Cross-Asset Class Trader John Netto's interview with Ilan Levy Mayer

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https//www.cannontrading.com

• John Netto Interview with Ilan Levy Mayer

Cannon Trading
theproteantrader.com
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• John Netto is a cross-asset class trader and
  author of The Global Macro Edge Maximizing
  Return Per Unit-of-Risk. He is also the creator
  of the Netto Number, the Risk Factor Compensation
  System, and the Protean Strategy, for which he
  was named by Collective2.com as Strategy
  Developer of the Month. Netto is an expert in
  developing, executing, and managing proprietary
  algorithmic and discretionary trading strategies
  across a range of time horizons, asset classes,
  and market regimes.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Ilan What Are Your Views On Intraday Vs
End-of-day Trading.
Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• John Like everything it's about the market
  environment. We have been in a market where the
  Dow Jones traded in it's most compressed average
  true range since 1905 so the idea of running an
  end of day strategy and playing for big moves
  hasn't materialized like it has in the past. In
  this market, what I have done is identify periods
  where there is more volatility, such as a FOMC
  announcement, a key piece of data, or political
  headline on tax reform or the next FOMC chair,
  and trade that instead.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Ilan What Is The Role Of Indicators In Strategy
Development?
Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• John The term "Indicators" seems purposely
  vague. I use several indicators ranging from what
  a market's Netto Number is to sentiment
  indicators to fundamental indicators. They all
  play a role and receive a confidence interval
  based on what I believe their efficacy is.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• Ilan Can you provide us with an overview that
  helps us understand your focus and strategy to
  making money in the markets?

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• John I look at the market by measuring how a
  strategy, index, portfolio, or trade is
  performing on a return per unit-of-risk basis. I
  do this by measuring performance not in nominal
  terms, but relative to a predetermined risk
  budget. Employing this tactic allows me to get a
  better sense of where the money flows are goin
  and how this overlays with the macro narrative.
  After combining all of those, you can get a sense
  of my strategy.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Ilan What Are Some Of The Advantages Of Trading
Futures?
Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• John Access to markets nearly 24 hours a day,
  tremendous capital efficiency, tax advantages,
  ease of execution.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• Ilan What Are Some Psychological Challenges
  Futures Traders Need To Master?

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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John Similar To Any Trader, And That Is To Have
A Process You Are Confident In And Can Execute
When Up Or Down.
Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Ilan What Is Your Key To Trading Success?
Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• John Having a definable edge and the discipline
  and confidence to execute on that edge.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Ilan What Is The Most Common Mistake You See
Among Futures Traders?
Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• John Not being able to quantify their edge and
  not having a plan to improve upon that.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Ilan How do technological developments toward
trading from the cloud and mobile trading offer
benefits to the futures trader?
Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• John Greater access to markets allows those with
  a true edge to take advantage of more
  opportunities. It also means those without an
  edge blow up quicker.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Ilan How have the markets changed in recent
years and how do retail futures traders need to
adapt to this?
Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• John Structurally there are many more products
  to trade volatility and less actual realized
  volatility to trade. Traders need to be very
  aware of what markets are moving and not. They
  shouldn't be pigeon-holed into one product. I
  respect the specialization game, but that works
  much better when there is movement.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Ilan What is the role of luck in trading?
Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• John On a day to day basis there is a lot of
  noise in the markets so luck can play a role, but
  again, understanding that you have an edge and
  where that edge exists is what will let you know
  if you were lucky or unlucky and that you should
  keep to your process.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Disclaimer

• Trading Futures, Options on Futures, and retail
  off-exchange foreign currency transactions
  involves substantial risk of loss and is not
  suitable for all investors. You should carefully
  consider whether trading is suitable for you in
  light of your circumstances, knowledge, and
  financial resources. You may lose all or more of
  your initial investment. Opinions, market data,
  and recommendations are subject to change at any
  time.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.