Coaching Session with Jared
By Dave Mabe
MabeKit user Jared R. emailed recently with a success story.
The trading strategy he built was up 25% in a short period, and now he was in a slight drawdown.
We scheduled a Zoom call to discuss in detail and post to my YouTube channel.
Here are some of the topics we covered:
Risk per trade - you might be risking more than you think
The number of trades in your backtest/strategy
Scaling up size in a strategy (most traders increase size too much, too quickly)
Creating the confidence to trade through a drawdown
And much more...
Drawdowns have a strong psychological effect, but they come with the territory.
Every trader who has ever quit trading did so during a drawdown.
Imagine you're in a drawdown - it sucks, and you're thinking about giving up on your strategy.
You're worried something has changed.
You're worried your strategy will never come back.
But that drawdown is what you should focus on as you build your strategy.
I'm happy to report that since we recorded this video, Jared has had several green days, and his strategy is comfortably at new equity highs.
Nice work, Jared, and thanks for sharing your success!
-Dave
P.S. Did you see the market action in ENSC yesterday? Here's a good write-up on it from a long-time friend of the list, Maoxian: Nasdaq FINALLY Responds to Obvious Market Manipulation