The Purely Systematic Wizard Trader · Marsten Parker
10,749
Published 2024-05-21
Starting in classical violin and computer programming, Marsten Parker's path took a transformative turn when he ventured into trading. Despite a rocky start, his disciplined, algorithm-driven approach led to consistent returns, earning him recognition in Jack Schwager's book, "Unknown Market Wizards". We get to learn about his transition from discretionary trading to systematic trading, emphasizing the importance of statistical analysis over emotional decision-making. Marsten used his programming skills to create fully automated trading systems to take advantage of breakouts, mean reversion, IPO opportunities, and other strategies.
About Marsten Parker:
Marsten has been a full-time individual systematic trader for over 20 years. He is featured in Jack Schwager's book, Unknown Market Wizards.
Marsten is also the designer and developer of RealTest, a multi-strategy portfolio-level backtesting software. He has continued to evolve RealTest over the years as his primary tool for researching trading strategies.
Disclaimer:
Trading in the financial markets involves a risk of loss. Podcast episodes and other content produced by Chat With Traders are for informational or educational purposes only and do not constitute trading or investment recommendations or advice.
Time Stamps
Please note: Exact times will vary depending on current ads.
0:00 Introduction and Background
7:55 Early trades and market exposure
10:22 Targeted annual goals
12:45 Marsten hates trading
16:30 Early algo trading
20:09 Long short Algo strategies
25:25 Statistical sweet spot of trades
31:30 Changing strategies due to a new market
36:12 Mean reversion strategy issues
42:00 Avoiding the Meme stocks
49:11 How to avoid curve fitting
56:00 Why don’t more traders go systematic?
58:43 How to reach Marsten
Links & Resources
X (Twitter): @mars10p
Website: mhptrading.com/
#systematictrading #backtesttrading #stocktrading
All Comments (14)
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Love Chat with traders I miss you!!! Please keep in touch ❤❤❤❤❤
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Real treat to get a Schwagger Market Wizard!
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RIP Jim Simons. Pity we never got a CWT interview, that could have been pretty cool. I've heard his method was essentially arbitrage of mean-reversion of groups of statistically correlated and anti-correlated financial instruments.
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What we need is a back-testable system that switches/cycles-through multiple strategies when one is failing. Say, switching from trend-following to range-trading/mean-reversion. But in a statistically sensitive way, before obvious large loss stop-outs.
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Tnx for this one. As a programmer myself, i recognise a lot what marsten is saying, just not the profits 😅 Gave me some ideas to check out!
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Thank you as always 👍
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Great interview, so many great nuggets of useful information.
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Good Technical 1. Systems Thinking / Statistics
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I hope you will host Ross Cameron 👍
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What’s the name of the community he mentioned he is a part of?
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He is pretty much an algo trader
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💯💯💯💯💯💯💯💯💯
