Line Your Own Pockets

You didn't get a fill on your original entry.  The trade would have been profitable for a bit, then it comes back to your original entry price.  Do you take the trade?  We go in-depth, answering this common dilemma.

• Your default should be to take the trade if it still matches your system
• There's more information to decide on - what can you add to your backtest?
• What are post-entry columns, and how can they help?
• How deep thinking about the issue can help you create brand new strategies

Here's the original article Dave wrote on this topic.

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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!

Michael and Dave discuss NASDAQ's initiative to tokenize all securities and the implications for traders. They discuss:

• What tokenization is and what that means for equities
• How it affects settlement and paves the way for 24/7 trading
• Prediction markets and positive externalities of betting ("Betting is a tax on bullsh*t.")
• Dave proposed a bet to Michael based on the volume traded in the opening and closing crosses in the future

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!

We've got news for you - there's nobody who cares enough about your stops to go "hunting for them."

And getting stopped out by a penny is frustrating, but it's actually a good sign.

• Blaming an algo or anything else for your trade getting stopped out is counter-productive
• Why most traders are completely wrong about placing stops
• How to select stops for your strategy in a data-driven way
• 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 episode, we tackle this popular question. Dave polled several traders he coaches and got some surprising answers.

• How much is trading like, say, poker, or something that is even more up to chance?
• Even starting a business can be called gambling if defined purely as "risking money on uncertain outcomes."
• Does having an edge make trading less like gambling?
• In a casino, is the house "gambling" because it has a strong edge?

What's your take?

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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 episode, we discuss the best way to use alternative data in your backtest.

• What is alternative data and how can you use it in a strategy?
• Examples of alternative data
• Using it in real-time versus a backtest
• How to automate the process for backtesting and real-time trading

Other episodes mentioned: Using News in Your Trading Strategy

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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 episode, Dave discusses a conversation he had with John M. from SMB Trading and his unique approach to taking a strategy live.

We discuss:

• John's 35+ strategies he runs live
• How he quickly gets a strategy running in production
• His approach to collaboration with other traders
• What is "strategy taste" and how you can improve yours over time

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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!

Follow-up discussion on quant and discretionary trader collaboration.

We discuss:

• How Dave first connected with Bella
• The cultural DNA of SMB Capital
• The challenges of quant/discretionary collaboration
• The importance of being a giver, not a taker

Related episode:
Mike Bellafiore and Nick Coutrakon from SMB Capital on Trading Teams
Creating a Trusted Trading Group

Books mentioned:
Give and Take by Adam Grant|
The Go-Giver by Bob Burg and John David Mann

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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!

Mike Bellafiore and Nick Coutrakon join the podcast to continue a discussion Mike had with Dave on the makeup of trading teams at SMB Capital, a proprietary trading firm in NYC.

What's the best way to include a quantitative trader in a discretionary trading team?

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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!

Are you a profitable trader but hesitant to automate your trades?

In this episode, we discuss multiple steps to take towards having a computer make trades without fully automating.

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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!