TRADING INSIGHTS - Copytrading Strategy Manager Reveals All!
hello everybody out there and welcome to new episode of that crypto show today a very very special episode for me because we have a new interview Edition with a gentleman that is a copy trading strategy manager here on primexbt.com Lucas Stadler. Lucas welcome to that crypto show hello hi thanks for having me oh we are very grateful for having you because you know strategy managers always seem to be a little bit of an elusive Bunch so it's very rare that actually somebody says hey yeah I would like to to interview talk about my experience of trading um so uh thank you for for finding the time especially in regards to that you still have a full-time job on the side I should say that you need to apply to on a daily level that's correct yes I'm a full-time research scientist so that's my main job and then I spend but my uh my second passion is trading yeah okay a full-time scientist and I think this is really interesting also because I know a lot of the viewers out there are kind of in the same position that they have a job they have to attend to uh you know to to bring the food on the table so to say but that they also want to build in to build up a second income stream from Trading be it now um trading for themselves I know a lot of people also are dreaming of becoming a copy trading manager managing the money of other people you have a living example of that actually is possible um I think maybe the first question would be that interests the audience uh can you tell us a little bit about how you came to the position you are right in here from a scientist to somebody who also does trading and manages the money of other people yeah of course yes so um I guess my journey started really after the financial crisis of 2008. um before that I was a student and I was happy with the interest rates on bank bank accounts um and then the financial crisis hit and then interest rate rates went to zero and I had to think of other ways of of investing my savings so I started off um first quite conservatively with you know companies that pay dividends and long-term view um but more recently A couple of years ago um when the especially when since the um inflation started to go up um it became obvious that I had to do something in addition to that in order to um increase my Revenue stream and my income and that's when I decided to also trade actively trade um on the markets so that's going back about three or four years now and I really stepped that up a lot in the last year because I find that from a trading point of view when you add the extremes of the markets it's you know if you look at um foreign exchange pairs that's the best place to to trade very very interesting so um you as a scientist would you say that a lot of the things and methodology actually that you use in your daily work as a scientist that you also can apply that to trading absolutely so I do some of what I do is computational biology and so I I write algorithms to analyze big sets of data and um and really the um financial markets are a very big big data set and so by applying some of these skills coding skills and algorithms to my trading strategy I can transfer some of those scientific skills onto my trading skills that's very interesting because over the course of the last I would say like six or seven years actually analyzing large sets of data machine learning or I don't want to use the buzzword artificial intelligence now because I still think there's a difference of between machine learning and artificial intelligence um I progressively have started using that as well and I can only highlight what you just said large data sets because it's unbelievable for me once you start working with with data how much data actually there is available online so you very quickly end up with really gigabytes of data when you need the computational power to to analyze those the coding part has gotten progressively easier luckily for me because I'm a very bad coder but I luckily have found my way working with both python modules for tensorflow and so on that are available nowadays so is that something you use also like a pi iPhone for example I use a python and R the other two programming languages Alpha is my for statistical analysis um I think that's very powerful to um to try when you try and predict um of the trading patterns and and against the future which is what we're trying to do so yeah so I think that's been very very helpful in that regard my scientific background if you are now also interested dear viewer to know more about Lucas underneath the video you will find links to the two trading strategies that Lucas is currently managing on the copy trading module and what I saw there I in my opinion quite impressive I think you've done this now for around about 100 days that's right one of the strategies which is like 146 or 150 percent uh up in in 100 days I I think that's very very impressive yeah it's been a it's been an interesting couple of months um as I said earlier the if you look for example at the foreign exchange markets which is one of my favorite markets at the moment with because of inflation and because of what governments are doing with interest rates and central banks are doing with interest rates we are really at the extreme end of some of these markets and and that is where you have good entry points to to for short to medium-term trades and that is what I've been exploiting uh recently so what you describe yourself more of a contrarian trade oven pull um a particularly interesting trade just today very specifically was the um influence by the decision of the bank of Japan um to change their their yield management um that's led to a huge increase or growth or Spike of the the Yen and that has um made for a very interesting trade because for a couple of days now I've been been trading the um Swiss franc and Japanese Yen pair I've been shorting that and that has paid off today um but that's a super good trade yeah really yes yeah but I think that's I think it's been it's that's been on the Japanese Yen has been so weak and of course Japan likes to keep it weak but it's been so weak I think it's been not a particularly controversial view to think that there would be a there would be intervening at some point and I think that's what I anticipated um in the last couple nonetheless something we really haven't seen in a long long time