TRUTH about Trading Bot Algorithm ft. Quant Trading CEO — Transcript

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1. 0:00it's kind of a trade secret in a way but
2. 0:02I'll no but I'll let some of it out no
3. 0:04emotion automated yeah faster does what
4. 0:07you wanted to do not second guessing
5. 0:10itself and if you have a good system you
6. 0:12can be in a very good position that's
7. 0:14one type of deal that you can do with a
8. 0:16proprietary firm but I would get 90% of
9. 0:19the profits so 90% of the profits sure
10. 0:21oh wow yeah imagine a Trader who's
11. 0:23traded from everywhere and has done
12. 0:26everything that's ding ding is an
13. 0:28experienced Quan Trader who started his
14. 0:31career trading for private offices and
15. 0:33big institutions then eventually moving
16. 0:35to the Cayman Islands to be the managing
17. 0:38director of a private trading firm ding
18. 0:41was also the CEO of an Inc 500
19. 0:43technology company for his work he's
20. 0:46been nominated as entrepreneur of the
21. 0:48Year by the golf Coast Business Review
22. 0:51ding has since then transitioned from
23. 0:53his corporate life to day trading
24. 0:55fulltime and practices what he preaches
25. 0:58to his clients his main main priority
26. 1:00now is to teach his kids how to trade
27. 1:03and help them with their businesses in
28. 1:05today's conversation I'm really excited
29. 1:08to have Dean explain to you guys what
30. 1:10Quant trading is his favorite Quant
31. 1:12trading strategies and what it means to
32. 1:14find a balance as a Trader a business
33. 1:17leader and a parent please welcome my
34. 1:20friend
35. 1:23[Music]
36. 1:26Dean welcome back to the fifth episode
37. 1:29of humble Traders a podcast for active
38. 1:32Traders I'm your host Shay AKA The
39. 1:35Humble Trader if this is your first time
40. 1:37tuning into a podcast I interview share
41. 1:40stories and trading strategies from some
42. 1:42of the most inspiring Traders from
43. 1:44around the world if that sounds good to
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45. 1:49button and subscribe to see more
46. 1:51interviews like these in the future
47. 1:54welcome to the show Dean thank you so
48. 1:56much thanks for having me it's great
49. 1:57being here yeah I'm so glad I met you
50. 2:00last summer when we're doing the uh
51. 2:02YouTube video yeah that was a lot fun
52. 2:04that was really fun and then I think it
53. 2:06was a like a great way for me to get
54. 2:07introduce to the local Vancouver Traders
55. 2:10I have no idea so many Traders are here
56. 2:13yeah it was a great turnout yeah and
57. 2:15then I think you out of I guess out of
58. 2:17all the Traders I met so far yeah you
59. 2:19were one of the most experienced like
60. 2:22who's been in the game for the longest I
61. 2:24think how long you've been trading yeah
62. 2:27about I guess yeah close to 30 years
63. 2:31would be from my first trade but I
64. 2:33started um taking a look at what I
65. 2:35wanted to do when I was in high school
66. 2:37and I knew that I always wanted to be in
67. 2:38the sports business and sports agency
68. 2:40and you one day on a pro football team
69. 2:42or something like that but I also was
70. 2:44looking at um my dad introduced me to
71. 2:46the Forbes Magazine and they would list
72. 2:48the 400 wealthiest people so I started
73. 2:51cutting out what these people did and
74. 2:53put them into industry folders and I
75. 2:55said to myself once I go through
76. 2:56University and when I'm close to
77. 2:58finished whatever is the fatest folder
78. 3:00that um didn't have to do with
79. 3:03biotechnology or having having to build
80. 3:06some massive company um I would look
81. 3:09into that one and then as I after about
82. 3:12three or four years of doing this the
83. 3:14biggest folders were guys who were money
84. 3:16managers hedge fund managers and I said
85. 3:18no and I started looking at their
86. 3:19backgrounds and I said no not all these
87. 3:22guys are you know rocket scientists and
88. 3:25this is something I'm interested already
89. 3:28and I said yeah let's go in direction oh
90. 3:31okay yeah wow so over 30 years you're a
91. 3:34true veteran I think
92. 3:35so you think so yeah quite some time and
93. 3:38then when I got out of school um a
94. 3:40family friend who was a mentor at the
95. 3:42time um I was representing athletes when
96. 3:45I was in university was something you
97. 3:46know a lot of people work regular jobs I
98. 3:48was representing athletes and um he said
99. 3:51well you could probably do a lot for
100. 3:53these guys long term if you learned how
101. 3:55to manage their money so I uh went and
102. 3:58learned how to get it he got me into the
103. 4:00financial business and then from there I
104. 4:02started reading about some of the best
105. 4:04people in history and managing money and
106. 4:06Traders and all that sort of thing and
107. 4:08so I went down to the library talking
108. 4:10about being in it for a long time and
109. 4:12looked at the pulled out the microfish
110. 4:14do you do you know what microfish is is
111. 4:16that like a disc nope even before discs
112. 4:20so um pulled out the microfish and it's
113. 4:22a piece of plastic paper and you fed it
114. 4:24into this machine that looked like an
115. 4:26overhead and it would bring so I'm
116. 4:28looking at all these um articles on a
117. 4:30guy by named Warren Buffett so I started
118. 4:32reading about him and then I'm going wow
119. 4:34at the time I was in Toronto and I heard
120. 4:36about this guy named Michael Le chin who
121. 4:38was doing a lot of these things like
122. 4:40Warren Buffett and he had a small firm
123. 4:42so it took over the next couple months
124. 4:43and tried to get in and uh started
125. 4:45studying value investing at that firm
126. 4:47under under him and I did that for a
127. 4:49couple years and then um had a really
128. 4:53interesting experience and then was part
129. 4:55of starting another firm that grow grew
130. 4:58really well that started uh ended up
131. 5:00having over 700 reps across the country
132. 5:03over 10 billion in assets I was one of
133. 5:05the original guys that started there but
134. 5:06I left early um to go out on my own and
135. 5:09start learning more and more about
136. 5:10trading my knowledge base started really
137. 5:13going towards more SO trading and um
138. 5:16doing that than managing um managing
139. 5:18money in mutual funds oh so you started
140. 5:21out more so research kind of like
141. 5:22fundamentals value investing you you
142. 5:25moved on to trading yes wh why why why
143. 5:28do you think you you know instead of
144. 5:30staying that path you started to get
145. 5:32interested in actually trading more
146. 5:34actively so I met um a lot of these
147. 5:35money managers and as they were talking
148. 5:37they were talking about individual names
149. 5:39of stocks and this stock went from here
150. 5:41to here and I was kind of dismayed in a
151. 5:43way that the overall funds were making
152. 5:4610 12 14% yet these individ individual
153. 5:50names if you would have a more
154. 5:51concentrated portfolio or names that you
155. 5:54were buying and selling you could get
156. 5:55way outsized returns so I wanted to
157. 5:58really move towards that rather than
158. 5:59being involved in in regular returns oh
159. 6:02I see yeah so I wanted a bigger upside
160. 6:04and I wanted to do like I was reading
161. 6:07about these guys that I had read years
162. 6:08before in Forest magazine okay so that's
163. 6:11how you got into trading then
164. 6:13specifically how did you get into Quant
165. 6:15trading so I was Consulting to a bunch
166. 6:18of different companies um all over the
167. 6:20world mutual fund companies some hedge
168. 6:22funds I was sitting on the board of a
169. 6:23couple hedge funds as well and I got to
170. 6:26meet different money managers in that
171. 6:28genre and some of the people that I met
172. 6:32were running a Quant fund and I started
173. 6:35and actually we were out to dinner one
174. 6:36night and they were saying oh we heard
175. 6:38that you had a pretty good year another
176. 6:39guy said oh you had a good year was the
177. 6:40end of end of the year like late
178. 6:42December and the one guy said that uh
179. 6:44yeah we had a pretty good year we were
180. 6:45up like uh 281 and I thought they had
181. 6:47made $281 million which they actually
182. 6:50made more than that but they were up 281
183. 6:52per for the year oh wow and I went and
184. 6:54you guys do Quant stuff I got to learn
185. 6:55more about that and as um luck would
186. 6:58have it um I got recruited by this
187. 7:01company to consult to them and then I
188. 7:03was offered to be president and CEO and
189. 7:05it was a uh systematic computer
190. 7:08generated trading software that they
191. 7:11were selling to the public and to
192. 7:12institutions and they wanted me to come
193. 7:14in and help them re reorganize the
194. 7:16company re-engineer it which I did and
195. 7:19then I took it over as president and CEO
196. 7:21and we had I think eight full-time
197. 7:22Engineers computer scientists and I that
198. 7:25gave me the opportunity to look all
199. 7:27around the world and hire brilliant
