Interview with a Full Time Trader and CTA

[Howard]

With the risk of ending up like the bad guy - exactly what in this interview was very informative and had good info with regards to system development?

I rarely read trading educational material anymore as I'm too engrossed in my own research and didn't plan on listening, but seeing all the positive comments I figured it had some invaluable nuggets, but there was nothing special here, IMO.

Summary:

- Lost money 3 years in a row before turning his business around
- Focus on intraday trading ES S&P e-mini (which he thinks is a great day trading instrument contrary to some other people)
- Decreases position size when MA of negative equity curve is negative. Increase when positive. Markets ain't always great to trade. Know when to slow down and know when to trade.
- Try to find someone to colloborate with. Don't work in isolation
- Valuable info on trading isn't published online or sold in a course.

The last sentence really sums it up. And in my opinion, also reflects the content of the interview.

The interview wasn't bad by any means. I was just disappointed in light of all the very enthusiastic comments in this thread thinking it maybe had something really interesting to share.

 

[fan27]

With the risk of ending up like the bad guy - exactly what in this interview was very informative and had good info with regards to system development?

I rarely read trading educational material anymore as I'm too engrossed in my own research and didn't plan on listening, but seeing all the positive comments I figured it had some invaluable nuggets, but there was nothing special here, IMO.

Summary:

- Lost money 3 years in a row before turning his business around
- Focus on intraday trading ES S&P e-mini (which he thinks is a great day trading instrument contrary to some other people)
- Decreases position size when MA of negative equity curve is negative. Increase when positive. Markets ain't always great to trade. Know when to slow down and know when to trade.
- Try to find someone to colloborate with. Don't work in isolation
- Valuable info on trading isn't published online or sold in a course.

The last sentence really sums it up. And in my opinion, also reflects the content of the interview.

The interview wasn't bad by any means. I was just disappointed in light of all the very enthusiastic comments in this thread thinking it maybe had something really interesting to share.

If I can learn one thing from an interview such as this, I consider it worth my time.

One thing Sam mentioned was to potentially only trade a system when its equity curve is above a moving average of the system equity curve. This will prevent you from continuing to trade a system that is no longer profitable. This is something I have not considered and will be testing this idea out.

 

[Simples]

If I can learn one thing from an interview such as this, I consider it worth my time.

One thing Sam mentioned was to potentially only trade a system when its equity curve is above a moving average of the system equity curve. This will prevent you from continuing to trade a system that is no longer profitable. This is something I have not considered and will be testing this idea out.

I've had problems getting that idea to work in the past. Wonderfully as it sounds, you end up realizing losses at the best opportune moments for recovery. Would be great to hear I've missed something.

 

[fan27]

I've had problems getting that idea to work in the past. Wonderfully as it sounds, you end up realizing losses at the best opportune moments for recovery. Would be great to hear I've missed something.

Good to know Simples. If you like, send me a PM so I can remember this discussion and I will share what I learn through my research. I am building a custom backtesting platform and one component will have the ability to alert of non performing systems.

 

[MattZ]

With the risk of ending up like the bad guy - exactly what in this interview was very informative and had good info with regards to system development?

I rarely read trading educational material anymore as I'm too engrossed in my own research and didn't plan on listening, but seeing all the positive comments I figured it had some invaluable nuggets, but there was nothing special here, IMO.

Summary:

- Lost money 3 years in a row before turning his business around
- Focus on intraday trading ES S&P e-mini (which he thinks is a great day trading instrument contrary to some other people)
- Decreases position size when MA of negative equity curve is negative. Increase when positive. Markets ain't always great to trade. Know when to slow down and know when to trade.
- Try to find someone to colloborate with. Don't work in isolation
- Valuable info on trading isn't published online or sold in a course.

The last sentence really sums it up. And in my opinion, also reflects the content of the interview.

The interview wasn't bad by any means. I was just disappointed in light of all the very enthusiastic comments in this thread thinking it maybe had something really interesting to share.

Sam has been my customer for a long time and has managed some of our customer's funds as part of the Managed Futures services we offer (outside the self-directed). In lieu of our mutual experience, I thought I would share his insights about trading with the community.

If you decide that you wish to add something to the trading community that others did not consider, I would be more than happy to interview you so you can share some insights from your own research.

 

[Gotcha]

With the risk of ending up like the bad guy - exactly what in this interview was very informative and had good info with regards to system development?

I finally got a chance to watch the video, and am so disappointed as well. I made some points.

