Line Your Own Pockets

Every trader has an opinion on what the perfect metric is to evaluate a strategy and to optimize on.We discuss our favorites and why.

"If your backtest looks great for the last 3 months, why do you care what it looked like before that?"A trader Dave started coaching recently asked this question. The answer cuts to the core of why most traders give up on a trading strategy and end up quitting trading altogether.The Spurious Correlations website that was mentioned in the podcast.

You've got a lot of ideas, each requiring a certain amount of work.  How do you decide what trading ideas are likely to pan out?Improving an existing strategyCreating a new strategyRelated workflow tasksThe ICE Method

We discuss the most common objections traders have to using automation and how to get over the hump.

A follow-up on our previous interview with Jared Tendler where we go deeper into:the role of optimism in tradingpoker and tradinglearning from top performers in non-trading fieldsA chart of earnings season:https://www.davemabe.com/earnings-season/

This week, we interviewed Jared Tendler, a mental coach for traders, poker players, and golfers. Jared has written several books, including The Mental Game of Trading.This was a wide-ranging interview where we discussed:The mental side of systematic tradingHow poker and trading are similar and differentWhat traders can learn from top performers in other fieldsFind more info about Jared on his website: https://jaredtendler.com/

When the market is raging in a way that's far out of the ordinary, should you turn your strategies off?  Or let it be business as usual?  We discuss the things to consider.

We discuss how Dave turned a trader's frustrating bad habit into a positive workflow for creating new trading edge.  This is a great case study for the power of a positive mindset and a desire to get better.

You're trading a strategy - you're comfortable with the number of trades.  And then BOOM - one day the entire market is moving and your system generates 10x the number of trades it normally does.How do you react?  Michael and I discussed the first time this happened to me and how best to respond to prepare for the next time.

Do you let the quest for perfection get in the way of trading success? It's more common than you might think. We discuss where this tendency comes from and how to let go of it to make progress in your trading."From the surface, every rabbit hole looks like a pile of money." - DaveHere's a link to the book Michael mentioned: Golf Is Not A Game Of PerfectThe Monkey Trap via Robin Hanson.