Hello everyone, how’s it going?
When this episode is released, I’ll be on holiday in the Maldives. Yup, I’m emulating the Tim Sykes lifestyle!
In any case, here’s a few episode for you. It may even introduce you to a new kind of trading strategy, one that may have never heard of before.
Today’s guest is Tim Steenstrup who is a proprietary trader. I actually met him briefly when I was in New York City.
Tim has been a cross-border arbitrage trader since 2013 at Conventus Capital. However, markets have been a part of his life since 1994. He’s been part of a hedge fund (it was featured in the movie The Big Short), a brokerage firm in Japan and the trading firm First New York Securities.
In this episode, we chat briefly about Tim’s backstory. We also dive deep into the mechanics of how a cross-border arbitrage strategy works. Like Tim mentions, this strategy can be difficult to implement as a retail trader. However, I still think it’s a good idea to learn about different approaches of the ways professional traders trade.
It’s actually very interesting when you listen to how Tim’s used insights from his previous jobs and experiences to help shape his current trading strategy. He also gives listeners some use insights about recovering and taking losses.
It’s my pleasure to introduce you to Tim Steenstrup.
What’s Covered in This Interview:
- Why Tim is attracted to risk taking and wanted to abandon a potential law career for a position at a brokerage and becoming a trading.
- The mechanics of cross-border arbitrage strategies including high risks, measuring moves, the three transactions that need to occur and real-life trading examples.
- How Tim got better at recovering from and accepting losses, remember to take the bad and the good as well as giving respect to the market and how quickly you can be beaten.
- How Tim does company research
- How Tim has evolved to make the most of his time when markets aren’t in line with his main strategy.