11 years of trading. Zero losing months.
Wizard Wednesday finale: 132 green months, and the trader who keeps his account small on purpose.
The book closes on the most impressive number in it, and it isn’t a return figure. 132 consecutive profitable months. Eleven years without a single red one.
He trades event-driven repricings. Mergers, buyouts, spinoffs. He builds if-then trees ahead of the announcement, waits, takes the trade when the news breaks, and holds for about five minutes. Small moves, big size, and a career in investment banking behind the analysis.
Here is the part that makes it work. His edge doesn’t scale. There is only so much size the trade will absorb. Everyone else in this book hit that ceiling and pivoted to something bigger, large caps, swing trading, options. He just withdraws capital and keeps the account small.
That’s rarer than any return number. Most traders would blow up a working edge chasing a larger one.
The cost is the schedule. Desk from 3:45am to 8pm, two thirds of his trades outside regular hours where the algorithms are thinner. That’s the tradeoff for an edge that can’t be systematized, and it’s the clearest argument for systematizing that I can give you. This video is going out while I’m away from my screens for a week, which only works because the systems don’t need me watching.
Across all nine chapters the pattern was identical: they all lost early, they all traded many small edges, their winners announced themselves fast, they all used time stops, and they all had a process for replacing edges as they died.
If you want systems that run without you watching them, that’s Stats Edge Pro. $149.99 a month, 30-day money-back guarantee.
Michael Nauss, CMT, CAIA, CDMS