Bill Gebhardt from 10Dynamics discusses the intriguing intersection of market efficiency and systematic trading strategies. He emphasizes the idea that while traditional views suggest markets are efficient, many hedge funds continue to find success using price-based strategies that should theoretically not work. This paradox leads to a fascinating exploration of the psychological aspects of trading, particularly how human behavior can create opportunities for systematic traders. Gebhardt shares insights on the operational complexities of running a nearly continuous trading process, utilizing intraday data, and employing a diverse range of signals. The conversation explores the risks of underfitting versus overfitting in trading models, ultimately advocating for a strategy that embraces empirical success without excessive optimization.

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Episode TimeStamps:

02:17 - Introduction to Bill Gebhardt

06:35 - No pain, no gain

08:40 - Why are they called 10Dynamics?

10:08 - What is their philosophy behind how markets work?

12:24 - Are the signals that they run based on trend following?

13:47 - How they handle the operational complexity of their system

18:15 - How they assess the validity of their data

20:39 - Exploring the technical details behind the execution of their...

OI13: The Art of Continuous Trading: Mastering Market Dynamics ft. Bill Gebhardt

Top Traders Unplugged