Creating Accurate Backtests

Why Should You Care About Accurate Backtests? The value of backtests cannot be understated. But they have to be accurate backtests. Anything else will lead you astray. Will create false hope. And eventually lead you down a path of ruin. But when you have accurate backtests, you can go from zero to two, three, four…
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Proper Backtest Timeframes

The further you extend your backtest period the better. The more samples you have to evaluate performance or risk, the greater your understanding of the system you will one day risk capital with. How far back you are able to look though depends on a number of things, including your historical data and the instrument being…
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Find Success Through Honesty

Honesty is a subject almost never discussed and yet so important in achieving success. By honesty, I mean accepting the reality of the situation before you. To see reality as just that, reality. Not to twist the truth to fit a comfortable or convenient narrative. In the capital markets, lack of honesty will cost you money.…
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Adequate Capital

I'm not an advocate of the adage, risk no more than 1-2% of capital per trade. I think following such a rule means either (a) your strategy has too much risk or (b) you don't truly understand the strategy's inherent risk. I'm sure some will take exception with those beliefs, in which case, please share where…
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