parker

Trading Triumphs - Jerry Parker #3: The Dangers of Optimization 23/12/2023

Ever wondered what makes a trading strategy successful long-term?

Here's the Top 5 insights from Part 3 of my chat with trend following veteran Jerry Parker 📈

1/ Minimize to Maximize:

Jerry stresses less is more in trading.

One entry, one exit, and a stop loss but with multiple systems can lead to more robust and reliable rules.

Simplify to succeed!

2/ Consistency is King:

The secret power in trading?

Sticking to your system, no matter what.

Reducing leverage or position sizes temporarily is okay, but never skip trades.

Consistency is your superpower.

3/ Back to Basics:

Jerry takes minimal cues from equity curves and backtest results.

He focuses on practical entry and exit points, and strategies with decent performance.

The goal?

Systems that make money, not just look good on paper.

4/ Diversify Your Trades:

Trading various markets and having multiple entry and exit points adds a layer of diversification.

Jerry’s approach includes a mix of short-term and long-term parameters, balancing risk and opportunity.

5/ Go with the Market Flow:

Don't fight the market.

Big trends are unpredictable, so when they come, make sure you're doing the right thing with your strategy.

It's about riding the wave, not trying to control it.

Interested in more of Jerry's trading wisdom?

Dive into our full podcast for a deeper exploration of his trading philosophies and experiences.

Watch Part 3 here:

Trading Triumphs - Jerry Parker #3: The Dangers of Optimization Want better performance from your trading strategies?In part 3 of my chat with legendary trend-following Turtle Trader Jerry Parker we discuss optimization, ...

23/12/2023

Trying to smooth the equity curve can lead to trouble.

Consider this instead...

Trading Triumphs - Jerry Parker #2: Excessive Risk 21/12/2023

Quick summary of the top 10 lessons from Part 2 of my chat with Jerry Parker:

👇👇👇

1/ Trade Within Comfort Levels - Trade sizes should align with personal comfort levels to maintain systematic rule adherence.

2/ Systematic Over Discretionary - Systematic trading is preferred over discretionary trading for consistent success.

3/ Mental Resilience in Trading - Trading demands mental toughness, especially in adhering to systematic rules under stress.

4/ Risk and Personality Alignment - Align risk-taking in trading with personal risk tolerance and personality.

5/ Adhering to Trading Systems - Strict adherence to trading systems is crucial, despite the temptation to deviate.

6/ Managing Drawdowns and Volatility - Effective management of drawdowns and market volatility is key to sustainable trading.

7/ Learning from Trading Mistakes - Reflecting on and learning from past trading mistakes is essential for improvement.

8/ Diversification for Risk Management - Diversification in trading helps manage risk and stabilize returns.

9/ Small Losses, Big Wins Philosophy - Embrace taking small losses and letting profits run to maximize gains.

10/ Importance of Cutback Rules - Implementing cutback rules during high risk or volatile periods to preserve capital.

You can catch my chat with Jerry here:

Trading Triumphs - Jerry Parker #2: Excessive Risk This is part 2 of my chat with legendary trend-following Turtle Trader Jerry Parker. In this episode, Jerry unravels the complexities of trading size, risk ...

21/12/2023

The one trading rule that will keep you alive...

20/12/2023

Have a plan for what you'll do in times of adversity:

“Reduce your risk, reduce your position size... to stay in the game and survive the markets.” – Jerry Parker

Trading Triumphs - Jerry Parker #2: Excessive Risk 20/12/2023

Want to know the one trading rule to keep you alive?

Then make sure you catch Part 2 of my chat with Jerry Parker, where we focus on trade size, risk management, and mental strength.

This is an essential watch for all traders.

Catch it here:

Trading Triumphs - Jerry Parker #2: Excessive Risk This is part 2 of my chat with legendary trend-following Turtle Trader Jerry Parker. In this episode, Jerry unravels the complexities of trading size, risk ...

19/12/2023

It's not about how much money you've made or lost...

"Grade yourself on following the rules." - Jerry Parker

Process over profits.

19/12/2023

Psst... only got 45 seconds?

Here's a quick summary of Part 1 of my chat with Jerry Parker...

A deep dive into how Jerry tackled the common fear of executing trades in the uncertain world of trading...

1/ Jerry opens up about his early days, admitting the struggles he faced executing trades. It's a common hurdle, but one that's crucial to overcome.

2/ He emphasizes the importance of confidence and decisiveness. Hesitation can cost opportunities, a lesson he learned the hard way.

