The Prop Trader's Chronicles
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First off, I’d like to apologize to Jake for sharing a book that we promised to never share with others, but I’m finally breaking the silence… if I'm being honest, I have already shared it with a few traders over the last few months, whoops!
In the vast sea of "trading literature", there exists a hidden gem that truly stands out. There’s only one issue… Francis J. Chan is the world's worst marketer. The Prop Trader's Chronicles is a fantastic read for all active traders.
Chan's masterpiece dives into the intricacies of short-term trading, offering insights into working at proprietary trading firms, scalping strategies, pairs trading, reading the tape, trading with true edge, and most importantly: routes. Yes, routes – also known as “the cost of doing business” to many sloppy and on-the-spectrum traders. Chan breaks down each route, making it effortless for readers to understand the advantages and drawbacks without the hassle of searching around. By unraveling this complexity, he unveils which routes provide the best fills and rebates, ultimately leading to considerable savings and better execution for each specific situation.
Personal testimony? I went from bleeding cash on commissions to slashing costs by a jaw-dropping $30,000 annually on average, all thanks to a book that took a couple afternoons to read.
But that's not all. This book goes beyond just saving money; it's about making money—and quickly. Chan covers various strategies throughout the book, including market making, layered position sizing, auction strategies, intraday M&A scalping, pairs trading, and more. Each strategy offers a real edge, focusing on generating significant returns with minimal drawdown.
In fact, I often find myself applying Chan's straightforward strategies to my own trading. Just the other week, I participated in a pairs trade (more so as a hedge) by shorting MARA on May 7th at the closing print, following its addition to the S&P 600 after the index buying had concluded. Simultaneously, I took a long position in an equally weighted amount of RIOT due to the nearly 20% divergence, as illustrated below.
On May 8th, after the index buying had concluded from the previous close, we quickly saw an aggressive sell off on MARA in which I was able to take off the remainder of the hedge (RIOT) and cover the majority of my stock (MARA).
Anyway, this isn't about me; instead, it's about sharing this amazing book that I can guarantee you all will enjoy.
After you finish, I'd love to hear your thoughts and takeaways in an email back to me at kylevallans@gmail.com
If you'd like to pick it up, please use my Amazon affiliate link to help support the page.