Advanced Metrics and Optimization
By Dave Mabe
In this week's episode of Line Your Own Pockets, we continue our discussion of metrics for optimizing strategies.
What you choose to optimize when you're creating a strategy can make a big difference in your results.
The obvious choice is Total Profit, but the optimal path that comes with that could be jagged and painful.
Here are some of the topics we touched on:
Optimize for your confidence, not just maximum profit
Try creating two different versions of a strategy, each optimized toward different outcomes
The path a trade takes matters - not just its final P&L
Smooth equity curves are easier to scale - here's why
Don't solve hypothetical problems too early
And much more...
-Dave
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