200. 7:29people to come in and uh try to make our
201. 7:31trading systems better oh okay so I
202. 7:34learned a ton from there and then um we
203. 7:36grew that business I'm fortunate to um
204. 7:40it was named the 55th fastest growing
205. 7:41company in America um the year after I
206. 7:44started and once again the next year in
207. 7:46the top 150 fastest growing companies uh
208. 7:49in the country and I we started a
209. 7:52internal fund and these guys were
210. 7:54brilliant we had meetings every week so
211. 7:56my knowledge base in that area went
212. 7:58through the roof pretty quickly and I
213. 8:00left there and then started up
214. 8:02Consulting um to medium to large siiz
215. 8:05firms in the states and then became
216. 8:08director of Quant research at a u about
217. 8:10a thousand member uh Brokerage in the
218. 8:12states as well uh and doing all of that
219. 8:15and Consulting while I was doing that as
220. 8:17well got me introduced to a lot of
221. 8:19different programmers mathematicians
222. 8:21from all over the world and that helped
223. 8:23my knowledge base go up and up yeah when
224. 8:25I think of Quant trading I think of a
225. 8:27lot of math numbers like flying on the
226. 8:30screen a lot programming is that
227. 8:33accurate well like that's Public's
228. 8:36perception of TR absolutely and I think
229. 8:38at first most of the people's um
230. 8:40perception was hft that high frequency
231. 8:42trading going off like crazy and
232. 8:44everything the that book Flash Boys by
233. 8:46Michael Lewis was one that really
234. 8:48brought it to the Forefront and um but
235. 8:51the way they look at Quant trading to if
236. 8:54I dare say dummy it down is yes please
237. 8:58do yeah so you're using algorithms and
238. 9:01an algorithm is simply an if then
239. 9:04statement and for all the engineers out
240. 9:07there and that sort of thing I apologize
241. 9:09if I'm making this too easier not right
242. 9:11on but um the way I look at it you're
243. 9:14using an if then statement and it could
244. 9:16be numbers and it could be words okay um
245. 9:19and you're telling you're programming a
246. 9:23computer to do the entries and exits how
247. 9:27you want the computer to do that so you
248. 9:32tell it what to do and it does it on an
249. 9:35automated basis and if you're really
250. 9:37good at putting in excellent algorithms
251. 9:39and rules it's basically rules-based if
252. 9:42then statements so if you have a good
253. 9:45strategy then you will create profits if
254. 9:48you don't have a good strategy you will
255. 9:51create losses it's it's the easiest way
256. 9:53to uh to put it so you kind of compile
257. 9:56let's say a bunch of rules 10 rules
258. 9:59example and a Quant Trader will turn
259. 10:03that into a strategy that will automate
260. 10:04the trading based on those 10 rules or
261. 10:07more so think about when you're when
262. 10:08you're looking at a a chart a price
263. 10:11chart there's patterns and there's
264. 10:13identifiable pattern I can identify it
265. 10:16and say Buy Here Sell there now I hire
266. 10:20programmers to program in when the price
267. 10:24goes to this buy and when the price goes
268. 10:26to Here Sell and say well how do you
269. 10:29know what to do right so you have to
270. 10:31have good information in so to do that I
271. 10:34use statistics and probabilities so
272. 10:36statistics being all we do is we take
273. 10:39let's say the movement of a stock let's
274. 10:42called The Q's the QQQ uh the ETF that
275. 10:45follows the NASDAQ 100 so we would take
276. 10:48a look going back
277. 10:50say for example 100 days and we would
278. 10:53track the movement of the cues over the
279. 10:57last 100 days intraday end of day and we
280. 11:01would get to know what the pattern is
281. 11:03and then we would try to identify if
282. 11:05there's repeating identifiable patterns
283. 11:08that we can then put in a buy a sell a
284. 11:10short a buy buy to cover and continue to
285. 11:13do that over and over and when you have
286. 11:15something like that you have a winning
287. 11:17system and then why why reduce it down
288. 11:20to code and why do it like that because
289. 11:24noemotion
290. 11:25mhm automated yeah faster
291. 11:30does what you wanted to do not seconding
292. 11:33guessing itself and if you have a good
293. 11:35system you can be in a very good
294. 11:37position oh I see yeah so if a Quant
295. 11:40trador does that that means does he
296. 11:42still have to monitor the positions at
297. 11:43all yeah for sure like you know I don't
298. 11:45know anybody that puts it on and leaves
299. 11:47like you hear a lot of stuff with
300. 11:48YouTube just put it on set it and forget
301. 11:50it so that's not true that's not true
302. 11:52well maybe they are but I don't think
303. 11:54they're making the money that they're
304. 11:55saying that they are I see right so um
305. 11:57there's a gentleman uh a firm called
306. 11:59Renaissance technologies that I was
307. 12:01introduced to over 20 years ago okay um
308. 12:04about 25 years ago and these guys were
309. 12:06some of the most uh sophisticated
310. 12:08mathematicians on Earth um award-winning
311. 12:11mathematicians code Breakers from uh the
312. 12:14US and they created this company to um
313. 12:18with to use quantitative systems to to
314. 12:21trade both all kinds of different um
315. 12:25instruments in the market futures
316. 12:26Commodities stocks and their returns
317. 12:29were outstanding so like to the point
318. 12:32where um for what what's been published
319. 12:34their long-term returns over 30 years is
320. 12:37above 60% annually so you're doubling
321. 12:39your money almost every year and it's
322. 12:42it's been reported these guys are some
323. 12:43of the wealthiest people on Earth so one
324. 12:46of the things I learned when I was young
325. 12:48emulate and duplicate and then see if
326. 12:51you can make it your your own and if you
327. 12:54like winning then well that's a good
328. 12:56Target to go after and so that's really
329. 12:59how I I use that as a Target I wanted to
330. 13:02go after that but I didn't want to be
331. 13:03involved in large large companies I see
332. 13:06yeah so hence the being an individual
333. 13:08operator oh because you were involved in
334. 13:11larger companies and you kind of kind of
335. 13:12decided to take a step back and do your
336. 13:15own thing do your own trading yeah so I
337. 13:17I was president to of a company we had
338. 13:19150 employees and then another company
339. 13:22we had we had about 200 employees and I
340. 13:24said you know what it's I find it'd be
341. 13:27more interesting to have a small company
342. 13:29especially with lifestyle um so as I was
343. 13:34maturing I had done so much work I
344. 13:36started working when I was 14 years old
345. 13:38right and I'd work like crazy and I said
346. 13:40you know what can we work smarter you
347. 13:43know this is not rocket science you know
348. 13:46work smarter um High
349. 13:49profitability lifestyle Freedom that
350. 13:52sort of thing and everything really ties
351. 13:54itself into if you can get a good
352. 13:57trading system going and TR complex
353. 13:59going you can I think it's one of the
354. 14:01best things you can do as you probably
355. 14:03already know from all my YouTube videos
356. 14:05most of my strategies involve scalping
357. 14:08momentum and shorting all of those
358. 14:10things will require a very fast broker
359. 14:13platform and I have an exciting promo
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372. 14:44and now let's get back to the video yeah
373. 14:46so what how old were you do you remember
374. 14:49how old were you when you kind of took a
375. 14:50step back and just go all in on your own
376. 14:54I would say
377. 15:00I was a bit of a late bloomer because I
378. 15:01wanted to get really good at this stuff
379. 15:03and I wanted to have the feathers in my
380. 15:05cap um so I wanted to work on Wall
381. 15:08Street I wanted to work on uh on or near
382. 15:11Bay Street on or near Wall Street I
383. 15:13wanted to get and be involved in large
384. 15:15companies I wanted to be involved in the
385. 15:16hedge fund so once I had got all those
386. 15:18things done and I had run a research
387. 15:20company and and a consulting firm
388. 15:24um as luck would have it um some family
389. 15:27situations changed and I decided to
390. 15:30Pivot and said okay no more Consulting
391. 15:33no more selling research no more doing
392. 15:36this I'm going to go all in and I'm
393. 15:38going to start uh and bringing in my own
394. 15:40research and develop everything
395. 15:42internally not sell anything externally
396. 15:44and start trading on my own um not just
397. 15:47for my own account but also I started
398. 15:49doing something that I call fund of ones
399. 15:52fund of ones fun of one so F yeah o f o
400. 15:57n so F1 so fund of one so basically um
401. 16:01instead of just starting where a lot of
402. 16:03people start they save up a little bit
403. 16:04of money and they start trading their
404. 16:05own capital and they grow it and they
405. 16:07grow it and they go from there and a lot
406. 16:09of times to get to you know to an
