About 5 weeks ago I got a great trading lesson from my own hedge fund team.

I’ve spent years “training” these exceptional guys. Sharing as much of trading experience and knowledge as I could with them, but now they’re training me!

But before I share the story with you, and the important trading lesson in it, I have a small question for you.

Or, rather, let’s call it a small test:

Do you know what’s wrong with the equity curve of this Crude Oil trading strategy?

Still thinking?

Ok, the answer is…

… ABSOLUTELY NOTHING!

So why am I sharing it with you?

Let me tell you.

My team and I are in the process of completing our second CTA investment program in our hedge fund.

Want MORE? Sign up for the free BTA newsletter and join 1000’s of other traders who receive meaningful trading content every week, straight into your email inbox. Click here to join us.

Months ago I gave my team very detailed and specific instructions on how to assemble the new CTA program and what it should look like. Based on these instructions, they selected the trading strategies and compiled them into several different portfolio candidates.

One of the portfolio candidates looked exceptionally good, so I started considering it as the final portfolio. But before that, I wanted to do a final check of the individual strategies in the portfolio first.

I started looking at each individual strategy until I stumbled upon the one I shared with you above.

I immediately didn’t like the character of the equity curve.

I asked my team if we had a “better” one (from the hundreds of highly robust breakout strategies in our database).

To my surprise, my team started defending this strategy.

They said it was the very BEST fit from the dozens of Crude Oil strategies we have in our database. I couldn’t believe it, so I started checking myself.

And my team was absolutely right!

We have MUCH better Crude Oil strategies when it comes to the quality and smoothness of the equity curve. But this strategy smoothed the portfolio equity the most, thanks to its low correlation with the rest of the portfolio!

So it reminded me of two very important things:

1.Always keep the bigger picture in your mind. Trading is like Lego – a lot of small pieces that need to fit together. Sometimes our personal biases need to step aside in the name of the “whole”. A standalone strategy can look a bit “weird”, but can do true MAGIC in a portfolio.
2.If you want to build portfolios with exceptional results, you need to have A LOT of trading strategies to choose from. A few strategies are never enough. You need to aim for dozens of strategies at least. Hundreds if even better (and quite achievable if you know how!).

If you still struggle to develop a lot of great strategies fast, then stop wasting your time. Discover how to start building great trading strategies in 14 days.

Happy trading and happy portfolio building!

Tomas & Andrew

 

How To Start Creating Profitable Breakout Strategies In 2 Weeks Without Spending More Than 35 Minutes A Day

✓ The simple but incredibly powerful process to building profitable breakout strategies really fast,

✓ The 5 key components you need to create a good quality breakout strategy,

✓ How the power of automation can slash the time and effort you need to create loads of breakout strategies quickly and easily,

✓ How to tell if a breakout strategy is worth trading or is just over-fit rubbish,

✓ Start generating profitable breakout strategies in under 14 days without spending more than 35 Minutes A Day.

DISCLAIMER: Trading involves significant risk of loss and is not suitable for everyone. People can and do lose money. Hypothetical results have many inherent limitations. Past performance is not necessarily indicative of future results.

© 2018 BetterTraderAcademy.com |

Privacy Policy

|

Contact Us
Top