1. follow system, take the trade ----> amateur advice
2. edge, insight of what market may do, probabilities ----> amateur advice
3. large players make an impact, they move market ----> amateur observation
4. what he would do differently, not remain isolated ----> exact opposite of what trading requires. its not a team sport, its individual.
5. has to trade more contracts since he has more people interested in him ---> yawn

Honestly, I find it hard to believe he is managing money. Not a single mention of numbers. How about just a simple metric to show his profitability. If he is trading futures, how many points is he making? How many contracts does he trade?

This entire is just a plug for customers. If this guy was making more than 200k per year, I doubt he would be doing any of this. Why does he even need to trade other people's money? When you get good, you trade 10 contracts yourself, maybe 20, then 50. Heck, by trading for other people, he is diluting his own income potential.

Matt, perhaps for full disclosure, you could share the relationship here and how much money is trading hands. I simply cannot believe that this dude is making money for clients, trading ES futures, and doing so well that he is sought after. No disrespect to anyone, but if you're making 250k per year from your trading alone, you tell everyone else to fuck off and don't bother making videos and don't talk to your broker and plug certain software. And if you're not making 250k trading, then why are you managing money, pretending to be hot shit?

 

[Overnight]

... And if you're not making 250k trading, then why are you managing money, pretending to be hot shit?

Thank you, you just saved 45 minutes of my life, which was the amount of time left I had on that vid. The first 15 mins and I was falling asleep, it was nothing I have not heard a hundred times before.

 

[Howard]

This will prevent you from continuing to trade a system that is no longer profitable. This is something I have not considered and will be testing this idea out.

It's an old idea, really. You basically risk winning on small size and losing on large size.

I finally got a chance to watch the video, and am so disappointed as well. I made some points.

Honestly, I find it hard to believe he is managing money. Not a single mention of numbers. How about just a simple metric to show his profitability. If he is trading futures, how many points is he making? How many contracts does he trade?

I'm glad to hear it wasn't just me. By all means, it wasn't a bad interview per se, it just didn't offer any special insights or anything new. I wouldn't expect so either, but the comments here made me think it did. Hence my disappointment.

As for making money, I have no idea and don't really care either.

You raise some good points though.

I did find it a little odd his mention of running a 10K account up to 50, withdrawing 40 and running it back up to 50. That's certainly not a good way to become wealthy and certainly not in a market like ES.

 

[qlai]

You basically risk winning on small size and losing on large size.

Just to make sure I understand correctly, you mean it as a negative, right? I think it's a very interesting topic in itself. Similar to getting out of the drawdowns. Don't think there's a right or wrong way to it. Maybe depends on the strategy itself as far as the opportunity cost to trading small. The higher the timeframe, the higher the opportunity cost?

 

[MattZ]

I finally got a chance to watch the video, and am so disappointed as well. I made some points.

1. follow system, take the trade ----> amateur advice
2. edge, insight of what market may do, probabilities ----> amateur advice
3. large players make an impact, they move market ----> amateur observation
4. what he would do differently, not remain isolated ----> exact opposite of what trading requires. its not a team sport, its individual.
5. has to trade more contracts since he has more people interested in him ---> yawn

Honestly, I find it hard to believe he is managing money. Not a single mention of numbers. How about just a simple metric to show his profitability. If he is trading futures, how many points is he making? How many contracts does he trade?

This entire is just a plug for customers. If this guy was making more than 200k per year, I doubt he would be doing any of this. Why does he even need to trade other people's money? When you get good, you trade 10 contracts yourself, maybe 20, then 50. Heck, by trading for other people, he is diluting his own income potential.

Matt, perhaps for full disclosure, you could share the relationship here and how much money is trading hands. I simply cannot believe that this dude is making money for clients, trading ES futures, and doing so well that he is sought after. No disrespect to anyone, but if you're making 250k per year from your trading alone, you tell everyone else to fuck off and don't bother making videos and don't talk to your broker and plug certain software. And if you're not making 250k trading, then why are you managing money, pretending to be hot shit?

At the moment Sam is Managing above $30M, where 75% is in a day trading program, and the rest is in a swing trading. He is a CTA, licensed and make 2% on management fees and 20% incentive fee on new equity highs. We have been working together for about 7-8 years to the best of my recollection. Since his program is day trading and has no margin requirement for overnight, what we find is that many of those who have a managed account leverage him in their trading or other CTA programs they are running.

Sam would have loved to mention numbers and solicit additional funds, but I purposely refrained from that because my ONLY purpose was to pick his habits, routines, and overall feedback. I respect the fact you are exposed to many products or sales pitches with hidden agendas, but the entire intention here was to help.

I wish you well with your trading and hope future interviews would be more productive for you.