Subject: Would you stick with it after 10 losses?

Yo,

Your backtest says the strategy made money.

Lovely.


Now it’s lost three trades in a row, and you’re looking at the results again. Same numbers as last week. Somehow they feel less convincing today.


That’s why I wouldn’t judge a strategy by its final profit alone.


I’d want to know how many trades produced that profit, how bad the losing runs got, and whether the results held up in a different period.


Because if a normal losing run makes you abandon the strategy, the headline profit was never going to help you much.


In this podcast, I walk through how to tell if a strategy is actually good, and what to check before you trust it with real money.


Listen here: https://www.buzzsprout.com/1516057/episodes/19862675


Martin


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