#139: THE TRADING POWERQUADRANT

I think I can summarize my entire trading career into a simple quadrant.

I like calling it “Trading PowerQuadrant” because it’s what it really is.

It consists of 4 absolutely key, essential, foundational elements, without which I would never be where I am today:

The first one is a powerful model. I could never develop a single breakout strategy without a powerful breakout model. It would be literally impossible.

Then there is a Rapid Design & Prototype process. Time is money. Markets are extremely competitive. If you’re too slow, you stay behind. Speed is crucial. So I really had to figure this one out in an early stage too.

Then there is extreme robustness testing. 99% of trading strategies is just crap. Overfitted. Curvefited. And it’s getting harder and harder every day to distinguish what really is a good strategy. So I really had to be very inventive here and come up with one of the toughest robustness testing procedures in the industry. And I am really glad I did it. That I went in this path.

And finally, Dynamic Position Sizing. Because once you have a really great, robust breakout strategy, you need to milk it. As much as possible. And that can only be done with a cutting-edge, original position-sizing framework.

So, now you know in essence all the secrets of my hedge fund.

Hope you find this inspiring.

Happy trading.

Tomas

#right

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What others are saying

"Tomas is one of the most creative traders I know. He is able to generate unique trading ideas and elegant solutions to system development challenges."

Andrew Swanscott, BetterSystemTrader.com

"Tomas has been a professional trader for more than a decade and I have had the privilege of monitoring his accounts in action since 2006. His systems are performing as some of the best I have ever monitored and executed. I have been in the trading industry since 2002 and worked with many developers from all over the world. Tomas is definitely the one to consider."

Martin Lembak,

Systems Trading Expert,

MFRM, CAIA

"Tomas is a professional trader, who for the last 10 years has specialized in developing trading systems. We have been tracking his trading systems for about 5 years and they generally show very robust, stable and above average performance. Striker is pleased to work with someone like him - a real professional with enthusiasm and deep knowledge of trading."

William Galwas, President Of Striker Securities, Inc

"Personal consultation with Tom helped me to re-evaluate the complexity of my robustness testing and optimization processes. Plus, it has helped me with a specific plan on how to take things forward. It has given me some great ideas on how to avoid overfitting and make my testing more robust and provided tips on low hanging fruit in terms of the best markets to trade for intraday/short-term breakouts."

Craig Peters,

semi-advanced trader,

United Kingdom

"Tom's approach to Automated Trading Strategies design, tests of robustness and portfolio diversification is really unique. He has been a professional trader for many years and the depth of his understanding of Breakout strategies and Market Internals is hard to find elsewhere."

Antonin Fisher,

Hedge Fund Manager,

Czech Republic