chasing pips

Episode 78: The Harmonious Coexistence of Discretionary Trading and Automated Trading

In today’s episode, Rob Booker talks with Chris Davison, his partner in building automated trading systems. You’ll hear Rob and Chris discuss the role that automated systems might play in a trader’s discovery of ways to make money. Rob and Chris discuss how to get experience in the markets without spending a great deal of money to get that experience. Their answer: discretionary trading and simultaneously running some automated strategies in the background as a method for learning the process of making the decisions for yourself. And they consider whether this is a prudent approach … or not.

Rob addresses his most common post-seminar question: What do you do now that you’ve attended this live seminar? Rob asks Chris if he makes distinctions among high-frequency trading and long-term trading and medium-term trading when talking about automated systems. They explain how the exchanges and the brokers love scalpers. Rob asks Chris how much draw-down he can withstand. Chris offers his theories about why 95% of traders lose, and his “Wibbley-Wobbly Line Theory.” And, of course, Chris answers the classic question: Is it possible for a retail trader to make money? Join us — you’ll love it!

Links for this episode:

MetroTrader.net

Chris’s blog: ChasingPips.blogspot.com – where he documents the ups and downs of trading automated systems

Follow Rob on Twitter: @RobBooker and see Rob retweet anything that Chris ever says.

Episode 45: Enduring Draw-Down and the Infinite Time Horizon on Success

An expert in automated back-testing, Chris Davison joins us from the UK to give more advice on how to lose money and to discuss the two elements of draw-down: namely, how your system copes with draw-down and how you personally deal with draw-down.

Rob and Chris clarify the difference between risking 1% per trade versus risking 2% per trade, and they give advice on how to get to the point where you don’t worry when you’ve hit a losing streak. Rob brings us another “Dumb Things That Rob Does” segment, and Chris reveals some interesting findings that have occurred during the Wallabot Millionaire experiment.

There’s talk about how to give yourself “an infinite time horizon on success,” differentiating between investing and gambling, and Chris names the reason why he thinks most people lose money trading — and more. Please join us!

Chris Davison’s blog, where he monitors the performance of several automated systems: Chasing Pips

Understanding Draw-Down:

If you enjoy this episode, we also recommend The Traders Podcast, Episodes 1 — 3: “The Commandments of Automated Trading,” with guest Chris Davison:

Episode 1: Automated Trading Part 1

Episode 2: Automated Trading Part 2

Episode 3: Automated Trading Part 3