Simplicity in Systematic Trading | Robert Carver

Robert Carver is a trader and author of various books, one of which being "Systematic Trading". He mentions numerous times in his book that he is not a good trader. So why did he devote his life and a whole book to the subject?
Because he believes in systematic trading; making a simple trading system and sticking to it.
In this episode, we dive into his new book and explore why simplicity is the key, people think they are better traders than they are, and so much more.
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In this episode you'll learn:
- How cognitive biases in humans make them bad traders.
- Some core insights into his book "Systematic Trading".
- How he feels about Trend Following effectiveness.
- The differences between a subjective and an objective system.
- Things that people should avoid when creating a trading system.
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You can check out the all of the notes and full transcript of this episode right here:
www.toptradersunplugged.com/89
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[@ihavenoname5940]

Insane video guys wow! Loved it! So glad that I find your channel.

[@kajer2066]

excellent content with good discussion of real world challenges to develop and stick with a systematic trading system

[@tpko679]

this is my first episode ever, and yes i watched it up to @2:51 I was inspired by Ren Tech.....this is the best day of my life, because i know my purpose

[@IIIIALBYIIII]

Gold content! Thank you.

[@homeloanzain]

Keep doing what your doing!

[@systemtradingacademy7662]

How do you do these pencil sketches of the guests? What software do you use!

[@jaysharma9664]

Is there any audiobook available? For the book

[@TopTradersUnplugged]

don't think so

[@jonnyjazzz]

I know this is a year old, but how do you NOT over-fit when creating a new Trading Strategy, the way Rob describes, by doing research? Is it expected that a person develops their own pattern from scratch for them to be profitable? Does his book go into more detail about the methodology of creating a strategy that isn't over-fit in this manner?

[@TopTradersUnplugged]

I think the best way it to use relatively simple rules and test it on different markets and time frames so you do end up over fitting....We have talked about this on a few episodes...perhaps you can find it by going back to listen...check out the Minute Markets in the Show notes...

[@davedimarcantonio5469]

One simple way to start out on the right foot is to use a portfolio based approach to testing. It's more difficult to curve fit a system against the S&P 500 or S&P 1500 for example. A good program like AmiBroker that's built for portfolio backtesting is a must. Also, keep your rules to less than 10 ideally and do robustness (sensitivity tests) on your parameters. For example, when you optimize some of your parameters they should work between a range of values and not be random. Also, test your system rules against completely different markets altogether. Just using a portfolio of stocks to test against will help a ton. Hope that helps!

[@davedimarcantonio5469]

One simple way to start out on the right foot is to use a portfolio based approach to testing. It's more difficult to curve fit a system against the S&P 500 or S&P 1500 for example. A good program like AmiBroker that's built for portfolio backtesting is a must. Also, keep your rules to less than 10 ideally and do robustness (sensitivity tests) on your parameters. For example, when you optimize some of your parameters they should work between a range of values and not be random. Also, test your system rules against completely different markets altogether. Just using a portfolio of stocks to test against will help a ton. Hope that helps!

[@danielracovitan9779]

1) use few rules and few parameters 2) backtest on at least 100 trades 3 ) out-of-sample test 4) forward test live with paper money

[@angravante]

So what is the trading method ? What is your trading system ?🤨

[@user-pi1xk5jo7m]

GobbledeGook