#3 of 2-Oct '15 __ __ __ __ _ ___ / /____ _ ___/ /________ _/ /____ ___ ___ __ / ' \/ -_) __/ _ `/ (_-< __/ __/ _ `/ __/ -_) _ `/ // / /_/_/_/\__/\__/\_,_/ /___|__/_/ \_,_/\__/\__/\_, /\_, / /___//___/ A meta-strategy is a trading system that trades trading systems. The idea is to develop a strategy that will make sensible decisions about when to trade a specific system, in a way that yields superior performance compared to simply following the underlying trading system. Put another way, the simplest kind of meta-strategy is a long-only strategy that takes positions in some underlying trading system. At times, it will follow the underlying system exactly; at other times it is out of the market and ignore the trading system’s recommendations. http://jonathankinlay.com/index.php/2015/10/improving-trading-system-performance-using-meta-strategy/ __ __ ___ __ / /____ ___ / /________ ____/ (_)__ ___ _ _______ ___ _____/ / / __/ _ \/ _ \ / __/ __/ _ `/ _ / / _ \/ _ `/ / __/ _ \/ _ `/ __/ _ \ \__/\___/ .__/ \__/_/ \_,_/\_,_/_/_//_/\_, / \__/\___/\_,_/\__/_//_/ /_/ /___/ ex-Credit Suisse prop trader, has this advice for the 30 year-olds Q: What advice would you give to young traders today who’ve never experienced a rate rise? Be ready to learn fast and adapt. In 1994 we had a major bond bear market. There were plenty of young traders who’d joined in the late 1980s and early 1990s who’d never experienced a bear market for bonds. They really struggled, but those who came through were the most adaptable and the most ready to learn from the guys around them. You need to remember with the market that no one knows what’s going to happen and no one knows what shape it will take. Markets can move faster than you can believe and they can stay irrational for longer than you can stay solvent. Every single new bull or bear market will be different to those that came before and some people will always be caught out. The best thing you can do to prepare is to be aware of your own trading behaviour. Try to become more self-aware: understand yourself and the behaviours that drive your successes and limitations. What is it that undermines your success? Q: Markets could be pretty volatile next year. Should traders be out there meditating and practicing ‘mindfulness’? I am a big fan of getting the ‘head right.’ Mindfulness and meditation are practices increasingly being used by traders. – I know some top traders at hedge funds who use it to help keep themselves sharp. For many traders, however, it is a step too close to hippydom. If it makes you uncomfortable, then try running, taking a long walk, or going to the gym. They all fulfil a similar need! ___ __ __ _ __ __ ___ ___ / _// /_ ___ / /__ (_)/ // /___ (_-