Kevin Davey was an engineer before he started trading 25 years ago. Kevin competed in the World Cup of Futures Trading Championship from 2005 to 2007. He finished in first place once, and second place twice, with returns of an excess 100% each time.
Kevin is also the author of Building Winning Algorithmic Trading Systems, a book which has plenty of 5-star ratings on Amazon.
Kevin discusses during this interview how he focuses on trading multiple strategies in multiple markets to get a smoother equity curve. He also shares his development process for taking an algorithmic strategy from the initial idea through to total automation.
What’s Covered in This Interview:
- How Kevin’s trading habits changed when transitioning to full-time trading after he left his job..
- Why it’s good to diversify, as in trading multiple strategies and multiple markets at the same time. Also, how diversifying can help to smooth your overall equity curve.
- Why it’s beneficial to trade with an algorithmic approach and the need to evaluate before traders start trading.
- What are some of the biggest disadvantages that are bigger than curve fitting and optimizing.
- What some of the common terminology are commonly used in the algorithmic trading spage.
- Why traders really need to know when to cease a trading systems if it doesn’t work the way you expected, even before you start.
- The process in development where traders take an algorithmic strategy from objective and goals to live trading.
- Kevin shares a few ways to adapt an algorithmic approach.
Links and Resources:
- TradeStation – Kevin uses this trading platform to create, evaluate and run live strategies.
- Building Winning Algorithmic Trading Systems – The book Kevin wrote.
- The Evaluation and Optimization of Trading Strategies – A book Kevin recommends to traders who want to explore algorithmic trading and mechanical systems.
- KJTradingSystems.com – Visit Kevin’s website to learn more about Kevin and his trading approach.
- @KJTrading – Follow kevin on Twitter.
