Statistically speaking, you are not going to be a successful Trader Now I Know that's an absolutely brutal way to start a video. I Mean most of the time when people talk about this stuff, they're showing off their Lambo their mansion. Maybe they're on a tropical island and they're saying hey, if you take their course, they're going to teach you a secret that apparently no one in the world knows about and you two are gonna be a successful Trader Well, if you haven't figured it out by now, I'll let you in on a little secret. that's a lot.

The odds are greatly against you depending on the data set that you use. 80 90 95 of retail Traders end up losing money and Robin Hood alone from mid-2021 to mid-2022 45 billion dollars evaporated, It is extraordinarily difficult to be a trade now, even though I don't want to do the hopium in copium and tell you it's so incredibly easy I Also, don't want to be the other guy telling you it's impossible because that's not what the odds say. The odds tell us that a small cohort of retail Traders for whatever reason have figured it out and these people I've met a lot of them. It's not just one thing.

Yeah, maybe it's penny stocks. Maybe it's Blue Chip socks. Maybe it's options. Maybe it's crypto.

Maybe it's Futures it could be any of that. but they are doing something differently. I'm not saying that this is for everyone because it's not for everyone, but I am saying it is possible to make money I Think we just have to rewire our mindset on the methodologies of what day trading is whether you're a day trader swing Trader this is all going to be applicable to you. Now if you're watching this and you're thinking to yourself I'm already a profitable Trader and I have a long history of being a profitable Trader This video is simply not for you I congratulate you.

You're a God amongst man. but if you're in that second group where you're thinking I do like trading but I haven't been having the best of time in this video I Want to present a different mindset that you could have on trading that can slowly but surely help start stacking the deck in your favor to potentially becoming a profitable Trader Oh help me get started. I Want to show you a small clip of a video that I found on YouTube a couple years ago. Hey, what's going going on everyone I'm Matt and in this video I will be discussing systematic trading.

You know real people Bop I am a computer type stuff. Hey, what's going on everyone? my name is Matt and I'm here to talk about systematic training. This is one of the First videos I ever made on YouTube and now that we're filming this in March of 2023, it's my third year anniversary. It's crazy to see how far I've come in three years, especially the fact that apparently I've learned how to speak which is always I would say a big bonus now very quickly.

For those of you who don't know before I got into the world of content creation. My background was in computer science and during The Rona period I was actually getting a masters in statistics to be a Trader That's what I wanted to do I wanted to work at a hedge fund as a programmer as a stat major to see how good of a Trader I could possibly be. and one thing led to another basically the world shutdown and I figured why not teach this mathematical approach that I've been doing in the Market to everyone that is willing to listen I wanted to use mathematical algorithms to trade the markets. My reason for this is because I was a horrible Trader I've been trading for over a decade and I know in myself that I do not have the discipline to be a Trader I go into it I think I have an idea and In the Heat of the Moment I size up too much I hold on to my winners too long I hold on to my losers too long.

It's just crazy. It ends up becoming degenerate gambling rather than actual Artful training My Equity curve was massive swings. To the upside, massive swings. To the downside, it was brutal and it was all a perfect recipe for disaster.

Or really, it was a perfect recipe for blowing up an account one after another, after another after another if you're like that. if you feel like yes, I get it all theoretical. but then In the Heat of the Moment things always just seem to go awry and you just can't stick to your plan. Hear me out about systematic trading.

Maybe you've heard of it, maybe you haven't, But I think I could and explain it in a way that's going to make a lot of sense. And I'm also going to give you real actionable things you can do to start becoming a systematic Trader very quickly before we get into the next part. Why do you trade? Why are you a day trader? Why are you a swing? Trader I Don't mean this facetiously. I Think Maybe we should all ask ourselves that it's probably some combination of wanting to make money.

Maybe some sort of gambling itch. Maybe you like to solve some sort of a puzzle, but the concept is to beat out someone else and get a benefit for it. And the benefit in this particular game is making money. Ideally I would assume that we all want to make more and more money with less and less effort.

Maybe you're watching this and you have a different mindset. But I Think for most of us really watching this, that's a safe assumption. More and more money, less and less effort. I Think one of the perfect solutions to potentially help you get to that goal is systematic trading.

So what do I mean when I say systematic trading or robotic trading or mechanical trading For the purpose of this video, we're going to use those synonymously. It means you have a very concise set of Entry criteria and a very concise set of exit criteria. as in when conditions X Y and Z happen. That's when you get in and then when conditions A, B and C happen, that's when you get out.