407. 16:12exceptional amount of income or money
408. 16:14you have to save for a long time it
409. 16:17takes a lot of time or you get that
410. 16:19Capital yeah you can use leverage or
411. 16:21whatever so what I did was I was once
412. 16:23again fortunate enough to meet some
413. 16:24people um and we started a individual
414. 16:30fund but only one person well two people
415. 16:34in the fund myself and another person
416. 16:36and then I did it with another person we
417. 16:38started another fund and at one point I
418. 16:40had about uh four different funds going
419. 16:43with a couple different families and
420. 16:45then I also uh did deals with
421. 16:48institutional Preparatory trading firms
422. 16:50so I was um trading proprietary money
423. 16:53for firms as individual Trader but doing
424. 16:56on my own off-site um um from from the
425. 17:00tropics oh so okay so okay let me break
426. 17:03it down a little bit so it's the family
427. 17:06office money yes and you go in as the
428. 17:08trader who trade for them with their
429. 17:10Capital yeah and I don't actually go in
430. 17:12and do it I do it on my terms and my
431. 17:14place and where I want so a lot of times
432. 17:15when people are saying oh I'm you know
433. 17:17you see on YouTube and that sort of
434. 17:19thing I see a lot of people on Instagram
435. 17:21saying oh I'm down on the tropics
436. 17:22trating from a beach with a you can't
437. 17:24even see a you can hardly see a a screen
438. 17:28in the Sun wondered I'm like how do you
439. 17:30actually trade on the beach the
440. 17:32reflection itself is just the internet
441. 17:35connection the reflection like there's
442. 17:37no way yeah there's so much to actually
443. 17:40do it and there are a lot of people that
444. 17:41are doing it from Bermuda and Grand game
445. 17:43and Bahamas that sort of thing um so
446. 17:46what I do was I set up an individual
447. 17:48fund with a family office which
448. 17:50basically it's a fancy name for a
449. 17:52private family that has a fair amount of
450. 17:55money that wants to manage their own
451. 17:57money or hire uh some to manage their
452. 17:59money for them so I was just one piece
453. 18:02of their complex where they were they
454. 18:05would do their management or have their
455. 18:06inhouse people I was an outside person
456. 18:09and I would do a deal with them where
457. 18:11you the trader and I was a Trader and
458. 18:13it's not like oh this is long-term you
459. 18:15know we're trying to hold positions for
460. 18:17three years no my turnover was daily and
461. 18:19we do any so they were day trading at
462. 18:22absolutely anywhere from anywhere from
463. 18:24one trade to hundreds of Trades a day oh
464. 18:27absolutely yeah so
465. 18:29I'm just curious I don't know if you can
466. 18:30share like so if it's their money and
467. 18:32you trade for them what's like a profit
468. 18:34split like uh the profit split you can
469. 18:37usually in those well not usually but
470. 18:38what I was experienced in doing was I'm
471. 18:41pretty fair and go
472. 18:425050 okay so and then uh from an
473. 18:45Institutional uh proprietary trading
474. 18:47firm usually what they want you to do is
475. 18:49they want to want you to put up what's
476. 18:50called first risk Capital so I would put
477. 18:53up our own Capital let's uh say for uh
478. 18:56argument sake I'd put up 100 $1,000 okay
479. 19:00they would give a couple million dollars
480. 19:02to trade against that my$ 100,000 would
481. 19:05be at risk first I see so that's one
482. 19:09type of deal that you can do with a
483. 19:11proprietary firm okay but I would get
484. 19:1290% of the profits and I would use their
485. 19:15money so 90% of the profits sure oh wow
486. 19:18yeah cuz my money's at risk you have no
487. 19:20you have no risk your money's at risk
488. 19:22first the first 100K is my risk oh see
489. 19:26or our risk if I have a back or
490. 19:28something like that oh okay so then the
491. 19:30next the next type of U proprietary
492. 19:32trading firm is you come in and you
493. 19:34become a member of their uh limited
494. 19:38partnership and they give you access to
495. 19:40their capital and those ones go anywhere
496. 19:42from 30% 40% 50 60 70% payout depending
497. 19:46on how good you are and how consistent
498. 19:47you are um so I was I did my homework
499. 19:52and I was lucky enough to get with a
500. 19:54couple really good firms for a good
501. 19:56period of years oh yeah when you were
502. 19:59doing that for I think a couple years
503. 20:01you say you were doing that in the
504. 20:02tropics yeah or where is that yeah so I
505. 20:05lived in between um lived between Miami
506. 20:10and also in Grand Cayman I lived in the
507. 20:12Gulf Coast as well um and but my
508. 20:15family's up in Toronto so we'd spend our
509. 20:17summers in Toronto in Whistler and in
510. 20:19the winters where would you want to be
511. 20:20in the tropics so I was located for
512. 20:23several years out of Grand Cayman in the
513. 20:25Cayman Islands and I've also worked in
514. 20:27other locations when we want live there
515. 20:29so um when everything uh when I when I
516. 20:34decided to go all in and do that type of
517. 20:37trading I also said okay Now's the Time
518. 20:40um with my children at the time my my
519. 20:43girls are I've got twin girls at the
520. 20:44time were 10 years old 11 years old and
521. 20:47we decided or I decided let's move every
522. 20:50couple years give them a global
523. 20:52education oh wow and let's move around
524. 20:54the world I can do this and as long as
525. 20:57you're consistent and as long as you've
526. 20:59got a you know continue with a good
527. 21:01track record then you can do it it's not
528. 21:03as easy as what people say you know
529. 21:05there's all kind travel from anywhere
530. 21:07travel travel sorry travel and trade
531. 21:09from anywhere so yeah like my Instagram
532. 21:11is that is trade. from. anywhere it's
533. 21:14just basically that's what we always
534. 21:16talk about and and it you have to be a
535. 21:19good Trader first then you have to have
536. 21:20the capital second and then there's all
537. 21:22kinds of things you have to do with that
538. 21:24like visas and regulations and um are
539. 21:27you going to get a place that's that or
540. 21:29you can live in a hotel get a sweet in a
541. 21:30hotel and live there kids have to go to
542. 21:32school yeah um so with with my kids they
543. 21:36did uh they did a little bit of brick
544. 21:38and mortar school and they also did
545. 21:39online school so we could travel and do
546. 21:41different things and they could pursue
547. 21:42their passions so at the time too it was
548. 21:46just U was just me and my kids yeah and
549. 21:49um so really my most important single
550. 21:53output measure as a man is how good of a
551. 21:55father can I be so that was number one
552. 21:59how how good of a father and then you
553. 22:01know how good of a friend and all that
554. 22:03can I be but that was that's first and
555. 22:05foremost most important so can we do
556. 22:07this and if we can what do we want to do
557. 22:10so I'm a big believer in writing the
558. 22:12script
559. 22:14and rewriting the script every you know
560. 22:16every couple years if you need to uh
561. 22:18sort of like being on the first year of
562. 22:19a three-year plan every couple years
563. 22:21right see and so decided okay I want to
564. 22:24live in the tropics and I want to
565. 22:26educate the kids I want to live on an
566. 22:28island we live on a beach in in a
567. 22:30different part a surfing town we wanted
568. 22:32to live in the cities we wanted to
569. 22:34travel when we could so we traveled most
570. 22:36Summers all over the place and every
571. 22:39place that we lived and traveled to I
572. 22:43traded so when we're in Rome for a
573. 22:45couple weeks or in Italy traveling in
574. 22:46Italy for I traded pretty much every day
575. 22:50oh wow yeah so you have to to do that
576. 22:52you know got really good at trading on
577. 22:54my phone with a phone app you actually
578. 22:55trade on the pH absolutely yeah and then
579. 22:57with the time we have to go back to the
580. 22:59hotel when we were in Rome to trade look
581. 23:03on my trade look at look at them up and
582. 23:05do some trades that were happening and
583. 23:07um yeah everywhere from I've traded from
584. 23:11Planes
585. 23:12Trains cars um boats not yet yes
586. 23:17absolutely boats I've traed from boats
587. 23:19have internet on the boat yes
588. 23:21absolutely um uh yeah I've traded from
589. 23:25Hawaii traded from Rome traded from
590. 23:27Toronto all over the place the world at
591. 23:29this point when you're trading with your
592. 23:31two kids and traveling are you still
593. 23:34managing the funds or are you trading
594. 23:36your own Capital so in the funds part of
595. 23:40the part of the deal with that was I had
596. 23:41a um I might have had some money in
597. 23:44there with them as well I usually have
598. 23:46my own eat my own pudding and put it in
599. 23:48along with them so it is a fund with
600. 23:51only one person so it's I call it a fun
601. 23:53to one but it's really just a
602. 23:55partnership between me and another
