5min chapter

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189: Managing multiple trading strategies – David Bean

Better System Trader

CHAPTER

Using Ugly Equity Curves in a Multi-Strategy Environment

In a multi-strategy environment you would expect a smoother equity curve. Does that mean that you can allow each strategy to be less smooth and can use strategies that are less complex? Absolutely, that's exactly what I do with my webinars. You have to learn to be comfortable in the fact that, hey, these are not perfect, these are ugly equity curves, this is a normal trading system. There's just a limitation to what you can do in a trading system in any single trading system. If it's unoptimized, if it's not curve fitted then it's going to have some drawdown in it.

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