Futures Strategy Developer Urges You to “Never Catch a Falling Knife”

It wasn’t until Amal T.’s company went public 10 years ago, requiring him to open a brokerage account, that he become a trader.  His trading journey began along a familiar path, as an expensive  hobby.

In Episode 13 of Top Trader Radio, Collective2 trader leader and software developer Amal chats with Charley about familiar topics including automation, keeping emotions in check, and strategy recalibration. He also humbly attributes some of the success of his strategy to an overall strong, trending market.  

Amal’s Day Trader Futures strategy is long only trend-following strategy that trades the S&P 500 and Nasdaq emini futures. 

The biggest misconception to start trading is that you need a great deal of financial knowledge. Don’t get me wrong, it helps, but it’s all about understanding the psychology of trading and keeping emotions in check.


Amal T.
Trade Leader, Day Trader Futures 

Amal, owner of Quantfundsystems.com, is a retail trader and programmer with over 15 years experience trading and investing in the Indian and U.S. markets.

He has combined his knowledge of IT and markets to build automated trading systems that enable him to manage his family’s funds. Amal believes automation keeps emotions in check while letting him enjoy other aspects of life.

James Leigh Says, ‘Be Choosy When it Comes to Opportunity’

Toronto-based James Leigh believes that, as a trader, you absolutely need to let most opportunities pass you by. Most traders believe that they need to do everything, when the opposite is true. “Slow down and think long-term” Leigh urges. “It’s said that the deal of a lifetime comes around every 90 days” added guest host and show producer Paul Roberts.

James Leigh’s popular C2 strategy, Correlation Factoris a fully automated, sector rotation strategy that picks 5 sectors of favorable strength and stability. It is a long-only and thus “IRA-friendly” strategy that trades only U.S. equities, excluding stocks in the energy and minerals sectors as “those are too tied to the commodities.” Over time, James has found some fascinating behavior in the correlations and trends among various sectors.  

In Episode 12 of Top Trader Radio, we dive into why James believes his strategy has outperformed the market, the benefits of a sector rotation strategy, and how to keep your losses at a minimum. 

Everyone wants to invest in something long-term…but, before it becomes a good long-term trend it needs to be a good short-term trend.


James Leigh
Trade Leader, Correlation Factor

James Leigh has been running his own Software Consulting business for the last ten years specializing in alternative databases. He was inspired after reading Keith Fitschen’s book “Building Reliable Trading Systems” about “tendency analysis” to find the path of least resistance for his core portfolio holdings. Using his background in data analysis and machine learning, he discovered some interesting correlations between market sectors that he was able to take advantage of in Correlation Factor on Collective2. 

Danny Merkel: Minimize Stress with a Systematic Approach

It took a high school business teacher’s stock market competition to inspire the interest of Danny Merkel, the Trade Leader of the The Momentum of Now  trading strategy. Danny’s successful 10-year career in trading (mostly individual stocks of a wide variety, across many sectors) is methodological and rules-based: cut losers, let winners ride. 

In Episode 11 of Top Trader Radio, Charley explores Danny’s rigorous systematic approach to trading, the best advice he’s ever received, and the benefits of varying stocks across many sectors. He even dives into the future of Bitcoin from a trader’s perspective. At the end of the day, Danny says, you need to learn to think in terms of the next 1,000 trades; position sizing and a little perspective is everything.  

When it comes to Bitcoin, you need an exit strategy. If you don’t manage the risk, it could end up really bad.


Danny Merkel
Trade Leader, The Momentum of Now

Danny Merkel is a trader from Toronto, Canada with over 10-years of experience. He applies Trend Following strategies to individual stocks and ETFs. You can connect with him on Twitter or follow his 3 strategies on Collective2.

David Stephens: Indices vs. Stocks? Do what works for you.

This week our host Charley Wright welcomes David Stephens, a Silicon Valley software director and C2 trade leader to the podcast to discuss his background, start in trading, and his popular long-only strategy SystematicBlue SP500.  David prefers indices over individual stocks, an approach that he believes to be of much lower risk with less dependency on ‘market noise’. It’s important, David says, that every trader find what works for them. 

According to David, whose day job has him working regularly with the likes of Nasa, BMW and Boeing, the amount of trading advice out there can be overwhelming. At the end of the day, be it mean reversion or price action, nobody can argue with what is working for you

I’ve made every mistake there is to make when it comes to trading. You have to make mistakes in order to learn.


