Uploaded January 2026 | Updated September 2026, 2 weeks ago
JIn this episode of Ticker Talk, we sit down with veteran trader and hedge fund manager Jeff Tompkins of Altos Trading. With over two decades of market experience, Jeff shares his evolution from a retail trader to a fund manager, why trade management is more important than entry signals, and his current outlook on an "overvalued" market.
Jeff also breaks down his "Sleep at Night" test for position sizing and explains why he is currently sitting on a significant cash reserve despite the market hitting all-time highs.
🕒 Timestamps:
0:00 – Intro and Legal Disclaimers
1:33 – Joining The Traders Forum Community
2:20 – Guest Introduction: Jeff Tompkins (Altos Trading)
4:14 – The "Aha" Moment: Entry vs. Trade Management
5:25 – Common Mistakes in Risk Management and Over-leveraging
6:51 – Using Volatility Percentiles and Expected Moves
8:13 – Trade Trend vs. Price Action Pivots
11:06 – How to Refine Your Trading Rules Without Losing Discipline
15:30 – Managing Risk Without Traditional Stop Losses
18:12 – The Importance of Maintaining High Cash Reserves
22:30 – The Psychology of Trading & The "Sleep at Night" Test
28:44 – Inside Altos Capital: Running a Hedge Fund in 2026
37:40 – A Trade That Taught a Lesson: The "Juicy Premium" Trap
41:34 – 2026 Market Outlook: AI Bubbles and Valuations
49:55 – Divergence in the Markets: Gold vs. VIX
54:40 – Advice to a Younger Self
📈 Key Takeaways:
Focus on Management: Jeff argues that the entry is the least important part of a trade; how you manage the position and control risk determines long-term success.
The Power of Cash: Staying 70% in cash during peak market euphoria allows traders to capitalize on "black swan" events and major pullbacks.
The AI Bubble: Jeff compares the current AI boom to the 2000 dot-com bubble, noting a key difference: today’s leaders have the earnings to back up their valuations.
🔗 Connect with Jeff:
Education: altostrading.com
Hedge Fund: altosfund.org
Support: support@altostrading.com
👥 Join Our Community:
Become a part of a growing community of traders for free!
thetradersforum.com
#TradingPsychology #HedgeFund #TechnicalAnalysis #MetaStock #JeffTompkins #MarketOutlook2026 #OptionsTrading #RiskManagement
Legal Stuff
This demonstration is designed to instruct you on using MetaStock and accompanying software plug-ins and is not a recommendation to buy or sell, but rather guidelines to interpreting and using the specific indicators and features within the software. The information, software, and techniques presented today should only be used by investors who are aware of the risk inherent in trading.
MetaStock shall have no liability for any investment decisions based on the use of their software, any trading strategies or any information provided in connection with the company.
MetaStock does not endorse the purchase of any security nor is it paid for the promotion of any security. No information contained in this presentation should be construed as investment advice or a solicitation to buy any security.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL, ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Characteristics & Risks of Standardized Options
Prior to buying or selling an option, investors must read a copy of the Characteristics & Risks of Standardized Options, also known as the options disclosure document (ODD). It explains the characteristics and risks of exchange-traded options. Copies of this document may be obtained from your broker or any exchange on which options are traded.
JIn this episode of Ticker Talk, we sit down with veteran trader and hedge fund manager Jeff Tompkins of Altos Trading. With over two decades of market experience, Jeff shares his evolution from a retail trader to a fund manager, why trade management is more important than entry signals, and his current outlook on an "overvalued" market.
Jeff also breaks down his "Sleep at Night" test for position sizing and explains why he is currently sitting on a significant cash reserve despite the market hitting all-time highs.
🕒 Timestamps:
0:00 – Intro and Legal Disclaimers
1:33 – Joining The Traders Forum Community
2:20 – Guest Introduction: Jeff Tompkins (Altos Trading)
4:14 – The "Aha" Moment: Entry vs. Trade Management
5:25 – Common Mistakes in Risk Management and Over-leveraging
6:51 – Using Volatility Percentiles and Expected Moves
8:13 – Trade Trend vs. Price Action Pivots
11:06 – How to Refine Your Trading Rules Without Losing Discipline
15:30 – Managing Risk Without Traditional Stop Losses
18:12 – The Importance of Maintaining High Cash Reserves
22:30 – The Psychology of Trading & The "Sleep at Night" Test
28:44 – Inside Altos Capital: Running a Hedge Fund in 2026
37:40 – A Trade That Taught a Lesson: The "Juicy Premium" Trap
41:34 – 2026 Market Outlook: AI Bubbles and Valuations
49:55 – Divergence in the Markets: Gold vs. VIX
54:40 – Advice to a Younger Self
📈 Key Takeaways:
Focus on Management: Jeff argues that the entry is the least important part of a trade; how you manage the position and control risk determines long-term success.
The Power of Cash: Staying 70% in cash during peak market euphoria allows traders to capitalize on "black swan" events and major pullbacks.
The AI Bubble: Jeff compares the current AI boom to the 2000 dot-com bubble, noting a key difference: today’s leaders have the earnings to back up their valuations.
🔗 Connect with Jeff:
Education: altostrading.com
Hedge Fund: altosfund.org
Support: support@altostrading.com
👥 Join Our Community:
Become a part of a growing community of traders for free!
thetradersforum.com
#TradingPsychology #HedgeFund #TechnicalAnalysis #MetaStock #JeffTompkins #MarketOutlook2026 #OptionsTrading #RiskManagement
Legal Stuff
This demonstration is designed to instruct you on using MetaStock and accompanying software plug-ins and is not a recommendation to buy or sell, but rather guidelines to interpreting and using the specific indicators and features within the software. The information, software, and techniques presented today should only be used by investors who are aware of the risk inherent in trading.
MetaStock shall have no liability for any investment decisions based on the use of their software, any trading strategies or any information provided in connection with the company.
MetaStock does not endorse the purchase of any security nor is it paid for the promotion of any security. No information contained in this presentation should be construed as investment advice or a solicitation to buy any security.
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL, ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Characteristics & Risks of Standardized Options
Prior to buying or selling an option, investors must read a copy of the Characteristics & Risks of Standardized Options, also known as the options disclosure document (ODD). It explains the characteristics and risks of exchange-traded options. Copies of this document may be obtained from your broker or any exchange on which options are traded.
