"Confessions Of A Champion Algo Trader" - Kevin Davey | Trader Interview
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- Опубліковано 23 сер 2024
- 📈 Profitable Trading Strategy Course by Kevin Davey (+ amazing bonuses!): bit.ly/kevindavey
In this episode of the Desire To Trade Podcast, I sit down once more with full-time algo trader Kevin Davey.
Kevin was first on the podcast in 2016 (episode 067) and was one of the traders that made me interested in algorithmic trading.
In this episode, we go over how Kevin was able to create his automated trading strategies.
If that's a topic you're interested in, I'd highly recommend going through Kevin's new book: geni.us/7ZqHY
// More Resources
- Previous interview with Kevin: • Kevin Davey: Building ...
- Profitable Trading Strategy Course by Kevin Davey: bit.ly/kevindavey
- Building Winning Algorithmic Trading Systems (book): geni.us/F0sJDUf
- Entry and Exit Confessions of a Champion Trader (new book): geni.us/7ZqHY
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// MUSIC
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// ABOUT ME
My name is Etienne Crete (from Montreal, Canada). I'm a swing Forex trader and help aspiring Forex traders develop a trading method that works for them so they can produce income allowing them to live with more freedom.
I blog at www.desiretotrade.com and host the Desire To Trade Podcast. I was fed up with the “fake” millionaire traders and the “get-rich-quick-trading guys”. That's why you can expect more free content from me than what other people charge for!
If you truly want to succeed in Forex trading, I believe you need to keep working on yourself so you can improve your strengths, but also your weaknesses. Do not focus solely on what you're good at.
// Disclaimer
This video expresses my personal opinion only. Forex trading is risky. Make sure you are ready to trade. Even this will not guarantee you positive results. I am not responsible for any losses incurred due to your trading or anything else. I do not recommend any specific trade or action.
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What's your #1 takeaway from this interview?
That I should find better places to source new ideas. I'm exactly like Kevin described - I stare at charts trying to think of ideas for hours. I understand price action & technical analysis. I understand backtesting for an edge. I feel like I have the discipline to do well at trading. I just find myself throwing together random entry conditions in the hope of finding something that works with a positive expectancy, and feel like I will never come up with an edge.
Algo traders don't trust themselves
@@highgradetrade6014 exactly and crave exactness.
@@highgradetrade6014 Exactly....we trust our algos. Emotionless proven algos.
bruh i trade better than your algo
So happy to hear from him things which I discovered myself in the past 6 months grinding at it. Optimization is overrated. Simple is best. What a great guy.
Make research about Smith Trust Bk, once you find the platform you will definitely find their support e-mail address on top of the page. Reach out to them and tell them you want to learn how to make huge profits from the foreign exchange markets.
I discovered Kevin in 2017 before I graduated from University by doing my due diligence. It was a trader education review website and Kevin received 5 stars, and even provided a picture of his tax return. I was lucky to purchase his Algo material at a discount and will sign up with him soon after I get accustom to discretionary trading.
Thank you, Etienne for interviewing Kevin. Your channel has been a valuable source of information.
That's awesome to hear! I'm glad you liked the interview!
Trading View has a language name Pine Script. I re-read that manual 4 times and took notes. I've been coding for a year and get a lot of Ideas from the Boss Etienne himself and his guests. Etienne has legends on his channel, take some time and watch the videos!
Dope ass interview man. Much respect to you!
That's great to hear! I'm very glad to know :)
@@DesireToTRADE I aspire to become one of those visiting legends on your channel :)
The trading costs are in effect the "casino's edge". It makes sense that they kill many algo trading systems, as they are designed to do so.
This is also a reason, at least in futures, why a small account won’t work well.
@@madimakes 200 K usd is minimum
Great interview! Your podcasts are addicting, keep them coming!
Will surely do :) thanks Ian!
@@DesireToTRADE
The trader motavation videos are my favorite!
17:22 this is something I had to learn the hard way, and I wish people would explain up front really!
Thank u very much for the video. I read two books from Mr. Davey and they were amazing.
He said already that commission and fees will destroy most strategies. That's also my problem.
