Chat With Traders is your key to the minds of trading's elite performers. Start listening to learn how a diverse mix of traders went from zero to hero, how they successfully trade markets today, and get their best tips 'n pointers for profitable performance, plus much more. Note: You are responsible for your own trading decisions—this is not financial advice.
Don't just listen to podcasts. Learn from them with transcripts, summaries, and chapters for every episode. Skim, search, and bookmark insights. Learn more
You’re about to hear a first-hand account from someone who’s been on a wild ride through the U.S. justice system. My guest is Michael Kimelman; a former prop trader and hedge fund manager who was convicted (and served time) for insider trading… You’ll hear about the series of events leading up to his arrest, details about the trial, revelations of a rogue judge and the dim reality of life while incarcerated. If you get through this episode and you’re curious to know more, then you might be pleas...
Algorithmic trader Bert Mouler returns to share his advanced strategies for removing human bias from trading decisions through automation and machine learning. He explores identifying edge in less-sophisticated international markets, the simplicity of effective trading systems, and specific high-frequency and arbitrage opportunities. Bert also delves into his unique daily routine, team-building philosophies, and the importance of questioning conventional wisdom in the pursuit of consistent profitability.
Erik Townsend, host of the Macro Voices podcast, recounts how a disastrous experience with a "prestigious" investment bank led him to passionately pursue global macro investing. He explains Neil Howe's "Fourth Turning" theory, predicting major societal and economic resets by 2030, including the potential replacement of the US dollar. Townsend also delivers a stark warning about cryptocurrencies, foreseeing a government-led "Orwell" crypto future that could outlaw decentralized alternatives and lead to a surveillance-heavy cashless society.
Join author Jimmy Soni as he unveils the extraordinary life of Claude Shannon, the unsung genius behind information theory, whose revolutionary ideas power modern technology. This episode explores Soni's five-year journey writing 'A Mind at Play,' detailing Shannon's aversion to fame, his playful dabbling across diverse fields, and his surprisingly fundamentalist approach to stock market investing. Discover how this polymath's curiosity shaped both science and his personal wealth, offering lessons on unconventional paths to brilliance.
Bobby Cho, a veteran trader from Cumberland Mining (DRW), shares his journey from illiquid traditional assets to becoming a major institutional liquidity provider in crypto. He elaborates on the necessity of regulated exchanges, DRW's entrepreneurial drive, and the complexities of crypto market making, including risk management and security. The discussion also covers common misconceptions about arbitrage and the intrinsic value and long-term investment outlook for cryptocurrencies.
Proprietor and independent trader Kevin Muir, known as "The Macro Tourist," shares insights from his diverse career, including navigating the shift to computerized trading and his experience with early Bitcoin mining. He delves into his core philosophy of being a contrarian, always seeking the "next great trade" rather than specializing, and highlights the mental discipline required to balance short-term tactics with long-term global macro views. Muir emphasizes continuous learning and adaptation, illustrating his points with compelling market examples and personal anecdotes.
Dr. William Ziemba, a seasoned academic and trader, delves into his unique approach to financial markets, heavily influenced by his background in horse racing. He explains how he exploits calendar anomalies, arbitrage strategies, and behavioral biases, often leveraging the Kelly Criterion for position sizing. Ziemba also contrasts the sophistication of sports betting markets with financial markets and shares insights on market crashes and the importance of continuous learning.
Veteran trader Mike Agne shares his journey from prop trading to his current goal of launching a hedge fund, detailing his relative value bond strategy. He discusses crucial lessons learned about risk, discipline, and market dynamics from his time at TransMarket Group and under the mentorship of Ray Kahneman. Agne also explores the impact of high-frequency trading and the Federal Reserve's policies on bond markets, emphasizing the importance of adapting strategies and maintaining mental clarity.
Author Sheelah Kolhatkar joins to discuss her New York Times bestseller, "Black Edge," a deep dive into the life and career of hedge fund titan Steven Cohen. The conversation covers Cohen's early trading prowess, the meteoric rise of SAC Capital, and the systematic use of insider information that eventually led to one of history's largest insider trading investigations. Kolhatkar explains the legal complexities, SAC's attempts to evade detection, and the controversial outcome where Cohen's firm paid billions but he personally avoided prison.
