#87 Cyborg

November 6, 2023

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Cyborg is a derivatives trader, trading mostly crypto futures.

Cyborg

What attracted you to trading?

Risk, the law of attraction. I love betting on future events, and I love the adrenaline that rushes in my veins every time I place a bet. I'm attracted to risk. I aim to get the correct amount of risk to stimulate me but not kill me. I disagree with those who try to convince you that risk is bad. Life is risky; get over it. Risk on. There is more risk involved when you are not taking risk. The "double edged knife" as I often say. Be smart about how you manage risk.

I aim to get the correct amount of risk to stimulate me, but not kill me.

How long have you been trading and what markets have you traded over your career?

I have been trading for seven years, mainly crypto derivatives and American indices. Crypto markets are the easiest markets to trade, and my edge here gets better every year without being diminished. I do not trade markets where I don't have an edge.

How long did it take you to become profitable?

I started being consistent with profitability at the end of the second year. At the time, I was also a mining BTC with ASIC machines. The major milestones came in 2017 when I realised that the chart is irrelevant; the way I manage my position and the way I react to it is relevant. The market is always gonna do its thing. My reaction to it is going to determine my profitability. Going through ups and downs, I realised that I could not control where the price would go, but I could control my own behaviour.

I realised that the chart is irrelevant, the way I manage my position and the way I react to it is relevant.

What does a typical day look like for you?

I start my day at 9 o'clock, with an iced cold coffee and a small walk. Return to desk, open Tradingview, Twitter, crypto futs and Discord. I scan pairs for any interesting setups, communicate with trader friends and start the scalping session. I love ordering food, so I order my lunch by 13:00. By 16:00 I will probably be done trading, and head out with friends. At night, have a nice glass of wine with a plate full of cheese and good company.

Who did you look up to when you first started trading?

James Simmons, the old quant goat. He was way ahead of his time, using mathematical models and algorithms to profit from market inefficiencies when others were trading while throwing darts. A true genius, his fund - Medallion, is famed for the best record in investing history. He was scoring insane returns for many years for his investors. He is probably the best hedge fund manager of all time. 

Tell us about your most memorable trade

Brutally shorting 66keks and calling it a deviation from the previous ATH and selling the global top of AVAX, I opened my position 5 minutes before it hit the top at 146$. Here's a tweet from that time :

Do you think that shorts/contrarian positions are inherently more memorable because they are more psychologically stressful?

Yes, I do believe that. Even though most of my trades are Long trades, my most memorable trades were shorts because I was counter-trading the masses, and that added to the psyche of the trade. It's stressful to be short while everyone is giga longing and talking about how bullish the market is. But the emotion of the win is even greater then. 

It’s definitely stressful to be short while everyone is giga longing

What’s the best trading advice you’ve been given?

“If you don't bet, you can't win. If you lose all your chips, you can't bet."

Have you ever lost all your chips?

No, I haven't. There is nothing that it's going to make me risk my lifestyle and bankroll. Never lose all your chips.

What drives you to keep trading?

The sincere love and excitement I have for this profession.

If you weren't a trader, what can you imagine yourself doing?

I have a law degree, so probably a lawyer. 

Would you say you’ve ‘made it’? If not, what does ‘making it’ look like to you?

Since 2020, I have had everything I always wanted in life, so personally, I'm satisfied with the position I'm in. Real wealth is being free and doing whatever you want, whenever you want.

Real wealth is being free and doing whatever you want, whenever you want.

Trading:

What's the most important quality in a trader?

The biggest quality is consistent discipline.

How would you describe the way you trade?

Aggressive in timing, contrarian scalps. Low risk following flow swings.

Has the way you trade changed over time?

Yes, especially on the lower timeframes. And it continues to change as the market changes. I'm pretty adaptive to new market environments. I trade the technical aspect of price. I do not engage in news trading that much. I believe in technical analysis, but people middle curve this so much, it's ridiculous. Analysis of price is more than one straight line and some bullshit patterns. But that's a different long story.

I believe in technical analysis but people middle curve this so much, it’s ridiculous.

As I say on Twitter, 1000 trading hours will beat 1000 trading books. If you watch for 1000 hours how price behaves, how the orderbook and order-flow changes, where people get liquidated, etc., you will beat someone who just read 1000 books. That's my belief. Keep grinding.

1000 trading hours will beat 1000 trading books

Why do you think you have success trading?

Because I made sure all of these years to be able to come back next day.

What's the worst thing about trading and why?

The soul sucking energy of it. You can't just open a trade and be ignorant. You have to be 100% there. It needs your attention and focus. In 2019, it destroyed my mental health and had a devastating impact on my social life, but I worked on it and managed to control it and regain my mental health to its fullest. Never give up.

What's something you've learned in the last 6 months that has made you a better trader?

It's not something new, but the last 6 months reminded me of 2019 range trading. When in a range, assume the range will hold and position yourself for that. No trend systems.

When in a range, assume the range will hold and position yourself for that.

What's the mistake you find hardest to avoid when trading?

Rushing decisions while in a trade. To prevent this, you need to prepare both scenarios pre-trade. Never open a trade without being prepared for both scenarios.

If you could give someone starting trading tomorrow one piece of advice what would it be?

To make sure he shows up tomorrow. And to show up tomorrow means never ever lose your chips. I see too many young traders risk the house. Trading is a marathon.

How would you describe your relationship with risk?

I'm a romantic risk-taker. As long I breathe, I will risk. I take risks in all aspects of life. That's who I am. There is no such thing for me as "too much risk", only a bad risk-to-reward ratio.

There is no such thing for me as “too much risk”, only a bad risk-to-reward ratio.

What goals do you set for your trading?

My goal is to trade whatever I have in front of me. I don't set the goal I want to win because the market doesn't care about my goals. I trade the market as is.

Fill in the blanks

  • Most traders would be better off just placing TP and SL and closing the computer. Not a joke.
  • What separates the pros from the rest is reaction to new information.
  • A good trader should never doubt himself.
  • The biggest misconception about trading is sprinting to wealth.