System Trader

Just Keep Buying - that's what Nick Maggiulli suggests when it comes to investing in his book. And it's an excellent book because it treats investing straightforwardly and practically. Using hard data, Nick debunks myths in personal finance and investing. He answers questions, presents solutions, and gives effective ways to build wealth.https://systemtrader.show/028

Shrouded in mystery and even more misunderstanding, hedge funds have always been very limited for the average investor. Whether for regulatory reasons or because of high capital requirements. But with the revolution started by ETFs, they are now available to the masses.Today, with literally a few dozen dollars in your pocket, you can invest in the same things as hedge funds.The hedge fund industry is burdened with one big sin: high management costs – just like in classic investment funds.This is probably the main source of their numerous failures. But something has been changing here for years, paradoxically partly thanks to the ongoing passive revolution (i.e.: index products). Management costs are falling, and according to Morningstar, the current average management cost among hedge funds is approximately 1.6% per year. Yes – it is still a lot if compared to passive stock ETFs, where the cost may be lower than 0.1% per year.For several years, strategies implemented by hedge funds in the ETF package have bee

When we are talking about a strategy in investing, it is often perceived as a mechanism for generating a buy signal. In fact, this is not the most critical aspect in the entire investment process. Today I am pleased to invite you to an interview I had with Tom Basso - a practitioner with almost 50 years of market experience. He is a well-known person in the industry, especially if someone is interested in trend-following strategies.In the background of our discussion is Tom's latest book, The All-Weather Trader.In addition to discussing the strategies used by Tom, we talk about passive investing. Tom is not a fan of this approach, so I ask why.

John "Jack" Bogle revolutionized the investment industry by opening the first index fund in 1976 to replicate the S&P 500 index. It was not easy to sell the idea of a fund generating average market results. But Bogle has shown that by lowering costs he can outperform actively managed funds.Eric Balchunas, author of the fantastic book titled "The Bogle Effect. How John Bogle and Vanguard Turned Wall Street Inside Out and Saved Investors Trillions" is my podcast guest today. It's a semi-documentary book with numerous interviews by Eric, including Jack Bogle and even Warren Buffett. The book described the genesis of a great revolution in the financial world - the passive revolution.

Paul Merriman, my today's guest, is a worldwide recognized authority on index investing, asset allocation, buy-and-hold, and active management strategies. Paul began his career in the 1960s, working briefly as a broker for a major Wall Street firm. He concluded that Wall Street was burdened with too many conflicts of interest and decided to help small companies raise venture capital. He retired in 1982 to create his independent investment management firm.Now retired from his company, he is dedicated to educating investors. In 2013 he created The Merriman Financial Education Foundation, dedicated to providing comprehensive financial education to investors, with information and tools to make informed decisions in their own best interest and successfully implement their retirement savings program.Over the years, Paul has written many articles and books on investing. Paul's weekly podcast, "Sound Investing" was named the best money podcast by Money magazine.Please visit systemtrader.show/024, where 24 is the numb

Recently, I got an email encouraging me to sign up for a webinar to learn how to earn 1-4% per day. Imagine! Of course, there was an expensive car in the background.

There are arguments in favor of traditional passive index funds: they offer low fees, liquidity, and broad diversification. They match market performance, have negligible trading costs and tracking error, and they beat most active managers most of the time. On the other side, there are also factor strategies gaining popularity for a reason: they are transparent, offer exposure to widely agreed-upon sources of expected return, have low management costs, and, with proper design, reasonable transaction costs. In this episode, I am honored to speak to Vitali Kalesnika, a recognized expert in factor investing. He's a partner and Director of Research at Research Affiliates. Vitali explains the details related to factor investing. You will learn, among other things, what it is, what the associated risks are, and how to properly use them in practice.For more please visit: https://systemtrader.show/021

Today's guest is Grzegorz Link, who professionally works as a quant for an investment fund. Grzegorz is a physicist by education, which may surprise some. However, the thing is that in building market models, skills such as programming and mathematics are the primary tools, which is the same for contemporary physicists.We raise many interesting issues during the conversation, trying to answer the question - how is it possible that a well-known investment strategy can still be profitable. You will learn about common investment myths, pitfalls, and difficulties awaiting investors.For more please visit: https://systemtrader.show/021

Almost two years ago, I hosted Gary Antonacci, who specializes in investing using momentum anomalies, and that episode was very popular among listeners. Partly due to the fact that such investment model can be straightforward, and in a way, because it is also not very time-consuming. Which, for the sake of clarity, doesn't mean that the investment process itself is mentally simple. Today I am pleased to host Gary again, but we are talking about an approach to investing that is at the opposite extreme of the momentum anomaly. While momentum takes advantage of long-term trends, today, Gary will tell us how to take advantage of short-term, counter-trend market anomalies in a situation where the market is extremely overbought or oversold.

Episode page: https://systemtrader.show/018Rick Ferri, a guest of today's episode, is a well-known person in the investment industry for years. He is a retired US Marine and fighter pilot. He worked as a broker and portfolio manager in an investment company and got the CFA title. Currently, he works mainly as a consultant in the area of cheap index investing. Rick is also the author of numerous books for investors and the host of the Bogleheads podcast, which is for anyone looking for a smart approach to investing and personal finance.In this episode, we talk about the philosophy of index investing proposed by Jack Bogle, founder of Vanguard. You will learn about the reasons why Rick proposes to invest through cheap index funds and ETFs. Rick also explains how to approach building a portfolio step by step. I ask my guest, among other things, what will happen when everyone starts to invest passively.