David Stephens
Software Director, Trader | SystematicBlue SP500

David Stephens is a Computer Scientist currently employed as the Director of Software Development at a Silicon Valley industrial software firm. For the last few decades David has lead a global team of software developers and digital signal processing experts to produce industry leading digital signal analysis and vibration test control systems used in aerospace, satellite, automotive, defense, and other industries. Companies using software developed by David and his team include industry giants such as NASA, Boeing, BMW, etc.

David’s personal passions include equity markets and systematic trading, computer automation and control systems, and artificial intelligence and genetic algorithms. David has been involved in systematic, computer aided trading since the arrival of internet trading and trades his own funds. Some of David’s commercial trading signals are published at Collective2.

Razmig Bulujian’s approach to trading: getting back to basics

This week host Charley Wright spoke with Razmig Bulujian, the Trade Leader for Algofolio Options on Collective2.  Razmig learned early that it can be easier for stocks to “slide than glide” and hence has a penchant for short selling and shorter term trades, a preference inspired in the dot-com era. From Drexel Burnham in the 1980s to Merrill Lynch (and several proprietary trading firms in the middle), Razmig’s experience in the industry is impressive and varied. 

Charley and Razmig dive in many facets of his trading strategies including how he developed a passion for the markets and speculation growing up in a family-run coin and bullion shop. To Razmig, trading is not simply a matter of prediction but requires sharp attention to market patterns.

Advice about trading? Read, read, and read some more.

Razmig Bulujian
Portfolio Manager,  Trader

Razmig Bulujian is a graduate of University of Southern California (USC) Marshall School of Business. Beginning his career at the legendary Beverly Hills office of Drexel Burnham Lambert, Inc., Mr. Bulujian spent several years with the Private Client Group at Merrill Lynch & Co., Inc.

Between stints at Drexel Burnham and Merrill Lynch, Mr. Bulujian was Assistant to the President of a leading Washington DC based precious metal industry trade association working primarily on the American Eagle Gold and Silver Bullion coin program.

Since then he has been a long/short portfolio manager for family office separate accounts, and a registered proprietary equity trader with a several PHLX and CBOE exchange member firms.

Developing a more quantitative approach he designed Opening Gap Trader, an automated algorithmic trading application featured on Interactive Brokers MarketPlace. Razmig is a former Chairman of The Pasadena Library Commission and former Board Member of the Pasadena Library Foundation AlgoFolio Options, AlgoFolio Equity and the newly launched AlgoFolio Proprietary are available on the Collective 2 platform.

 

 

 

Richard Metzger prefers pragmatism and probabilities to the pursuit of perfection

Four years ago, Richard Metzger went from designing the logic that goes into cell phones, computers and electronics to designing trading algorithms for his own venture AlgorithmicTrading.net. The results in just a short time have been impressive. 

In Episode 9 of Top Trader Radio, Richard and host Charley Wright cover a broad range of topics from why to avoid perfection to how to use inversely correlated instruments to hedge. Richard has algorithms for a variety of market conditions but within each strategy he advocates for simplicity when possible. 

Richard offers one of his marquee strategies under the name Swing Trader ES TY on a privately branded Collective2 site. 

Always remember, don’t let the perfect become the enemy of the sufficient … because back-testing is only a small part of the battle. I’ve coded over 300 algorithms, almost all of which did poorly when applied to live trades. A few stood out as gems and those are what we offer to our customers today.  

Richard Metzger

Richard Metzger
Founder, Lead Developer, Quant Algorithms LLC

Richard spent over 10 years as a logic designer engineer at Fortune 500 companies including Hewlett-Packard, Intel, and Qualcomm.

In 2013, after trading on the side during his entire career, he founded AlgorithmicTrading.net (now under parent company Quant Algorithms) to capitalize on his expertise in algorithm development, finite state machine coding/design, and advanced mathematics.

Richard has a Bachelor of Science in Electrical Engineering with a computer science emphasis from Boise State. 

GD Singh challenges conventional wisdom but follows common sense

GD Singh is CFA Institute member and Chartered Alternative Investment Analyst who, along with his team of research contributors that all boast similar credentials, manage seven core strategies, each with a different risk/return profile designed to cater to a specific type of investor.  

GD founded HedgedEquity in 2015 to provide access to signals from his portfolio of strategies. The firm specializes in low volatility, alpha seeking equities, ETFs and futures strategies that are non-correlated to the traditional equity and bond indices. 

Episode 8 of Top Trader Radio features host Charley Wright interviewing GD about the approach, market and personal philosophies, and style that drive his investment process.  On Collective2, you can find his strategies under the user NTLLC including Emini Short Term, Allcap Stocks Long Only, and SP Swing Trading among others.

GD’s proprietary multi-instrument, multi-time frame trading strategies have been published on Collective2 since 2015.

