Developing Robust Trading Systems With Nick Radge
Nick Radge had been trading since 1985 and is the founder of The Chartist, a coaching service that helps investors generate wealth in only 10 minutes a day. He is most active in Australian and US equity markets, and is a momentum trader and systemic trend follower.
In this episode, Nick discusses why mean reversion strategies might appeal to traders. He also dives into why it’s important to consider trade frequency when developing a system, and what a robust trading system consists of.
Nick emphasizes that traders should try and break and stress test systems instead of just developing the “best” one. Follow him on @TheChartist, where he’s open to answering any questions you may have.
Tweetables:
“Trade frequency is a very important part of profitability, because you get to exploit your edge more and more.”
“Do you want to make money, or save money?”
What’s covered in this interview:
- Why using a mean reversion strategy is beneficial
- Momentum strategies versus trend following strategies
- What casinos can teach us about trade frequency
- Why you need to remove survivor-ship bias and quality data is important
- Why you need to stress test your trading system
- Software Nick uses to automate his wealth building strategy
Links and resources
- EP 004: Nick Radge – Nick’s previous Chat With Traders interview
- Unholy Grails: A New Road to Wealth – Nick’s most recent book, featuring interviews with other trend followers.
- AmiBroker – Software Nick uses
- PremiumData – EOD data provider Nick relies on
- Free eBook – The free mean reversion strategy ebook discussed at the end of the interview.
- @TheChartist – Nick’s Twitter handle
