Turning to data for a trading edge · Dave Bergstrom, quant trader

EP 103: Escaping randomness, and turning to data for an edge w/ Dave Bergstrom On this episode, I’m joined by a quant trader who works at a high frequency trading firm—though you might be surprised to hear, he started out on the same path that many retail traders do—his name is; Dave Bergstrom. The thing that makes Dave unique from most traders who’ve been on this podcast previously, is how he uses data-mining techniques to develop trading strategies. Though data-mining, in trading, often has a negative connotation attached to it, Dave believes this stems from bad practices and poor evaluation of methods. In addition to the above and ways to reduce curve-fitting, we talk about escaping randomness, learning to write code, Dave’s three laws for strategy development, setting expectations and plenty more. -- Show notes: https://chatwithtraders.com/ep-103-dave-bergstrom/

Comments

1. this guy has walked on the exact same path I have. I really wish I had this video years ago when I was first introduced to trading. This is the way. Coding was on my bucket list for years, then I learned how to backtest and realized how much time was wasted manually analyzing data
2. Bull shit.
3. I'm a mean reversion trader and it requires more discipline in that its critical to realize when you are wrong.
4. Read Tharp,
5. 17
6. 7
7. Please make more and more and more i love them
   
   Sooo much educational VALUE here :)
8. Great interview Aaron. Keep up the amazing work, very much appreciated!!!
9. Just a couple of things (good interview) you don´t need 1,500+ trades to confirm viable edge..
   tests have been done that show that at 300 trades theres a 2% likelyhood for error, in other words 98% that the edge is correct.
   
   Also R:R can be whatever you want, i have strategies with 2 reward to risk they win x% then i have 0.3 reward to risk but win way more.. its all about profit factor.. If i win 9 out of 10 times and the 9 times i win i win 1 dollar.. and the 10% or the 1 time out of 10 times i lose i lose 5 dollars.. i still have a extreme edge.. 9 dollars won to 5 dollars lost.
10. Hey Aaron, will you be interviewing Lakai (trade it dont date it)?
11. Wow great but difficult interview for both parties. Bro you definitely extracted water from a centerblock on this one... he wasn't giving up much at all... yet did give a few generalities.
12. On probability distribution:
    https://www.youtube.com/watch?v=4Lb-6rxZxx0
13. got my golden nugget! good looking out Aaron! your beast bro!