How I'd Explain Trading To My Grandma (as an INSTITUTIONAL Trader)

Summary

Matteo Conti presents trading as repeatedly exploiting an event-driven pattern rather than predicting every individual price move. He says the goal is to identify a market behavior that recurs for a reason, test whether it has held up historically, and follow the rules consistently.

Example Strategy

• Companies that report earnings above expectations and then have a positive trading day are said to continue rising over the following three months in roughly 7 out of 10 cases.
• Conti attributes the pattern to news spreading gradually and large investors adjusting their positions over several weeks.
• He describes this as a statistical edge, not a guarantee that any individual trade will succeed. The video does not provide detailed data, sources, transaction costs, or performance results for the example.

Three-Step Framework

1. Research: Ask a clear, testable question and identify a plausible reason the pattern might recur. The example question is whether companies that beat earnings expectations and have a positive next-day performance tend to keep rising.
2. Validation: Test the idea against many years of historical cases. Reject it if the results do not support it, and consider testing different versions to see whether the result remains robust.
3. Implementation: Risk only a small portion of capital across multiple ideas, and take every trade that meets the predefined rules. Selectively skipping trades based on gut feeling can undermine the tested strategy.

Key Figures and Instruments

• Conti says he worked as a market maker for seven years and made more than €30 million for a large investment bank. These are his own claims.
• The example concerns individual company shares around earnings announcements. No specific companies, tickers, ETFs, or other instruments are named.
• The “seven out of ten” figure is presented as an illustrative historical hit rate, not a promised return.

Disclosures and Cautions

• No explicit “not financial advice” disclaimer is stated.
• The video promotes the Institutional Protocol and invites viewers to join its waiting list.
• The presenter cautions against risking all capital on one idea and against treating past results as certainty.

Presenter/source: Matteo Conti, speaking on the MatFinOg YouTube channel.