derivatives @tradingriot team @breakoutprop acq. by @krakenfx musings https://xitter.cf/t.co/EKXOULW4jI
Joined December 2018
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I get asked a lot how to get into trading, my favorite answer has always been either "don't" or "buy index funds."
Over the years, a lot of my own trading has changed. I stopped day trading a few years ago and started focusing more on low-frequency systematic trading.
I knew I had no place to compete on "smart stuff," so when I structured my core portfolio, it consisted of simple, slow things that harvest well-documented risk premiums, like buying stocks because they go up, or selling vol because it's often overpriced.
This slowly turned into what I run these days: a mix of four different strategies.
Trend-following, long-only, all-weather portfolio from major ETFs.
Short VIX during calm market conditions.
Cross-sectional single-stock momentum.
And tactical leveraged SPX bets to offer crash protection and mean reversion during panic.
I've shared this with some of my friends over time, since these strategies trade on average once per week and you can be done with your trading in about 30 minutes each week it was pretty easy to recommend for everyone who wants to get some market exposure.
It's obviously nothing fancy. There are a lot of down weeks, a few down months, and some down years, but you can explain why this makes money over time in a few short sentences, which I think is one of the key things, rather than slapping together a bunch of fitted indicators.
I decided to add this systematic portfolio to my website, so everyone can follow it now. You just set up your balance and you'll automatically get trades sent to open in the dashboard.
This comes free with all the existing analytics I have for NYSE options, CME/ICE futures, and aggregated crypto perps.
It's all in one subscription, so there are no upsells or anything, and I've made it cheaper for a while to get more feedback.
Adam retweeted
Since I keep getting asked about day trading to this day, I decided to put all concepts from my old blog and courses together into a new post with some fresh examples, all free to read.
blog.tradingriot.com/p/sligh…
/end
Besides price action, there are other concepts that can help you, such as the auction market theory of orderflow.
If you put everything together, sit at the right tables, and size things properly, you can have a decent shot at making short-term trading work.
/4
Since I keep getting asked about day trading to this day, I decided to put all concepts from my old blog and courses together into a new post with some fresh examples, all free to read.
blog.tradingriot.com/p/sligh…
/end
while crypto twitter can be a cesspool of the dumbest and shadiest people you can find, there are still a lot of cool people building cool stuff.
What I recently enjoyed a lot is this spawn of new terminals, often led by single devs.
to name a few that I found really cool
@Pivot922
@backquant
@derivativemonky
@iam4x
bunch of others I am missing im sure, I know @josedonato__ has been building one for a some time now.
if you are doing some cool stuff feel free to promote yourself im always interested to look
market microstructure studies all of this nerd stuff with detailed mechanics, rules, and systems that govern how trades are placed, matched, and executed in financial markets
a new post on my blog goes in-depth into a range of topics and will hopefully provide a strong foundation to anyone who wants to understand how markets really work.
blog.tradingriot.com/p/marke…
Was reading several posts about the upcoming Black Monday after the mini flash crash yesterday and how people are “hearing things” again.
Turns out someone has decided to puke a larger SNDK trade on Binance (no better time to do that than on Saturday evening).
Good reminder that during the weekend the RWAs don't track the stock market but work purely on supply and demand, tracking the internal index. They are very illiquid, so any shenanigans in one market are very likely to trigger the broader reaction.
It looks like the spray-and-pray approach to the stock market is gone, and we are getting into more of a stock picker territory as the S&P 500 implied correlation is sitting at the bottom of its range (built from SPY implied volatility against the average of 50 large caps).
This correlation break is also visible when comparing index IV vs. the top members.
By looking at this, it's reasonable to expect demand for puts to be really high, but half of liquid stocks price 25-delta calls over puts, most of all the losers of recent months.
With put demand being low, options in the names that fell are pricing a snapback more than further damage, which is not something we have seen so far.
Not only are most of my replies bots, but when an actual person comments, they often end up hidden under Probable Spam.
great tech
The anatomy skill by @wheresryan22 turns out to be a pretty cool way to explain different trading concepts.