🔊 STS 010 – Linda Bradford Raschke: Trading Sardines, a 21st-century version of Reminiscences of a Stock Operator
Linda began her professional trading career in 1981 as a market maker in options. She became a registered Commodity Trading Advisor in 1992. She worked as a principal trader for several funds. In 2002 she started her own hedge fund, which was ranked 17th out of 4500 for best 5-year performance by BarclaysHedge.
Jack Schwager recognised her great talent in his famous Market Wizards series. Since 2015 Linda continues to trade daily for her own account. In the world of professional trading and money management, Linda stands out from the crowd for three factors: performance, longevity and consistency.
Most frequently when talking about trading, we focus on its positive aspects. Linda takes a different perspective in this interview sharing with us market lessons while highlighting the tension between luck, risk, and passion.
To me, it’s an extraordinary interview with an extraordinary person summarising her great book titled “Trading Sardines“. It is indeed a 21st-century version of “Reminiscences of a Stock Operator“! Linda although being so successful as a professional trader, openly admits how repeatedly got her ass kicked by the markets.
It sounds so attractive when we can mention how you feel making one million in one single day. Linda, however, puts an accent on being on the wrong side of outliers so many times that it is well beyond the random. Rare events are happening more often than we think, especially if you are on the markets so long as Linda.
NOTE I had the honour to have Linda already on my podcast in the first episode, and I highly recommend it everyone who has not yet listened to it.
Larry Connors has over three decades of experience in the financial markets industry and is widely regarded as one of the leading professionals, especially when it comes to systematic quantified short-term trading.
He is the author of many highly acclaimed books including “How Markets Really Work” and “Short Term Trading Strategies That Work“. Larry co-wrote “Street Smarts” with Market Wizard’s legend Linda Raschke. The Technical Analysis of STOCKS & COMMODITIES Magazine selected this book as one of “The Classics” for trading books written in the 20th century.
Linda Bradford Raschke: a market wizard from the Wall Street
My first interview with Linda. Highly recommended!
(…) I traded the Flash Crash, that’s funny, because I remember every single tick: the price was selling down into the 20s, which was like a level I have targeted, where I’d looked to be a buyer, and I started to nibble, I bought some futures.
And I had my trading partner, this is when I had my hedge fund, so we had bought like a hundred, and I bought another hundred. I’d like to try and see if the price stops going down and then I could put my stop in.
Perry Kaufman: from the Apollo program to fully automated trading
Perry began his career in the aerospace industry as a rocket scientist, and his work was used in the Apollo missions. He moved then to trading.
His trading career began in 1971, in the futures market, and since the very beginning, he was involved in constructing algorithmic trading systems. He was working with the greatest CTAs and financial institutions.
He’s an author of many highly acclaimed books. And in this episode, we talk about topics discussed in his latest work titled “A Guide to Creating A Successful Algorithmic Trading Strategy”.