Hedge Fund Trading Systems Part 2 features SIX completely new and unique quantitative trading systems for stocks, ETFs and futures.
System One 'Follow The Money' is a momentum type strategy designed for the S&P 600 small cap universe.
System Two 'Nasdaq Pivots' is a daily bar strategy that uses classic pivot points to find mean reverting entry levels.
System Three 'Shorting ETFs' is a daily bar strategy that looks to short leveraged ETFs.
System Four 'E-Mini Dips' is based on a variation of a classic and proven oscillator system. It is designed for the E-Mini S&P 500 futures contract and the US Ten Year Note futures contract.
System Five 'Bar Strength' is a daily strategy that uses a simple technical indicator to find profitable swing trades
System Six 'ETF Pullbacks' is another mean reversion strategy that finds pullbacks in upward trending ETFs and has a high win rate of over 70%.
About Your Instructor
My name is Joe Marwood and I'm an independent trader from London, England.
I started my career working for a prop trading firm in the UK where I traded futures and my standard products were the FTSE 100 and German Bund.
After some initial success, my performance went downhill and it's fair to say that my first few trading years were a grind.
I made every mistake in the book and I struggled to get by.
A big problem I used to have was overtrading. Everyone knows you should cut your losses short and let your winners run but I was cutting both my losers and my winners short and I was trading too frequently to make any real profit.
I realised that a big reason behind this problem was that I had no system and so I had no confidence in what I was doing was the right thing.
That's when I decided to take the plunge into algorithmic trading and so I bought a copy of Amibroker quantitative trading software and began learning about trading systems.
Several years down the line and my trading has been transformed. There is no doubt that systematic trading has brought me confidence and discipline and enabled me to make much more profitable trades.
I now make a living from this industry which, at one point, I thought would never happen.
On this course, I've decided to publish five new trading systems that I developed and each system is based on a rational market concept. Not random, data mining.
A couple of the systems trade stocks, a couple trade ETFs and one is designed for futures. Specifically, the E-Mini S&P 500 and the US Ten Year Note. The systems are a mixture of trend following and mean reversion.
My aim with this course is to help you develop into a more profitable trader. Or, if you are already profitable, give you a couple more strategies for your tool box.
Not every trading system will work 100% all of the time as no system can. But with practice and experience, trading systems can generate handsome profits.
I believe the systems shown on this course are solid enough for you to do that. Nothing would please me more than hearing that you took this course and then made a bundle of money in the markets!
So, if you want to find out more about these systems make sure to take the course and I will see you on the inside.
What do I get with this course?
This course will teach you five trading strategies that I have personally developed and use. You will lean the full rules and see the full backtest results and examples. You will also learn important lessons on back-testing and system development.
What do I need to take this course?
You do not need anything to take this course as all the trading strategies are explained in detail. However, complete beginners may find some of the content and the language difficult to understand. It is recommended you have some trading experience and some knowledge of trading system development.
Is there any overlap with Part One?
The trading systems are all new. The lectures about back-testing mistakes, combining systems and improvements are the same lectures as in Part One. It is important to include these lectures in both courses because the information is important and still valid.
What software and data do you use?
The trading systems are all created with Amibroker using historical data from Norgate Investor Services. Norgate are a leading provider of historical, end of day financial market data. The data includes delisted companies to avoid survivorship-bias.
Are commissions taken into consideration?
Costs are set $0.01 per share for all stock trading systems and $15 per trade for all futures systems.
What experience do you have to take this course?
I have been trading for 10+ years and I have been building trading systems in Amibroker for 6 years. I have also worked for a number of firms over the years. I have also appeared on numerous websits such as Seeking Alpha, GuruFocus, Benzinga and others. You can read more about my work at my personal website jbmarwood dot com.
Why are you selling these systems? Aren't you worried they will become public and stop working?
It is certainly true that once a system is used by too many people it can lose it's edge and I have been warned by others not to reveal these strategies. However, my experience so far does not back this up because financial markets are so vast. I also have several other strategies that I track and am confident in my ability to come up with new systems.
Are these systems guaranteed to make money?
No trading strategy is guaranteed to make money as the future is never known. Anyone who claims otherwise is withholding the truth so the systems are best thought of as useful ideas for further research. They can be adapted and modified as you wish.
I am a day trader, will I find this useful?
The trading systems are all built using end of day historical data. The fastest trading system on the course (system 2) has a holding period of 1 day. The longest holds trades for weeks at a time. It may be possible to implement the strategies on shorter timeframes but we don't necessarily recommend it.
I trade forex, will I find this useful?
These trading systems focus on stocks and ETFs with one futures system. Forex is a highly liquid market and difficult to trade so we generally avoid it.
Will these systems work on other countries/markets?
We prefer to focus on US markets because they are more liquid and we have considerable experience trading them. Historical data is also cleaner and more readily available. However, we feel that our research can be applied to other countries and markets and we have had some success doing so.
Trading in equities, foreign exchange, CFDs, indices, futures and commodities carries a high level of risk and may not be suitable for all individuals. A high degree of leverage can work against you as well as for you. You should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some, or all, of your initial investment. In some situations, the possibility exists that you could lose more than your initial investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED. OUR COURSE(S), PRODUCTS AND SERVICES SHOULD BE USED AS LEARNING AIDS ONLY AND SHOULD NOT BE USED TO INVEST REAL MONEY. IF YOU DECIDE TO INVEST REAL MONEY, ALL TRADING DECISIONS SHOULD BE YOUR OWN.
A profitable mean reversion system for ETFs with a high win rate over 70%.
Joe B Marwood is a trader and investor specialising in financial trading and mechanical trading systems.
He began his career trading stock and bond futures for a prop trading firm in the UK and now works through his own private company.
How did you get started?
I started my career as a professional day trader for a UK-based prop firm where my principal products were the FTSE 100 future and German Bund.
Today I trade a portfolio of individual stocks and occasionally futures and I have a passion for building automated trading strategies and systems.
What is your trading style?
I use a mechanical strategy to trade on a largely end of day basis. I look at both fundamental and technical analysis and use strategies that are based on historical simulations. I often combine those strategies with my own experience and discretion to come up with trades that I believe are the most attractive on a risk/reward basis.
Mean reversion or trend following?
I have found that traditional trend following methods do not work as well as they once did. My methods are based on my own observations on the market whether they are based on momentum, trends, mean reversion or anything else.
Who taught you how to trade?
My mentor was a former head of trading at a well known German investment bank. I have also read and studied countless books, journals, and articles, and have spent many hours in the market. You can never stop learning.
Why did you make this course?
To educate others so that they don't make the same mistakes I made. Learning to trade can be a very expensive and drawn out process. As a trader, it is also extremely beneficial to have sources of side income as that takes the pressure off your own trading. Putting what I have learnt into a course also solidifies my own learning.
What are the secrets to successful trading?
First of all, you must have the passion to succeed. If you are in it only for the money you will have a very tough time and will be doomed to failure. You must also be comfortable with risk and be able to separate your emotions from the money. Having a system with a profitable expectancy is also crucial and for that you will likely need a strong ability with numbers.
Why do most traders fail?
Most traders start off under-capitalised and then chase unrealistic returns which results in them blowing their account after a couple of big losses. Most beginner traders do not realise the realities of trading which is why they have trouble sticking to trading plans and dealing with their emotions. Trading should be treated as a business.