Video Three – Putting Luck on Our Side

Video Three - Trading, Luck, and Viewing the Distribution of Possibilites

How do we choose between two similar systems if we have limited capital?

How can we put luck on our side as traders and money managers?

Everyone views the backtest, equity curve, drawdown statistics, win percentage. At this point you should utilizing out of sample testing and making sure your strategies allow the law of large numbers to play out. But are those things alone a deep enough dive?

Why not look at where your strategy comes from in terms of the entire distribution? Things will not be the same in the future as they were in the past – so what if we can simulate for those changes – would you?

If you have questions about the videos, software, techniques discussed, etc. just shoot me an email. I'm a real guy not some big company!

Risk Disclosure

Futures And Forex Trading Contains Substantial Risk And Is Not For Every Investor. An Investor Could Potentially Lose All Or More Than The Initial Investment. Risk Capital Is Money That Can Be Lost Without Jeopardizing Ones Financial Security Or Life Style. Only Risk Capital Should Be Used For Trading And Only Those With Sufficient Risk Capital Should Consider Trading. Past Performance Is Not Necessarily Indicative Of Future Results.

Hypothetical Performance Disclaimer

Hypothetical Performance Results Have Many Inherent Limitations, Some Of Which Are Described Below. No Representation Is Being Made That Any Account Will Or Is Likely To Achieve Profits Or Losses Similar To Those Shown; In Fact, There Are Frequently Sharp Differences Between Hypothetical Performance Results And The Actual Results Subsequently Achieved By Any Particular Trading Program. One Of The Limitations Of Hypothetical Performance Results Is That They Are Generally Prepared With The Benefit Of Hindsight. In Addition, Hypothetical Trading Does Not Involve Financial Risk, And No Hypothetical Trading Record Can Completely Account For The Impact Of Financial Risk Of Actual Trading. For Example, The Ability To Withstand Losses Or To Adhere To A Particular Trading Program In Spite Of Trading Losses Are Material Points Which Can Also Adversely Affect Actual Trading Results. There Are Numerous Other Factors Related To The Markets In General Or To The Implementation Of Any Specific Trading Program Which Cannot Be Fully Accounted For In The Preparation Of Hypothetical Performance Results And All Which Can Adversely Affect Trading Results.

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