3/ The key, according to Jerry, is in the mindset: viewing each trade as part of a larger strategy, not an isolated risk.

4/ He advocates for a systematic approach, which helps in making objective decisions, reducing the emotional weight of each trade.

5/ Jerry's insight: Fear is natural, but overcoming it with strategy and discipline is what separates successful traders from the rest.

You can catch Part 1 of my chat with Jerry at: https://bettersystemtrader.com/216

Part 2 comes out tomorrow.

18/12/2023

Focus on process over profit:

"If someone asks you how well you've done, you have to answer them in terms of how faithful you have been with following the system. Not how much money you've made or lost." - Jerry Parker

18/12/2023

🎙️ New Episode Alert: The Journey to Trading Success with Jerry Parker - Part 1 📈

In this episode, I chat with trend-following legend Jerry Parker .

In Part 1 of our discussion, Jerry shares a challenge he faced early in his trading career...
👇👇👇

The fear of executing trades.

Here's some of the key points you’ll discover in my chat with Jerry:

1. Overcoming the fear of entry and the importance of executing trades.
2. The role of systematic rules in trading success.
3. Learning and growing from trading mistakes.
4. Developing the right trader mindset for long-term success,
5. Plus...

.. Jerry shares the personal story of a huge winning trade he missed, the impact fear had on his trading results and how he finally overcame that fear to excel at trend following.

You can catch Part 1 here:
https://bettersystemtrader.com/216

Part 2 of my chat with Jerry is out in a few days.

17/12/2023

New podcast episode out tomorrow, with an absolute trading legend...

Can you tell who 's hiding behind those cool sunglasses? :-)

Can't wait to share it with you!

11/12/2023

Got a good looking backtest...

Is it accurate or just "lucky"?

11/12/2023

In case you missed the pick of last week...

Here's a quick list of the 3 defining moments I discussed with champion trader Kevin Davey...

Kevin Davey Part 1: The Transition to Full-time Trading
https://youtu.be/g65JDIMtV00

Kevin Davey Part 2: Managing Drawdowns and Margin Calls
https://youtu.be/F_mpDPyXQa8

Kevin Davey Part 3: Building Winning Trading Strategies
https://youtu.be/gBvvK-7mbks

Click the links above to check it out...

It may be the only exercise your finger gets today.

09/12/2023

Large drawdowns can suck.

Here's a tip from on how to make drawdowns a little easier to manage.

Trading Triumphs: Kevin Davey's Journey To Success Part 3 08/12/2023

🎙️ New Episode Alert: The Journey to Trading Success with Kevin Davey - PART 3 📈

Here's a glimpse into Kevin Davey's world from our latest podcast discussion:

👇

1. Kevin's success in trading wasn't overnight. It's a blend of strategy, resilience, and learning from failures. His journey is a testament to the importance of perseverance in trading.

2. For the Robbins World Cup, Kevin designed a specialized trading system. His experience underscores the value of customizing strategies to fit specific challenges in trading.

3. Kevin delves into the intriguing balance between luck and skill. While luck can be a factor, long-term success relies more on skill and strategy.

4. He also talks about the importance of realistic goal setting in trading. Setting achievable targets is essential for motivation and measuring progress.

5. Lastly, Kevin swears by the power of backtesting in trading. This technique is vital for validating strategies and ensuring they can withstand market dynamics.

You can watch Part 3 of my discussion with Kevin Davey at:

Trading Triumphs: Kevin Davey's Journey To Success Part 3 Ever wondered what it takes to design profitable trading strategies that can even win trading competitions?In Part 3 of my chat with trading champion Kevin D...

07/12/2023

if you're in a big drawdown, do this...

07/12/2023

Why all the focus on when to enter a trade?

How and when you exit can make all the difference:

“Trade management is probably the most neglected area of system development.” – Linda Raschke

Your exit strategy could be your winning edge!

07/12/2023

Don't underestimate simplicity.

“The systems that have been the most stable, consistent, and better performers are overly simplistic.” – David Stendahl

It's often the simple things that work best.

Trading Triumphs: Kevin Davey’s Journey – Part 2 | Better System Trader 06/12/2023

🎙️ New Episode Alert: The Journey to Trading Success with Kevin Davey - Part 2 📈

In this episode of the new "Trading Triumphs: The Journey to Success" series, I sit down with champion trader Kevin Davey .

In Part 2, Kevin shares the beans on...👇👇👇

The Perils of Scale Trading:
Kevin's early strategy and how it led to a tough learning curve.

