Episode #124: Dave Mabe CTO Officer at Trade Ideas on Backtesting, creating a process & AI trading
Jun 27, 2024
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Chief technology officer at Trade Ideas & consistent profitable systematic independent trader for 17 years, Dave Mabe, discusses transitioning from manual to automated trading, the significance of backtesting, and the impact of unavailable borrows on trading performance. The episode explores the development of Holly AI, trading psychology, and offers a free trial for the micro futures trading room.
Continuous improvement of Holly AI at Trade Ideas based on machine learning.
Taking partial profits in trading may lead to lower overall profitability.
Day trading offers freedom, avoids overnight risks, and provides an edge in competition.
Deep dives
Holly AI and Back Testing
Holly AI at Trade Ideas was created based on machine learning to adapt to current market conditions. Continuous improvement is ongoing to enhance its performance over time.
Partial Profits Strategy
Partial profits strategy was analyzed in back testing, revealing that taking partial profits may make traders feel better psychologically but can lead to lower overall profitability.
Day Trading vs. Swing Trading
The preference for day trading was explained due to the freedom of being flat at the end of each day, avoiding sleepless nights related to overnight position risks, and the edge perceived in competing with day traders.
Crypto Market and Trading
The focus on day trading instead of crypto trading was discussed, highlighting the preference for strategies that cover a wide market scope, which may be limited in the crypto market.
Trade Size and Scaling Up
Managing trade size was advised to be a psychologically challenging decision, emphasizing the importance of slowly scaling up over time based on back testing results and real-time observations of trade outcomes.
Chief technology officer at Trade Ideas & consistent profitable systematic independent trader for 17 years. Confessions of a Market Maker present Dave Mabe
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