The Pursuit of Edge · Bob Bright (Market Legend)

EP 203: The Pursuit of Edge w/ Bob Bright
Casino floor or trading floor, Bob Bright has forever sought an edge for favorable odds…
Counting cards in Las Vegas, calculating three-way options at the Pacific Exchange, pairs trading correlated stocks, exploiting the tracking error of leveraged ETFs; Bob’s always pursued a mathematical advantage to win the game.
Also considered by many as a pioneer of proprietary trading, Bob and a partner formed Bright Trading in 1992-at its peak, the firm was home to 490-traders across 42-offices in the U.S.
Today, at 80-years of age and undoubtedly a market legend, Bob remains an active trader and a serious high stakes poker player.
Topics:
0:00 - Intro
2:41 - Beating the Casinos in Las Vegas
18:38 - Trading Options on the Exchange Floor
24:39 - Watching Bob during the trading session...
28:40 - Leveraged ETFs vs Non-Leveraged ETFs
41:43 - Mathematical Edges in Financial Markets
54:05 - Discipline and Managing Tilt
1:09:04 - Outro
Show Notes:
chatwithtraders.com/203

[@algoluvr1816]

1) Understanding the auction & the products you choose 2) Having a "niche" with math based strategies 3) Adequate funding 4) Proper risk management & mindset/psychology 5) Discipline to learn & execute on each of these. Sounds easy enough 🤔 Aaron, another great interview with special thanks to Bob! 💯

[@oceanblue2386]

80 years old. Incredible man. Amazing and mind sharp as hell!

[@lasvegasadventures8729]

Bob Bright - A true legend in Vegas in more ways than one!!

[@Ninja-iq2xt]

Loved the timestamps, Its sooo helpful.

[@x2ul725]

This is the best trading interview I have ever heard. Maybe just a few things have synced with me, but this was very exciting. Great job with interview.

[@MrSandman408]

Loved this episode! Thanks for bringing Bob on Aaron.

[@ThatFuturesLife]

Enjoyed this a lot! Thank you for the timestamps!👍👍

[@80percent34]

I worked for Bob Bright 15 years ago, he and his family is FIRST CLASS ppl. I learned so much from Bob, he's a national treasure !

[@nykytahorbachov1369]

I enjoyed the interview, thank you Bob and Aaron

[@johnb4091]

Massive thumbs up ❤️👌

[@icarus2422]

Very excited about this episode! Thank you so much to the both of you

[@chairman6652]

Loved this interview .Very Very inciteful 👌

[@rajendrarj3674]

Love you man😍. You are doing amazing work ,its helping us through the core i just cant explain how useful your work is its just AMAZING. God bless you man our wishes are always with you.keep doing your work , we will never forget you.

[@tinashegwatiringa98]

I can hear the passion in his voice

[@givenfree7277]

Good interview, legendary trader.

[@ravirajsapar]

Loved this podcast and insight into trading...

[@alexneil394]

This was one of the better interviews

[@joedavis3143]

Although I understand what Aaron meant in the foreword, I think the interview was very good, even if he did drift off the question at times. It was very well done and another great professional interview job.

[@HobbyZobby]

Very interesting!

[@guure8630]

your podcast is the only reason im still pushing myself to keep on trading. thanks for the great work u do for us

[@flowerhour9539]

Oh wow I believe I've seen him play back in the day!

[@Fresse]

"Get that edge and make some money!" haha love it

[@FailFlopFly-SalesforceImports]

Thanks Aaron! I was confused as to why he wasn't giving any depth to his answers. He seemed to stay on the surface....I appreciated your attempts to get him to go deeper. Cheers! Looking forward to the next one!

[@justletmesigninokthx]

Amazing interview

[@Reotha]

Absolutley loved this interview.

[@deathlarsen7502]

Get a life piker

[@vineetverma4547]

Exxellent

[@mawisangobeni2718]

i love this, too much experienced

[@oceanblue2386]

Remember he's a poker player. He's going to only tell you what he wants you to know

[@astrogumbo]

This is crucial:)

[@rjpalada5549]

Great interview Aaron

[@saurabhghadge6999]

Love your work ❤️

[@billmancos9820]

Thanks I really got an awful lot from this interview! Bob Bright told quite an interesting story of his success! I would give anything if he were my neighbor!

[@8thhousealchemist600]

I appreciate this guy.

[@googleSux]

I have been working for a guy very similar to Bob for a very long time. He is not a genius. He was lucky, yes, but its a specific mindset which makes you a winner or loser with the markets or gambling. Few have that mindset from the beginning, some get it quickly once they gamble/trade. Many never get it. That's the 90 percent giving their money to the 10 percent.

[@prathamvora1533]

Loved thisss!!!!

[@acetrades1524]

Really enjoyed this one, thanks!

[@christoffjones8422]

This was a great interview

[@thetaeater]

Holy crap this place is still in business! A lone wolf preying on the stupid brilliant!

[@hamisintunzwenimana8083]

Good General 1. Rule Based / Systematic approach 2. Position Sizing / Edge 3. Learning process; website.

[@raymundracuya]

Great😇

[@jamesjohnson7498]

Pairtrading is what Bob is taking about. Example pair trading FedEx vs up, Visa vs Mastercard etc. His firm will teach how to do this. Go for it. I do the same but with futures . Example oil calendar vs calendar. His firm is the real deal.

[@hunnusunnu6896]

How do you do it with futures?

[@hunnusunnu6896]

I tried and profited from calendar but Im not sure if the opportunity is consistently there for me to exploit. What are you exploiting? Seasonality? Holding period?