that there's movement in when it comes to the interest rate uh in in Japan yeah and I agree so guys if you haven't seen it I have to look a little bit to my side here so we were trading above US dollar in above 137 earlier still this morning and because of the interest rate decision we saw there uh again became much much stronger so we saw a move now all the way down to currently 132.4 um Yen per dollar so and and for for the Forex Market this is a huge huge move because the classical actually the Forex markets is more of a low volatile environment although that also has changed of course if I look at the past 20 years like 20 years ago you wouldn't have any days throughout the year where you would have moves of more than one percent maybe if you were lucky you would have had something like 0.3 0.4 percent um any other markets that you are particular in invested in as a strategy manager yes so the other interest I have is commodities um so Commodities also this year very interesting because of what's been going on with the war in Ukraine um and so uh natural gas and oil are uh particularly interesting there because of the huge spike in in value of these assets but then also strong drops so there's a there's a means of um of trading that too and that's what I've been doing as well very rare by the way that we see somebody uh trading Commodities um right people tend to focus on Forex maybe in particular also of course on cryptocurrencies but yeah there's a huge potential in Commodities as well as a little side anecdote if you allow me um like uh I I sometimes I'm not much trading Commodities honestly speaking because I have a feeling every time I touch oil I lose money and just as a side I don't know because people always keep asking me how come you never write about oil you know and it's kind of bad luck for me right but I think um I think it's something that's been particularly interesting this year again um and uh and I think a little bit more predictable once um the year has unfolded I think it's become a little more predictable and so it's something that's tractable with the algorithms that I use okay cool um so that's always of course the signal the the trading side of of entering trade I think equally important is also for example risk management how's your approach when it comes to managing risk where do you say like okay I'm going to get out of a trade now because the trade is running against Me Maybe yeah so that's that is a difficult skill I think um because you always have the temptation of of waiting a little bit longer waiting a little bit longer and it can get dangerous so um I think that I've the important thing is when you go into a trade that you have already before you open the position you have a strategy and a plan um as to what you're going to do in terms of when it goes wrong I think that's important not just open a position um expecting or hoping it will go well and then trying to find a plan when it doesn't go well so I think the the attitude has to be um before you open the position have a fixed plan as to when you're going to leave the position if it goes against you and um so that depends a little bit on what I'm trading at Forex different to Commodities are also different to indices um but I follow um a bit of a tradition of mine where I have a strict rule where I exit um once things go go the wrong way um absolutely I I mean so much uh truth in what you just said uh from my experience as well and I think this also ties a little bit into the next question like what a lot of beginner Traders do wrong my Mantra is always like you have to uh you have to treat trading like a business and if you run a business let's say you are selling shoes and maybe you have like this great model that you order because you think your your clients are going to love it and they are going to to buy it and when you order it you put it on display and nobody's buying it yeah so what would you do as a business owner would you like order more of the same model at a cheaper price maybe probably not no you would at one point cut your losses however when it comes to trading what we very often see with beginner Traders is that they kind of get married to their positions we know they they put in a trade the trade runs against one maybe they put in another position by the dip by the dip by the dip buy the dip buy the dip or sell the high sell the high yeah and and until you know they are fully invested with their account and the survivability of their account is also tied to to that one trade and it's a mistake I made a lot when I was beginning it's also a mistake that I still after 25 years sometimes tend to do that I get at least in my mind married two positions however I would of course never risk like my whole account on a position and nowadays anymore but it's very very difficult to overcome um how did you do that yeah yeah so how was that for you how what what helped you there to to overcome this yeah psychological burden really our primitive human brain that doesn't want to be wrong exactly it was not to be Rama and doesn't want to give up a losing position yeah um so I think um as I said earlier I think and by having by deciding before you open the trade what you're going to do when you're going to close the trade and then not um changing that plan but sticking to that predetermined plan to look at the piece of paper where you've written this down and and just followed a strategy strictly and say this is what I decided to do this is what I'm going to follow through on I think that's the way to do it you have to basically write down a plan when you have a clear mind before you're involved in the trade and then take that as your blueprint throughout the whole duration of that trade and stick to that strategy and uh and follow through on it yeah I think that kind of um follows also into the footsteps of what we hear a lot of trading coaches including myself saying you have to kind of keep a trading diary where you exactly take down like okay I entered this trade because of XYZ and uh I'm going to be proven wrong with this trade I want to cut my losses when this or that happened could be like you know a stop loss when a certain threshold of loss one two three five percent whatever you want to choose where is is reach could be if it's a long-term trade that the economic data changes that makes the trade not viable anymore could be anything but like you just said