603. 23:56person so you also have your own money
604. 23:59oh see and um yeah absolutely so i' be
605. 24:03trading U my own Capital which is it's
606. 24:06just comingled with theirs it's just a
607. 24:08fair way like if I can ask you to eat
608. 24:10this food along with me I I may as well
609. 24:12eat it as well right yeah so as more
610. 24:15about to say we eat our own pudding as
611. 24:17you can see from my conversation with
612. 24:19Dean Quan trading and automated trading
613. 24:22is definitely getting more and more
614. 24:23popular is that a topic that interests
615. 24:25you let me know if you want to see more
616. 24:28you can comment Quant trading down below
617. 24:31so at this point um are all your
618. 24:34strategies automated at this point uhhuh
619. 24:38like before or like right now uh they've
620. 24:41been automated for years okay yeah so
621. 24:43recently like before I had to go and um
622. 24:47hire programmers so if we can go back 20
623. 24:50years I was getting in touch with um
624. 24:53individual programmers mathematicians
625. 24:54from um different top un in the states
626. 25:00and they would know somebody would know
627. 25:01somebody and I would get together with
628. 25:03them either bring them into where I was
629. 25:04living at the time or meet them
630. 25:06somewhere uh to go over their
631. 25:08credentials and try to help get them to
632. 25:09help build build something so recently I
633. 25:12discovered uh this um company called
634. 25:15Shark indicators okay now they make a
635. 25:18piece of software they have two pieces
636. 25:20to the software one is called blood
637. 25:21hound the other one's called blackb bird
638. 25:23don't know why they're called that but
639. 25:24good for them but the important thing is
640. 25:28The Blood Hound piece of software it
641. 25:30allows you to test your theories test
642. 25:33your strategies so let's say everybody
643. 25:36has like a strategy that they want to
644. 25:37follow in the markets or they do in the
645. 25:40markets so let's say buy the S&P e mini
646. 25:45above when it when the price closes
647. 25:48above the 100 period moving average okay
648. 25:51right hold that instrument for 20 points
649. 25:56or 1%
650. 25:58when it goes up 20 points or 1% sell so
651. 26:03and let's say we do the opposite for
652. 26:05when it goes down goes down and we want
653. 26:07to short it okay okay so if the price of
654. 26:10the S&P closes below the 100 period
655. 26:12moving
656. 26:14average then sell it short on close and
657. 26:18hold that position for a 20 point profit
658. 26:22okay you can put that in and let's say
659. 26:24you follow any type of indicator you can
660. 26:27think of or any type of number rule you
661. 26:29can think of um if you can think of the
662. 26:31rule by just clicking the button you
663. 26:33don't need to know programming you don't
664. 26:35have to be a programmer you can put that
665. 26:37in it took me about an hour and a half
666. 26:39to learn it that was it yeah and so
667. 26:42something that would have taken me a
668. 26:44couple thousand dollars and hiring a
669. 26:46programmer to do a couple years ago now
670. 26:49I took lessons on it for about an hour
671. 26:51or two hours and I'm off to the races
672. 26:54creating strategies that worked just
673. 26:56like other um Quant strategies that I
674. 26:58had built by software programmers the
675. 27:00other part of the software um is an
676. 27:05advanced trade management system so if
677. 27:08you wanted to buy for you sell for you
678. 27:12put in a trailing
679. 27:13stop it'll Trail for you put in a hard
680. 27:16stop and you can be as sophisticated as
681. 27:18you want or as unsophisticated and just
682. 27:20put in simple stops but this I think the
683. 27:24the software is revolutionary if you
684. 27:26learn how to use it and it's for
685. 27:28individual Traders the thing right is
686. 27:30that it works for ninja ninja Trader
687. 27:34okay which is a software PL program that
688. 27:36a lot of um a lot of Futures Traders use
689. 27:39but it's all over the world so um but I
690. 27:41think it's a I've been using that and
691. 27:43it's fantastic and this is only for
692. 27:45Futures Trading you can't do this for
693. 27:47let's say options stocks if you if you
694. 27:50if you can trade on on ninja Trader I
695. 27:53believe that you can program in the buys
696. 27:55and sells for that as well oh wow not
697. 27:58enture but um you can look it up they've
698. 28:00got all kinds of videos and all that
699. 28:01both on YouTube and on their website I
700. 28:04think it's I've discovered that and I
701. 28:05think it's
702. 28:06fantastic I know you said it took you an
703. 28:08hour to learn everything but you're a
704. 28:10very smart guy I think an average person
705. 28:13like me I would need like maybe a couple
706. 28:15of days to learn it but I'll check them
707. 28:18out um I think for what it does it's
708. 28:21more than worse worth it to take the
709. 28:23advantage and and take the time and
710. 28:25learn it and seriously I'm not the
711. 28:26sharpest knife in the drawer when it it
712. 28:28comes to uh I understand programming I
713. 28:30understand working with programmers and
714. 28:31that sort of thing um but I'm not a
715. 28:33programmer by trade oh so what's your
716. 28:36actual like formal um education formal
717. 28:39education undergrad in economics um from
718. 28:42yeah economics did myrad and played
719. 28:45football at a university out Nova Scotia
720. 28:47shout out to a axan and then um and I
721. 28:50somehow got into University waterl okay
722. 28:53and went there for a semester and played
723. 28:55football there and um yeah so I was
724. 28:58around really really smart people for a
725. 29:00year yeah at Water brilliant brilliant
726. 29:03bunch of people that from that
727. 29:04University yeah oh my God everyone from
728. 29:06there is so smart especially
729. 29:08Engineers incredibly yeah yeah when yeah
730. 29:12I remember my first day in class looking
731. 29:13around going if you don't know who the
732. 29:16dumbest person in the room is it's
733. 29:18probably you yes yeah and uh so that was
734. 29:22U evident right away but I'm probably
735. 29:24playing down a little bit but um yeah I
736. 29:26think if you if you take the time like
737. 29:29when it comes to trading I believe that
738. 29:31you know you should be professional
739. 29:33about it of course and um that's one of
740. 29:36my favorite quotes that I've been I read
741. 29:39recently uh was by a guy by the name of
742. 29:41DJ Shipley um he's a former na Navy SEAL
743. 29:45Team Six Dev grw operator okay and he he
744. 29:49put out this quote couple months ago or
745. 29:53a couple weeks ago and it's about being
746. 29:55a pro and it's so anal analogous to
747. 29:58trading do your work do your
748. 30:02studying learn learn learn like do your
749. 30:07studying find somebody where you can um
750. 30:09like go to school basically not you can
751. 30:11do everything online M and then from
752. 30:15that point get a coach you know it's I
753. 30:19was hearing some guys saying that you
754. 30:20know you can read a book about golfing
755. 30:22you go golf doesn't mean you can golf
756. 30:25but if you read the book you understand
757. 30:26some of the fundamentals but then if you
758. 30:28get somebody you can learn from yeah and
759. 30:30say hey that's why you're not doing it
760. 30:32and they can correct your swing and same
761. 30:34thing with this be a pro at what you're
762. 30:36doing do the put the time in do the
763. 30:39learning do the practicing practice hard
764. 30:41do deep practice uh there's another book
765. 30:44um that I read it was just brilliant um
766. 30:47the Talent Code and talks a lot about
767. 30:49deep practice and doing slow practice
768. 30:52and then getting better and better and
769. 30:54then layering on and Scaffolding up your
770. 30:56your um um learning and then going from
771. 31:00there when you're ready then getting in
772. 31:02and then jump into the waters and I
773. 31:04think that's a way to do it and I think
774. 31:06a lot of people will be way more
775. 31:08successful in this cuz the statistics
776. 31:10are brutal if they're right um they're
777. 31:13brutal so I think doing the work and
778. 31:15doing the studying is is imperative so
779. 31:18how would you describe your strategy
780. 31:22like one of the strategy that's
781. 31:23automated how would you describe it at a
782. 31:25high level explain it to our audience a
783. 31:28high level or at a very easy and simple
784. 31:30level which one would you like okay a
785. 31:32very easy simple simple level so um one
786. 31:36of the things that I
787. 31:38found in doing all the research and
788. 31:40working with different companies and
789. 31:42different money
790. 31:45managers simple is best simple works now
791. 31:49there are some companies that are
792. 31:53phenomenally complex that run their
793. 31:56trading strategies phenomenally complex
794. 31:58mhm I really gravitated towards simple
795. 32:01okay
796. 32:03and I would say that all right so we
797. 32:07know that when you're when you're
798. 32:08trading we know that um Trend following