Emotional and Financial Impact:
The psychological toll of repeated losses (and margin calls!) and the importance of mental resilience in trading.

Transition to Algorithmic Trading:
How Kevin shifted gears to a more data-driven, algorithmic approach.

Risk Management Insights:
Kevin's take on the critical role of risk management in trading success.

Diversification as a Strategy:
Why trading multiple strategies and markets is crucial for stability.

You can watch Part 2 here:
https://bettersystemtrader.com/214

Part 3 of my chat with Kevin is out in a few days.

Trading Triumphs: Kevin Davey’s Journey – Part 2 | Better System Trader Step into the gripping world of trading with Kevin Davey, a seasoned trader with a tale that'll keep you on the edge of your seat! In part 2 of my chat with Kevin, he shares his journey from relentless losses (and margin calls) to transforming his trading approach. Kevin's story is a rollercoaster o...

05/12/2023

Thinking about trading full-time?

It's not as simple as a 9-5 job.

Watch this short video on the raw reality of full-time trading.

05/12/2023

Don't let trading mistakes define you.

They're a lesson.

"When you're wrong, admit you're wrong, you can't let your emotions get to you.'' - Damon Pavlatos

Stay calm and carry on!

Trading Triumphs: Kevin Davey’s Journey – Part 1 | Better System Trader 04/12/2023

🎙️ New Episode Alert: The Journey to Trading Success with Kevin Davey - Part 1 📈

In this episode of the new "Trading Triumphs: The Journey to Success" series, I sit down with champion trader Kevin Davey .

In Part 1, Kevin spills the beans on...👇👇👇

.. his transition from part-time trading into a successful full-time trading career.

Some of the key points you’ll discover in my chat with Kevin:

Making the Leap:

How Kevin transitioned to full-time trading and the signals that told him when to take the leap.

Strategic Planning:

How years of research and strategy formulation paved the way for his career shift.

Financial Safety Nets:

How Kevin prepared financially for the shift to full-time trading, including how much you should consider saving as a nest-egg and why.

The Importance of Support:

Kevin shares the significant impact family support had on his trading journey.

Income Diversification:

Learn why Kevin advises against relying solely on trading for income and other options you should also consider instead.

You can catch the full discussion here:
https://bettersystemtrader.com/213

Part 2 of my chat with Kevin is out in a few days.

Trading Triumphs: Kevin Davey’s Journey – Part 1 | Better System Trader Dive into the world of trading with Kevin Davey, a champion trader who turned his part-time passion into a full-time career. In this enlightening discussion, Kevin spills the beans on his journey and strategies that helped him climb the ladder of success in the trading arena. Key points you’ll dis...

03/12/2023

Your mindset shapes your success >>

"If your mindset is clouded with fears, limiting beliefs, a lack of self-worth, a lack of self-trust, or a really bad self-image, no matter how great the trading strategy is, you will not perform." - Mandi Pour Rafsendjani

01/12/2023

Let. It. Go.

"Let go of the outcome. Do not try to impose your will on the market." – John Carter

Focus on the process, not just the profits.

30/11/2023

Think you know who this popular trader is?

Just putting the finishing touches on the next episode of the "Trading Triumphs: The Journey to Success" series.

This episode is packed with entertaining stories and valuable trading lessons, however...

👇👇👇

/1 I can't reveal who the guest is just yet.

On the show we discuss 3 defining moments in this traders career.

He shared a bunch of insights, can you tell who it is from these summary points?

/2 Defining moment #1: The transition from full-time employee to full-time trader

- what you need to have in place before you do it
- how to know when you're ready
- when to NOT switch to full-time trading
- the challenges of full-time trading and how to make it easier

/3 Defining moment #2: Margin calls and adding to losses

- how a trading strategy from a book called "You can't lose trading commodities" generated so many margin calls he was on a first name basis with the bank clerk!
- what happened to his trading account, and the lessons we can all take from his adventure

/4 Defining moment #3: Building a trading strategy to win a trading competition

- how he built the trading strategy that won an international trading competition
- the steps he took before he even started to increase his chance of success
- the steps all traders should take before building a trading strategy

/5 Here's another clue.

6/ Who do you think it is? Let me know in the comments below.

Part 1 is out on Monday.

30/11/2023

Think you've got a good trading strategy?

Or has the market got you fooled?

Consider this:

"Be very careful about deciding whether it’s your system or the market that’s really very good." - Jack Schwager

Understanding your system is essential.

29/11/2023

Trading isn't about being right or wrong.

Why care?

