1. Simplicity in trading systems. Rob Carver emphasizes keeping trading rules and strategies as simple as possible, avoiding over-complication for marginal improvements in backtests. Simple systems tend to be more robust.

This guy was an institutional trader at a firm with over $161 billion in AUM. And was one of the most impactful traders in my journey. Steal these 6 lessons from him on building systematic trading systems to beat the market:

2. Two main ways traders blow up. Bleeding to death slowly by paying too much in costs, or exploding quickly by using too much leverage. Both stem from overconfidence.

3. Importance of long-term data. Carver prefers strategies tested over many decades of history, as this provides more robust performance across different market regimes. The more data, the better, most of the time.

4. Conservative use of leverage. As mentioned, earlier leverage can be the quickest way to blow up, But Carver does mention some interesting uses of it in the Futures market. A couple to note are: • Forecast Scaling • Instrument Diversification Multiplier

5. Fully automated systems. While the upfront cost in time or money is significantly higher, automated strategies can effectively: • Scale a portfolio of strategies • Reclaim time as a trader • Execute strategies that are unlikely possible for humans.

If you want help to automate your strategy, Visit the link in my bio to work with me and my team.

6. The dangers of overfitting. This happens when your strategy is too closely fit to your historical data. While hard to detect, several techniques can help reduce the risk: • Fewer parameters • Long backtest periods • Out-of-sample tests • Parameter sensitivity • Etc

If you find this type of content valuable & want more every week: 1. Follow me @GoshawkTrades for more. 2. Jump to the top & retweet.

Sources: • AlphaMind: #95 Robert Carver: Trading, Trading Wisdom, and Trading Systems • Systematic Trading: A Unique New Method for Designing Trading Systems • Advanced Futures Trading Strategies: 30 Fully Tested Strategies for Multiple Trading Styles and Time Frames