Introducing Jesse Livermore, Professional Asset Manager — Set Social Trader Spotlight
Welcome to the Set Social Trader Spotlight Series. In these posts, we give you insight into exciting new traders that will be trading on the Set Social Trading platform. If you want to learn more about Set Social Trading, you can click here.
Today, we’ve got an interview with Jesse Livermore, a new trader on the TokenSets platform who’s offering his ETH Momentum Trigger Set.
Jesse’s Sets are now live on TokenSets — you can check them out here.
Hey Jesse, it’s great to have you. First, could you give us a quick intro about yourself and your background?
Hi, I’m Jesse. I traded and managed other people’s money professionally from about 2006 to 2013 — first at a small investment firm with a couple 100 million AUM’s and then at a hedge fund with over $1 billion AUM. Both firms believed in active management strategies. My job was to monitor the existing strategies in place as well as create new strategies and backtest the hell out of them.
At the hedge fund I worked directly with the CEO/Founder, who had been actively trading the markets since the early 1980’s, to build a resilient, robust and overall high return, low drawdown system for trading ETF’s. After a couple years of testing just about every technical analysis indicator, and also reading academic finance journals on technical analysis indicators, we finally struck pay dirt by creating a very simplistic active management system that, when backtested, fit the bill perfectly with being robust across assets, asset types and markets and resilient, with high returns and very low drawdown.
This similar system logic is the basis for my portfolio systems on TokenSets.
How did you get started trading?
I started trading stocks in 1998. I traded FOREX in college (got a Finance degree). I started professionally managing other people’s money in 2006. Got my series 7, along with my Chartered Alternative Investment Accreditation (CAIA). Created an amazing active management system which immediately had a couple $100 million behind it but felt very shortchanged by it all. Eventually got pretty disillusioned with the investment world in 2012 and left it completely the next year (see below).
Around 2014 though my passion for Crypto was ignited as I finally purchased my first Bitcoin that year. I’d heard of Bitcoin and knew of it as far back as 2010 but didn’t trust Mt. Gox and unfortunately didn’t take the time to figure out how to mine.
Any thoughts on the current state of the crypto market?
I think we’re on the precipice of the next great Crypto bull market which might very well see ETH hit the $1 trillion market cap level within a couple years (yes, a 50x return) and many alts at even higher multiple returns.
The Fed, by way of Bernanke in 2008, opened Pandora’s Box. One of the biggest mistakes they made was starting on this path of Quantitative Easing. It was clear there was no exit pathway for them and it was clear that the moment they decided to stop buying up assets that it would be a threat that could bring down the whole house of cards. When I was in the industry it was a joke then that they were eventually going to buy up every asset to prop up the markets. I became quite disillusioned with the investment world as they all drank the “kool-aid” and believed that what they were witnessing was legit capitalism versus some perverse corporate government state… unfortunately it’s now basically coming true in that they have to backstop every single asset just to keep the whole charade afloat. Luckily for Crypto, this is where it shines. Satoshi saw this playing out perfectly and I believe we will see decentralized Crypto, in some form, become the next global reserve currency.
What strategies will you be offering on the TokenSets platform?
My system performs very well with just about every asset and Crypto out there (like I said above — it’s robust) but I will start out with a simple “buy ETH (wETH)” or “hold Cash (USDC)” timing strategy.
Eventually I’d like to start a LINK or USDC strategy as well as a BTC or USDC strategy.
Anything else you’d like to tell us or your potential followers?
I have my own funds, built up since 2014 when I bought my first BTC, fully following this system logic (of course, my own portfolio is monitoring dozens of assets to trade, not just ETH or Cash).
From my own trading of this system recently, I know the potential downside is if there’s any adverse slippage seen in TokenSets or any costs associated with rebalancing. This could be detrimental to performance because this system will trade on average about 15 times per month, so trading fees and slippage could very well be an issue. We’ll see though! I’m optimistic that liquidity will be good.
