In this week's episode of Line Your Own Pockets, we explain how to use candle patterns in your trading strategy.

Topics covered:

• Candle patterns aren't magical signals, but that doesn't mean they have no value
• Instead of "when does pattern A work?", ask yourself "when does pattern A help my strategy?"
• Don't get stuck on the exact definition of a pattern (e.g., a hammer) - it's arbitrary
• The MabeKit Dojiness column as a good example of a continuous versus binary variable in a backtest

And much more...

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Before you go!

The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.

I hope to see you there!

In this week's episode of Line Your Own Pockets, we discuss a question submitted by long-time list member, Matt H., about signal strength.

How strong should your signal be when creating a trading strategy?

It depends...

Topics include:

• Stronger signals make strategy development easier
• A weaker signal can be viable, but in this case the filters do more of the work
• The more filters contribute towards the edge, the more curve-fitting risk
• My favorite strategies are those where the signal is "hiding in plain sight"

And much more...

No matter where you are in your strategy creation process, you'll get something out of this episode.

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Before you go!

The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.

I hope to see you there!

In this week's episode of Line Your Own Pockets, we discuss how small changes to your routine can have big impacts on your trading.

Topics include:

• Beware of doing something simply because "that's how you've always done it"
• Find the most arbitrary assumption in your trading strategy and challenge it
• How I recently changed a strategy I've traded for 20 years using this approach
• It's good to "get your teeth kicked in" every once in a while

And much more...

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Before you go!

The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.

I hope to see you there!

In this week's episode of Line Your Own Pockets, we discuss strategy diversification versus strategy hopping.

One is productive; the other is not.

Topics include:

• How to go deeper on strategies rather than hop from one to the next
• Before moving on from a strategy, document why
• Thorough notes about why you're moving on will make it easier to return to it in the future
• "This strategy doesn't work" is NOT a sufficient answer - you should be able to explain why

And much more...

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Before you go!

The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.

I hope to see you there!

In this week's episode of Line Your Own Pockets, we follow up on last week's topic of trading drawdowns and discuss concrete things you can do when you're in one.

We discuss:

• Even though you can't predict when they'll happen, that doesn't mean you can't prepare for drawdowns
• Update your data, rerun your backtests, and reconcile all live trades
• Small execution differences can cause large P&L gaps
• Professional traders treat drawdowns as opportunities to improve

And much more...

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Before you go!

The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.

I hope to see you there!

Every trader who has quit trading did so during a drawdown.

In this episode of Line Your Own Pockets, we discuss this difficult topic and what you can do now to prepare.

Topics include:

• Drawdowns are psychologically much harder than most traders expect
• The biggest pain isn't the money - it's questioning whether your strategy actually has an edge
• Having only one strategy makes your identity more dependent on its success
• Programmatic sizing rules help eliminate emotional decision-making

And much more...

If you've never had a drawdown or aren't planning on having any more, then you can skip this one. :-)

Otherwise...

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Before you go!

The next time you find yourself in a drawdown, I want you to stop what you're doing and head on over to betterbacktesting.com to sign up for my free backtesting email course.

I hope to see you there!