EP 203: The Pursuit of Edge w/ Bob Bright

Casino floor or trading floor, Bob Bright has forever sought an edge for favorable odds…

Counting cards in Las Vegas, calculating threeway options at the Pacific Exchange, pairs trading correlated stocks, exploiting the tracking error of leveraged ETFs; Bob’s always pursued a mathematical advantage to win the game.

Also considered by many as a pioneer of proprietary trading, Bob and a partner formed Bright Trading in 1992—at its peak, the firm was home to 490traders across 42offices in the U.S.

Today, at 80years of age and undoubtedly a market legend, Bob remains an active trader and a serious high stakes poker player.

Topics:
0:00 – Intro
2:41 – Beating the Casinos in Las Vegas
18:38 – Trading Options on the Exchange Floor
24:39 – Watching Bob during the trading session...
28:40 – Leveraged ETFs vs NonLeveraged ETFs
41:43 – Mathematical Edges in Financial Markets
54:05 – Discipline and Managing Tilt
1:09:04 – Outro

Show Notes:
https://chatwithtraders.com/203