799. 32:11works sometimes MH we know that breakout
800. 32:15momentum trading works yeah sometimes uh
801. 32:18we know that relative strength with
802. 32:21breakouts and momentum works sometimes
803. 32:24we know that also on the opposite side
804. 32:27that that breakdowns work and you can
805. 32:29really catch you know a move down yes so
806. 32:32all these things work the problem for
807. 32:35everybody is that none of them work all
808. 32:38the time M right y so I took a look at
809. 32:41that and said okay once again are there
810. 32:43patterns to this I believe there are can
811. 32:46we prove those patterns yes how using
812. 32:49statistics by taking a look at the
813. 32:51movement of price and out of when you
814. 32:54get the statistics do we from there we
815. 32:57get probabilities
816. 32:59now when you take the information from
817. 33:03the research that you
818. 33:05do can you build a system around that
819. 33:09well you just test it so how would I
820. 33:11describe my system probably have to edit
821. 33:13some of
822. 33:14this so what I did was I combined a
823. 33:18trade a a trending system with a
824. 33:21breakout
825. 33:23system okay so price is
826. 33:25Trend and we know that price
827. 33:28say move on on a monthly basis
828. 33:31um uh NASDAQ stocks on a monthly basis
829. 33:34range 10% up 10% down mhm now they don't
830. 33:39always just come back to the mean
831. 33:41sometimes they break out and they go for
832. 33:42a run they go to the moon so when they
833. 33:45do I create a system that buys the trend
834. 33:49where is the trend identify the trends
835. 33:51above a 50 period 100 period and a 200
836. 33:54period moving average right okay so it
837. 33:56would buy a little a little bit above a
838. 33:5850 a little bit above 70 a little bit
839. 34:00above 100 and it'll take a big chunk at
840. 34:03200 period moving average now see okay
841. 34:06we know that now the expectation of move
842. 34:08might be 10 15 20% depending on that
843. 34:10instrument mhm now if it starts coming
844. 34:15back down well that's a reversion to the
845. 34:16mean trade so the system will short that
846. 34:21trade it'll take the profit and short it
847. 34:23because it doesn't think that it's going
848. 34:24to go to the moon right now what happens
849. 34:26if it's wrong and it goes and starts
850. 34:28going to the moon at that point and
851. 34:29becomes a breakout trait or a momentum
852. 34:31tra it identifies it pretty much right
853. 34:34away and says I'm wrong with no emotion
854. 34:38now let's get back on that Trend trade
855. 34:39and go with it oh okay and then it does
856. 34:42the same thing to the bottom so it we're
857. 34:45on a short trade so it's a trend system
858. 34:49that becomes a breakout system that
859. 34:51becomes a reversion to the mean system
860. 34:53which becomes a breakdown system and a
861. 34:54shorting system which becomes now a
862. 34:56total breakdown of starts going if the
863. 34:59market starts puking like it did um you
864. 35:01know a couple months ago okay so it it
865. 35:04gets in on a trade and it fails fast and
866. 35:08it's very simple system
867. 35:11using indicators and levels that
868. 35:14everybody that's watching here can can
869. 35:15use as well we just happen to automate
870. 35:18it so it takes it I have one the other
871. 35:22thing that I do that's different so my
872. 35:23strategy that's different is I call what
873. 35:26I do what's called stacking trades
874. 35:28stacking stacking so I trade on a on a
875. 35:33302 bar 302 bar2 bar okay so one is
876. 35:37trading on a 302nd bar and it's looking
877. 35:39for these moves in the market okay
878. 35:42another one is trading on a 5 minute bar
879. 35:45and it's looking for movements in the
880. 35:47market another one is trading on a 60
881. 35:50Minute another one on a 240 minute and
882. 35:53another one on a 480 minute and another
883. 35:55one on a daily so the systems are
884. 35:58watching each one of these time
885. 36:00intervals on individual instruments on a
886. 36:04real-time basis and when it hits the buy
887. 36:08Point trading's really simple at the at
888. 36:11and when you think about it we want a
889. 36:13good entry yeah a good exit yeah we want
890. 36:16to get in get out get paid yes
891. 36:20so why do I use all these different time
892. 36:24intervals so if you and I were playing
893. 36:26do you follow any sports at or anything
894. 36:28like that no Sports not really okay so
895. 36:31let's let's say we were playing uh
896. 36:33American football Oran football okay I I
897. 36:35I I I can understand football okay so
898. 36:39football has two halves and has four
899. 36:41quarters okay each one of their 15
900. 36:43minutes long uhuh so if we can play that
901. 36:46game over a 60 Minute period and win and
902. 36:49make
903. 36:50money what somebody come came and said
904. 36:53hey we can shrink this game and now we
905. 36:56can play a 30-minute game okay and you
906. 36:58can make money okay what happens if we
907. 37:01can play a 15minute or a 5minute game
908. 37:03and we can make money and you can be
909. 37:05good at each one of those time intervals
910. 37:07oh so all these intervals are separate
911. 37:09trades correct oh I see one's not
912. 37:11following the other they're all working
913. 37:12independently okay yeah cuz like uh one
914. 37:15of the systems that I built um it takes
915. 37:18I get it now I get it now thank you yeah
916. 37:20so have one one system it takes maybe
917. 37:23one or two trades a day based on a very
918. 37:27short time period but when it hits that
919. 37:29we've done the research and we know that
920. 37:32whenever it hits that entry point that
921. 37:34get in point the get out point is only a
922. 37:37couple points away it happens twice a
923. 37:40day like clockwork but you have to do
924. 37:43the research you have to do the homework
925. 37:44you have to be a pro right you have to
926. 37:47do the work do the research and make and
927. 37:51test it and this thing does two trades a
928. 37:54day and depending on what you you it's
929. 37:58right it's got a very high win rate and
930. 38:01if it's wrong it either stops out quite
931. 38:03quickly or the reversal takes precedent
932. 38:06over a stop so it doesn't need stops the
933. 38:08reversal is the stop so that works on a
934. 38:1230 second bar another one that works on
935. 38:15once again a five or six or seven minute
936. 38:17bar and you can run those concurrently
937. 38:20couple days ago a lot of people didn't
938. 38:21catch the move from the NASDAQ going
939. 38:23from 135 up to almost 14 well 14,000
940. 38:26today all right
941. 38:28mhm the system caught it cuz it's always
942. 38:31looking it's not looking around looking
943. 38:33on different time reaching over going
944. 38:35hey so does that mean you can have let's
945. 38:37say all these different time frames five
946. 38:39different traits some will some will
947. 38:41take profit sooner sooner than the other
948. 38:43depend candles oh I see yeah so if you
949. 38:46ask my kids CU I have a setup in you
950. 38:48know set up in the house for years and
951. 38:50if you ask my kids the one thing that it
952. 38:52just always ringing in their head is
953. 38:54order filled order filled stop filled
954. 38:57order filled oh yeah all all day
955. 39:00interesting and sometimes all night as
956. 39:02well depending on what we're trading oh
957. 39:05and you would do this on different
958. 39:06instruments not just Futures do you do
959. 39:08this on stocks or just stocks Futures
960. 39:11yeah yeah everything if it moves if so
961. 39:15the three things we look for three
962. 39:16things you want in a good trade
963. 39:17obviously liquidity That's
964. 39:20goes next thing is Trend persistence
965. 39:23okay and range so if you can identify
966. 39:26something that has Trend persistence
967. 39:28that Trend persistence if we're a little
968. 39:32you know Honey I Shrunk the Kids people
969. 39:34that Trend to them might be this big now
970. 39:37other people a trend might mean oh we're
971. 39:39looking for a couple month Trend a
972. 39:40couple hour Trend couple minute Trend so
973. 39:42all we're looking for is Trend
974. 39:44persistence that we can identify okay
975. 39:45with range that we is worth it to take
976. 39:47the money out that we identify the
977. 39:50downside risk to it and so if we know
978. 39:53what the downside risk is if we're wrong
979. 39:55how many times we need to be right like
980. 39:57you uh Supply one of the things you
981. 39:59supply is the risk reward ratio um for
982. 40:01your followers it's fantastic and we
983. 40:06actually use that in some of the things
984. 40:08some of the research that we do and we
985. 40:11identify that and that's how we build so
986. 40:13when we get those things put all this
987. 40:15information put together I build what
988. 40:16are called models so we have a fast
989. 40:19trading model for the q's a fast trading
990. 40:23model for the NQ which is a NASDAQ e
991. 40:26Mini we have a fast trading model for
992. 40:29oil we have a fast trading model for
993. 40:31gold a fast trading model for the S&P
994. 40:33500 and so then we have all these time
995. 40:36intervals that we trade on and we stack
