Hi guys, hi from Andrea Unger! People know I’m a systematic trader, so sometimes they ask me if trading systems should always be running.


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This is a tough question, actually. Generally, the answer is yes. Trading systems should always be running.

However, there are some special cases when we can expect higher degrees of volatility in the market. Some instances are the Brexit Referendum and the American elections Donald Trump won in 2016.

On such occasions, the moves that take place have nothing to do with normal market moves. So, given that we build our trading systems resting upon the specific identity of each market, so expecting the markets to continue move the same way they normally do, our systems become useless. It would be like driving a Ferrari car on a country road. You have a gorgeous car, but you are using it in the wrong place.

So, actually, on such occasions common sense tells us that it would be better to switch the systems off, flatten our positions and wait for the market to go back to normality.

In specific cases, you may consider another possibility and take the surprise effect into account. This means that you may open some positions in the direction of a surprise result.

For instance, in the American election case, Hillary Clinton was expected to win. This means that, if she won, the markets would have not skyrocketed. So, if you opened some short positions, you could have kept them open and be reassured that they would show an interesting gain, in case Donald Trump won.

However, this is the wisdom of hindsight. So, I suggest that whenever you expect that some specific events will cause market turbulences, you switch everything off and wait for things to go back to normality.

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Andrea Unger here and I help retail traders to improve their trading, scientifically. I went from being a cog in the machine in a multinational company to the only 4-Time World Trading Champion in a little more than 10 years. I've been a professional trader since 2001 and in 2008 I became World Champion using just 4 automated trading systems. In 2015 I founded Unger Academy, where I teach my method of developing effecting trading strategies: a scientific, replicable and universal method, based on numbers and statistics, not hunches, which led me and my students to become Champions again and again. Now I'm here to help you learn how to develop your own strategies, autonomously. This channel will help you improve your trading, know the markets better, and apply the scientific method to financial markets. Becoming a trader is harder than you think, but if you have passion, will, and sufficient capital, you'll learn how to code and develop effective strategies, manage risk, and diversify a portfolio of trading systems to greatly improve your chances of becoming successful.