038: Kevin Davey – The Development Process of an Algo Trading Strategy, From Objectives to Live Trading

This interview podcast features algorithmic trader Kevin Davey, discussing his journey from a bumpy start in trading to achieving significant success. The podcast covers his early challenges, including overcoming a 60% account drawdown and learning proper strategy testing and evaluation. Davey emphasizes the importance of diversifying across multiple strategies and markets to smooth equity curves and avoid over-optimizing systems; he currently trades over 80 strategies. He details his algorithmic trading system development process, from initial idea to live trading, highlighting the use of walk-forward analysis and Monte Carlo simulations. Listeners gain insights into the practical aspects of algorithmic trading, including the importance of setting realistic goals and establishing clear criteria for exiting underperforming strategies.