Episode page: https://systemtrader.show/017Wes Gray after serving as a Captain in the United States Marine Corps earned an MBA and a PhD in the finance from the University of Chicago where he studied under Nobel Prize Winner Eugene Fama. He worked as a finance professor at Drexel University. He then found Alpha Architect -- a research-intensive asset management firm with a focus on high-conviction value and momentum factor exposures.In this interview, we talk about why it's so important to have a process, trust it, be patient and to have a long-term investment perspective. Wes explains that no strategy works all the time and that pain is always a part of successful investing.

Meb Faber is a co-founder and the Chief Investment Officer of Cambria Investment Management. His speciality is quant investing. Meb is the host of The Meb Faber Show podcast and has authored numerous white papers and books. He is a frequent speaker and writer on investment strategies and has been featured in Barron’s, The Wall Street Journal, The New York Times, and The New Yorker.In this episode, we talk why you need an investment plan, why the systematic approach is helping to have a better decision-making process, how to behave in the period of a market crash, is dividend investing a right approach for most of us, and many other topics. Only practical knowledge, no-nonsense theory.

Robert Carver worked in the City of London for over a decade. For seven years he was a portfolio manager at AHL -- one of the world's largest systematic hedge funds -- before, during and after the global financial meltdown of 2008.In this interview, we talk about many trading topics, mostly around the systematic approach and why it's so important for most of us to base the decison-making process on rules rather than discretion. Robert also explains why the most important factor to consider when investing is risk.You can hear how people managing billions of dollars were considering liquidation of market positions during the 2008 crisis, while at the same time, mechanical strategies made over a billion dollars in a single day. The fund's computer system had stuck to its preprogrammed set of trading rules and mechanically exploited the market moves almost to perfection, while terrified humans had discussed closing it down.Although we discussed many negative aspects of trading and investing, there's a positive me

It happens very often that we work because we don't see any alternatives. Our job may be annoying as hell, we may even hate it, but the reality seems like we don't have any other options. We have a mortgage, we have a family to maintain, or our qualifications aren't allowing us to do something new. So we don't dare to do something new, and we don't have a plan, we're just drifting -- day by day.My guest, Paul Novell, talks in this episode how he decided to live the life he wants to live. He left the semiconductor industry, a well-paid job at around 40, to pursue a more independent life. Already since 2006, his primary source of income is from investments.I discuss with Paul many investment topics. It's interesting to learn how Paul was maturing over the years, how he switched slowly from discretionary dividend investing towards quantitative and tactical asset allocation investment systems.For more please visit: https://systemtrader.show/014

Investing is simple, but not easy, as Warren Buffett says. And yes -- technically the investment process should be as simple as possible. But does it mean that an average investor should not even think about active investment strategies and entirely rely on a passive portfolio? Which strategy is best to follow? And will it work tomorrow?In this interview, my guest, Jack Vogel from Alpha Architect, talks about many trading topics, including momentum and mean reversion market anomalies.

Gary has over 40 years’ experience as an investment professional. After receiving his MBA degree from the Harvard Business School he concentrated on researching and developing innovative investment strategies that have their basis in academic research.Gary’s innovative research on momentum investing was the first-place winner in 2012 and the second-place winner in 2011 of the prestigious Wagner Awards for Advances in Active Investment Management given annually by the National Association of Active Investment Managers.

Linda began her professional trading career in 1981 as a market maker in options. She became a registered Commodity Trading Advisor in 1992. She worked as a principal trader for several funds. In 2002 she started her own hedge fund, which was ranked 17th out of 4500 for best 5-year performance by BarclaysHedge.Jack Schwager recognised her great talent in his famous Market Wizards series. Since 2015 Linda continues to trade daily for her own account. In the world of professional trading and money management, Linda Raschke stands out from the crowd for three factors: performance, longevity and consistency.Most frequently when talking about trading, we focus on its positive aspects. Linda Raschke takes a different perspective in this interview sharing with us market lessons while highlighting the tension between luck, risk, and passion.To me, it’s an extraordinary interview with an extraordinary person summarising her great book titled “Trading Sardines”. It is indeed a 21st-century version of “Reminiscences of

Andreas Clenow is a Chief Investment Officer located in Zurich, Switzerland, overseeing many investment strategies over a nine-figure asset base. In today’s interview, we focus mostly on his work within a quant hedge fund. We are covering many trading topics, including trend following strategies and equity momentum strategies. You can also find out why trading own money is not always the best option to do.Andreas is an author of international bestsellers titled Following the Trend and Stocks on the Move. These books present a quantitative approach to modelling the markets with extensive backtest results. You can also learn from the practitioner how hedge fund business looks from the inside.No worries if math or statistics is your Achilles’ heel. As Andreas says, scientific papers often are unnecessarily obfuscating the knowledge so that it’s not easily accessible to everyone. He proves it doesn’t have to be the case, explaining complex things, as we could think, in an easy way.

Larry Connors has over three decades of experience in the financial markets industry and is widely regarded as one of the leading professionals, especially when it comes to systematic quantified short-term trading.He is the author of many highly acclaimed books including “How Markets Really Work” and “Short Term Trading Strategies That Work“. Larry co-wrote “Street Smarts” with Market Wizard’s legend Linda Raschke. The Technical Analysis of STOCKS & COMMODITIES Magazine selected this book as one of “The Classics” for trading books written in the 20th century.Today we talk about his latest book, “Buy the fear, sell the greed: 7 behavioural quant strategies for traders“, which proves that behavioural factors can be quantified and used on the markets.I strongly encourage you to listen to the whole episode, as Larry is fully disclosing one of his strategies from the book, which is really very powerful and having a winning percentage over 90%!