Trader Tech Talk 018: Abe Cofnas Shows How Binary Options Can Improve Your Trading Skills

This episode of the Trade Tech Talk podcast is an interview with Abe Cofnas.

You might recognize Mr. Cofnas from “Futures Magazine” – he writes frequently for that magazine, and he has an article in the October 2013 issue titled “Looking at Forex through 5-minute prisms”.  He also has several books out, on bAbeCofnasoth binary options and sentiment indicators.

Mr. Cofnas is the expert on Binary Options and also writes quite a bit about using sentiment to determine market direction. There are a couple surprises in this interview, and you’ll hear it – I was planning to discuss two topics with Mr. Cofnas: binary options, and sentiment indicators, and in the middle of the interview, I realize they are the same thing. It was such an interesting revelation.

Before the interview, I had read through several of Mr. Cofnas’s articles on binary options, and I had a good idea of how they worked, but as soon as we had finished the interview, I immediately bought his book “Trading Binary Options: Strategies and Tactics”. It is really good, and if you are at all curious about this topic, and how you can use binary options to improve your trading, I would highly recommend it.
In this episode, you’re going to learn:

  • How binary options can be considered a sentiment indicator
  • How you can use sentiment to improve your trading
  • Why text mining of Facebook and Twitter for trading sentiment might not be such a good idea
  • Where you can begin trading binary options

Resources:

Trader Tech Talk 017: Ralph Vince Calculates Your Optimal Trade Size!

This episode is an interview you will definitely want to hear!  There are a few names that are so well known in the finance industry that everyone has heard of them.  One of those names is Ralph Vince.   Mr. Vince has written dozens of definitive books for traders, books that master traders read over and over.  Mr. Vince’s books are deep and complex, they are geared for traders who have been trading a while, and they cover topics like The Handbook of Portfolio Mathematics, The Mathematics of Money Management, Risk Opportunity Analysis.

Ralph Vince gives us a first-hand look—a preview—of his current research work, and how position sizing affects your profits in trading.  He describes equations and graphs which are displayed here.

Ralph Vince is actually a programmer by trade, so we’ll get into some of the programming topics in this interview as well.  In this episode you’re going to learn a lot about the mathematics of position sizing, and how to calculate your optimal trade size, and you’ll learn Mr. Vince’s programming language of choice!

Resources:

 

The inflection point

The inflection point

The expected gain in tossing one coin here the horizon till we quite is 1 play

The expected gain in tossing one coin here the horizon till we quite is 1 play

The expected gain in tossing one coin here the horizon till we quite is 1 play and two plays, the line bends

The expected gain in tossing one coin here the horizon till we quite is 1 play and two plays, the line bends

This demonstrates what happens when we play two games simultaneously

This demonstrates what happens when we play two games simultaneously

The expected gain in tossing one coin here the horizon till we quite is 1 play to 8 plays, the curve approaches the asymptotic curve

The expected gain in tossing one coin here the horizon till we quite is 1 play to 8 plays, the curve approaches the asymptotic curve

 

 

 

Trader Tech Talk 016: Dr. Ben VanVliet – Who would win? The trader, the quant or the programmer?

This episode is an interview with author and professor Ben Van Vliet.  Ben is a professor of Finance at the Stuart School of Business in the Illinois Institute of Technology.  He teaches courses in quantitative finance, C++ and .NET programming, and automated trading system design and development.Van_Vliet_Ben

Ben’s got some interesting things going on.  In addition to helping students figure out automated trading systems, he’s working on figuring out how to get the various factions of a hedge fund or capital management group to work together.  I learned a lot from Ben about how these organizations work, and some of the problems they face, with traders, programmers and quants all vying for influence in the business.

Ben’s going to let us know who would win between a trader, a programmer or a quant. See if you can figure out which one…

Additionally, Ben is working on regulation!  Regulation is a bad word in the financial world, but Ben’s take on it is this: rather than have politicians craft misguided and uniformed legislation from the outside, why not have a set of industry standards that are created from the inside that actually address some of the problems in the finance world.

Resources:

 

Trader Tech Talk 015: Jake Bernstein Gives Us Four Trading Insights

If you’ve been trading any length of time, you’ll know the name Jake Bernstein.  Jake is a long time trader (since the late 1960’s), author, and educator, and a really great guy to talk with.  I am really excited to have Jake on the podcast today, he’s got some awesome stories, and was really generous with his knowledge and time.Jake Bernstein

In fact, Jake is going to give you a trading system today!  On this podcast, Jake Bernstein gives us his favorite trading system, and spells out the details on what to look for and how to trade it.  How cool is that?  This wasn’t planned, and I kind of sprung the question on him during the interview, and right then and there, Jake described in detail his trading system.  Serious take-away value there!  You are going to want to rewind and play this podcast again.

Here’s the 4 insights

  1.  Of course, #1 is the trading system that Jake gives us
  2. You’ll learn how you can use seasonality in your trading
  3. You’ll learn about the benefits and methods of using divergence trading
  4. You’ll learn that Jake Bernstein is a really awesome guy

My favorite part of this podcast, though, is the talk about history, how Jake “borrowed” a huge mainframe computer to do some, well, unconventional things back then, and how it helped him leap forward in trading.

Resources:

Thanks, Jake!!!

Jake Bernstein Will Help You Evaluate Your Trading System [Webinar]

You might be familiar with Jake Bernstein’s name if you’ve been trading any length of time.  Jake has written dozens of excellent books about trading, offers courses and an excellent newsletter.  He’s also my guest for this week’s podcast, so stay tuned for that on Wednesday.

On Wednesday, November 6 at 6:30 PM Eastern, Jake is co-hosting a webinar titled “Trading Systems: Truth and Fantasy. The Good, the Bad and the UGLYThe webinar is in conjunction with the Genesis Trade Navigator trading platform company.

It looks really interesting, as the co-hosts will be evaluating different trading systems, and helping to determine what makes a good trading system, and what might be an indication of a bad one.

Current clients of Genesis (that is, users of the Trade Navigator program) get a discount, as do Jake Bernstein’s clients.