061: Foundations of Trading with Dr Howard Bandy
There are a number of different aspects to trading that we really need to get a handle on to increase our odds of success. Some aspects we often put a lot of thought and analysis into, and others we may not consider so carefully or at all, which could be impacting our trading results without us even realizing.
Todays guest, Dr Howard Bandy, is here to discuss the foundations of trading, and some of these aspects we really need to consider, whether we’re just starting out or a more experienced trader.
Howard has over 50 years experience in the research and application of modelling and simulation of financial systems.
He has previously worked as a senior research analyst for a CTA firm, is a consultant to trading companies and individuals, as well as being an international speaker and publishing a number of books on quantitative trading systems.
In our chat today, you will learn:
- How to systematically choose the right markets to fit you risk profile, trading style and objectives
- The 3 characteristics a market must have to be tradable
- The difference between Impulse signals vs State signals and how they can be used to manage trades and monitor trade health
- The four parameters you need to understand to define your own risk tolerance
- Choosing the best objective function to evaluate trading strategy performance