996. 40:38them so we the machine won't won't miss
997. 40:42that long-term trade where you can make
998. 40:45the really big money and just you know
999. 40:47buy it and hold it and won't miss the
1000. 40:48swing trades does a lot of the homework
1001. 40:50for you or a lot of the work for you and
1002. 40:52you're monitoring the system every day
1003. 40:55yes maybe not every minute you're not
1004. 40:57like sitting there watching but how do
1005. 40:59you well same same way that other people
1006. 41:01do yeah you want to sit it and you want
1007. 41:02to be a pro It's s like do you watch it
1008. 41:04on your phone or um if I'm away like if
1009. 41:07we're traveling or something like that
1010. 41:08yeah and I won't have that many trades
1011. 41:10on if you know we're traveling usually
1012. 41:12um but yeah if I'm at the office or at
1013. 41:15home or something like that yeah we can
1014. 41:16have multiple positions on um but
1015. 41:19usually when I you know cuz I teach my
1016. 41:21kids how to trade you know and their
1017. 41:22Traders and learning and all that um I
1018. 41:25tell them trade one instrument get
1019. 41:28really really good at that one
1020. 41:29instrument okay and then start going out
1021. 41:31from there but thank you that was okay
1022. 41:33that I understand this so much more now
1023. 41:36thank you I I I'm not saying I
1024. 41:37understand it completely but what how
1025. 41:39you explained it was very very helpful
1026. 41:41so one of the systems that you you do is
1027. 41:43vwap right you teach a lot about using
1028. 41:44vwap right so I could take that shark
1029. 41:47indicators thing right or take that
1030. 41:49software yeah and build the system with
1031. 41:52the vwap indicator so you you buy Above
1032. 41:54the vwap and you sell below the vwap
1033. 41:55right and then you probably take what's
1034. 41:57the market sentiment the market
1035. 41:59sentiment up this thing's going it's now
1036. 42:01it's above vwap and everything let's go
1037. 42:02and buy it what's what does it usually
1038. 42:04run oh it usually runs $150 okay great I
1039. 42:08would just go in there and
1040. 42:10say what do I want I want the vwap in
1041. 42:12there and I want to buy Above the vwap
1042. 42:14sell below the vwap I connect it and
1043. 42:18press a button and it it'll buy Above
1044. 42:20the vwap it'll look for a $150 profit
1045. 42:22like it might even scale I could put in
1046. 42:24scale out 50 cents. 75 cents a dollar
1047. 42:26$150
1048. 42:27scale out and wait for the to either
1049. 42:29come down bounce off or go Below close
1050. 42:32and get a short out of it as well all
1051. 42:34based on if you can say it I can put it
1052. 42:36in program it and then it can do what
1053. 42:39you're thinking but it won't change its
1054. 42:40mind now if you want to change mind just
1055. 42:42go kill trade you have to modify and
1056. 42:45kill it just kill the trade so how often
1057. 42:48do you modify your
1058. 42:51systems
1059. 42:53I it's kind of a trade secret in a way
1060. 42:56but but I'll let some of it out okay um
1061. 43:00I August 23rd or 28th uh 2003 okay I
1062. 43:08came up with the framework of the system
1063. 43:10that I'm still using today oh wow after
1064. 43:1420 years yes okay so um I
1065. 43:19was I was developing a system prior to
1066. 43:21that it was was okay I met a I was
1067. 43:24trading through a company in Chicago at
1068. 43:26the time and I told the owners and the
1069. 43:29the guys that ran the company and built
1070. 43:30the software for the trading platform if
1071. 43:32you know anybody who is really good at
1072. 43:36programming I want to meet some new
1073. 43:37programmers and if not only just good in
1074. 43:39programming but understand the markets
1075. 43:41they introduced me to a gentleman uh
1076. 43:43shout out to Austin on the west coast
1077. 43:46who um said okay you guys are both into
1078. 43:49this Quant stuff you both have good uh
1079. 43:51track records we wanted to put you
1080. 43:53together and I talked to him about what
1081. 43:55I was doing he took the information the
1082. 43:57buys and the sells and the pattern
1083. 43:58recognition that I was looking at and he
1084. 44:00was on his way to go fly fishing that
1085. 44:02weekend in New Mexico from he lives in
1086. 44:05the high desert in California he went
1087. 44:07down when fly fishing in New Mexico on a
1088. 44:10Thursday Tuesday Morning sent me an
1089. 44:11email hey Dean and there was attachment
1090. 44:13to it this guy's brilliant he was uh
1091. 44:16multiple uh phds physics mathematics um
1092. 44:19Stanford and USC and he helped me in
1093. 44:23that weekend he goes you're really on to
1094. 44:25something here it was really fun working
1095. 44:26on on it I built you an automated
1096. 44:28platform with these rules and um it
1097. 44:32brought up the efficacy of the and the
1098. 44:35profitability of the system by about 30%
1099. 44:37and I've been using that framework till
1100. 44:40now and I've had people when I was
1101. 44:42leasing the system to professionals
1102. 44:45these are Wall Street
1103. 44:46professionals um I think my longest
1104. 44:49serving client was 13 years oh wow using
1105. 44:51that system so it makes you smarter um
1106. 44:55you can ID it helps you identify entries
1107. 44:57and exits makes you smarter and then
1108. 45:00then you can click a button it'll trade
1109. 45:02automatic for you as well oh wow yeah
1110. 45:04it's kind of cool that's that's pretty
1111. 45:06cool that's what I yeah and my friends
1112. 45:09will sit there and go Dean how do you
1113. 45:10like how' you like huh you know I'm
1114. 45:13going I'm not as stupid as I look you
1115. 45:16know like come on now give me give me
1116. 45:18some credit you know um yeah so um yeah
1117. 45:22it's something and I I had some really
1118. 45:24really sophisticated talented people
1119. 45:26work with me and I think breaking it
1120. 45:27down to make it really simple to
1121. 45:30understand was a key to you know getting
1122. 45:32it out oh so since you're so
1123. 45:34knowledgeable and very experienced with
1124. 45:36Quant trading and using these systems
1125. 45:39and nowadays like AI is like the hottest
1126. 45:41thing that everyone's talking about how
1127. 45:43do you think artificial intelligence is
1128. 45:45going to change the the market or change
1129. 45:49this trade industry well I'm in no way
1130. 45:52shape or form an expert in that um I
1131. 45:55believe however
1132. 45:58the amount of information that people
1133. 46:00are like that are watching this right
1134. 46:01now the amount of information that my
1135. 46:03children that my friends can get from
1136. 46:06YouTube and from different places and
1137. 46:08now with AI and chbt and the different
1138. 46:10um different models and AI models that
1139. 46:13are coming out absolutely brilliant what
1140. 46:16you can do with it and the information
1141. 46:17you get from it
1142. 46:19um I think it's going to help people get
1143. 46:24better
1144. 46:25smarter more profitable faster okay
1145. 46:29because of the amount of information you
1146. 46:30can stuff in your brain so if you have
1147. 46:32the capacity to take on the information
1148. 46:34and be good at it um it's it's
1149. 46:36incredible where before let's say you're
1150. 46:39reading through some information and it
1151. 46:40comes up and says um take a look at the
1152. 46:42VAP what's VAP you'd have to go back to
1153. 46:45the internet go to say Investopedia
1154. 46:48Google look it up see if it brought up
1155. 46:50the right thing for you or now just open
1156. 46:53keep chat GPT open or one of the
1157. 46:54University gpts open and just put in hey
1158. 46:58what's vwap please explain it to me as a
1159. 47:00fifth grader and tell me how this works
1160. 47:03and it'll boom give you an outstanding
1161. 47:06explanation so it's like a super tutor
1162. 47:08so um my daughters as I told you they're
1163. 47:1121 years old now um one of them has a
1164. 47:14Tik Tok channel that she teaches uh
1165. 47:17girls to trade and it's called stock
1166. 47:19talk for the girls with a t not a TK and
1167. 47:23in her she gives away um some does like
1168. 47:27a Minute Clinic every day on that and
1169. 47:29then some of the education systems that
1170. 47:31she makes available to people it has a
1171. 47:33supertutor in it and you just click on
1172. 47:35all the terms and terminology so before
1173. 47:38when you were getting started the terms
1174. 47:39and terminology are really difficult
1175. 47:42because it's a new language yeah and you
1176. 47:44have to get through that with chat gbt
1177. 47:46it's unbelievable now on top of that
1178. 47:49people are going oh I can use this to
1179. 47:51code a trading a winning trading system
1180. 47:53no you can't it doesn't work that well
1181. 47:55you can put it in um I saw you took it
1182. 47:58took a shot at it you have to know
1183. 48:00coding you have to know how to correct
1184. 48:01the Cod it's not as easy as people think
1185. 48:03not yet anyway not yet it will get there
1186. 48:06I'm sure but at the moment it's not so
1187. 48:09um you have to know what information to
1188. 48:12put in yeah so as long as you know when
