CEO of Intex, Inc. Ruben Zagagi's interview with Ilan Levy Mayer

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https//www.cannontrading.com

• Ruben Zagagi Interview with Ilan Levy Mayer

Cannon Trading
intexcap.com
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• Ruben Zagagi has 15 years experience developing
  proprietary models for trading futures and
  options on futures. Registered with INTEX as an
  associated person since June 2, 2008 and as a
  principal since May 29, 2008.M.B.A., Finance and
  Accounting, University of Tennessee, Knoxville,
  TN. Graduate Program (MA equivalent), Accounting,
  Tel Aviv University, Tel Aviv, Israel. B.A.,
  Accounting and Economics, Tel Aviv University,
  Tel Aviv, Israel.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Ilan How did you first get involved in trading?
Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• Ruben Actually, I have had the passion for
  trading for a very long time. I started trading
  when I was a teenager. I took my summer work
  money and started trading equities. The market
  was simply fascinating.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
5
Ilan What is your trading methodology?
Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
6

• Ruben I do option credit spreads most of the
  time. Depending on market conditions, I can go
  into debit spreads as well. Those are rare.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
7

• Ilan What is your day-to-day focus these days?

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• Ruben My day to day focus is on maintaining a
  view on the market, watching out for early signs
  of impending market moves, both technical,
  fundamental and geopolitical.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Ilan How do you filter out the noise and figure
out whats important?
Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• Ruben That comes with years of experience,
  watching the market, getting through various
  market conditions and changing behavior. There
  are many factors that go into noise vs. real
  moves.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Ilan Did you have a method for controlling a
risk?
Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Ruben I have stops. Where the stops are placed
depends on several factors, including technical
and an overall view of the market.
Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
13

• Ilan Did you have any goals when you set out?

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• Ruben My goals are to generate moderate returns
  with minimal drawdowns. While drawdowns are
  inevitable, I go with the saying pigs get
  slaughtered. So I do not look for
  extraordinarily high returns, knowing that much
  higher risk comes along with higher returns. I
  view my job primarily as managing risk.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
15

• Ilan What is 1 thing traders can do today to
  start getting better results?

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• Ruben Im sure you have heard this many times.
  Discipline is key. The set of rules that you set
  as a trader should not be changed at times of
  distress. That isnt a time when you can set
  rules in a rational manner.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• Ilan What is the role of commodity futures
  market and why do we need them?

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• Ruben One function of commodity futures markets
  is to trade assets that are outside of equities.
  For example, in the equity market you can trade
  oil companies, but if you want to trade crude oil
  directly, the futures markets are there to
  facilitate. Another function for most investors
  is simply diversification. The stock market has
  become so efficient that stocks move together. It
  has become highly correlated. Commodities markets
  can offer an uncorrelated return that reduces
  overall risk and volatility for your portfolio as
  a whole.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
19

• Ilan Are there any traders you look up to?

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• Ruben Ed Padon. He managed a 200M fund up
  until the 2008 crash. He managed 1 10 drawdown
  in 2008 when everyone else was getting crushed.
  His conservative management in trading futures
  was an inspiration.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
21

• Ilan Do you have any concerned about algorithm
  grading high frequency?

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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• Ruben Yes, my main concern with algorithm
  trading is that the market changes. An algorithm
  will work beautifully until the market changes,
  then it fails. From my experience, by the time
  the algorithm shows good results and people start
  putting money into it, then it often fails. The
  market changed its pattern by then. As far as
  high frequency trading, it worked well when only
  a few were playing against the slow players. Now
  that many frequency trading players are out
  there, they are playing one another, which
  lessens the effectiveness of the strategy.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Disclaimer

• Trading Futures, Options on Futures, and retail
  off-exchange foreign currency transactions
  involves substantial risk of loss and is not
  suitable for all investors. You should carefully
  consider whether trading is suitable for you in
  light of your circumstances, knowledge, and
  financial resources. You may lose all or more of
  your initial investment. Opinions, market data,
  and recommendations are subject to change at any
  time.

Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.
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Disclaimer There is a substantial risk of loss
in trading commodity futures, options and
off-exchange foreign currency products. Past
performance is not indicative of future results.