In this short clip, Jason Shapiro from shares why you shouldn't care about being right or wrong in trading

29/11/2023

Searching for a strategy that's perfect for all markets?

Here's a reality check:

“People want the strategy that is going to work well in all markets all of the time. It doesn’t exist.” – Nick Radge

Adapt and thrive!

28/11/2023

Trend Following may be simple, but is it easy?

Here's 7 timeless trend following insights from my podcast interview with Turtle Trader Jerry Parker.

1/ Follow the System

- Embrace systematic trading,
- Follow the rules,
- Commit to a disciplined approach.

2/ Minimize Risk

- Trade small,
- Manage volatility,
- Diversify across markets, entries and exits.

3/ Embrace Long-Term Trend Following

- Focus on long-term trend following,
- Prioritize strong trends,
- Use longer-term exits to maximize profits.

4/ Be Systematic

- Choose systematic trading over discretionary trading,
- Maintain a disciplined and consistent approach to trading.

5/ Manage Drawdowns

- Embrace a systematic approach,
- Believe in the trading system,
- Stay committed to the strategy.

6/ Avoid Data Mining

- Trade multiple entries and exits,
- Avoid frequent parameter tweaking,
- Focus on robust and consistent trading systems.

7/ and don't forget:

"The most important thing is to follow the rules" - Jerry Parker

28/11/2023

The secret to a great trading system?

It's all about personal fit.

“The closest thing to the perfect system is one that you can trade and be comfortable with.” – Larry Tentarelli

Find what works for you!

28/11/2023

In a world of complexity, simplicity is underrated...

As champion trader Kevin Davey shared:

"The simpler systems tend to adapt better to future conditions because you’re not imposing so many rules and filters."

Simplify to succeed!

28/11/2023

If you go to all the effort of developing a trading system, and then testing and validating it, make sure you... follow the system!

23/11/2023

It's a tough world out there for traders...

More than 90% of traders fail.

And many give up on their trading dreams because of long and painful drawdowns.

What to do?

Make drawdowns valuable instead.

Here's how:

Timeline photos 22/11/2023

Ready to hear the untold stories of a trading veteran?

A new episode of the limited series "Trading Triumphs: The Journey to Success" on BST has just been released.

In this episode, I chat with Brent Penfold, a seasoned trader with a wealth of experience, as we peel back the layers of his career to reveal the defining (and surprising!) moments that shaped his path to success.

From the bustling trading floor of Bank of America to the quiet discipline of systematic trading, Brent's story is a treasure trove of insights for traders at all levels, including:

- The pivotal role of a mentor in transitioning from novice to expert trader.
- How early career experiences can deeply imprint trading beliefs and behaviors.
- The importance of evidence-based trading and the journey from discretionary to systematic strategies.
- The value of transparency and accountability in trading, and how it can be practically implemented.
- Why learning to code can be a game-changer for independent strategy testing and development.

Head over to https://bettersystemtrader.com/212 to watch the full discussion with Brent Penfold and unlock the secrets to his long-term trading success.

**Fun Fact:**Did you know Brent once participated in a trading competition where he had to react to market changes announced over monitors, and he won? It's just one of the many fascinating stories he shares!

Plus, if you celebrate it, Happy Thanksgiving my friend!
Andrew

PS. Want to learn more about Brent's trading approach? Visit indextrader.com.au for details on Brent's upcoming workshop in a few days time, and don't forget to contact Brent for a special 10% discount exclusively for Better System Trader viewers. Just mention you saw him here!

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Videos (show all)

Ever feel like you're stuck to your trading screens?It may be causing you more harm than good.Here's what you need to be...
Trying to smooth the equity curve can lead to trouble.Consider this instead...
The one trading rule that will keep you alive...
It's not about how much money you've made or lost..."Grade yourself on following the rules." - Jerry Parker @rjparkerjr0...
The trading mindset needs to be this...Full episode available at https://bettersystemtrader.com/216
Got a good looking backtest...Is it accurate or just "lucky"?
Large drawdowns can suck.Here's a tip from @kjtrading on how to make drawdowns a little easier to manage.
if you're in a big drawdown, do this...
Thinking about trading full-time? It's not as simple as a 9-5 job.Watch this short video on the raw reality of full-time...
Trading isn't about being right or wrong.Why care?In this short clip, Jason Shapiro from @Crowded_Mkt_Rpt shares why you...
If you go to all the effort of developing a trading system, and then testing and validating it, make sure you... follow ...
_Whydrawdownsaresovaluable(4).mp4