Goshawk Trades – The Whiz Kid – AlphaCast Ep. 7
Join host Leo as he picks the brain of rising algorithmic futures and discretionary small cap trader Goshawk Trades. Gain powerful insights from Goshawk’s experiences getting started with algo trading over the past few years. Learn how he develops strategies, backtests robustly, manages risk, and perseveres through setbacks.
Key Takeaways
- Diversify trading approaches by combining discretionary and algorithmic systems
- Spend more time generating new ideas vs optimizing backtests
- Use books and Twitter to find trading strategy inspiration
- Have concrete rules for entries, exits and risk management
- Start small when getting into trading, don’t risk it all
- Trade a discretionary account to stay in tune with market nuances
Quotes
Having multiple trading strategies helps take the focus off any one strategy.
— Goshawk Trades
Spend more time generating trading ideas rather than optimizing backtests.
— Goshawk Trades
Timestamps
- [1:00] Getting started with trading algorithms
- [5:30] Examples of Goshawk’s current strategies
- [10:04] His backtesting process and pipeline
- [15:13] Common discretionary trading mistakes
- [16:00] Algorithmic trading challenges to avoid
- [26:01] Advice for new algorithmic traders
- [30:37] Discretionary experience helps algo trading
- [31:40] Where AI and algo trading may trend
- [46:34] How to contact Goshawk Trades
Alpha Drop
Time is an underrated variable that should be closely analyzed in trading strategies.
Moment-to-moment time intervals result in sentiment shifts tied to news, volatility, and other market dynamics. Pay attention to how your edge performs at precise times, such as the market open at 8:30am or 11am after initial morning activity. You may notice vastly different expectancy based on the time of day.
Tracking meticulous time frames rather than just general market hours can expose valuable signals other traders overlook in their models.
Consider incorporating precise time factors as you develop and backtest your strategies. The extra dimensionality can reveal hidden pockets of alpha.