and I'm super super much agree with this write down why you entered the trade and write down also why you want to exit for trade yeah um I I think like I've noticed like over the last years in particular um a lot of people that are very good in poker for example playing poker at maybe a professional level tend to be also good Traders and I think it's because they understand calculating the risk reward they understand that okay if the potential outcome of my trade is not worth the risk anymore that I'm trading when I'm going to fold my uh my my my hand and put it on the table and get out of a trade and I'm also not going to you know live in the past and think that why did I lose money on that trade every trade is a new chance every trade is a new risk um very happy to hear that that you see it this same way okay maybe um as the next question when we talk about trading what was your craziest experience when it comes to Trading but I guess my craziest experience was when I when I relatively early on when I started it was a um my my own fat finger error presumably you um you know the concept um so this was uh but the one that worked out in my favor so I I was trading on a platform where they had the the one click trade system where you could open a position by clicking sell or buy and there would be no confirmation question and I accidentally pressed cell on a on an asset I think it was Zoom shares or something and this was during the pandemic they were going high and I accidentally pressed sell and this algorithm put quite a lot of money on sale and then it took me a few seconds to realize what happened but in those few seconds there was you know you sometimes you get these fluctuations and there was this Den um I realized what I'd done I closed the position immediately but by chance I'd made almost a thousand Euros I think from a completely accidental cell so um that was uh my lucky day in trading um and was a lot of money for me of course at the time so that's probably the craziest thing that happened to me but um it also taught me that um you can't rely on luck really you have to have strategy yeah absolutely uh it's funny this this fat finger mistake is also something that not only once happened to me I remember when I was working for a family office we were specializing in trading Forex options actually and we were also have this one click functionality not really one click but you could like ask for prices online through a tool from from different banks for options and when you would with a mouse click also do that and normally I think that was in a rent a South African rand versus Japanese Yen option and normally we would trade like around 10 million per option so 10 million in rent so that's about 1 million euro I think if I could remember correctly and by whatever chance I ended 100 million so I I ordered 10 times and we were on the sell side of the option so getting the premium and this ended up really I I sent it and then I thought like why why do we get like 300 000 Euros on our account for for the premium of the option right now and then I realized oh my God I just traded 10 times the amount I already saw my career ending you know me being pure on the street for a mistake like this but as you I was like super lucky that the price went into my Direction so I was able to close the position immediately at a better rate when I opened it which ended up with around if I remember correctly like eight or nine thousand US dollars in profit for the client wow but yeah yeah this is kind of you know and I think it's in every profession like this once you start getting into the flow of things you kind of become also a little bit less focused on the Minor Details yeah um so definitely things happen yeah yeah mistake mistakes happens and mistakes will continue to happen of course when when trading but yeah this is always a wake-up call yeah um so I mean if like um if we would have somebody here now that uh that says I want to become a strategy manager as well I want to step in to your choose what would be your advice yeah so I think um well I think you would have to it's important to first um gain experience by yourself um and I think that's that's important so develop your own trading Style with your own money or even with a you know with sometimes you can get these trial accounts where you have um virtual money um to to to Really um develop your own trading style and to try out different methods um and see whether you can succeed trading your own money I think that's the the way to do it first that it's sometimes we can get a bit impatient we want to get things done quickly and we want to get to a certain point quickly um but I think it takes the time to really learn the trade um learn how to trade and develop your own trading style I think that's a very important um and then but once you've established that I think that's a good opportunity to then say and go to people and say this is my trading style um I I can make this work in more than 50 of the time and um and uh why don't you join me on that on that Journey yeah absolutely um I couldn't agree more with this um especially about the part of being impatient yeah and I think new Traders um kind of very often enter a trading or start trading with the expectation I'm going to do this now and three months down the road or even in a shorter time period I'm going to be a millionaire yeah like maybe I'm exaggerating a little bit right now and it's of course also due to the advertisement you see out there if you Google like trading strategies or something like this this is a lot of the results you'll get out there so um I I think it's kind of important to have realistic expectations and what you just said about learning about education I couldn't agree more with that it's like when you learn a language you know you're also not going to be fluent after four weeks you're also not going to be fluent after three months maybe you are kind of reaching the level of fluency after a year and I think with trading it's the same so for example for me if we have like interest rate decisions if we have certain economic events nowadays I do not need to think after I see the numbers of events anymore like okay this means like the dollar is going stronger or weaker this means this means that so it's like kind of an automatic process going on if you're a new Trader take your time you know think about what just happened and what