BTCVIX returns to discuss the dramatic changes in the cryptocurrency markets since 2015, including Bitcoin's price explosion and its shift from an underground phenomenon to attracting major institutions. The conversation covers practical aspects like acquiring and protecting cryptocurrencies, the ongoing debate about Bitcoin's bubble status, and the rise of ICOs. Additionally, the episode delves into the core distinctions and risks associated with Bitcoin and Ethereum, offering insights into their respective roles in the digital economy.
In this episode, James King, ex-Performance Director at Mandara Capital, reveals his unique approach to optimizing trading performance using applied sports science and performance psychology. He delves into scientific methods for identifying and developing talent, testing resilience through stress simulations, and fostering healthy motivation. King also shares principles for continuous improvement, the power of stretch goals, and his new initiative, Project Thor, aimed at supporting talented retail traders with capital and professional resources.
Mark Gardner, with over 80,000 hours of screen time, shares his journey from a 17-year-old floor broker to leading prop firms and a new quantitative trading venture. He details his extreme work ethic, the strategies he employs, and how he's adapted to an increasingly algorithmic market. Mark also candidly recounts a significant personal trading blow in 2015, the critical lessons learned about discipline and redundancy, and his forward-looking approach to blend human intuition with statistical trading.
Morgan Slade, a veteran trader and CEO of CloudQuant, shares an alternative 3-step formula for strategy development, focusing on signal generation, risk allocation, and trade expression. He highlights the transformative impact of machine learning on trading, demonstrating how it can dramatically improve strategy performance, even for those new to programming. The discussion also covers CloudQuant's role in providing institutional-grade tools and funding opportunities for crowd researchers.
Real estate titan Ben Mallah, known for his "rags to riches" story, details his unique approach to property development. He reveals how a challenging childhood and military service shaped his disciplined mindset, enabling him to transform "garbage into gold" by identifying and revitalizing distressed assets. Ben also shares his strategies for leveraging broker relationships, navigating market cycles, and employing tax deferral techniques to build a vast portfolio.
Victor Haghani, co-founder of Long Term Capital Management, discusses a fascinating experiment on biased coin betting. Participants often bet suboptimally, with many going bust due to psychological biases like the gambler's fallacy and boredom. The episode delves into optimal bet sizing (Kelly Criterion), risk aversion, and the critical importance of trade sizing, drawing parallels to lessons from LTCM and the financial markets.
Andy Kershner, a veteran stock trader since the early 90s and founder of Kershner Trading Group, discusses his unique approach to risk tolerance, acknowledging both its strengths and weaknesses in trading adverse positions. He shares invaluable daily habits and critiques a recent trade, highlighting the importance of a structured plan. The conversation also delves into the evolution of markets, challenges new traders face, and how AI and automation are shaping the future of trading.
This episode delves into the world of Commodity Trading Advisors (CTAs) with industry veteran Nell Sloane. She clarifies the distinction between CTAs and hedge funds, outlines the regulatory landscape, and discusses the evolution of trading strategies from trend following to options. Sloane also details the practical steps for aspiring CTAs, including prerequisites, operational setup, compliance, associated costs, and effective marketing strategies to attract and manage investor capital.
Matthew Hoyle, a former options market maker turned headhunter, delves into the competitive world of financial recruitment. He discusses essential skills, the role of automation, and how firms attract and retain top talent. The episode provides valuable advice for aspiring traders on navigating the job market and understanding compensation structures.
Max, known as @Madaznfootballr, shares his journey from an unfulfilling engineering job to becoming a highly profitable scalper of NASDAQ stocks, driven by an impatient personality. He details his early trading mistakes, the crucial role of independent learning and mindset, and how he developed his unique strategy. The episode covers practical aspects like optimizing execution with hotkeys, the importance of limit orders, and mastering tape reading, alongside a deep dive into the psychological game of trading.
Darren Reed ( @LiftTheOffer ) has been a stock broker, the head trader at a $300M hedge fund, and an active prop trader at Australian firms, Propex, Aliom and Gensis. At the later two, he also mentored traders as part of his role in trader development. But this year (2017), Darren has returned to Perth—on the west coast of Australia, to establish a new proprietary trading firm with a few partners; Cygnet Trading . The main focus of this episode can be summarized with just a few words; grit, hust...
