How to Build a Systematic Relative Momentum Trading Strategy

Video Description

Nick Radge, The Chartist, discusses How To Build A Systematic Relative Momentum Model About Nick Radge: As you can tell by my accent, I am an Australian and I started trading in 1985, so just finished my 34th year of trading. I started on the trading floor, the Sydney futures exchange, and then I worked on dealing desks in Sydney, London, and Singapore. For the first 17 years, I traded only futures and I actually ran my own futures hedge fund up until 2001 and then I switched into equities and I'll manage money up until 2016. Now I trade six different systematic strategies. I don't look at the charts, I don't draw any trendlines. There's no Fibonacci’s or there's no chart patterns or anything like that. It's all algorithmic trading. I literally just put my account balance into the model, push the button, it generates the orders, does a position sizing and does everything else. And the six strategies that I trade encompass trend following, which we'll be talking about today, and also mean reversion. And I guess the way I like to talk about that is rather than run a portfolio of stocks that is common and what most people do, I run a portfolio of systems and they tell me what to buy and sell. So today I'm going to explain why I don't trust analysts or financial advisors or certain industry types. I'm going to explain to you why there's a very real casualness to risk and why that's dangerous, especially to new investors and traders, which I'm sure some of you are. I'm going to introduce you to systems trading and, literally, show you the kind of things I do. And today I'm going to fully disclose a momentum strategy. Now, I personally try 2 of these, and what you're going to be seeing today is not too far different from how I manage my own money and how I've done it for, for several decades now. Visit The Chartist at https://www.thechartist.com.au