195: "Low-effort Trading Strategies" – Cesar Alvarez
Jul 27, 2021•54 min
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Summary
Cesar Alvarez discusses low-effort rotational trading strategies, explaining their benefits for diversifying time and reducing daily market monitoring. He delves into optimal rebalancing frequencies, effective ranking methods, and managing risk with end-of-day stops. The discussion also covers universe selection, the challenges of shorting, and the importance of high-quality data for backtesting, providing actionable insights for systematic traders.Episode description
Algorithmic trader Cesar Alvarez from Alvarez Quant Trading joins us to discuss low effort trading strategies, including:
- An explanation of rotational trading and the benefits/challenges of using rotational strategies,
- Why rotational trading is a fantastic way to diversify time (and also get to "trade lazy"),
- How often to rebalance and the impacts of the day you choose to rebalance,
- Ranking methods and some of the most effective ways to find the best candidates,
- How to reduce the churn in rotational trading with one small but powerful exit tweak,
- Plus, universe selection, risk management, rebalancing, short trades, mean reversion, stock splits, audience questions and much more!
Disclaimer: Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.
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