2min chapter

The Trade Busters cover image

96 - Real Talk with Real Traders: Mark Anderson

The Trade Busters

CHAPTER

The Importance of Understanding Your Back Test

The biggest thing is like you have to thoroughly understand your back test and why there's an edge. If you can sell both sides in a strangle, it's just going to be tough to get hit on both sides. And then you have a larger premium pool. So if you're selling both sides versus like a trend following when you're only selling one side, the loss is so massive when you get hit on one side that you only have to be right once out of six times.

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