Tom Basso Round 2

Overview

We're launching this as a the inaugural episode of the Tools of the Trade Podcast. But despite this being Episode 1 it is in fact a "Round 2" conversation with Tom Basso, the Market Wizard given the nickname Mr. Serentiy by Jack Schwager. Tom shares valuable insights on trading strategies, mindset, and performance. Tom discusses the importance of personal trading strategies, the use of long-term and short-term systems, portfolio diversification, and position sizing. He also delves into his daily routines and lifestyle choices that support his trading success. The episode concludes with a live system design session, emphasizing the importance of understanding one’s unique trading needs and preferences. Tom also offers to join Rfactory’s upcoming one-day Intro to System Development Workshop to further illustrate these concepts and get up to speed on the TradingView platform himself.

Topics

• 00:00 Introduction to Personal Trading Philosophy

• 03:22 Welcome to the Tools of the Trader Podcast

• 03:37 Meet Your Host: Jeff Boccaccio

• 05:39 Introducing Tom Basso: The Market Wizard

• 09:42 Tom Basso's Trading Strategies

• 15:52 Managing Risk and Position Sizing

• 33:32 The Importance of Trading Psychology

• 52:06 Understanding Commissions and Break-Even Trades

• 52:37 Balancing Short-Term and Long-Term Strategies

• 53:00 Strategy Allocation and Risk Management

• 55:31 Labeling Trades and Managing Multiple Accounts

• 57:28 Calculating System Performance and the ETR Comfort Ratio

• 01:16:26 Designing a Mean Reversion Strategy

• 01:27:36 Simulating and Balancing Portfolios

• 01:40:10 Combining Equity Curves for Multiple Strategies

• 01:41:02 Evaluating Strategy Performance

• 01:41:42 Manual vs Automated Trading

• 01:42:29 Challenges of Managing Multiple Strategies

• 01:43:05 Developing a Trading Platform

• 01:46:00 System Development Workshop

• 01:48:30 Trading Tools and Historical Evolution

• 01:55:14 Lifestyle and Trading Routine

• 02:02:31 Parallels Between Golf and Trading

• 02:06:14 Final Thoughts and Future Plans

Interested in Tom's Hedging Strategy?

Would you be interested in a TradingView tool to help implement Tom's hedging strategy that he discusses here and in his All-Weather Trader book? Sign up to our mailing list above and we'll keep you in the loop.

See the "Round 1" Conversation with Tom Basso Here:

Check Out Jeff's Conversations with Other Industry Legends