122: Competing with Machine Learning and PHDs

This episode of Better System Trader features an interview with Gary Hart of TrendFinder Trading Systems. The discussion centers on the diminishing effectiveness of price-based trading strategies due to increased market analysis and competition. Hart details his shift from day trading to swing trading strategies in response to changing market conditions, particularly the impact of quantitative easing on volatility. He advocates for incorporating fundamental data and market breadth measures (like the put-call ratio and VIX) into trading systems, arguing that reliance solely on price data is no longer sufficient for achieving a competitive edge. He offers advice to those interested in developing intraday strategies, emphasizing the importance of combining various data points while avoiding overfitting.