In this episode we’re going to be talking about holey strategies and portfolios.

Now, when I say "holey" I’m not talking about religion, divine intervention, holy grails or anything like that, although we could probably apply todays topics to those type of strategies that need divine intervention (and who hasn’t had a strategy like that at some point?).

No, when I say "holey" I mean something with a hole in it, like a bucket that has a hole in the bottom.

When you put water or some other liquid into that bucket, obviously it starts leaking, reducing the performance of that bucket and today we’ll be discussing holes in trading strategies and portfolios that could be reducing trading performance.

Joining us as special guest for this episode is Ryan Moffett from Blackpier Capital.

Ryan has spent the last 12 years specializing in designing and trading robust strategies, working with and being mentored by traders out of the CBOE as well as hedge fund managers out of New York and California.

Some of the things you’ll discover in my chat with Ryan are:

• Why manual backtesting can be more beneficial than automated testing,
• How ‘deliberate practise’ can be used in the strategy creation process to get a deep understanding of a strategy,
• How to find holes in a trading strategy that could punish your trading performance,
• The hole in people’s portfolios and how allocating a small portion to ‘the 4th asset class’ can be a good hedge for a portfolio when other markets aren’t doing too well,
• Plus a hole lot more... (see what I did there!)

Disclaimer:
Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.

Confidence is a powerful thing – when people have it they can do some pretty amazing things, but on the opposite side, a lack of confidence can be debilitating too, and for traders it can have some similar effects, especially when the performance of a strategy starts to suffer and a trader has money on the line.

So, what can we do about this?

How can we have more confidence in the strategies that we build and trade? Confidence that we’ve built strategies that are robust. Confidence to continue trading strategies during the periods when strategy performance may be struggling.

Our special guest for this episode is Adrian Reid from Enlightened Stock Trading, and in our chat Adrian is going to enlighten us on building trading strategies that we can have confidence in.

We’re not just going to talk about trading psychology here, but Adrian will be sharing practical aspects of system design and validation, that can give us more confidence in the strategies that we create and trade live.

Some of the things you’ll discover in my chat with Adrian are:

• The 5 key areas traders must address to build confidence in a trading system,
• Significance testing - why it’s important to strip a strategy down to just the core components and how to determine which components are really driving performance,
• Why the transition from backtesting a strategy to trading it live can be a difficult and uncertain one, and the preparation steps you need to take to make the transition smooth,
• How a technique called ‘start-date stepping’ can provide valuable insights into how a strategy could really perform in live trading,
• Plus, performance profiling across market conditions, sensitivity testing, why traders lose discipline, testing strategy rules in reverse, and much more.

Disclaimer:
Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.