1189. 48:15to buy when to sell when to buy when to
1190. 48:17scale out when to short when to scale
1191. 48:19out then you can put that information in
1192. 48:22I think in time it's going to be
1193. 48:23phenomenal yeah so you think it's a tool
1194. 48:27that Traders can use to help build their
1195. 48:30systems I think that it's a tool that
1196. 48:33people can use to learn faster okay so
1197. 48:38not so much for trading I've tried to
1198. 48:40get it to write different types of code
1199. 48:43for different types of platforms and
1200. 48:46there's mistakes so if you're if you're
1201. 48:48a coder if you're a programmer I think
1202. 48:50it's phenomenal if you're not a
1203. 48:51programmer once again you should
1204. 48:53probably look into some of these uh
1205. 48:55platform that that can do the programing
1206. 48:57for you I see so chat GPT or I guess the
1207. 49:02a lot of the AI trading nowadays the
1208. 49:04algorithm the the system the language
1209. 49:06model they provide it's not I guess what
1210. 49:09you're saying is it's not ready for
1211. 49:11people to just take what they spit out
1212. 49:13and tur into a strategy correct now with
1213. 49:15the chat part of the AI right so I've
1214. 49:18been using AI since late 90s early 2000s
1215. 49:22and that is just once again using
1216. 49:25intelligent systems and that will do the
1217. 49:29statistics and do the testing and do um
1218. 49:31do all the research for you right and
1219. 49:33get do it and crunch down do do
1220. 49:36something in minutes it usually take
1221. 49:38days or weeks right um Now by saying
1222. 49:41please write this code if you're a a if
1223. 49:44you're a developer I think it'll be I
1224. 49:47think it's phenomenal already and if
1225. 49:50you're a developer and you know what
1226. 49:52works and if you know trading and you
1227. 49:54know trading then great if not you you
1228. 49:56better learn you better learn a strategy
1229. 49:58you better get a coach if not garbage in
1230. 50:01garbage
1231. 50:02out you know it's true garbage in the
1232. 50:06chat gbt garbage out yeah that's
1233. 50:09hilarious okay no that's no actually
1234. 50:13that's really really good Insight yeah
1235. 50:15CU I think a lot of people are like at
1236. 50:19least in the trading industry and I'm
1237. 50:20sure there's a lot of other industry are
1238. 50:22a little bit worried about AI thinking
1239. 50:24that oh the the once AI becomes more
1240. 50:27popular or technology developed it's
1241. 50:30going to eventually replace all retail
1242. 50:32trading so what do you think about that
1243. 50:35fear or worry no I think that there's um
1244. 50:38I I don't think so well mutual fund
1245. 50:42managers and a lot of hedge fund
1246. 50:44managers a lot of hedge funds are just
1247. 50:46mutual funds with a lot of fees attached
1248. 50:47to them and performance fees attached to
1249. 50:49them um a lot of those guys are and
1250. 50:52people are getting very average returns
1251. 50:54mhm so if they take their same strategy
1252. 50:57and put it in use AI to write some code
1253. 51:00and do that they're still going to get
1254. 51:01the same output right so you need good
1255. 51:05input to get good output if you have
1256. 51:08excellent input you can get excellent
1257. 51:10output I don't think they're going to um
1258. 51:13get rid of a lot of things I think with
1259. 51:15a lot of these Robo Traders and that
1260. 51:17sort of thing um you take a look at
1261. 51:19there's you don't see a lot of Articles
1262. 51:21saying hey these people put their money
1263. 51:23into these Robo Traders and the returns
1264. 51:25are phenomenal you don't hear that it's
1265. 51:28just it's just not happening what's
1266. 51:30happening is there are some excellent
1267. 51:32Traders and there's a lot of good
1268. 51:33Traders and a lot of them being getting
1269. 51:35a lot of exposure on the internet now
1270. 51:37it's amazing and you can learn from them
1271. 51:40um but I really I don't think just yet I
1272. 51:42think in time mhm probably but right now
1273. 51:46I haven't seen it oh because the input
1274. 51:48still is from Human Traders correct yeah
1275. 51:51the AI is not out there trying oh
1276. 51:53successfully discovering new strategies
1277. 51:55for you yes discovering new research for
1278. 51:57you you have to tell it what to do yeah
1279. 51:59and you know i' I've taken a look and
1280. 52:01I've tested with it and and done just
1281. 52:04make me a winning strategy and it comes
1282. 52:06back with a lot of apologies garbage in
1283. 52:09garbage out so um I'm not a believer in
1284. 52:11that yet but have I have I used it for
1285. 52:13an assistance in a lot of things
1286. 52:15absolutely 100% yeah so you traveled
1287. 52:18pretty much around the world traded and
1288. 52:20Liv there yeah you you're pretty much
1289. 52:22living like the trade the trader
1290. 52:25lifestyle I think so yeah and that was
1291. 52:26the plan too that was an absolute plan
1292. 52:29there was a method to the madness
1293. 52:30without question and you took your kids
1294. 52:32with you took my kids with me my
1295. 52:33daughters at the time um uh lived on the
1296. 52:36beach in the Gulf Coast in Florida first
1297. 52:38uh and then from there I wanted to
1298. 52:40introduce them to living in different
1299. 52:43places both vibrant cities huge cities
1300. 52:45that are phenomenal and also I wanted to
1301. 52:48introduce them to living offshore um so
1302. 52:51uh we lived in Miami Toronto uh
1303. 52:55Vancouver
1304. 52:57um Whistler for the last several years
1305. 52:59uh last three years and prior to that we
1306. 53:02lived in the Cayman Islands oh where's
1307. 53:05kind of so far your favorite place to
1308. 53:07live uh Whistler and the Cayman Islands
1309. 53:10oh you get a mountains and you get a
1310. 53:12beaches absolutely I think it's the the
1311. 53:14absolute compliment to one another live
1312. 53:16in the tropics in the winter and in the
1313. 53:17summer come up and spend the summers in
1314. 53:19the winter I don't think there's a
1315. 53:20better place to do it uh but Grand
1316. 53:22Cayman is phenomenal it's safe beautiful
1317. 53:24weather uh amazing people it couldn't be
1318. 53:27safer I don't think um it's got
1319. 53:29everything you want you're only 463 mi
1320. 53:31from Miami uh less an hour flight as
1321. 53:33soon as you get up you're on the way
1322. 53:35down and it's um so it's easy place to
1323. 53:38get to the water's absolutely pristine
1324. 53:41and amazing oh yeah okay yeah I never
1325. 53:46been but I would love to see you should
1326. 53:47go and it's it's a mecca for um people
1327. 53:51with a lot of brains and uh successful
1328. 53:53people so it's a great place to be a l
1329. 53:55Traders there yes really yeah a lot of
1330. 53:57Traders I think there's 9,000 hedge
1331. 54:00funds are registered in uh Grand Cayman
1332. 54:03but I also wanted to do my get my ski
1333. 54:04bum years in and I hadn't um I came out
1334. 54:07here when I was 16 years old and um I
1335. 54:09always wanted to come back and spend a
1336. 54:11couple years and we spent our summers
1337. 54:13here since the kids were two and we
1338. 54:14wanted to come back up here and so the I
1339. 54:17put my kids in for high school in
1340. 54:18Whistler for grade 10 11 12 and uh to
1341. 54:23live the Whistler lifestyle whis life
1342. 54:25and to ski
1343. 54:26do all the summer Stu boting and and
1344. 54:29hiking and all that sort of thing and I
1345. 54:31got in my 100 day skiing my first year
1346. 54:33is phenomenal yeah couldn't be better
1347. 54:35amazing yeah wher I think is the best
1348. 54:37place on Earth so you have two twin
1349. 54:39daughters Y how old are they now 21 now
1350. 54:42so they haly oh and they've been
1351. 54:44watching your trade since How old uh
1352. 54:46since we were about 10 11 12 years old
1353. 54:49okay yeah do you think you're teach them
1354. 54:50how to trade absolutely 100% I did it
1355. 54:53starting when they were younger on
1356. 54:54purpose to get them used to charts and
1357. 54:56graphs and uh the markets and everything
1358. 54:59we talk a lot about the markets all the
1359. 55:00time oh so you are proponent of having
1360. 55:03kids start early learning about trading
1361. 55:06and learn to make their own money yeah
1362. 55:08make money make more money um and learn
1363. 55:12something it's going to get them way
1364. 55:13ahead a lot faster than a lot of kids
1365. 55:15getting out of University now after four
1366. 55:16years are going into a regular job with
1367. 55:18regular money if they do this and
1368. 55:20Advance themselves and learn uh a
1369. 55:23phenomenal vocation which trading is um
1370. 55:25they can come out making lawyer money
1371. 55:27doctor money right out of University if
1372. 55:29they take the time if not and they make
1373. 55:31it their profession they can learn for a
1374. 55:33couple years and it's sort of like they
1375. 55:35say like on Wall Street when you get a
1376. 55:37Goldman Sachs type of education you can
1377. 55:40do it from your home now and um I think
1378. 55:43it's a fantastic for young young
1379. 55:45fantastic thing for young people to do
