116: Building entries without curvefitting

116: Building entries without curvefitting

You may have noticed over the past few weeks of 'Thursday Trading Thoughts' that we've been following a theme.

In episode 113 we heard about a test Kevin Davey calls the 'Monkey test', which can be used to measure the effectiveness of entries and exits.

Then in episode 114 we reviewed a technique that Dave Bergstrom shared to measure the decay of a trading edge so that we can determine when an edge has gone, and not overstay our welcome at the party.

In this weeks trading thought we're going to discuss the process of combining edges, filters, conditions into a trading system.

A common practice when building trading strategies is to combine indicators or filters to see how that particular combination impacts performance, however this practice can be overused or abused, leading to curvefit strategies that don't perform so well in live trading.

In today's episode we're going to hear one solution for this problem, from our guest Art Collins, who is going to tell us the process he uses to combine edges while reducing the risk of overfitting, so let's hear from Art.

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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Episoder(242)

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240: "Uncovering hidden market reaction zones" - with Fabio Ruggeri

240: "Uncovering hidden market reaction zones" - with Fabio Ruggeri

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239: Confident Consistent Trading - Laurens Bensdorp

239: Confident Consistent Trading - Laurens Bensdorp

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238: The new indicator that improves momentum trading signals - Alex Spiroglou

238: The new indicator that improves momentum trading signals - Alex Spiroglou

A Bloomberg study discovered MACD is the second most popular indicator after the RSI. But the MACD has BIG problems. And in this episode, Alex Spiroglou shares the solution. Here's what you'll dis...

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237: New Volatility Based Trading Techniques with Rob Hanna

237: New Volatility Based Trading Techniques with Rob Hanna

The Volatility Index (VIX) is used by traders to determine when the stock market (S&P) is getting "too risky", so they can protect their trading accounts from losses. Could traders be using the VIX wr...

30 Mai 202459min

236: How to Profit and Protect in Any Market Conditions - with Tom Basso

236: How to Profit and Protect in Any Market Conditions - with Tom Basso

Tom Basso is a Market Wizard with 5 decades of experience. After taking 4 years to get to break-even, he eventually transformed himself into a $600 million fund manager. In this discussion with Tom, w...

23 Mai 202458min

235: How traders can compete in the markets and find profitable edges - Jason Strimpel

235: How traders can compete in the markets and find profitable edges - Jason Strimpel

In this episode, Jason Strimpel from PyQuantNews joins me to discuss how traders can find profitable edges and compete effectively in today's fast-paced markets. Whether you're a seasoned trader or ju...

9 Mai 20241h 1min

234: The Trading Panel – Episode 11

234: The Trading Panel – Episode 11

Welcome to a new trading series called "The Trading Panel," where I collaborate with Jason Perz from Against All Odds Research and a panel of traders to discuss the markets and all things trading. Par...

25 Apr 202449min

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