Our fundamental belief is centered around the fact that markets are inherently inefficient and often create pockets of opportunities for astute investors.


GD Singh
Founder,  Lead Portfolio Manager, HedgedEquity

GD Singh is the founder of  HedgedEquity.com, a proprietary research entity that develops sophisticated ‘model’ portfolio strategies for the global investment community.  GD is a Chartered Alternative Investment analyst with over 20 years of trading and investment experience. He is also a standing member of the CFA institute.

Born and raised in India, most of his prior experience was in technology and software companies having sold his first company at the young age of 22. He transitioned to managing his personal portfolios several years ago and decided to bring his strategies to the global community via his newly created venture – HedgedEquity.com. Mr. Singh is the lead portfolio manager and is assisted by a team of 6 CFA/CAIA charterholders, who help him in his research efforts. 

Brad Pappas proves that green portfolios can stay well in the black

In 1995, Brad Pappas formed Rocky Mountain Humane Investing, Corp (RMHI), an independent Boulder investment advisory firm to cater to Vegan and Socially Responsible Investing.  RMHI was the first investment adviser in the United States that focused exclusively on humane and environmentally screening as part of a socially responsible investing philosophy.

In Episode 7 of Top Trader Radio, Brad and host Charley Wright talk about the investment approach behind several strategies tracked on Collective2 including Optimized Partners I and The Vegan Growth Portfolio.  Topics include trend following, what makes a market worthy of investment, and the common question of whether socially responsible investing means sacrificing performance. 

Brad’s proprietary ranking and trading systems have been public on Collective2.com  since 2013.

The technique that a manager employs is far more important than the investment selection universe. I figured the only way I could really prove it to people was to do it in real time in real life. 

Brad Pappas

Brad Pappas
Founder, Principal Portfolio Manager, Rocky Mountain Humane Investing, Corp.

Brad Pappas is a graduate of Northeastern University School of Finance in Boston with over 35 years of trading experience.  While at E.F. Hutton in the mid 1980’s, he formed his first trading model and was runner up in the 1987 U.S. Investing Championship in the Options Writing division.  

Brad is active in rescuing mountain dog breeds on his ranch in Colorado and in 1995 founded the Rocky Mountain Humane Investing, Corp.

Alessandro Cocciola’s strategy has experienced 4 years of good “Carma”

Alessandro Cocciola designs and develops quantitative, mechanical trading strategies that utilize proprietary measurements to determine the market regime along with a scoring system for S&P equities. His flagship strategy Carma Stocks is a mean reversion swing trading strategy that filters for oversold and overbought stocks. The strategy trades only highly liquid stocks, both long and short.

In Episode 6 of Top Trader Radio, Alessandro and host Charley Wright talk about the investment approach behind Carma Stocks, the importance of matching trading methods to your personality, lessons learned about liquidity from the perils of 2008, and the characteristics that have lead to Alessandro’s success as a portfolio manager. 

Trading and portfolio management are my passions and my job. I find myself very fortunate that the two things coincide. 


Alessandro Cocciola
Principal Managing Partner, Carma Advisory

Alessandro has 11 years of experience in the financial markets. He is the Principal Managing Partner of Carma Advisory, a SEC Registered Investment Advisor firm. He specializes in mechanical trading and portfolio management with a focus on long/short equity strategies. Alessandro is graduate of Economics and Banking at the University of Macerata (Italy) and has gained significant experience in leading Italian asset management companies as a Portfolio Manager and as a Risk Manager.

IQBroker’s Daniel Tochner has 18 ways to make you a better trader

Software Architect Daniel Tochner wanted a way to backtest, optimize, and execute multiple algorithmic trading strategies at a portfolio level. When he was unable to find a platform that was capable of the heavy lifting required to meet his needs, he set out to design and build it himself, and IQBroker was born.

In Episode 5 of Top Trader Radio, Daniel and host Charley Wright cover the features and benefits of the IQBroker software which was recently selected as Collective2’s first Preferred Trading Platform.  Daniel explains how IQBroker allows multiple strategies, within a single portfolio, to trade multiple symbols, on multiple exchanges… and to use multiple bar-types, news feeds, RSS feeds, and fundamental data.

The result of over 11 years of R&D, IQBroker is one of the most powerful and feature-rich broker-neutral trading platforms for equities, futures and forex. IQBroker has received rave reviews from quantitative and algorithmic traders all over the world. 

…a trader can have a strategy that looks at equities in New York, forex in Tel Aviv, and futures in London and they can simulate all of that as a single portfolio. That was impossible for traders to do [before IQBroker].

