How to Create a Trading System & Why You Need One

Rob Carver is an independent systematic futures trader and investor, writer, and research consultant. He is currently a visiting lecturer at Queen Mary, University of London; and is retained as a research advisor to Stylus Capital, a hedge fund which trades digital assets systematically.

Rob is a true authority on systematic trading. He has had a career at the highest level managing billions of dollars in funds and as a result he has a very clear and no nonsense approach to trading.

In this episode we deep dive into why new traders should start with a system and the core components you need to have a successful trading system.

We also question some conventional trading advice and discuss the use of Fibonacci sequences and why risking 1% as a position size may not be optimal.

Finally, we talk backtesting, whether a new trader should backtest at all and avoiding psychological pitfalls in trading.

Don't forget to hit the like button and share your thoughts in the comments below!

Rob's Socials:
LinkedIn - Robert Carver
Twitter - @investingidiocy

You can find the details of Rob's books and all of the source code behind his trading systems at https://www.systematicmoney.org

(Yes, he literally gives away all of the code to his system)

Timestamps
00:00 Preview and Intro
01:40 Why you need to start with a trading system
05:10 The core components of a robust trading system
11:30 Why Rob doesn't use Fibonacci sequences
17:05 Why 1% position sizing isn't optimal
22:00 Why new traders don't consider costs
29:50 Rob's learning's discretionary trading for Barclays
33:00 Finding a trading system that works for you
39:55 Rob's trading approach and finding risk premia
44:00 How to choose between risk premia
47:55 Why moving average crossovers should be your first trading system
52:30 Should a new trader backtest?
01:00:40 Avoiding psychological traps in systematic trading
01:06:00 How to approach different markets