How Far Back Should Your Backtest Look Good?
By Dave Mabe
In this week's episode of Line Your Own Pockets, we discuss a question from a trader I recently started coaching.
He had a backtest that looked great this year, but not so good before that.
His question was, basically, why should I care how the strategy performed before that?
This is a great question because it gets to the heart of why so many traders abandon strategies too early - or quit trading altogether.
We discuss:
The reason most traders give up on strategies
Trading through a drawdown
Why your "path to confidence" is so important for trading with size
And much more.
-Dave