I code on MT4 and 5. Yesterday I had a really good backtests- performing strategy on BTC. Forwardtesting the strategy loosed, because of fees.
No my question: How or what is the best way to add fees on backtesting with mt4 or 5. Do u make a special calculation in the mql code? Or how do u manage it?
Thank u and best regards
Thanks for listening. Love it.👍
I'm glad you liked the interview, Jason!
Would really like to see how your going E with your algo projects. One day I'd like to show you mine
Yeah I'll do videos on that soon!
I would love to explore algo's but I want to do it manually so I understand it first.
I think it's a good idea, Bruce! Keep it up :)
I started with spreadsheets. I have talent programming them, so that might be a barrier for others. But it allowed me to analyze each trade and learn deeply.
That would be limiting to what algos can do. Some of them open and close multiple trades at the same time which is impractical when done manually, to say the least.
If you are sufficiently diversified, that might be challenging... depending on the time frames/frequency you are dealing with, of course.
Manually you can't backtest quickly on multiple stocks and different time frames.
Thanks for this great video, it has so much value in it listening to Kevin and all his experience. I am new to creating forex robots and this gave me alot of great insights. Keep up the good work!
Thank you very much! One more interview a week here: ua-cam.com/play/PLwmpbNUnTt6gL4jdULaMVuMi24O8KPZqw.html
Whooaaa this is that guy!? I know this guy's work.
Awesome :)
Is he a millionaire?
A good exemple of people who are 50% algo/50% Manuel would be the people in the New York time zone using an Algo to take a position at the beginning of the London session at 3:00 a.m.- 4:00 a.m. eastern time and close it with the price action between 6:00 a.m. and 6:30 a.m. estern time.
I'll do some research on that. Sounds like a good idea!
If you trade and seat infront of your laptop or a cp the system read your mind and drive you to a wrong way to put your position and regret and exit with loss and the better way to do is use multiple time frame and understand all formation in every tf .
He speaks the truth!
Thank you. Just what I needed. ✅
Glad it helped!
I never backtest, I test directly with real data on a demo account. And, I am happy with my algo. Thank you Etienne.
Way to go!
yea, basically you have no idea what you're doing...
Hey brother can we connect?
Where did the comment thread go where he mentions the company he works with? Why did you delete it?
I did not delete any comments... it's either UA-cam or the comment author
I have many ideas but not enough knowledge with backtesting and programming, how do I find people to implement my ideas?
You could find people this way: ua-cam.com/video/L_YrgmSI8bE/v-deo.html
Or you can learn to backtest (it's quite simple): ua-cam.com/video/8Z99CKfbSEA/v-deo.html
Can help ya out ;)
Have you trade binary option ?
If he'd described ways to get max 4% daily drawdown and 10% return in a month then this interview would've had value.
And maybe how to get 5% return the month after😊
I have a lot of difficulties understanding what you say man... please express yourself clearly, your guests are great but I have the feeling that I lose half of the content due to the lack of understanding of your questions... good content though
Hi Kevin , great interview , yet I would like to know how do I add correlation matrix as a feature in it is own right to generate signals in algo program?
Thanks
My pleasure :)
So much great information!
I'm glad you liked that interview!
What gets me is that an idea can be good for one market one time frame one risk:reward and fail terrifically everywhere else. That idea that got thrown away could be a goldmine. lol :(
Great interview, thanks!
Super glad you liked it :)
I read Kevin's book, would like to ask why he does not use Metatrader platform? Thank you
Because MT4 is limited to Forex. Kevin is trading more assets.
@@DesireToTRADE thanks for the answer but it brings another question.. Why none of american brokers use metatrader? It can be used for all tradable securities... in Brazil many brokers offer MT5 to trade stocks, futures, etc. Why USA brokers don't? Is there a law in US against metatrader? Thanks
Notes:
Most ideas dont work, try on short amount of data and See if ther is point to give this idea shot
- some ideas work on one market but dont work on other market
- most ideas work when you dont have cost like big spread or fee broker like in ecn broker
- optymilization in backtest almost always make you worst futute results
-
Thanks for this great video!
My pleasure!
Very Candid , Excellent
I'm glad you liked that interview!
