How to Create a Trading System & Why You Need One

Rob Carver is an independent systematic futures trader and investor, writer, and research consultant. He is currently a visiting lecturer at Queen Mary, University of London; and is retained as a research advisor to Stylus Capital, a hedge fund which trades digital assets systematically. Rob is a true authority on systematic trading. He has had a career at the highest level managing billions of dollars in funds and as a result he has a very clear and no nonsense approach to trading. In this episode we deep dive into why new traders should start with a system and the core components you need to have a successful trading system. We also question some conventional trading advice and discuss the use of Fibonacci sequences and why risking 1% as a position size may not be optimal. Finally, we talk backtesting, whether a new trader should backtest at all and avoiding psychological pitfalls in trading. Don't forget to hit the like button and share your thoughts in the comments below! Rob's Socials: LinkedIn - Robert Carver Twitter - @investingidiocy You can find the details of Rob's books and all of the source code behind his trading systems at https://www.systematicmoney.org (Yes, he literally gives away all of the code to his system) Timestamps 00:00 Preview and Intro 01:40 Why you need to start with a trading system 05:10 The core components of a robust trading system 11:30 Why Rob doesn't use Fibonacci sequences 17:05 Why 1% position sizing isn't optimal 22:00 Why new traders don't consider costs 29:50 Rob's learning's discretionary trading for Barclays 33:00 Finding a trading system that works for you 39:55 Rob's trading approach and finding risk premia 44:00 How to choose between risk premia 47:55 Why moving average crossovers should be your first trading system 52:30 Should a new trader backtest? 01:00:40 Avoiding psychological traps in systematic trading 01:06:00 How to approach different markets