EP 070: Specializing, automating, and using stats for high probability trade setups w/ Jeff Davis

Aaron Fifield Podcast Leave a Comment

Jeff is a day trader who specializes in the S&P futures, and predominately trades a mean-reversion strategy which is built upon data and statistical probabilities.

Across his 20+ year trading career, Jeff has also been heavily involved in the process of developing and deploying algorithmic strategies—but slightly less these days.

In this interview we talk about Jeff’s prop days, risks of being a one-man-business, automated trading, specializing, statistics, and more.

From this conversation, I think you’ll pick up on the underlying theme, which is all about building confidence in your strategy and then being able to size up when you have an edge.

Also, Jeff is answering your questions…

So if you have a trading question or would like more depth on any topic discussed, leave your question in the comments area at the bottom of this page and Jeff will respond to you.

“When you have an edge, you’ve got to be able to push the pedal!”

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“Over-trading is the downfall of most failing traders.”

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Lessons learnt in this interview:

  • Prop trader by day, post office worker by night—how Jeff started trading while juggling multiple jobs and family life. Plus, how one trader blew up the entire firm!
  • What motivated Jeff to begin automating his trading process, and the often undiscussed risks of running a one man business—such as; being a trader.
  • How Jeff became an algorithmic trader without learning to write code, and delivers sound advice for how to avoid (some) rabbit-holes.
  • Jeff outlines what all traders should strive for, “It’s not what you add, it’s what you takeaway. Do less, do it better, and do it bigger!”
  • Insight to how Jeff uses statistics to find high probability setups, and an epic rant about all things trading and implementing a strategy that suits you.
  • Jeff shares his thoughts on specializing, getting to know a product (or limited products) intimately, and why being a Jack-of-all-trades is a title to avoid.
  • Learn how Jeff uses wide stop placement to manage risk in an ‘unconventional’ way, why you must build strategy confidence, then push hard will the edge exists.

Links and resources mentioned:

  • Medium.com – Jeff’s most recent burst of blog posts can be read on the Medium platform. Check ’em out!
  • @Shaq48_Trading – Also be sure to follow Jeff on Twitter.

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