Virtu Financial CEO Doug Cifu details the firm's journey from a corporate lawyer's unexpected turn to co-founding one of the world's largest electronic market makers. He explains Virtu's unique non-directional trading strategy, emphasizing the law of large numbers and a global, scalable infrastructure over speed advantages. Cifu also addresses market misconceptions, highlighting the importance of robust risk controls and an empowering company culture for sustained success.
Michael Mauboussin, a renowned expert in decision-making, shares insights on enhancing judgment by emphasizing process over outcome, especially in probabilistic fields. He delves into common cognitive biases like overconfidence and confirmation bias, proposing methods such as checklists and Bayes' theorem to mitigate their influence. The discussion also covers the crucial distinction between skill and luck, explaining why luck dominates short-term results and how to quantify their contributions, ultimately revealing the key traits of successful investors.
Meb Faber, CIO at Cambria Investment Management, joins the podcast to offer active traders insights into longer-term, more passive investment strategies. He discusses setting realistic expectations, navigating market drawdowns using valuation, and the critical importance of low fees and tax efficiency. Meb highlights common investor behavioral biases and provides actionable advice on creating and sticking to a rules-based investment plan for consistent returns.
Alex, a full-time day trader, shares his journey from beginner's luck to consistent profitability, emphasizing how early experiences, costly mistakes, and dedicated journaling shaped his approach. He discusses his preference for long trades in small-cap momentum stocks, his methods for managing risk and scaling positions, and the critical role of emotional control. Alex also outlines his future goals, including expanding his trading playbook and exploring longer-term strategies.
Manoj Narang, founder of Mana Partners, delves into his journey from Wall Street to building successful trading firms like TradeWorx. He highlights Mana Partners' innovative approach to quantitative trading, emphasizing the value of technology as a profit center and the strategic use of alternative data to overcome market overcrowding. The discussion also addresses the societal role of high-frequency trading and offers crucial advice for aspiring quant traders to cultivate originality.
Veteran trader Larry Allentoff recounts his extensive career, from the 1987 crash to managing the Toro Fund. He details his method of identifying profitable opportunities by observing when expected market movements don't occur, such as in the orange juice pit. Larry also discusses the evolution of his "pressure points" strategy from floor trading to applying it across thousands of equities today, highlighting the importance of discipline, probability, and a lifelong market obsession.
In this episode, Sean Hendelman, co-founder and CEO of T3 Companies, details his career trajectory from a mortgage desk to leading one of the largest prop trading firms. He openly discusses early losses, the crucial role of risk management, and the business challenges of diversifying trading strategies and maintaining positive cash flow. Hendelman also provides a candid perspective on automated trading, highlighting the intense competition, the difficulty of finding an edge, and offers advice for aspiring algorithmic traders, emphasizing forward testing and capital planning.
Veteran trader Adam Grimes explores how discretionary and quantitative traders can learn from each other, emphasizing the power of human intuition alongside a scientific approach to market analysis. He outlines a step-by-step framework for struggling traders, covering crucial aspects like defining an "edge," practical backtesting methods, and understanding the long, often challenging, learning curve. The discussion also delves into managing discretion, identifying suitable markets, and the role of human behavior in market patterns.
Brannigan Barrett, a futures day trader, discusses his disciplined approach to scaling trading size by focusing on a step-by-step process rather than numerical targets. He details his risk management philosophy, including understanding 'conscious uncomfortability' and leveraging high-probability opportunities. Barrett also covers preparing for major news, learning from mistakes, and the importance of a daily debrief to identify 'one good trade,' alongside strategies for managing energy capital.
Benjamin Small, head of market structure at Gemini, shares insights from his career in quantitative trading and high-frequency markets, including payment for order flow and IEX's discretionary peg. He then delves into Bitcoin's ecosystem, Gemini's role in attracting institutional investors, and the potential for Bitcoin's normalization as a commodity. The discussion also covers altcoins, security risks, and the path towards a cashless society.