Ninja Trader is C# (C Sharp)
Also people’s backrest works until your money is too heavy or too obvious to other algo / institutions then in real life will hunt you. But if any system cannot pass back test, there is guaranteed perform worse in real life. I use 1min to penalize me by buy and sell at worst price so it would work for something like a 15min system to avoid being too optimistic. At the end of the day, probably only trade 4-5 times like a human but a lot less sweet
Most important question for me is, how much did he made ? So I can decide continue to watch or not .
According to his videos he makes on average $500/month per algo. He runs multiple algos on different futures and stocks for diversity and from my understanding he runs between 25-35 algos.
good interview
Watched it at 1.25x speed ;) Good content, thank you.
very nice video
❤
I liked the interview and I like your channel but there are some crucial questions and topics that were never even mentioned.
What about Quantitative Trading? What about HFT? I mean most people know that in today's markets with hedge funds and institutionals spending astronomical budgets to develop super sophisticated algorithms with hundreds of people working on them, it's naive to even think that you can make alone a profitable system and beat them all. This interview sound like it was recorded 20 years ago and doesn't take in account any of the changes that have occurred since then. I would be very curious to know if those algorithms Kevin Davey has developed are still consistently profitables today.
TY.
/
Highlited many points and half of them are useless unless you've got a profitable mechanical trading system..why don't you interview actual traders that actually show their systems..
WAIT, at minute 36, if you are not planing your exit at a stop loss or target profits, then based on what you should program your exit !!!! that doesn't make sense .
Hes talking about making the system exit based on rules rather than hard stops, essentially a variable stop loss something I do myself.
The benefit is that most of your losses will be cut way more efficiently than a hard stop, I've found most of my algos stops losses at around break even.
One can base a close of trade on conditions rather than a predetermined price.
People get caught up in the optimisation process.
But all the optimisation does is curve fit the past.
Building a better backtest almost always leads to worst results.
Robin Hood doesn’t have trading cost
Can you add Turkish subtitles please
@Richard Mark It's counted... It's been about 3.5 years, but I can't say that I've been very successful.
I wish I could understand the questions 😂
People using "algo trading" nowadays as a catch phrase trying to make something sound complicated. Whether be it manual, automated, or artificial intelligence, it's gonna be the same trading methodology as the price can only go up, down, or sideways. There is nothing the market hasn't done before that will be different.
That's very true! It sounds complicated but the logic is the same!
math used to be counting and all about 1 + 1 = 2 and now we have calculus. So yeah, the point you're making doesn't work. Complexity stems from simplicity. Knowing how the chess pieces move doesn't make you good at chess.
@@Nnm26 LOL such a horrible analogy. Just because you created a chess bot, doesn't mean it's gonna win against a human player lol
@@ch3ckm8 did you seriously just say that? My guy, maybe check on the level that chess bot is currently on right now. Even the world champion can't even compete with a simple chess bot on your phone. So yeah, maybe make a counter argument using another example.
@@Nnm26 my boy. You think all chess bots are equal? LOL let's see you create a chess bot then 😂
Just because the best technology exists, doesn't mean everyone has the access and ability to create it. Same with "algo trading" lmfao. Sure, there are great algos out there, but doesn't mean every "algo trader" is using that hahahaha
ES 5 points a day and out for day. Stop over trading and being greedy
If he is so knowledgeable, why is he promoting his books?
If you wrote a book, don't you think you would promote it too?
@@DesireToTRADE I would happily mint money by using my systems and not go into the hassle of first-writing a book and then taking pains to promote it
@@Rohit-oz1or Rohit , some people like to spend their spare time educating other people, wheather for free or not, they like to pass on their knowledge and give back and teach newer traders and the younger upcoming generation and leave their mark/contribution in the trading community
Do you realise books are one of the biggest selli g products of all times more than music!
Nick K you are awesome great reply!
You have the toughest accent to understand
Alright
can you recommend good videos of yours , they would have real value?
at 5'10" "when price goes down just kept buying" ...for wtf would you do that, man??? engineer background omg. no no no its painful for me i am losing brain cells when i have to listen to this crap anymore. how many years did he need to make some money? is this his reincarnation?