Yo, You’ve tested a strategy. The results look good.
Then the next qualifier appears and you find yourself checking everything again. Was the sample big enough? Were the results just a lucky run? What happens if the next ten trades lose?
That hesitation makes sense. A profit figure tells you where the strategy ended up. It doesn’t show you what you might have to sit through to get there.
Before I’d trust a strategy, I’d want to look at the losing runs, the drawdown and whether the results still hold up when I test a different period.
I’ve made a video showing you how I check whether a strategy is actually good, beyond the headline profit.
Watch it here: https://youtu.be/Bevl0RZWEjI
It’ll give you a better set of questions to ask before you put real money behind your next strategy.
Martin |