1380. 55:47and an amazing profession to to learn oh
1381. 55:49I guess if they're a lot young well
1382. 55:51they're 21 now so it's okay but if they
1383. 55:53were younger they need like a custodial
1384. 55:56account right yeah I believe so like
1385. 55:58before 19 or something like that you
1386. 55:59have to have a sodal account you can let
1387. 56:01them mess around and they can do
1388. 56:02practice accounts as well okay yeah and
1389. 56:05one of them you know my one daughter
1390. 56:06she's uh doing her MBA online and um and
1391. 56:11she's trading part-time as well on the
1392. 56:12side and when she has a time and the
1393. 56:15other one is finishing up her last year
1394. 56:16university and I fully expect them um to
1395. 56:20become Master traders in time absolutely
1396. 56:22wow so at the age of 21 they're probably
1397. 56:24better Traders than a lot of
1398. 56:26they smarter than me faster than me yeah
1399. 56:29all that stuff oh wow I wish I started
1400. 56:31younger too same
1401. 56:33here and over the last 20 30 years that
1402. 56:36you've been involved with trading have
1403. 56:37you ever thought about giving up well
1404. 56:40have you ever thought about quitting
1405. 56:41like maybe after a bad draw down I've
1406. 56:44had some doozy of draw Downs some
1407. 56:46doozies like good enough that I would
1408. 56:48say that would make many many many
1409. 56:51people just puke um it's part of the
1410. 56:54game yeah you make you you have much
1411. 56:57higher risk yes um well yes and no if
1412. 57:02you take big chances you you yeah if you
1413. 57:05don't cut your losses quickly you yeah
1414. 57:08um have I thought of it I was really
1415. 57:11Intent no not a quitter no it was really
1416. 57:13intent never you never like took a break
1417. 57:16even oh absolutely take breaks yeah so
1418. 57:18usually what I do is I I would work for
1419. 57:20a couple years okay or for 2 or three
1420. 57:21years and take some time off and then
1421. 57:25I'd work and put in a good two two three
1422. 57:27years again and take some time off and
1423. 57:30um build up experience build up a new
1424. 57:33portfolio information meet with
1425. 57:35different people increase my knowledge
1426. 57:37and um move around and learn different
1427. 57:39things okay yeah so what's the longest
1428. 57:42break you ever been on from Trading uh
1429. 57:44several years so I look at it as taking
1430. 57:46sabatical and sabatical is just a fancy
1431. 57:48word for taking a break to recharge and
1432. 57:50everything I think that for me it works
1433. 57:52and for me it's important and then
1434. 57:54getting back into it with renewed uh re
1435. 57:56invigoration and that sort of thing um
1436. 57:59but yeah I've done that yeah absolutely
1437. 58:01yeah but you're still trading do you
1438. 58:03think you retire anytime soon um from
1439. 58:06Trading or and from other businesses I
1440. 58:08think right now I'm I'm I've been on a
1441. 58:09sabatical now for a couple years and
1442. 58:11I've been helping my kids to um build
1443. 58:14their businesses and then one like I
1444. 58:16said it's got that one uh Channel where
1445. 58:19she's helping uh educate uh girls to
1446. 58:21trade and the other one um together they
1447. 58:24also have a an apparel business at just
1448. 58:27for Traders and I actually brought you a
1449. 58:29present from them and it's called called
1450. 58:32not now I'm trading not now I'm trading
1451. 58:34yeah so it's not now not now trading.com
1452. 58:36and you go and buy T-shirts hats so if
1453. 58:40everybody has if they have a Trader in
1454. 58:42their life and and they sit there and go
1455. 58:44like not now I'm trading it's on on back
1456. 58:47front all that sort of things you need
1457. 58:49on both sides in the back and the one
1458. 58:51disturbs me yes absolutely like mine's
1459. 58:54on my back and just don't leave me alone
1460. 58:56um and uh so I'm helping them mostly so
1461. 58:59I've been on sabatical for a while but I
1462. 59:02oversee trading every day over they're
1463. 59:04trading moning TR yeah and there's
1464. 59:06phenomenal ways for new traders to to
1465. 59:09get involved in the business now in the
1466. 59:11business or get involved as a Trader now
1467. 59:13there's all these different things where
1468. 59:15they can um practice trading with real
1469. 59:18real time fake money but real time real
1470. 59:21data it's phenomenal these different
1471. 59:23companies that are out there to do that
1472. 59:25so it's I don't think there's ever been
1473. 59:26a better place better time than now so
1474. 59:29on that topic do you have any tips for
1475. 59:31let say new Traders or traders who are
1476. 59:34interested in get into Quant
1477. 59:36trading into Quant trading I would
1478. 59:40before I did that I would probably I
1479. 59:42would learn you have to learn the
1480. 59:43fundamentals like anything You' got to
1481. 59:46learn the fundamentals so I would tell
1482. 59:47them learn the fundamentals of trading
1483. 59:50first learn learn the fundamentals of
1484. 59:52the markets learn the fundamentals of
1485. 59:55tech technicals learn the fundamentals
1486. 59:58of fundamentals as well so do it as if
1487. 1:00:01you're starting well you're starting
1488. 1:00:03from scratch and if you're a new
1489. 1:00:06Trader learn what works you have to
1490. 1:00:09learn systems that work and then a lot
1491. 1:00:11of people say We'll develop a system
1492. 1:00:13that works for you there's hundreds and
1493. 1:00:15thousands of different Traders I'm not
1494. 1:00:17sure how valid that comment is but um
1495. 1:00:22there's different strategies that work
1496. 1:00:24so learn the terms terminology be a
1497. 1:00:27professional about
1498. 1:00:29it take everything very seriously you're
1499. 1:00:32dealing with money um there's a huge
1500. 1:00:34upside to being really good at this and
1501. 1:00:37um it can change your life so be a pro
1502. 1:00:40once again I said earlier be a pro you
1503. 1:00:43know you the better you get at this the
1504. 1:00:45better you're going to do um understand
1505. 1:00:48different softwares understand how to
1506. 1:00:50enter and execute trades now when you
1507. 1:00:53start getting from there if you want to
1508. 1:00:55have uh want to learn more about Quant
1509. 1:00:57trading just read up on it um I once
1510. 1:01:01again it's not as difficult as people
1511. 1:01:03say it's an if then statement using
1512. 1:01:07numbers or words or instructions and
1513. 1:01:10then putting that into a computer and
1514. 1:01:11have the computer run it automated
1515. 1:01:13there's all kinds of things that we use
1516. 1:01:14automation for and it's just using that
1517. 1:01:17as long as your information in is good
1518. 1:01:19there's a chance that you're going to be
1519. 1:01:21be okay at it and survive and then if
1520. 1:01:23you're really good at it you can make
1521. 1:01:25some money M doing it and have a have an
1522. 1:01:27exceptional career thank you for all the
1523. 1:01:29tips today Dean oh my pleasure how how
1524. 1:01:32can um how can audience find you on
1525. 1:01:34social media um I don't do too much on
1526. 1:01:37social media the the stuff that is more
1527. 1:01:39so on social media is my my kids stuff
1528. 1:01:42that not know trading if they want to
1529. 1:01:43buy a t-shirt or something or or a
1530. 1:01:46playbook for uh trading Instagram things
1531. 1:01:49trade do from do anywhere okay um
1532. 1:01:53because you literally trade it from
1533. 1:01:55everywhere
1534. 1:01:56pretty much it's not a lot about trading
1535. 1:01:57I've got a few like maybe one or two
1536. 1:01:59different things but um sometimes people
1537. 1:02:02get in touch with me to ask questions
1538. 1:02:03and that through there but um okay
1539. 1:02:05that's about it and then um from time to
1540. 1:02:08time I'll I'll make some of the things
1541. 1:02:10that I have available um I have a a site
1542. 1:02:13called uh my privat
1543. 1:02:15trader.com and uh that discusses some of
1544. 1:02:18the Quant things that I do and um and
1545. 1:02:21can make some of the people my kids are
1546. 1:02:24running that now so I think they some of
1547. 1:02:26the strategies that I've made in the
1548. 1:02:27past as well thank you very much Dean
1549. 1:02:29thanks for having me I really appreciate
1550. 1:02:31it very exciting very exciting oh my God
1551. 1:02:34that was so good I finally understood
1552. 1:02:36what con trading is thank you guys so
1553. 1:02:39much for joining my conversation today
1554. 1:02:41with Dean hopefully you learned a lot
1555. 1:02:43about qu trading AI trading like I had I
1556. 1:02:46felt so stupid going into this
1557. 1:02:48conversation and I was say like Dean
1558. 1:02:50really taught me a lot today so thank
1559. 1:02:52you so much Dean hopefully you guys also
1560. 1:02:55learned a lot but if you want to check
1561. 1:02:56out all of our other podcast episodes
1562. 1:02:59you can check out this playlist over
1563. 1:03:01here and remember to subscribe to see
1564. 1:03:03more in the future thank you guys so
1565. 1:03:05much for watching as always I'm the
1566. 1:03:07humble Trader and this is Dean and we'll
1567. 1:03:09see you guys next time
1568. 1:03:16[Music]