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Mind Over Markets

How to Create and Test a New Trading Strategy

Dec 16, 2021
38:23

Podcast summary created with Snipd AI

Quick takeaways

  • To develop a successful trading strategy, traders must start by generating and refining multiple trading ideas to establish a solid foundation.
  • After conducting back testing and rigorous analysis, traders should iterate on or discard strategies based on performance metrics to ensure only robust ones proceed in the trading process.

Deep dives

Starting with an Idea and Creating a One Pager for it

To create a successful trading strategy, traders should begin by generating various trading ideas, ranging from capturing early market volatility to enhancing discipline. These ideas serve as the foundation for developing a strategy and are stored in an 'idea parking spot' for future reference. Once ideas are collected, traders should transition to crafting a 'one pager' detailing the strategy's filters, entry criteria, and execution specifics to ensure a clear and concise blueprint for trading.

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