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  • 3 years ago
026: Systematic trader Robert Carver discusses trading rules, what makes a good trading rule and the

026: Systematic trader Robert Carver discusses trading rules, what makes a good trading rule and the

Robert Carver is an independent systematic trader who spent more than seven years working for one of the worlds largest systematic hedge funds.
In this episode we discuss trading rules, what makes a good trading rule and the advantages of using continuous rather than binary rules. He also shares insights into over-fitting and the challenges of walk-forward testing that can make it impractical.
Topics discussed

What makes a good trading rule
The advantages of simple rules
Why only some trading rules are profitable
Walk-forward testing and some of the challenges that can make it impractical
How much data you actually need to determine if a trading rule is better than another
Why choosing the optimal values during a walk-forward test is not the best approach and some alternatives
Weighting trading rules
Steps to avoid over-fitting
Should trading rules be adjusted for individual instruments?
Continuous trading rules compared to binary rules
The applications and advantages of continuous tr

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