We’re joined today by Robb Reinhold, the Head Trader at Maverick Trading. Robb shares insights from a captivating trading experiment that’s sure to intrigue both novice and experienced traders alike. The Flat Earth Trading Society experiment was a year long experiment testing the power of consistent position management and following a systematic trading process. Using random stock selections, Robb and his team implemented a rigid position management strategy to prove that disciplined exits and managing losses are more crucial than well thought out entries. Tune in as Robb walks us through the strategy, execution, and key takeaways from this unique trading experiment.
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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.
Topics & Timestamps:
- 00:00 Introduction and background
- 00:27 Dunning Krueger Effect
- 07:14 The Flat Earth trading society experiment
- 08:14 The misconception of entry importance
- 09:12 Experiment rules and methodology
- 13:12 Duration and process of the experiment
- 13:42 How he randomly picked stocks to buy
- 16:37 Dynamic position sizing strategies
- 22:50 Winning and losing streaks
- 28:04 Psychological aspects of trading
- 29:49 Position sizing based on quality setups
- 36:08 We are not the same person after the trade
- 41:54 The importance of following a system
- 43:53 The role of personality in trading
- 45:02 Entry strategies to implement
- 52:11 What Robb liked best about this experiment
- 55:58 How a trading personality test can help ones trading
Robb Reinhold
Links & Resources
The Flat Earth Trading Society Experiment:
- More detailed information on the trading experiment, here: https://mavericktrading.com/position-management-in-trading-a-year-long-trading-experiment/?utm_source=CWT
Studies Mentioned:
- MRI and blackjack Study: https://link.springer.com/article/10.1007/s11920-010-0141-7
- Dunning Krueger effect: https://thedecisionlab.com/biases/dunning-kruger-effect
Books Mentioned:
- The Hour Between Wolf and Dog – Dan Coates: https://www.amazon.com/Hour-Between-Dog-Wolf-Transforms/dp/0143123408
- Behavioral Investing – Daniel Crosby: https://www.amazon.com/Behavioral-Investor-Daniel-Crosby/dp/9388423623/
Trading Personality Test Website: www.traderpersonalitytests.com
Maverick Trading links:
- Website: www.mavericktrading.com (stock/option prop trading division) and www.maverickcurrencies.com (forex/futures/crypto prop trading division)
- X (formerly twitter): https://x.com/mavericktrading