Daniel Tochner

Daniel Tochner
Founder & CEO, IQBroker

Daniel founded IQBroker with the purpose of developing the ultimate algorithmic trading platform. He is an experienced algorithmic trader and software architect with over 15 years of accumulated experience in professional software development, capital markets and business administration. Daniel handles both the vision and the day-to-day operations of the company to ensure that it stays on the cutting edge of technology.

Daniel holds a B.Sc. and M.Sc. in Computer Science from the Hebrew University of Jerusalem. He is a resident of the beautiful city of Las Vegas and is often in the San Francisco Bay Area and New York City.

Paolo Geronazzo’s ANTARES SP500 Trading Strategy has 3-ways to shine

After several failed attempts at discretionary trading, Paolo Geronazzo returned to his programming and IT roots and began developing rules-based, automated trading strategies. Many years of rigorous back-testing later, a mean-reversion strategy targeting the S&P 500 E-mini Futures emerged as “the star” and ANTARES SP500 was born. 

In this episode, Charley and Paolo go into great detail about the workings of his strategy and the methods used to succeed with a contrarian model in what has seemed like a relentless bull market. Hint, ANTARES SP500 has more than one way to shine.  

I opened an account and lost all the account trading discretionary. From that point I decided to trade only with mechanical trading systems.


Paolo Geronazzo
Independent Trader

Paolo has over 25 years of programming and IT experience in various industries.  He was lured to the financial markets during the dot-com days of 2001 during which time he began to use his programming skills to develop automated trading systems.  He is now a full time trader designing and managing proprietary trading strategies for his own use and a prominent Swiss financial institution.

Paolo lives in Varese (Italy), near the Swiss border.

John Netto takes trading performance measurement into the 3rd dimension

This week host Charley Wright spoke with John Netto, a professional, independent futures trader based in Las Vegas. John has managed risk in the global markets, the world of sports as a teenage bookie, and as a United States Marine.  

Charley and John covered many topics, including his 600-page book “The Global Macro Edge” and his view on the three dimensions of measuring returns, the 3rd dimension being his namesake  – the Netto Number.

Trading is about growth. It’s a microcosm of life.

John Netto
Independent Trader,  Author

John Netto is a cross-asset class trader and author of The Global Macro Edge: Maximizing Return Per Unit-of-Risk. He is also the creator of the Netto Number, the Risk Factor Compensation System, and the Protean Strategy, for which he was named by Collective2.com as Strategy Developer of the Month. Netto is an expert in developing, executing, and managing proprietary algorithmic and discretionary trading strategies across a range of time horizons, asset classes, and market regimes.

Mr. Netto has conducted numerous live trading webinars where viewers watch his P&L, positions, and orders in real time for total transparency of his methods. He has appeared on CNBC’s Fast Money, Closing Bell, and Squawk on the Street, as well as Bloomberg, CNN, Fox Business Channel, and PBS.

Mr. Netto is also the author of One Shot – One Kill Trading. Mr. Netto speaks, reads, and writes Japanese, Chinese, Portuguese, and Spanish to help him articulate his vision of the markets to an international audience. John Netto’s ability to convey esoteric concepts was put on display when he was featured in two documentary movies, Life on the Line and Ghost Exchange, where he simplified to viewers some of complex aspects of creating a point spread model on The Super Bowl and executing high frequency trading strategies. Netto served in the United States Marine Corps for over eight years and is passionate about Veterans’ causes.

 

 

Mario Randholm on the importance of thinking risk management first

Charley interviews Mario Randholm, Trade Leader for the market-timing, options premium selling strategy R-Option.  

This business is about risk management. You could have the best models .. but if you are wrong with risk management, you will not succeed.

Mario Randholm
Founder

Mario is the founder of Randholm & Co., an investment management company dedicated to producing superior returns for its clients and employees by adhering to mathematical and statistical methods. 

Mario holds an MBA from IE Business School in Madrid and BBA from Adelphi University in New York.

 

Collective2 Founder Matthew Klein on the genesis of “C2”

Listen as Charley talks to Matthew Klein, the CEO of Collective2, an investing web site where great traders from around the world ask Collective2 to track their brokerage results in real-time. Then other investors can “subscribe” to these traders, and automatically follow their trades in their own brokerage account.

Collective2 was founded in 2001. It has more than 100,000 registered users and 15,000 published strategies. Over $75 million dollars of investor capital is connected to the Collective2 platform.

Matthew Klein

Matthew Klein
Founder & CEO

Matthew Klein founded Collective2 LLC. In addition to leading C2, Matthew is also a novelist. He graduated from Yale University, and is a Stanford GSB dropout.

Matthew lives in Westchester County, New York, with his wife Laura, his two sons, and a whippet.

 

 

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