I know, I know… it’s February already.
So my trading projects for 2020 should have been set already. Yet, this year it was harder than previous years.
The reason is simple: With the growth of our hedge fund, there are simply too many projects we want to accomplish. And it’s pretty hard to prioritize sometimes.
Besides, we don’t really know where 2020 will take us, so we can’t even plan for the whole 12 months ahead. There might be a lot of pivoting, or new and more urgent requirements that show up.
Yet, I tried to assemble my 5 key trading projects for 2020, and here they are:
1. Pushing robustness testing (even) further
I think I’m already known as a robustness testing freak (simply because I believe that without really extraordinary robustness testing procedures, the probability that your strategy will fail and lose money often equals almost certainty). My robustness testing procedures are one of the toughest in the industry. (You can learn my entire robustness testing protocol in the Breakout Masterclass). But this doesn’t mean I stop there. In fact, the right opposite: I’m enthusiastic to learn even more about how to push robustness even further.
Just recently, I had some new ideas (the last one I called the “Breakout Integrity Stress Test”). These ideas are currently a work in progress (and we’re working on them not only with my hedge fund team, but with Andrew as well). But it’ll be exciting to see what new things we can find and improve on. (Of course, if anything proves itself, we’ll update the Breakout Masterclass too).
2. Going to the unknown with new markets and trading sessions
At the end of 2019, I did extensive research regarding tradable trading sessions. I have to admit, a lot has changed in the past few years. Many more markets are now tradable overnight, which is giving us some completely new, exciting possibilities and opportunities.
My hedge fund is now finalizing all the work to start creating breakout trading strategies for extended trading sessions too, which I’m very excited about. I know Andrew has already built a few strategies that trade outside the regular trading hours, and I can see a lot of promise there too.
Besides, we still have a few markets to “crack”, including European futures bunds. It will be interesting!
3. Improving the portfolio construction protocol
Creating breakout trading strategies is easy and fun. (If you still struggle to create them, don’t forget to take the 14-day breakout strategy challenge).
Assembling portfolios is not.
It’s not just about correlation anymore. It’s also about linearity, better volatility management, and not “teasing the snake with bare feet” when markets are highly unfavorable to breakout trading.
To be honest, assembling portfolios is the area we still keep updating the most. And we still have more to learn and tune.
Hopefully, our ongoing research will bring some good updates.
4. Improving trade management
This year we’re also testing some new, advanced trade management techniques. It’s actually an ongoing project since 2019. The goal is to find out which alternative trade management approaches breakout trading strategies respond well too. This is an advanced topic, so the results will be shared in the Elite program only.
5. Improving portfolio management
And finally, we’re still working on updates regarding portfolio management. Specifically, researching and testing other possible approaches to swapping trading strategies, rebalancing the portfolio, and detecting failing strategies a bit sooner than now. This topic has never been an easy one and there definitely is not just one solution. It’ll be interesting to see where this takes us.
So, that’s it.
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