Line Your Own Pockets

We discuss:How to optimize so you have to re-optimize as little as possibleHow better columns directly translate into more robust strategiesHold a rule "in reserve" so you can apply it when needed without full re-optimizationDocumenting previous optimization decisions will make the next strategy betterAnd much more... ---Before you go!The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.I hope to see you there!

The discussion dives into the psychological comfort behind moving stops to breakeven and its potential pitfalls. Traders often act out of pain avoidance, which can lead to unprofitable decisions. Testing stop-moving strategies reveals added complexity that can destabilize trading systems. The hosts advocate for taking smaller trades to minimize emotional burden and highlight the benefits of predefined exit plans. They also explore using trailing stops as a less complex alternative to enhance trading strategies.

You didn't get a fill on your original entry.  The trade would have been profitable for a bit, then it comes back to your original entry price.  Do you take the trade?  We go in-depth, answering this common dilemma.Your default should be to take the trade if it still matches your systemThere's more information to decide on - what can you add to your backtest?What are post-entry columns, and how can they help?How deep thinking about the issue can help you create brand new strategiesHere's the original article Dave wrote on this topic. ---Before you go!The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.I hope to see you there!

Michael and Dave discuss NASDAQ's initiative to tokenize all securities and the implications for traders. They discuss:What tokenization is and what that means for equitiesHow it affects settlement and paves the way for 24/7 tradingPrediction markets and positive externalities of betting ("Betting is a tax on bullsh*t.")Dave proposed a bet to Michael based on the volume traded in the opening and closing crosses in the futureAnd much more... ---Before you go!The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.I hope to see you there!

We've got news for you - there's nobody who cares enough about your stops to go "hunting for them."And getting stopped out by a penny is frustrating, but it's actually a good sign.Blaming an algo or anything else for your trade getting stopped out is counter-productiveWhy most traders are completely wrong about placing stopsHow to select stops for your strategy in a data-driven wayMuch more... ---Before you go!The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.I hope to see you there!

In this episode, we tackle this popular question. Dave polled several traders he coaches and got some surprising answers.How much is trading like, say, poker, or something that is even more up to chance?Even starting a business can be called gambling if defined purely as "risking money on uncertain outcomes."Does having an edge make trading less like gambling?In a casino, is the house "gambling" because it has a strong edge?What's your take? ---Before you go!The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.I hope to see you there!

In this episode, we discuss the best way to use alternative data in your backtest.What is alternative data and how can you use it in a strategy?Examples of alternative dataUsing it in real-time versus a backtestHow to automate the process for backtesting and real-time tradingOther episodes mentioned: Using News in Your Trading Strategy ---Before you go!The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.I hope to see you there!

In this episode, Dave discusses a conversation he had with John M. from SMB Trading and his unique approach to taking a strategy live.We discuss:John's 35+ strategies he runs liveHow he quickly gets a strategy running in productionHis approach to collaboration with other tradersWhat is "strategy taste" and how you can improve yours over time ---Before you go!The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.I hope to see you there!