the implications for the financial markets are do not just jump into a position because you see a chart going crazy up or crazy down so basically what we just saw with a Japanese Yen you know you have to have your game prepared the good thing of course about the financial markets is that you know there are new chances almost every day you just need to be patient to wait a second what do you think about over Trading is that like something that happens a lot also um beginner Traders I mean I think so um I think that's true um you uh people are anxious they um they worry about losing money um and they will just want to win money and I think then you end up um you know checking your account every five minutes and and trying to to change something every five minutes because if something else looks better something or you close a trade too early because it's it's no longer that interesting to you you've seen something better although that trade might still have to mature a little while so that's definitely something that um is I think another one of those beginner mistakes yeah absolutely um I think and that's in a way it's helped me to have a another job because I get it it helps me not to focus entirely on my trading which is sometimes good for me because then you're not tempted to over trade um yeah it reminds me a little bit you know in German we have a saying uh the involved for louder which I I think translates into English you cannot see the forest because there are too many trees and uh I I also noticed beginner Traders they tend to focus on like lower time frames on charts like one minutes or five minutes and um it's understandable in a way because a lot of how trading platforms nowadays are designed is that where a gamified in a way exactly so it's fun it gives you the adrenaline rush to to click on buy or sell and see your profit and loss in real time and I I think the position you are in that you are forced to step away from the markets yeah because uh whereas your job as a scientist um that you have to attend to and of course you you cannot attend to your mobile phone or your laptop like every every three minutes to check on prices um and and do your work in a good way and in a professional way at the same time and that forces you in a position where you have to look at the markets from a broader and a higher perspective and I think this is very very healthy because the lower time frames also tend to have a lot of noise and it's sometimes difficult where because of all the noise to really see like hey this is where the trend is going from a higher time frame what I'm just seeing here with the crazy candles on my one minute or five minute chart actually on the grand scheme doesn't mean anything and last question Lucas um because we are called that crypto show I of course have to ask you that question what is your views uh what is your view on cryptocurrencies well um yeah so cryptica if anyone who wants to to look at my current um trading strategy there's no cryptocurrency in there at the moment um now and the reason for that is that this year hasn't has been honestly not a very good year um for crypto on the whole I guess like it has been for the the market in general uh the stock market um so I think my view is uh I did trade crypto um up until a year ago and I decided to take a step back this year which I think was the right decision my thinking is but I think that the technology underlying crypto so the blockchain technology is one that will be around for a long time I think that's that's the future and so I would anticipate that maybe early first half of next year I'm going to start to um dip my toes back into crypto so I think we need to go through this phase I think there was a lot of hype as well um in crypto which has caused things to go up unnaturally um and I think what we're seeing now is the hype goes away a little bit the the core technology which has a lot of value remains and I think that will make some interesting and good entry points um in the next six months to a year so I think I'm keeping my an open mind but right now I'm being careful with crypto well ladies and gentlemen I mean you you heard the uh you heard Lucas just now I think stepping away from cryptocurrencies about a year ago was like the best decision to ever be made at least when you want to go long cryptocurrencies uh so perfect timing there uh Lucas in that case and uh yeah as Lucas think and if you've been a watch of a crypto show you know I agree with that that 2023 is probably going to bring new chances for cryptocurrencies uh and we'll for sure then also see Lucas are again incorporating those into his trading strategies however what I think is the important message here is there are markets Beyond cryptocurrencies and as a Trader we need to be in the market that offers the highest chances in terms of risk reward and that currently or at least for the past year were not cryptocurrencies the chances were in Forex my chances for sure were in Commodities as well because this is where we had the volatility to both sides actually and not just to one side as we had in in especially yeah well any cryptocurrency I think you can throw a dart at a board with cryptocurrencies and you'll always have a hit with low side volatility over the past year yeah again guys if you now want to follow Lucas and you maybe think hey this guy really knows what he is doing he's a real professional and he is in my opinion beneath the video you will find links to Lucas two trading strategies that he's currently trading as a strategy manager on the copy trading module I highly highly recommend you checking them out I think the performance we've seen from him there is really really awesome and you know um if you maybe do not have a time or you do not want to get into trading yourself here's somebody you know who can take this off your hands and still make sure that your money is in good hands Lucas it has been a pleasure really thank you so much for for joining us here today I think our audience is really really going to um to love that your input your insights about trading especially also how it is to still have a full-time job but follow your passion and trading um invaluable information really for everybody out there thank you so much for being here thank you for having me thank you very much take care merry Christmas everybody and see you very soon again bye thank you bye
2023-01-02 18:07
