This interview podcast features a conversation between host Aaron Fifield and guest Nick Radge, a systematic trend follower and momentum trader, focusing on systematic trading approaches. The discussion covers mean reversion strategies—buying weakness and selling strength—and their benefits, including diversification and higher trade frequency. Radge emphasizes the importance of system robustness, achieved through rigorous testing and stress-testing to ensure consistent profitability across various market conditions and a large sample of trades, highlighting the dangers of survivorship bias and over-optimization. He details his use of Amibroker software and a custom API for automated trading, emphasizing the need for high-quality data and a deep understanding of why a system works. Listeners gain insights into building and maintaining robust trading systems and the importance of understanding market conditions and system limitations.
