System Developer, Author, Educator
Program(s) Developed: Author, "9 Terrific Trading Entries, 7 Sensible Exits" available at KJTradingSystems.com
Interview Date: January, 2019
Interviewed by William B. Gallwas - President of Striker Securities, Inc.
Kevin Davey is a full time trader and educator, and provides online workshops to create trading strategies. He has written a book for beginners, titled, "Introduction to Algo Trading" and for intermediate level traders, "Building Winning Algorithmic Trading Systems". Striker has known Mr. Davey since mid-2000s but his trading experience goes back over 25 years. We have heard nothing but positive comments from clients that have learned from Kevin either by his books, or personal trading coaching.
William Gallwas: Explain the idea of developing automated trading systems come to you, is it related to your background?
Kevin Davey: I failed at discretionary trading for a long time, and the idea of testing and developing trading strategies was a natural outgrowth of those early failures. I decided to thoroughly test strategies in a way that I could not with a discretionary method. This appealed to my technical educational background and aptitude. Then I realized that once I had the strategies programmed, automating them was relatively easy. So that is what I decided to do.
William Gallwas: Writing a book can be a tremendous undertaking, tell us how you came about the decision to be an author in this industry?
Kevin Davey: After I won a major real money trading contest in 2006, people from around the globe contacted me, and asked for trading advice. Book publishers also contacted me, and although I was reluctant at first to share my secrets, eventually I relented and wrote my book "Building Winning Algorithmic Trading Systems." That book has been a very good seller in the trading genre for over 4 years now. It was a labor of love for me, and helped me solidify my trading strategy development and automation process.
William Gallwas: How does it feel to be recognized by your peers as one of the foremost experts in the field today as a developer and teacher of trading code?
Kevin Davey: I liken professional trading to being a professional athlete. Pro athletes are constantly looking over their shoulders at the new guys trying to take their job. I view trading the same way. Other traders, young and old, are continually entering the arena, and trying to trade better than I am. So, while being recognized as an expert trader is nice, I feel I still have to keep improving my trading in order to keep up with the new guys. That is a lesson for any trader out there is don't become complacent. Keep improving.
William Gallwas: For students of yours reading this interview, or other developers and even CTAs, what books do you recommend or study courses for someone to learn how to program trading strategies? Who were your greater influences?
Kevin Davey: Unfortunately, there is a lot of misinformation in the trading space. I am always amazed at the number of trading educators who clearly do not trade. These people are a huge drag on trading education, since they leave new traders with very unrealistic expectations. So, the first rule for anyone looking for trading knowledge is to be skeptical. Look for educators with verified performance (like Striker provides). Don't believe everything you read and try to verify by having multiple sources.
I frequently tell novices to read everything and anything they can about trading, without judging it and without falling for the sales pitches. After a little while, the "cream" of education will rise to the top, and it will becomes apparent what material is worth listening to, and which material is garbage. In general, trading books will be much better than information you find on the Internet. I would say Jack Schwager and Van Tharp wrote some good books.
William Gallwas: Do you have anything in the "What's New" category you would like to share with our readers?
Kevin Davey: After 25+ years of trading, I can safely state that trading is NEVER easy. Whether you are developing your own strategies, following a developer's signals or investing with a hedge fund or Commodity Trading Advisor, always be on guard. Always try to improve what you are doing. Always try to learn and become better educated. Trading constantly changes. Trading 10 years ago was different than it is today, and 5 years from now, trading will be different still. Staying on top of the trading game is paramount to long term success.
This interview is for informational purposes only and is not intended to be
a solicitation of any kind. Trade only with risk capital. The risk of
trading can be substantial and each investor and/or trader must consider
whether trading systems are a suitable investment.
There is a risk of loss in trading. It is the nature of commodity and securities trading that where there is the opportunity for profit, there is also the risk of loss. Commodity trading involves a certain degree of risk, and may not be suitable for all investors. Derivative transactions, including futures, are complex and carry the risk of substantial losses. Past performance is not necessarily indicative of future results. Please read additional risk matters on our web site, www.striker.com. It is important you understand all the risks involved with trading, and you should only trade with risk capital. This communication is intended for the sole use of the intended recipient.
About this report The information and links on this website are for informational purposes. The risk of trading can be substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Striker is a member of the National Futures Association ("NFA"), the Managed Funds Association ("MFA"), and the National Introducing Broker Association ("NIBA"). Striker is registered with the Commodity Futures Trading Commission ("CFTC"), and was formerly registered with the Securities Exchange Commission ("SEC"). Additionally, Striker is a former member of the Financial Industry Regulatory Authority ("FINRA"), and the Securities Investor Protection Corporation ("SIPC"). FINRA is the largest non-governmental regulator for all securities business in the United States. Please read Striker Disclosure Statement for the additional disclosure.
The trading performance cited throughout our web site is based on actual trading history, unless otherwise noted. The starting account balance is based on the system developer recommendation. Striker tracks actual performance by recording and maintaining each trade ticket for each system generated. The performance information assumes that no additions or withdrawals have been made. The rate of return for all systems disclosed in the Striker Report is cumulative from the day the system actually started trading at Striker. We maintain a "life" track for all 3rd party systems. We do not necessarily base our records on any particular client account. No one particular customer has achieved these results. The percentage returns reflect inclusion of commissions and fees.The actual percentage gains/losses experienced by investors will vary depending on many factors, including, but not limited to: starting account balances, market behavior, the duration and extent of investor participation (whether or not a client takes all signals for a system) in the specified system and money management techniques.
Striker is a revolutionary concept in action: an international, professional team of brokers dedicated to trading only for clients. It bears repeating: unlike most other brokers, Striker does NOT trade futures for itself or any of its employees. This policy has been in place from the start in order to guarantee that our entire focus remains on the interests of our clientele. Striker believes that when brokers are allowed to trade for themselves (or have in-house trading practices) there is a strong potential for conflict of interest, as the broker may place more importance on his own trading activities (or that of his firm's) than on those of his clients. Finally, Striker has no financial ties to system developers, so there no bias or pressure on how we report the actual trading results posted in our client section. This section is designed specifically for Striker's clients, so they may audit their results on a daily, weekly, monthly, or annual basis.