124: Managing Trades with Linda Raschke

In episode 124 of Better System Trader, host Andrew Swanscott interviews Linda Raschke, a returning guest, to delve into trade management and exits, an often-neglected aspect of trading system development. Linda shares insights on modeling different exit types such as fixed ATR, time-based, and trailing stops, emphasizing the importance of categorizing initial trade conditions and market structures. She discusses how volume can indicate market tone and how breadth measures and relative strength can be used in trading models to target the best markets. Linda also touches on managing unit size based on market volatility and correlations, and the use of breadth indicators and sentiment analysis in institutional trading. She shares a practical strategy using relative strength to identify potential short-term trading opportunities.