1366 - Backtested vs. Live Results & Good vs. Bad Missed Trades
Summary
K. Stokes addresses the common trader anxiety that live results must perfectly match backtesting, explaining why live performance is naturally inferior due to spreads, slippage, and human error. He distinguishes between "good misses," such as avoiding high-impact news events, and "bad misses" caused by poor routine or distraction, emphasizing that missing trades does not invalidate a strategy. The episode highlights the importance of building a trading routine that fits your lifestyle and using tools like pattern recognition software or community feedback to minimize missed opportunities. S…
Topics discussed
Sponsors: LinkedIn Hiring Pro and KeyBank
Introduction: Backtesting vs. Live Trading Expectations
Listener Question: Does Missing Trades Break Your Edge?
Why Live Results Should Be Worse Than Backtests
Strategies to Minimize Missed Trades: Tools and Community
Building a Routine: Good Misses vs. Bad Misses
Sponsors: LinkedIn Hiring Pro and KeyBank
Does One Missed Trade Invalidate Your System?
Navigating High-Impact News Events and Market Expectations
Contextual Relevance of Economic Data Releases
Balancing Systematic Rules with Adaptive Intelligence
Outro and Call to Action
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