May 03, 2015

005: Kevin Davey discusses important aspects of system development, the best systems to use, the correct backtesting process and how to be a successful trader

1 hour 4 minutes

Kevin Davey talks about how we went about winning the trading competition, the type of systems you want for the future, some very important aspects of system development that will cost you money if you ignore them, what you need to do before you start trading a strategy and what skills you need to be a good system developer. He offers some really valuable insights and provides an excellent process to system development so you do not want to miss it. Topics discussed:

Why goals and objectives are so important in trading
How to use "the monkey test" to validate entries and exits
Which type of systems adapt better to future conditions
Why walk forward testing is so important and when you shouldn't use it
How often should you re-optimise your systems
Why ignoring Monte Carlo testing can cost you money
Why you shouldn't start trading a strategy immediately after you've finished testing it
How to eliminate bad systems before risking your money on them
Adding or removing systems from your portfolio
Why you need to determine when you will stop trading a system BEFORE you start trading it
What skills are required to be a good system developer

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.

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By Andrew Swanscott chats with professional traders Larry Williams, Ernest Cha

4.8

260260 ratings

May 03, 2015

005: Kevin Davey discusses important aspects of system development, the best systems to use, the correct backtesting process and how to be a successful trader

1 hour 4 minutes

Why goals and objectives are so important in trading
How to use "the monkey test" to validate entries and exits
Which type of systems adapt better to future conditions
Why walk forward testing is so important and when you shouldn't use it
How often should you re-optimise your systems
Why ignoring Monte Carlo testing can cost you money
Why you shouldn't start trading a strategy immediately after you've finished testing it
How to eliminate bad systems before risking your money on them
Adding or removing systems from your portfolio
Why you need to determine when you will stop trading a system BEFORE you start trading it
What skills are required to be a good system developer