[@prathamvora1533]

Bring on Mark minervini mannn

[@NickDrendel]

I second this! He’s a great one to have on, especially with current market trends. Need that “sit out” power more than ever!

[@hussambeydoun9930]

Great one .. would love an episode with Greg aka LX21

[@dj_sergiov]

Back in those days...

[@klum03]

awesome job timestamping the video

[@ironhed515]

He has a tone like every question was a stupid question.

[@jamesjohnson7498]

Aaron interview the head of Bob's of trading firm. It will tie into this interview . If you want to get into prop trading bob firm is the way to go

[@marcuscastillo1735]

45:35 explains Robinhood business model

[@VG-ew4cn]

I like the way he pronounce Chikago

[@hunnusunnu6896]

Anyone understand his leveraged etf trade example?

[@schrodingerscat3912]

CWT is #1

[@j.corona8118]

They will put rules on your trades, I have seen that.

[@blinkrei]

That was a bit rambling at times, But Bob is still the black jack king!!! Now I know why Rob Friesen is the President of Bright Trading, no offense to Bob Bright. I used to trade with Bright, Bob was much sharper 20 years ago.

[@Back_In_The_Black]

Sounds like Jim Ross discussing Edge.

[@XSAoRAD]

Bah Gawd is the big red candle on $KANE

[@googleSux]

In case some have not figured it out.... It's a zero sum game. It's not a us vs them. It's each of you against each other. If you ever do find an edge, you would be a total idiot to talk to others about it.

[@yj677]

a high stakes poker cash game in russia sounds like the last place id want to play that lol.

[@melisapitts8587]

I have been trading for about 6 months now and just about every trade backfires and slaps me in my face. Nearly impossible for me to catch more than a few points . I try to do top down analysis but it doesn't work for me . I say to myself, clearly I'm in the 90% that lose money, so I open a demo account, do my analysis, then take the opposite of what I would normally take and get the same result. I'm starting to feel hopeless, any advice for a struggling trader?

[@nelsonscot936]

Your problem could be your stop loss is too close or you're watching your trades too much. Place it and walk away. Or you could just give up, trading isn't for everyone

[@dannywilson258]

Try not to hear him out, don't surrender. Exchanging takes time(months, even years) to ace, even the experts learn ordinary. Never the less, on the off chance that you lose cash regardless of which side you take, possibly you have to take a gander at how you are overseeing dynamic exchanges as opposed to how you are entering them. My recommendation, discover a guide . And furthermore, have a go at fusing the utilization of oscillators, Bollinger and rotate focuses into your system. What's more, in particular move to higher TFs(4h or 1D ideally), you'll express gratitude toward me later .

[@melisapitts8587]

@@dannywilson258 You're correct, I don't lose money every single trade, but my main problem is trying to let my runners run. Very rarely do I catch big moves . Instead they go a few pips in my direction, then go against me if when I try holding them. Also my entries could use a lot of improvement. A mentor would be amazing, but getting one is easier said than done. If it's not too much to ask, do you know any legit ones?

[@hamiltontimothy2511]

@@melisapitts8587 I know of one man though, he is not a mentor per-se, but he is freakishly good at trading. From what I've gathered he used to work for a proprietary firm till he retired. Met him at one of those conferences, got to know him and we exchanged emails. Since he helped me, I've been making about $1000 bi-weekly. What I'm trying to say is the 5% of traders in the world that are consistently profitable are not on KZbin, they are just random/lowkey people no one even expects . His name is robert hary by the way.

[@shehryaribrahim1413]

@@hamiltontimothy2511 I think I have seen this name on a trading forum before, on discord one time, is he really that good ? And how may I contact him if that isn't too much to ask.

[@NomadGurkha]

is there any trader who has made it without leverage? I wonder many a times.

[@mawisangobeni2718]

i also wonder

[@chrispaz3893]

Following

[@thequantitychannel1299]

There is a person in Jack Scwager's Stock Market Wizards book (3rd interview I think) who usually trades only 50-80% of his account and at max has gone 130%. Although I do not see any problem with leverage 3x to 4x is healthy towards success

[@stevegrove1192]

you wont learn and traing things here, but if you have enuff $, you might be able to open a brokerage .

[@flippantfishtaco3132]

Seems like nobody knows how to define edge

[@hunnusunnu6896]

Big title confusing talk. I didn't understand shit.

[@duncano943]

Nice interview but if I hear niche pronounced this way again I'm going lose it!! Honestly

[@PayMe888]

“Trading Genius Raphael Palmdale” - KZbin channel. Thank me later bro’s

[@fernanmartinez1699]

Scammer lol 👎

[@user-so2cw4qf2t]

Hello, sir, each video is very long. Can you shorten the time and make the content more refined?

[@willrocksBR]

Well aren’t you an entitled idiot?

[@antonulybin389]

Pretty useless episode. In short, Bob said there are only two ways to make money as a traider. You either have to be a math genius using mathematical inefficiencies (like him) or a prop trader using insider-ish trades.

[@germanbrito1479]

i think its very simple what hes saying, hes saying that it doesnt matter if it goees up or down what mater is that it moves, because the leverage ets charges you, even if the etf doesnt move. much like decay on an option. i could be worng bu thats what i understood.

[@DannyOvox3]

Just be a math genius is easy anybody can do it

[@algoluvr1816]

@@believeinpeace8975 Well done! 💯

[@matts5535]

Can't get passed through the hillbilly...

[@lasvegasadventures8729]

@@matts5535 ..lol..Let's see you put up $1 milli to play in a poker tourney,