Every Investor Prepare Yourself NOW 😲‼️
Summary
The host discusses the critical importance of trading expectancy over large sample sizes, debunking the gambler's fallacy. He reveals backtesting results showing that adding a rising heat map filter to Plan ETF boosted expectancy from 7% to 11%. The episode also explains volatility drag in leveraged ETFs like TQQQ versus QQQ, details the 70/75 rule for rolling options, and answers viewer questions on earnings trading and risk management.
Topics discussed
The importance of backtesting and trading expectancy
Understanding sample size and the gambler's fallacy
Reviewing Plan M performance and market cycles
Optimizing Plan ETF and Plan M through backtesting
Using ATR as a volatility-based exit point
Differences between QQQ and TQQQ and volatility drag
Teaching kids about trading and perfectionism
The 70/75 rule for rolling options spreads
Trading strategies leading up to earnings reports
Correlation between order blocks and profitability
Choosing between TQQQ and SPXL and margin accounts
Risk reduction vs. profit banking when rolling
Analysis of 3 ATR exit strategies for winners
Transitions between Plan ETF and Plan M
Manual backtesting methods and future updates
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