EP 011: Using VWAP to gauge where the big boys interact with markets, and how to exploit trading technology with @ZachHurwitz

Aaron Fifield Podcast 48 Comments

If the term ‘VWAP’ (Volume Weighted Average Price) is completely foreign to you, then that’s okay, you’re about to be rapidly bought up to speed.

On the other hand, if you’re already somewhat familiar, then I promise that you’ll learn a whole lot more and benefit from this weeks guest Zach Hurwitz; an independent equities trader, trading coach, systems developer, consultant to emerging hedge funds and proprietary trading firms, and VWAP mastermind.

For Zach, VWAP forms the lifeline of his trading, and for good reason, this indicator is heavily relied on by many institutional and algorithmic traders.

Over two hours, Zach delivers a thought-provoking introduction to VWAP and shares many insights around his trading philosophies, psychology pointers and what it takes to code a trading system.


Since recording this episode, Zach has released a free eBook that goes further into VWAP and how he incorporates it into his trading: Download here

“A lot of what we’re taught is to make us feel better, not to make us trade better.”

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“The traders who master one thing get better at mastering any subject.”

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Lessons learnt in this interview:

  • An in-depth rundown on the benefits of trading a VWAP strategy, plus how this indicator is calculated and plotted on a chart.
  • How to gain a good understanding of where large traders are interacting with the market at certain price points, using VWAP.
  • Which traders benefit the most from using VWAP, and the timeframe this is most effective on.
  • Zach’s focus on market direction instead of the small details that plague and in fact, paralyze many developing traders
  • The advantages of growing into a systematic trader, and finding something that had broad potential to yield positive expectancy.
  • Where to start if you are interested in coding trading systems, plus some of the best free resources to help you along.
  • The absence of mastery of one subject, and why Zach pinpoints this as the sole reason most traders never succeed.
  • And much, much more…

Links and resources mentioned:

  • Finviz – Zach suggests this stock screening website as great place to get you thinking more systematically.
  • ThinkOrSwim – A trading platform that allows you to gain free access to with a demo account, and start experimenting with VWAP on live charts.
  • ThinkScript – Here you will find many great tutorials on how to write code within the ThinkOrSwim platform, which Zach refers to during the interview.
  • Recommended Reading – Reminiscences of a Stock Operator by Edwin Lefèvre, available on Amazon.
  • Zach also recommends anything written by Jack Schwager, and is currently reading Hedge Fund Market Wizards, available on Amazon.
  • To learn more about Zach, you can read any of his articles over at sanglucci.com.
  • Also be sure to catch him on Twitter, @ZachHurwitz.

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