Futures Radio is a weekly talk show hosted by 17-year futures veteran and CME member Anthony Crudele, an ex-pit trader and one of the first to trade the E-Mini S&P. Each week Anthony talks with traders, CEOs, and other proven market participants about relevant trading and investing information.

EP 122: Myths, Metrics, and Trading Success

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Guest:

John Netto

President of The Protean Trader and Author of The Global Macro Edge 

Record Date: 4/4/17

Traders,

Today I spoke to a man who started with a high school internship at a liquidity provider for sports betters, became a US marine, and then dove into trading in 2001.  He is the President of Protean Trader and the author of The Global Macro Edge.  His name is John Netto.

#FuturesRadio 'The playing field has never been more level and never been more available to such a diverse group of people than it is right now Click To Tweet

Today John and I had a great discussion on why he felt the need to create a better measure for investment skill (better than the sharpe ratio).  Well John got to work and created the Netto number.  He explains what the Netto number is and why it’s a better measure of investment skill than other models currently being used.

John explains why the playing field for traders has never been more level, and tells us what the Global Macro Edge means.  We talked about the democratization of information and his 6 biggest myths on Wall Street.  Finally we chatted about his three parts of running a successful trading business, and why he’s raising money and awareness for service dogs that go to military veterans.

John is a brilliant guy who is passionate about the trading business.  He loves to educate traders, and my favorite part about knowing John is that hes a good person who helps animals and veterans.  Once again thank you for listening and please enjoy this episode….

Take-a-Ways:

  1. Why he created the “Netto Number” and what Wall Street uses to measure performance. How he added a third dimension. Comparing it to the Sharpe Ratio, and Sortino and Calmar Ratio. Including downside risk into trading performance assessment.
  2. Why he feels the playing field for trading has never been more level and available to a more diverse group of people. What the Global Macro Edge means. The barriers to enter the arena are so small right now.
  3. The democratization of information is why there’s so much opportunity in the market right now.
  4. The six biggest myths on Wall Street:
  5. Three parts of a successful trading:

Rapid Fire:

 

  1. How has your trading evolved over the years?
    • I used to be introspective to someone who pays attention to how the market is thinking and feeling.
  2. Can you tell me the moment that trading just clicked for you?
    • It’s been a process.
  3. What’s the number 1 source you spend your time on?
    • Zues sipion newsletter. Neil Azous.
  4. Favorite Book About Trading:
    • Trading with the Napoli levels.
  5. Favorite Movie About Trading:
    • Wall Street. The original
  6. Best Advice Ever Received About Trading:
    • Trade for the passion and not for the money.
  7. Advice to Give to Others About Trading:
    •  Don’t be afraid to move out of your comfort zone and try something different.
  8. If you weren’t a trader.. you’d be what?
    • Elected Official.

Take-a-Look:

Quotes:

  • “The playing field has never been more level and never been more available to such a diverse group of people than it is right now…” 21:33
  • “The global macro edge is the ability to understand the message of the markets and incorporate the macro narrative and identify the most profitable strategy…” 7:40

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