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#204: The #1 Hedge Fund Optimization Secret

Have you ever wondered how hedge funds manage the tradeoffs between simplicity and complexity to generate safe, consistent returns?

In this week's episode of the Breakout Trading Answered show, we discuss the exact process Mr. Breakouts uses in his hedge fund to optimize strategies and portfolio performance.

It’s called “The #1 Hedge Fund Optimization Secret”... and it applies to individual trading accounts, too!

Here’s just a small sample of the topics we discuss on the show:

  • Cutting through the confusion around optimization

  • Mr. Breakouts pushes the audience out of the box and breaks a strong paradigm

  • Complex strategies vs simple strategies: which is best?

  • The Halo Effect and how it impacts trading results

  • Should we avoid Parameter-less filters or are they as good as people say?

  • Full details of the number one hedge fund strategy optimization secret

Watch the replay of our latest episode:

Episode Highlights:

00:28 Optimization Paradigm Shift

07:56 Complex Strategies vs. Simple Strategies

08:40 Analysis of the Results

12:23 Parameter-less Filters

14:29 The Halo Effect

16:13 The importance of stress testing

17:14 The secret to hedge fund optimization

Tomas and the Systems On The Road team


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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,

"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,


"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 

"Tom´s systems and trading approach do really work and can bring good, stable and reasonable returns. I can highly recommend him as a teacher."

David Hruby,

Trader, Czech Republic 

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Author: Tom Nesnidal (more about me
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