Advertise on podcast: Line Your Own Pockets

We discuss: Python is a great general-purpose language, but that's what makes it a bad choice for backtestingIterating on your strategies is the critical piece - anything that makes that more complex will make things more difficultIn a world of LLMs, the argument for using Python for everything makes less senseChoose your tools based on profit potential, not because "I like Python and am good at it."Much more... --- 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!

Topics include: Batteries Data Not Included - the best way to get data into AmibrokerThe code that adds custom columns in Amibroker is resource-intensiveQuirks with databases in AmibrokerYour computer hardware matters with Amibroker (get more RAM)Dave's hardware specs for his backtesting computer. --- 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 go over: How "visual" backtesting is not real backtestingDiscretionary traders try to replace what they're doing with automation - but that's wrongHow to create a completely new strategy from the ground up to be automatedHow to build your "idea noticing" muscleMuch more. Here's the book mentioned in the show: The Art of Noticing --- 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!

Dave continues helping Michael create a first backtest in Amibroker. You might think "backtesting is backtesting," but we cover many of the differences between RealTest and Amibroker, as well as their implications. We discuss: What makes AI so bad at generating good AFL code for a backtest in AmibrokerThe better you get at understanding how AFL works, the better your use of AI getsHow a column library makes all the difference in creating P&LQuick backtests can promote bad habitsAnd much more... Dave also announces the new MabeKit AFL Generator tool. --- 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!

Dave offers advice and feedback to Michael, who is learning to use Amibroker for the first time. He's coming from RealTest, so we go over the similarities and differences between the two platforms. We discuss: How RealTest is great for daily data, but hits a wall for most intraday trading strategiesAmibroker is not just a backtester; it’s a full charting, analysis, and execution environment.Backfilling with IQFeed versus Polygon (there is really no contest)Best practices for databases in AmibrokerMuch more... --- 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 discuss the actual nuts and bolts of what running your trading like a franchise means: Systematize everythingA process for eliminating low-value workWhat makes sense to outsource and what you should keep in-houseMake your trading survive without youAnd much more... --- 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!

As traders gain experience, the problem shifts from not having enough ideas to having too many ideas competing for limited time and mental energy. Without a system, this abundance quickly becomes overwhelming and leads to paralysis or procrastination. We discuss the ICE method - a simple scoring method to determine which ideas to work on first. Spreadsheet Link https://docs.google.com/spreadsheets/d/1iWG87jZ7KiANQzH9O8KwgtRRl5Wcd60Q/edit?usp=sharing&ouid=112987133391354450813&rtpof=true&sd=true --- 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 week's episode of Line Your Own Pockets, we take on a topic submitted by Isaac, a trader I work with. We discuss: When timing/speed matters and when it doesn'tThe types of trading strategies where latency is likely the bottleneckHow rushing to solve problems can be counter-productive (waiting can reveal simpler solutions)Concrete steps to determine if latency is really an issue and how to address itAnd much more... --- 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 butt heads in this episode, arguing about the value of portfolio-level backtesting, one of the key feature differences between RealTest and Amibroker. Is portfolio-level testing essential, or simply premature optimization? --- 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 discuss: How to optimize so you have to re-optimize as little as possibleHow better columns directly translate into more robust strategiesHold a rule "in reserve" so you can apply it when needed without full re-optimizationDocumenting previous optimization decisions will make the next strategy betterAnd much more... --- 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 discuss: Similar to taking partial profits, moving a stop to breakeven is more about psychological comfortProfitable trading requires tolerating discomfort, as difficult as that is at timesIt seems like a simple idea to test, but it quickly adds significant complexity to a backtestHow to actually test this in a backtestThis is a great example of the platitudes you often hear from people who are good at talking about trading, but don't actually trade. --- 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!

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 systemThere'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 strategiesHere's the original article Dave wrote on this topic. --- 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 equitiesHow it affects settlement and paves the way for 24/7 tradingPrediction 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 futureAnd much more... --- 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!