Confessions Of A Market Maker Episode #124: Dave Mabe CTO Officer at Trade Ideas on Backtesting, creating a process & AI trading
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Jun 27, 2024 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.
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Dotcom Lesson Sparked Systematic Shift
- Dave bought RFMD after optimistic local buzz and earnings beat, then watched the stock tank and felt he couldn't predict outcomes.
- That loss pushed him to seek a systematic, testable edge instead of discretionary guesses.
Automate To Remove Silly Mistakes
- Automate repetitive trading tasks to eliminate manual mistakes like wrong order sizes and entry errors.
- Use automation as a first step before full system automation to improve consistency and reduce slippage.
Backtesting Is A BS Detector
- Backtesting acted as Dave's "BS detector," revealing improvements over his discretionary rules in the first test.
- Testing ideas systematically unlocked faster iteration and more reliable strategy development.