There's no hemming and hawing. There's no gut feeling. There's no magic wand waving to it. It is simply you saying this has happened.

So I Have to get in. Then this has happened. So I have to get out to give you a real world example of that. Let's talk about turn around.

Tuesday There is a phenomena in the market that if the day before Tuesday I.E A Monday is a red day, especially when it's down in excess of one percent that you should buy at open on the next day I.E Tuesday morning and then sell at Market close that day I.E Tuesday afternoon. So once again, the market on Monday it's red day. It's a bearish day down more than one percent than you buy at market open on Tuesday. That is your entry criteria and then your exit criteria is getting out when the market closes on Tuesday This is an example of a system, and in fact, it's an example of a pretty profitable system.

Here's how it's performed over the past two decades: This turnaround Tuesday strategy has traded 115 times on the S P 500 ETF spy better known as the Spy over the past 20 years which is roughly once about every two ish months. It has an accuracy of 55.6 percent and has a profit factor of 1.58 This just means that for every dollar spent, it has returned a dollar 58. I.E It's a profitable strategy when you run the exact same code on the exact same time period. for the S P 500 futures Market Things actually get even better.

The accuracy goes up to over 58 and the profit factor is now 2.36 So once again, a very profitable strategy that I would argue is actually pretty simplistic. You could code this up and have your robe about do all the buying and selling for you and you can kick back on a beach and enjoy a Mai tai. Why this strategy is making you some money? That is totally possible, but I would ensue Most of you watching right now are thinking I don't know how to code and that's the exact feedback I Got three years ago when I started to talk about systematic trading was everyone's like this sounds great I just have no clue how to code now I Do think everyone should learn how to code I Think it's a phenomenal skill to have, especially with the proliferation of technology in really every single aspect of our life. But for the purpose of this and the popularity of retail trading, there are now many tools that make it for you to become an algorithmic robotic systematic.

Trader And you don't have to have any coding ability whatsoever. Not only is Street Beat the sponsor of this video for pretty evident reasons, but I Have to tell you, in my years of being a financial content creator, this is one of the coolest products I've ever had the pleasure of working with because they allow any any person to engage in robotic trading. For those of you who don't know, Streepy is a registered investment advisor and to be a bit more specific, it's actually a robo advisor. You know? Think of that people.

Bop Stuff I was talking about at the beginning of the video and before you ask, no Street Beat does not accept payment for order flow. Kickbacks But on top of that, you have the ability to opt into algorithmic trading. Solutions So what in the world does that mean? Well, basically, there's a group of Smarty Pantses that work at Street Beat that made a handful of strategies that you could utilize literally. Right now, think about that turnaround.

Tuesday Strategy accepting Far more complicated and far better. They have strategies for earnings called predictions of who's going to beat Who's Gonna Miss They have ones for a bond ladder. they have ones for U.S top government recipients. They even have ones for the U.S Congressional House Of what they're buying and selling, this is all systematic.

You just have to opt into it. This is amazing because you're taking yourself out of the equation. No more poor discipline, no more degeneracy. No more just oh.

I Have a gut feeling here or there. This is purely mathematical. It does the buying for you. It does the selling for you.

You simply have to opt into the strategy or group of strategies that you find to be the most interesting. Now, this is by no means an unlimited money glitch hack, cheat code or any of that. BS The only people who have that is the Federal Reserve And unless you're daddy Powell Watching this video, in which case I Think we have bigger problems than I assume we already did. Do not get unlimited money.

We have to be realistic about what this is. Systematic trading, Robotic trading, Mechanical trading. All it is is information. Based on past data.

You are noticing a previous pattern that exists and using that, attempting to extrapolate forward and attempting to achieve expected positive value. Sometimes systems over perform, sometimes systems underperform. It is very possible because in the world of trading, no one knows what the very next day is going to bring. This isn't equation, a multivariate equation that has an infinite amount of variables.

It is impossible to perfectly predict. But with all that being said, I Personally trust in the math enough that I've put my own money into these strategies. Now if you want to see what it's all about, just download Street Beats app. It is free and when you're signing up, make sure you use that code Matt M-a-t You'll get a bonus based on your initial deposit.

It'll range anywhere from five to five thousand. If you have any questions, let me know in a comment below and other than that, I'll catch you in the next video.